16th Jan 2014 09:14
LONDON (Alliance News) - Rio Tinto PLC Thursday said it has increased production for iron ore and other metals, achieved record shipment numbers and slashed its annual costs.
The major Anglo-Australian miner said it produced 70.4 million tonnes of iron ore in its fourth quarter ending December 31, 2013, a 6% increase on the same quarter the previous year, while full-year 2013 iron ore production increased 5% from the previous year to 266.0 million tonnes.
The company said iron ore shipments from its Pilbara mine in Australia exceeded production by two million tonnes in the fourth quarter despite some slight impacts from cyclone Christine.
At Pilbara, iron ore production for the quarter grew 7% to a new record of 66.5 million tonnes from last year. Sales at Pilbara also set a new record of 68.8 million tonnes, up 9% from last year. The mines in the Pilbara region of Western Australia are among those having the lowest cost of operations in the world.
Global iron-ore shipments for the quarter grew 8% to a record 72.41 million tons from the year-ago quarter.
Rio Tinto also noted that the ramp-up of its 290 million tonnes per year capacity across mines, rail and ports remains on track for completion by the end of the first half 2014.
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 tons in 2013.
The company said its full year copper production increased 15% to 631,500 tonnes as the company's ramp up of production from its Oyu Tolgoi mine in Mongolia reached full capacity and the company achieved better grades and throughput from Kennecott Utah Copper.
Bauxite production for the quarter grew 7% compared to the previous year and for the full year it increased 10% with production records at both Australian mines and in Guinea, while aluminium production declined 4% for the quarter from last year but increased 3% for the full year in comparison.
Rio Tinto also said its hard coking coal production increased 25% quarterly on the previous year and 2% for the full year in comparison as the Mozambique coal site increased production by 200% over the full year compared to 2012.
Despite quarterly production falls in semi-soft and thermal coal, along with titanium dioxide feedstock, due to planned maintenance work and shutdowns, full-year figures still showed an increase on 2012.
Rio Tinto also said that exploration and evaluation expenditure was reduced by more than USD1 billion in 2013 compared with 2012, exceeding the USD750 million target set for the year.
The company noted that non-core asset divestments totalling USD3.5 billion were announced in 2013, of which USD2.5 billion were completed in 2013.
"We have exceeded our cost-cutting targets for the year and announced or completed USD3.5 billion of non-core asset sales. These actions, together with lower capital expenditure in 2013 and beyond, will ensure that Rio Tinto is well positioned to deliver greater value to shareholders," Walsh added.
The company struggled with debts and troubled acquisitions during the leadership of former Chief Executive Tom Albanese but seems to have started a turnaround since Sam Walsh took over a year ago.
Rio Tinto shares were up 1.9% in London to 3,315.55 pence, putting it in the top FTSE 100's top ten gainers in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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