21st Apr 2015 05:10
LONDON (Alliance News) - Anglo-Australian mining giant Rio Tinto PLC on Tuesday reported that its global iron ore production for the first quarter grew 12% from last year, reflecting the expansion of its mining operations in the Pilbara region. However, iron-ore production declined 6% from the preceding fourth quarter.
Sam Walsh, Rio Tinto chief executive, said, "By making best use of our high quality assets, low cost base and operating and commercial capability our aim is to protect our margins in the face of declining prices and maximise returns for shareholders throughout the cycle."
Rio Tinto, the world's second-largest iron-ore producer, said global iron ore production for the first quarter increased 12% on a 100% basis from last year to 74.7 million tons, with Rio Tinto's share increased 14% to 59.4 million tons.
But the company's iron-ore production declined 6% from the preceding fourth quarter. Iron ore sale accounts for roughly 90% of the profit of Rio Tinto.
Meanwhile, iron ore prices have slumped from about USD130 per ton at the start of 2014 to about USD50 per ton recently.
At Pilbara, iron ore production grew 12% from last year to 71.1 million tons, while sales of 69.3 million tons was up 8%. The mines in the Pilbara region are among those having the lowest cost of operations in the world.
The company's global iron ore shipments for the quarter grew 9% on a 100% basis from the year-ago quarter to 72.5 million tons. However, iron-ore shipments declined 12% from the preceding fourth quarter.
In the quarter, total mined copper production decreased 9% from last year to 144.1 million tons, primarily due to lower grades at Kennecott. Bauxite production for the quarter rose 4%, while aluminum production was flat with last year.
In the quarter, hard coking coal's production increased 10%, and semi-soft and thermal coal production rose 4% from last year.
Looking ahead to fiscal 2015, Rio Tinto reiterated its outlook for global shipments approaching 350 million tonnes from its operations in Australia and Canada.
Copyright RTT News/dpa-AFX
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