18th Apr 2018 08:32
LONDON (Alliance News) - Rio Tinto PLC on Wednesday said productivity improvements and fewer weather disruptions resulted in higher iron ore production and shipments in the first quarter of the year.
The miner also said that copper production recovered following a labour union strike in the first half of last year at Escondida mine in Chile.
The company's Pilbara mine located in western Australia recorded 8% year-on-year growth in iron ore production to 83.1 million tonnes for the three months to end-March, 69.1 million tonnes of which was net to Rio Tinto. Iron ore shipments rose 5% to 80.3 million tonnes, with net 66.6 million tonnes to Rio Tinto.
Rio said it remains on track to meet 2018 shipments guidance of between 330 and 340 million tonnes.
Rio reported a 12% rise in bauxite production for the quarter to 12.65 million tonnes and a 65% jump in mined copper production to 139,300 tonnes, with the copper rise due to a production ramp-up at the Escondida mine.
The company remains on track to meet its share of mined copper production for the year of between 510,000 and 610,000 tonnes.
First-quarter aluminium production fell 5% to 846,000 million tonnes due to an "ongoing lock-out" at the Becancour smelter in Canada and a power incident at Dunkerque smelter in France.
Rio said aluminium guidance of 3.5 to 3.7 million tonnes will be adjusted following completion of the sale of the Aluminium Dunkerque and ISAL smelters. "Adjustments may also be made as a consequence of the US sanctions," the company added.
Rio Tinto Chief Executive Jean-Sebastien Jacques said: "We delivered a solid operational performance across most commodities in the first quarter of 2018. Our world-class Pilbara iron ore assets continue to demonstrate flexibility and the benefits of increased productivity, and production at our bauxite and copper assets was also higher.
"We announced USD5 billion of divestments in the quarter, highlighting our ongoing drive to strengthen the portfolio and raise return on assets. By continuing to advance our mine-to-market productivity programme, whilst maintaining our focus on the disciplined allocation of cash, we will continue to deliver superior returns to our shareholders," Jacques added.
London-listed shares in Rio were trading 2.2% higher at 3,857.00 pence in morning trade.
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