19th Jul 2006 07:01
Rio Tinto PLC19 July 2006 Second quarter 2006 operations review • The Group's share of iron ore production was a record for the quarter, increasing by four per cent compared with the second quarter of 2005, and by 16 per cent compared with the previous quarter, as the expansion programme delivered additional capacity. The operations in Western Australia recovered from the severe weather conditions experienced during the first quarter, although the impact on iron ore production continued into the second quarter. • HIsmelt made its first shipment to customers in the US. • Mined copper production rose by two per cent compared with the previous quarter, and by nine per cent compared with the second quarter of 2005, in line with increased grades at Kennecott Utah Copper and higher production at Escondida from the Norte pit. • Production from the Comalco Alumina Refinery increased by 25 per cent in the second quarter compared with the first quarter, with operating levels showing increasing stability and at times exceeding 90 per cent of original design capacity. • Titanium dioxide feedstock production was three per cent higher than the previous quarter, and eight per cent above the same quarter of 2005, reflecting the strength of current customer demand and the further expansion of the Upgraded Slag (UGS) plant. • US coal production reached record levels for the quarter, increasing by seven per cent compared with the first quarter, and by ten per cent compared with the second quarter of 2005. This was in line with the recovery of rail capacity and the expansions of the Spring Creek and Antelope mines. • Australian thermal coal production rose by six per cent compared with the previous quarter consistent with the availability of port and rail capacity. Australian hard coking coal production recovered from the first quarter but was below the second quarter of 2005, reflecting lower customer demand. All currency figures in this report are US dollars unless otherwise stated IRON ORE AND IRON Rio Tinto share of production (000 tonnes) Q2 06 vs Q2 05 vs Q1 06 H1 06 vs H1 05Hamersley 23,042 +1% +13% 43,414 +5%Robe River 7,178 +11% +20% 13,163 +1%IOC (pellets and concentrate) 2,641 +7% +41% 4,513 +1% Global iron ore demand remained strong in all markets during the quarter. DuringMay and June, Hamersley and Robe agreed a 19 per cent increase in the benchmarkprice for their products, for the 2006 contract year. In June, the Iron OreCompany of Canada agreed a 17.3 per cent increase in the price of its iron oreconcentrate and a 3.5 per cent decrease in the price of pellets. Construction of the $1 billion Hope Downs iron ore project in Western Australia(Rio Tinto share $685 million) began in April, following Western AustralianGovernment approval and the ratification of the Hope Downs Joint Venture. Hamersley and Robe River The effects of the very severe cyclone season experienced in the first quartercontinued into the second quarter at both Hamersley and Robe, albeit to a lesserextent. Notwithstanding this, Hamersley's second quarter production was 13 per centhigher than the previous quarter and half year production was five per centhigher than the corresponding period of 2005. This was due, in part, to thecommencement of production at the Nammuldi mine. HIsmelt HIsmelt made its first shipment of almost 40,000 tonnes of pig iron to the US inJune. Iron Ore Company of Canada Pellet and concentrate production increased by 41 per cent compared with thefirst quarter, when extreme winter conditions were experienced. Concentrateproduction levels were higher than the previous quarter and the correspondingquarter of 2005. ENERGY US thermal coal Rio Tinto share of production (000 tonnes) Q2 06 vs