16th Jul 2014 05:54
LONDON (dpa-AFX) - Anglo-Australian mining giant Rio Tinto PLC reported Wednesday that global iron ore production for the second quarter grew eleven percent from last year, reflecting productivity improvements and the completion of ramp up of mining operations in the Pilbara region.
The company also maintained its full-year 2014 production guidance, while raising copper production guidance.
Rio Tinto, the world's second largest iron-ore producer, said global iron ore production for the second quarter increased 11% on a 100% basis from last year to 73.1 million tonnes, with Rio Tinto's share also growing 11% from last year to 57.5 million tonnes. Iron ore sale accounts for roughly 90% of the profit of Rio Tinto.
At Pilbara, iron ore production grew 11% to 69.1 million tonnes from last year, driven by productivity improvements and the completion of ramp up to 290 million tonnes per year. Sales set a new quarterly record of 71.8 million tonnes, up 27% from last year. The mines in the Pilbara region are among those having the lowest cost of operations in the world.
Global iron ore shipments for the quarter grew 23% on a 100% basis to 75.7 million tonnes from the year-ago quarter.
In the quarter, total mined copper production improved 28%, primarily benefiting from higher grades at Kennecott Utah Copper and production ramp up at Oyu Tolgoi. Bauxite production for the quarter decreased 7%, while aluminum production remained flat with last year.
In the quarter, hard coking coal's production was up 6%, while semi-soft and thermal coal production declined 7% from last year.
The company noted that the full ramp up to 290 million tonnes per year nameplate capacity was achieved in May, two months ahead of schedule. It is also remains on track for completion of expansion of the port, rail and power infrastructure capacity to 360 million tonnes per year by the end of the first half of 2015.
The ramp up will see Pilbara mine production capacity increasing by more than 60 million tons between 2014 and 2017, with production of 330 million tons expected in 2015, compared to production of 250.6 million tonnes in 2013.
Looking ahead to 2014, the company said production guidance remains unchanged at 295 million tonnes from its global operations in Australia and Canada, subject to weather constraints. Rio Tinto also expects global shipments of about 300 million tonnes on a 100% basis.
Further, Rio Tinto raised its guidance for its share of mined copper production by 15,000 tonnes to 585,000 tonnes, and refined copper production by 40,000 tonnes to 300,000 tonnes.
In Wednesday's regular trading session, RIO.AX is currently trading on the ASX at AUD63.69, up USD0.59 or 0.94% on a volume of 0.58 million shares.
RIO closed Tuesday's regular trading session at USD56.34, up USD0.64 or 1.15% on a volume of 2.47 million shares.
Copyright RTT News/dpa-AFX
Related Shares:
Rio TintoBHP Group