16th Oct 2015 05:24
LONDON (Alliance News) - Anglo-Australian mining giant Rio Tinto PLC on Friday said its production of iron ore for the third quarter increased 12% from last year, while shipments of the steel making material rose 17%.
Looking ahead, the company said it is on track to meet its outlook for full-year iron ore shipments.
Rio Tinto, the world's second-largest iron-ore producer, said its global iron ore production for the third quarter increased 12% on a 100% basis to 86.1 million tons. The increase was aided by productivity gains and the ramp-up of operations in addition to favorable weather conditions.
The company's third-quarter iron-ore production rose 8% sequentially. Sales of iron ore, which is used for making steel, accounts for roughly 90% of Rio Tinto's profit.
Rio Tinto's global iron ore shipments for the quarter grew 17% on a 100% basis from the year-ago quarter to 91.3 million tons. Sequentially, iron-ore shipments were up 12%.
Over the past few years, Rio Tinto and rivals like BHP Billiton Ltd and Brazil's Vale have been increasing production of iron ore despite the fall in iron ore prices on weak demand from China. Iron ore prices are currently trading at about USD53 a ton.
At Pilbara, iron ore production grew 12% from last year to 81.3 million tons and sales rose 16% to 85.6 million tons.
Rio Tinto said it has completed the key elements of the Pilbara infrastructure expansion during the first half of the year, with the ramp-up of iron ore mined capacity continuing to generate maximum value.
Meanwhile, quarterly total mined copper production decreased 24% from last year to 115 million tons, primarily due to lower output at Kennecott Utah and Escondida mines.
Bauxite production for the quarter rose 4%, while aluminum production edged up 1% from last year.
Hard coking coal's production increased 5%, while semi-soft and thermal coal production declined 8% from last year.
Looking ahead to fiscal 2015, Rio Tinto Rio Tinto maintained its outlook for global iron ore shipments of around 340 million tonnes from its operations in Australia and Canada.
Copyright RTT News/dpa-AFX
Related Shares:
Rio Tinto