Q2 05 vs Q1 06 H1 06 vs H1 05Rio Tinto Energy America 31,680 +10% +7% 61,161 +5% Production in 2006 has increased following the recovery of rail capacity fromthe 2005 maintenance campaign. The Antelope mine set a new quarterly and halfyear record with the expansion project continuing ahead of schedule. The $46million expansion that is underway at the Spring Creek mine, which will raisecapacity from 12 to 16 million tonnes per annum, contributed to a new quarterlyproduction record. Australian coal Rio Tinto share of production (000 tonnes) Q2 06 vs Q2 05 vs Q1 06 H1 06 vs H1 05Rio Tinto Coal Australia Hard coking coal 1,535 -21% +36% 2,661 -31% Other coal 8,093 +11% +6% 15,711 +3% Production of hard coking coal at Hail Creek reflected lower vesselpresentation. Production from the Hunter Valley operations was in line with theallocation set under the Port Waratah Coal Services capacity balancing system,contributing to a six per cent increase in thermal coal production during thequarter. Uranium Second quarter uranium production declined by just over one third compared withthe first quarter, due to heavy rainfalls from a cyclone which prevented accessto high grade ore at the Ranger mine. Production was further impacted by areduction in the volume of ore treated due to difficulties experienced inbringing the acid plant back to full production after a planned maintenanceshutdown. INDUSTRIAL MINERALS Rio Tinto share of production (000 tonnes) Q2 06 vs Q2 05 vs Q1 06 H1 06 vs H1 05Borates 142 -3% +9% 272 +1%Titanium dioxide feedstocks 354 +8% +3% 699 +8% Second quarter borates production was nine per cent higher than the previousquarter during which a number of maintenance shutdowns took place. Production inthe first half was consistent with the first six months of 2005. Increased production of titanium dioxide feedstocks reflected the strength ofcurrent demand and QIT's recently completed UGS expansion to 325,000 tonnes perannum. The UGS expansion to 375,000 tonnes per annum is proceeding as scheduled. ALUMINIUM Rio Tinto share of production (000 tonnes) Q2 06 vs Q2 05 vs Q1 06 H1 06 vs H1 05Rio Tinto Aluminium Bauxite 3,815 +4% -1% 7,658 +8% Alumina 854 +10% +10% 1,632 +10% Aluminium 206.6 -3% -0% 413.7 -2% Half year bauxite production was eight per cent higher than the comparativeperiod in 2005 due to the successful commissioning of the Andoom mine andprocessing plant which form part of the NeWeipa project. Second quarter production from the Comalco Alumina Refinery, at 322,000 tonnes,was 25 per cent above the previous record quarter, with increased digestion pumpavailability resulting in good production rates. There are two major shutdownsplanned for the Comalco Alumina Refinery for the third quarter. Production atQueensland Alumina and Eurallumina was in line with the previous quarter. Production at the aluminium smelters was slightly behind the first quarter of2006, primarily due to cells being taken out of circuit at Tiwai Point, becauseof low rainfall in the hydropower catchment area. COPPER Rio Tinto share of production (000 tonnes) Q2 06 vs Q2 05 vs Q1 06 H1 06 vs H1 05Kennecott Utah Copper Mined copper (000 tonnes) 68.7 +21% +11% 130.3 +10% Refined copper (000 tonnes) 67.7 +63% -5% 138.5 +40% Molybdenum (000 tonnes) 3.5 +8% -21% 7.9 +11% Mined gold (000 ozs) 149 +50% +12% 282 +29% Refined gold (000 ozs) 141 +85% +19% 259 +56%Escondida Mined copper (000 tonnes) 105.9 +12% -1% 213.1 +19%Grasberg JV Mined copper (000 tonnes) 10.2 -54% -14% 22.1 -54% Mined gold (000 ozs) 19 -86% +107% 28 -91% Kennecott Utah Copper The optimisation of mine production in favour of molybdenum continued, althoughlower grades during the quarter accounted for lower molybdenum production. Minedcopper production