15th Oct 2013 07:35
LONDON (Alliance News) - Rio Tinto PLC Tuesday said production increased across the majority of its metals and minerals in its third quarter as new commissioned mines and expansion projects helped the company.
The global metals and minerals producer reported 2% higher global iron ore production of 68.3 million tonnes in the three months ended September 30, versus last year, with global iron ore shipments totalling 68.0 million tonnes, an increase of 4% year-over-year as the company's Pilbara iron ore project increased set a new quarter record production level of 64.3 million tonnes as a new mine at the site came into operation.
The company said its expansion projects at Pilbara are on track and its full-year iron ore production guidance is unchanged at roughly 265 million tonnes.
Rio Tinto said its mined copper production was also up 23% to 162,300 tonnes, versus last year, with its Kennecott Utah project increasing mined copper levels by 38% to 59,100 tonnes and its Escondida site increasing mined copper levels 8% to 81,500 tonnes.
The company said it also signed a USD1.03 billion investment to improve the Escondida site and expects its full year mined copper production levels to be at 590,000 tonnes.
The company also said its aluminium production was up 3% to 878,000 tonnes but that its hard coking coal production was down 6% to 2.3 million tonnes due to an equipment failure at its Hail Creek site in Australia in July.
The company also announced that a USD2 billion extension of the Kestrel Mine was officially opened today in an onsite ceremony near Emerald in central Queensland. This extension would add 20 years to the life of the Rio Tinto managed Kestrel Mine and increase hard coking coal's production to about six million tonnes a year.
The company's semi soft and thermal coal production increased 14% to 7.1 million tonnes as its Clermont site in Australia ramped up thermal coal production to 12.2 million tonnes per year.
Rio Tinto said its diamond production increased 26% at its Argyle site in Australia to 3.8 million carats following the commissioning of new underground operations but diamond production at its Diavik site in Australia fell 13% to 1.0 million carats as a result of lower grades being mined during the quarter.
The company also announced that it is on track to exceed its USD750 million exploration and evaluation spend reduction target for 2013.
Rio Tinto shares were up 2.25% to 3,152.72 pence, making them the top FTSE100 mover in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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