16th Oct 2019 06:38
(Alliance News) - Rio Tinto PLC on Wednesday chopped its bauxite and aluminium production guidance amid worse-than-expected output, while production at Pilbara, located in western Australia, accelerated.
The Anglo-Australian miner said Pilbara iron ore shipments of 86.1 million tonnes in the three months to the end of September were 5% higher than in the third quarter of 2018. Pilbara iron ore production of 87.3 million tonnes was 6% higher year-on-year and 10% higher quarter-on-quarter, reflecting a good recovery from the operational and weather challenges experienced earlier in the year.
Third-quarter bauxite production and shipments to third parties were 9% and 23% higher, respectively, than a year ago. Bauxite production from non-managed joint ventures was, however, lower than planned year-to-date, Rio Tinto noted.
Aluminium production of 789,000 tonnes was 3% lower than the third quarter of 2018, primarily reflecting a preventive safety shutdown at one of the three pot-lines in Iceland and earlier-than-planned pot relining in Canada.
Elsewhere, mined copper production of 158 thousand tonnes was 1% lower than the prior year, but 15% higher than the second quarter of 2019, reflecting higher grades at Kennecott mine, located in the US state of Utah, and improved throughput at Escondida mine, Chile.
Titanium dioxide slag production of 321,000 tonnes was 8% higher year-on-year, reflecting a continued improvement in operational performance and the restart of furnaces in 2019, the company noted.
Looking ahead, Rio Tinto kept its guidance for all of 2019 unchanged, with the exception of bauxite production, which has been revised to around 54 million tonnes from a previously estimated range of 56 million to 59 million tonnes. Aluminium production guidance was revised downwards to around 7.7 million tonnes from 8.1 million to 8.4 million tonnes.
Turning to operations, Rio Tinto said, at the Oyu Tolgoi underground project in Mongolia, the primary production shaft remains on track for commissioning later in October. Since July, the company has completed key infrastructure, it said, including the central heating plant, the shaft jaw crusher system and the surface discharge conveyor. Work continues on the mine re-design, Rio Tinto highlighted.
"We have delivered improved production across the majority of our products in the third quarter, with a solid result at our Pilbara mines driving increased sales of iron ore into robust markets," said Chief Executive Jean-Sebastien Jacques.
"Our strong value over volume approach, coupled with our focus on operational performance and disciplined allocation of capital, will continue to deliver superior returns to shareholders over the short, medium and long term," added Jacques.
By Evelina Grecenko; [email protected]
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