and gold contained in copper concentrate were higher comparedwith the previous quarter and the same quarter in 2005, in line with highergrades. Refined copper and gold production was significantly higher in the secondquarter compared with the same period of 2005 due to strong operationalperformance at the smelter and a 17 day planned maintenance shutdown in May2005. The smelter will undergo a 45 day planned maintenance shutdown inSeptember and October 2006. Escondida Second quarter mined copper production was 12 per cent higher than the secondquarter of 2005 as a result of the commissioning of the Norte pit in September2005 and the commencement of sulphide leaching in 2006. Grasberg Lower grades for copper, gold and silver as a result of mine sequencing led tosignificantly lower production for all three metals compared with the samequarter of 2005. Other copper operations Total mill throughput remained in line with the previous quarter at Palaborawith a significant improvement in daily ore production. Levels of concentratesmelted and anodes produced increased from the first quarter following thecompletion of the scheduled shutdown. Increased production at Northparkesreflected the continued mining of higher grade ore from the Lift 2 area,operational performance exceeded design capacity and mill recoveries averaged inexcess of 90 per cent. DIAMONDS Rio Tinto share of production (000 carats) Q2 06 vs Q2 05 vs Q1 06 H1 06 vs H1 05Argyle 7,509 -20% +44% 12,722 -29%Diavik 1,632 +8% +52% 2,705 +6% Argyle Carat production recovered in the second quarter following adverse weatherconditions earlier in the year. Continuing variability in production levels canbe expected as the mine reaches the end of the open-pit life, and transitions toan underground operation. Diavik Throughput at Diavik recovered from the previous quarter, in line with theseasonally expected profile. Grades were higher than the previous quarter with arelatively constant mix from higher grade A154S ore and lower grade A154N ore. EXPLORATION AND EVALUATION Pre-tax expenditure on exploration and evaluation charged to the profit and lossaccount in the first half of 2006 was $113 million compared with $93 million inthe first half of 2005. $26 million of this expenditure was charged againstbusiness unit earnings. Exploration drilling was sustained on copper targets in Chile, Argentina, Mexicoand the US. Exploration in Russia ramps up as part of the RioNor Joint Venture.Diamond exploration remained focused on targets in Canada, Botswana, Mauritania,India and Brazil. Iron ore exploration continued in Western Australia and inwest Africa. Exploration for thermal and coking coal opportunities continued insouthern Africa, North America, South America and Mongolia. Brownfield exploration is underway at a number of Rio Tinto businesses,including the Pilbara, Kennecott Utah Copper, the Freeport and Cortez JointVentures, Greens Creek and Northparkes. Evaluation work continued on a number of projects including Eagle (nickel/copper, US), Resolution (copper/gold, US), Potasio Rio Colorado (potash,Argentina), La Granja (copper, Peru) and Simandou (iron ore, Guinea). Rio Tintohas taken a 9.9 per cent equity position in Northern Dynasty Minerals whichcontrols the Pebble copper-gold-molybdenum deposit in Alaska. Contract of Worknegotiations continue at La Sampala nickel in Indonesia. CAPITAL MANAGEMENT PROGRAMME During the first half of 2006, the Group bought back $1,027 million of Rio Tintoplc shares under the 2006/2007 $2.5 billion share buyback programme announced on2 February 2006. In addition, a special dividend of $1.5 billion was paid on 6April, bringing the total returned to shareholders to date under the 2006/07programme to $2,527 million. For further information, please contact: LONDON AUSTRALIA Media Relations Media RelationsNick Cobban Ian HeadOffice: +44 (0) 20 7753 2305 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 408 360 101 Investor Relations Investor RelationsNigel Jones Dave SkinnerOffice: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309David Ovington Susie CreswellOffice: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639Mobile: +44 (0) 7920 010 978 Mobile: +61 (0) 418 933 792 Website: www.riotinto.comHigh resolution photographs available at: www.newscast.co.uk RIO TINTO PRODUCTION SUMMARYRIO TINTO SHARE OF PRODUCTION QUARTER HALF YEAR % CHANGE 2005 2006 2006 2005 2006 Q206 Q206 H106 Q2 Q1 Q2 H1 H1 vs vs vsPrincipal Commodities Q106 Q205 H105Alumina ('000 t) 779 778 854 1,490 1,632 10% 10% 10%Aluminium ('000 t) 213.3 207.1 206.6 421.6 413.7 0% -3% -2%Borates ('000 t) 146 130 142 268 272 9% -3% 1%Coal - hard coking coal ('000 t) 1,952 1,126 1,535 3,855 2,661 36% -21% -31%Coal - other Australian ('000 t) 7,298 7,618 8,093 15,290 15,711 6% 11% 3%Coal - US ('000 t) 28,916 29,481 31,680 58,156 61,161 7% 10% 5%Copper - mined ('000 t) 190.1 203.4 207.4 378.3 410.8 2% 9% 9%Copper - refined ('000 t) 62.0 85.6 83.9 139.8 169.5 -2% 35% 21%Diamonds ('000 cts) 10,954 6,324 9,206 20,688 15,530 46% -16% -25%Gold - mined ('000 ozs) 420 220 240 881 460 9% -43% -48%Gold - refined ('000 ozs) 76 118 141 166 259 19% 85% 56%Iron ore ('000 t) 32,166 28,668 33,316 59,784 61,985 16% 4% 4%Titanium dioxide ('000 t) 328 344 354 649 699 3% 8% 8%feedstockOther Metals & MineralsBauxite ('000 t) 3,674 3,843 3,815 7,117 7,658 -1% 4% 8%Lead - mined ('000 t) 3.3 3.0 2.2 6.7 5.2 -27% -34% -22%Molybdenum ('000 t) 3.3 4.4 3.5 7.1 7.9 -21% 8% 11%Pig Iron ('000 t) - 2.4 16.6 - 19.0 584% - -Salt ('000 t) 1,392 1,209 1,441 2,776 2,650 19% 4% -5%Silver - mined ('000 ozs) 3,726 3,180 3,270 7,746 6,450 3% -12% -17%Silver - refined ('000 ozs) 1,138 1,398 1,008 1,893 2,406 -28% -11% 27%Talc ('000 t) 365 381 346 690 727 -9% -5% 5%Uranium (tonnes) 1,434 1,508 998 3,050 2,506 -34% -30% -18%Zinc - mined ('000 t) 10.4 8.6 7.1 20.4 15.6 -17% -32% -23% Throughout this report, figures in italics indicate adjustments made since thefigure was previously quoted on the equivalent page. Production figures are sometimes more precise than the rounded numbers shown,hence small differences may result between the total of the quarter figures andthe half year figures. RIO TINTO SHARE OF PRODUCTION Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2005 2005 2005 2006 2006 2005 2006ALUMINAProduction ('000 tonnes)Comalco Alumina Refinery 100% 228 191 220 257 322 425 578Eurallumina 56% 150 150 153 152 152 298 304Queensland Alumina 39% 401 384 375 369 381 767 750Rio Tinto total alumina production 779 725 748 778 854 1,490 1,632ALUMINIUMRefined production ('000 tonnes)Anglesey 51% 18.2 18.3 18.7 18.5 18.1 36.4 36.6Bell Bay 100% 43.5 43.9 43.6 43.2 43.7 86.3 86.9Boyne Island 59% 81.6 82.4 82.7 80.4 80.9 161.1 161.3Tiwai Point 79% 70.0 72.0 70.6 65.0 63.9 137.8 128.9Rio Tinto total aluminium production 213.3 216.6 215.6 207.1 206.6 421.6 413.7BAUXITEProduction ('000 tonnes)Weipa 100% 3,674 3,781 4,576 3,843 3,815 7,117 7,658BORATESBorates ('000 tonnes B2O3 content)Rio Tinto total borate production 100% 146 141 151 130 142 268 272COAL - HARD COKINGRio Tinto Coal Australia (a) ('000 tonnes) Hail Creek Coal 82% 1,223 1,208 1,270 617 797 2,360 1,414 Kestrel Coal 80% 729 547 315 508 739 1,495 1,247Rio Tinto total hard coking coal production 1,952 1,755 1,585 1,126 1,535 3,855 2,661COAL - OTHER *Rio Tinto Coal Australia (a) ('000 tonnes) Bengalla 30% 386 366 622 330 426 819 755 Blair Athol Coal 71% 1,789 1,994 1,876 1,730 1,778 3,681 3,509 Hunter Valley Operations 76% 2,292 2,259 2,293 2,124 2,639 4,817 4,763 Kestrel Coal 80% 227 143 89 125 232 387 357 Mount Thorley Operations 61% 648 664 491 763 549 1,245 1,312 Tarong Coal 100% 1,334 1,804 1,549 1,803 1,685 3,118 3,488 Warkworth 42% 622 766 657 744 784 1,224 1,528Total Australian other coal 7,298 7,996 7,576 7,618 8,093 15,290 15,711Rio Tinto Energy America (b) ('000 tonnes) Antelope 100% 6,788 7,287 6,413 7,501 7,849 13,474 15,349 Colowyo (c) 1,315 1,219 1,477 1,468 1,497 2,629 2,965 Cordero Rojo 100% 8,736 7,687 8,642 8,675 9,121 17,905 17,796 Decker 50% 872 841 890 776 807 1,412 1,583 Jacobs Ranch 100% 8,188 8,014 8,590 8,513 8,879 17,219 17,392 Spring Creek 100% 3,018 3,243 3,122 2,549 3,527 5,516 6,076Total US coal 28,916 28,290 29,135 29,481 31,680 58,156 61,161Rio Tinto total other coal production 36,214 36,286 36,710 37,099 39,773 73,446 76,872COPPERMine production ('000 tonnes)Bingham Canyon 100% 56.7 50.2 51.6 61.6 68.7 118.8 130.3Escondida 30% 94.1 101.7 100.4 107.2 105.9 179.0 213.1Grasberg - Joint Venture (d) 40% 22.0 23.6 38.2 11.9 10.2 47.8 22.1Northparkes 80% 9.5 11.8 13.3 15.5 16.5 18.1 32.1Palabora (e) 46% 7.7 8.2 7.2 7.2 6.1 14.6 13.3Rio Tinto total mine production 190.1 195.4 210.7 203.4 207.4 378.3 410.8Refined production ('000 tonnes)Escondida 30% 11.2 10.2 10.4 8.0 6.1 22.5 14.1Kennecott Utah Copper 100% 41.5 68.1 65.1 70.9 67.7 98.7 138.5Palabora (e) 46% 9.3 10.8 9.9 6.7 10.2 18.6 16.8Rio Tinto total refined production 62.0 89.2 85.5 85.6 83.9 139.8 169.5DIAMONDSProduction ('000 carats)Argyle 100% 9,393 5,995 6,455 5,214 7,509 18,026 12,722Diavik 60% 1,509 1,306 1,098 1,073 1,632 2,558 2,705Murowa 78% 52 48 44 38 66 104 103Rio Tinto total diamond production 10,954 7,349 7,598 6,324 9,206 20,688 15,530 Mine production figures for metals refer to the total quantity of metal producedin concentrates or dore bullion irrespective of whether these products are thenrefined on-site. * Coal - other includes thermal coal and semi-soft coking coal. See footnotes on page 10. RIO TINTO SHARE OF PRODUCTION (continued) Rio 2Q 3Q 4Q 1Q 2Q 1H 1H Tinto interest 2005 2005 2005 2006 2006 2005 2006GOLDMine production ('000 ounces)Barneys Canyon 100% 4 4 4 4 3 9 7Bingham Canyon 100% 95 92 99 129 146 210 274Cortez/Pipeline 40% 110 89 74 35 27 198 62Escondida 30% 13 13 13 12 15 29 27Grasberg - Joint Venture (d) 40% 140 122 248 9 19 300 28Greens Creek 70% 14 11 12 11 9 29 20Kelian (f) 90% 8 - - - - 38 -Lihir (g) 0% 19 28 - - - 33 -Northparkes 80% 11 12 13 15 16 21 31Rawhide 51% 5 3 4 4 3 10 7Others - 2 2 2 2 2 3 4Rio Tinto total mine production 420 376 469 220 240 881 460Refined production ('000 ounces)Kennecott Utah Copper 100% 76 92 110 118 141 166 259IRON ORE & IRONProduction ('000 tonnes)Channar 60% 1,311 1,371 980 1,211 1,486 2,835 2,697Corumba 100% 372 371 290 440 455 749 895Eastern Range (h) 1,831 1,897 1,536 1,756 2,021 3,126 3,777Hamersley 100% 19,704 18,915 19,931 17,404 19,536 35,540 36,940Iron Ore Company of Canada (i) 59% 2,459 2,292 2,424 1,871 2,641 4,472 4,513Robe River 53% 6,489 7,341 7,362 5,986 7,178 13,061 13,163Rio Tinto total mine production 32,166 32,187 32,522 28,668 33,316 59,784 61,985Pig iron production ('000 tonnes)HIsmelt(R) (j) 60% - - 5 2 17 - 19LEADMine production ('000 tonnes)Greens Creek 70% 3.3 2.5 2.7 3.0 2.2 6.7 5.2MOLYBDENUMMine production ('000 tonnes)Bingham Canyon 100% 3.3 3.9 4.6 4.4 3.5 7.1 7.9SALTProduction ('000 tonnes)Dampier Salt 65% 1,392 1,121 1,610 1,209 1,441 2,776 2,650SILVERMine production ('000 ounces)Bingham Canyon 100% 1,050 884 884 1,036 1,217 2,190 2,252Escondida 30% 439 505 593 457 565 872 1,021Grasberg - Joint Venture (d) 40% 249 280 718 19 30 366 49Greens Creek 70% 1,797 1,313 1,562 1,451 1,231 3,916 2,682Others - 193 216 226 216 228 402 445Rio Tinto total mine production 3,726 3,197 3,982 3,180 3,270 7,746 6,450Refined production ('000 ounces)Kennecott Utah Copper 100% 1,138 830 814 1,398 1,008 1,893 2,406TALCProduction ('000 tonnes)Luzenac Group 100% 365 328 346 381 346 690 727TITANIUM DIOXIDE FEEDSTOCKProduction ('000 tonnes)Rio Tinto Iron & Titanium 100% 328 327 335 344 354 649 699URANIUMProduction (tonnes U3O8)Energy Resources of Australia 68% 936 1,035 1,040 938 376 1,962 1,314Rossing 69% 497 712 745 569 622 1,089 1,192Rio Tinto total uranium production 1,434 1,747 1,785 1,508 998 3,050 2,506ZINCMine production ('000 tonnes)Greens Creek 70% 10.4 8.1 8.7 8.6 7.1 20.4 15.6 Mine production figures for metals refer to the total quantity of metal producedin concentrates or dore bullion irrespective of whether these products are thenrefined on-site, except for the data for iron ore which represent production ofsaleable quantities of ore plus pellets. See footnotes on page 10. RIO TINTO SHARE OF PRODUCTION (continued) Production data notes (a) Rio Tinto Coal Australia manages all the operations below; including themines which were previously reported separately under the Coal & Allied name. (b) Rio Tinto Energy America was previously known as Kennecott Energy. (c) In view of Rio Tinto Energy America's responsibilities under amanagement agreement for the operation of the Colowyo mine, all of Colowyo'soutput is included in Rio Tinto's share of production. (d) Through a joint venture agreement with Freeport-McMoRan Copper & Gold(FCX), Rio Tinto is entitled to 40% of additional material mined as aconsequence of expansions and developments of the Grasberg facilities since1998. (e) During the second half of 2005, the conversion of debentures intoordinary shares resulted in a dilution of Rio Tinto's shareholding in Palaborafrom 49.2% to 47.2%. The conversions continued during the first half of 2006 andthe Rio Tinto shareholding on 30 June 2006 was 46.4%. (f) Kelian ceased processing ore on 7 February 2005 and the final goldpour was on 27 May 2005. (g) On 30 November 2005, Rio Tinto sold its interest in Lihir Gold; it hadagreed in September 2005 to relinquish the management agreement for Lihir. Theproduction data are shown up to 30 September 2005, from which date the Rio Tintointerest in Lihir was held as an investment rather than being equity accounted. (h) Rio Tinto's share of production includes 100% of the production from theEastern Range mine. Under the terms of the joint venture agreement, HamersleyIron manages the operation and is obliged to purchase all mine production fromthe joint venture. (i) Rio Tinto sold its 19% interest in the Labrador Iron Ore RoyaltyIncome Fund on 23 March 2005. The Fund has a shareholding in Iron Ore Company ofCanada but this was not included in the calculation of tonnage attributable toRio Tinto. (j) HIsmelt(R) commenced production during September 2005. Where Rio Tinto's beneficial interest in an operation has changed, as indicatedabove, the share of production has been calculated using the weighted averageinterest over the relevant periods. Rio Tinto percentage interest shown above isat 30 June 2006. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2005 2005 2005 2006 2006 2005 2006ALUMINIUMRio Tinto AluminiumWeipa mine 100.0%Queensland, AustraliaBeneficiated bauxite production ('000 tonnes) 3,674 3,781 4,576 3,843 3,815 7,117 7,658Metal grade bauxite shipments ('000 tonnes) 3,472 3,979 4,034 3,788 3,596 6,938 7,384Calcined bauxite production ('000 tonnes) 42 34 22 47 40 74 87Comalco Alumina Refinery 100.0%Queensland, AustraliaAlumina production ('000 tonnes) 228 191 220 257 322 425 578Eurallumina refinery 56.2%Sardinia, ItalyAlumina production ('000 tonnes) 267 267 273 271 270 531 541Queensland Alumina refinery 38.6%Queensland, AustraliaAlumina production ('000 tonnes) 1,038 995 972 956 986 1,986 1,942Anglesey Aluminium smelter 51.0%United KingdomPrimary aluminium production ('000 tonnes) 35.8 35.8 36.7 36.2 35.5 71.3 71.7Bell Bay smelter 100.0%Tasmania, AustraliaPrimary aluminium production ('000 tonnes) 43.5 43.9 43.6 43.2 43.7 86.3 86.9Boyne Island smelter 59.4%Queensland, AustraliaPrimary aluminium production ('000 tonnes) 136.1 137.9 138.4 134.7 135.9 268.5 270.6Tiwai Point smelter 79.4%New ZealandPrimary aluminium production ('000 tonnes) 87.7 90.2 88.1 81.6 79.9 173.1 161.5Rio Tinto Aluminium shareShare of primary aluminium sales ('000 tonnes) 215.3 221.6 225.0 200.2 208.0 412.0 408.2BORATESRio Tinto Borax 100.0%California, US and ArgentinaBorates ('000 tonnes) (a) 146 141 151 130 142 268 272 (a) Production is expressed as B2O3 content. Rio Tinto percentage interest shown above is at 30 June 2006. The data representfull production and sales on a 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2005 2005 2005 2006 2006 2005 2006COALRio Tinto Coal Australia (a)Bengalla mine 30.3%New South Wales, AustraliaThermal coal production ('000 tonnes) 1,274 1,208 2,053 1,088 1,406 2,704 2,494Blair Athol Coal mine 71.2%Queensland, AustraliaThermal coal production ('000 tonnes) 2,512 2,799 2,634 2,429 2,496 5,167 4,925Hail Creek Coal mine 82.0%Queensland, AustraliaHard coking coal production ('000 tonnes) 1,492 1,473 1,549 753 971 2,878 1,724Hunter Valley Operations 75.7%New South Wales, AustraliaThermal coal production ('000 tonnes) 2,497 2,429 2,651 2,386 3,136 5,262 5,522Semi-soft coking coal production ('000 tonnes) 530 555 378 419 350 1,101 769Kestrel Coal mine 80.0%Queensland, AustraliaThermal coal production ('000 tonnes) 283 179 112 156 290 483 446Hard coking coal production ('000 tonnes) 912 683 393 635 923 1,869 1,559Mount Thorley Operations 60.6%New South Wales, AustraliaThermal coal production ('000 tonnes) 612 836 529 969 582 1,330 1,551Semi-soft coking coal production ('000 tonnes) 458 261 281 291 325 725 615Tarong Coal mine 100.0%Queensland, AustraliaThermal coal production ('000 tonnes) 1,334 1,804 1,549 1,803 1,685 3,118 3,488Warkworth mine 42.1%New South Wales, AustraliaThermal coal production ('000 tonnes) 1,335 1,736 1,495 1,759 1,766 2,715 3,525Semi-soft coking coal production ('000 tonnes) 145 85 67 11 96 195 107 Total hard coking coal production ('000 tonnes) 2,403 2,157 1,943 1,388 1,895 4,746 3,283Total hard coking coal sales ('000 tonnes) 2,312 1,557 1,684 1,220 1,471 4,285 2,691Total other coal production ('000 tonnes) (b) 10,979 11,891 11,746 11,309 12,133 22,800 23,442Total other coal sales ('000 tonnes) (c) (d) 10,813 12,424 11,816 11,860 11,882 23,222 23,742 Total coal production ('000 tonnes) 13,382 14,048 13,689 12,698 14,027 27,547 26,725Total coal sales ('000 tonnes) 13,126 13,981 13,500 13,080 13,353 27,507 26,433Rio Tinto Coal Australia shareShare of hard coking coal sales ('000 tonnes) 1,881 1,268 1,374 994 1,196 3,489 2,189Share of other coal sales ('000 tonnes) (c) (d) 7,241 8,399 7,719 7,986 8,022 15,547 16,008 (a) Rio Tinto Coal Australia manages all the operations below; the mines inNew South Wales were previously reported separately under the Coal & Alliedname. (b) Other coal production includes thermal coal and semi-soft coking coal. (c) Other coal sales includes thermal coal, semi-soft coking coal andsemi-hard coking coal (a mixture of thermal coal and coking coal). (d) Sales relate only to coal mined by the operations and exclude tradedcoal. Rio Tinto Energy America (a)Antelope mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 6,788 7,287 6,413 7,501 7,849 13,474 15,349Colowyo mine (b)Colorado, USThermal coal production ('000 tonnes) 1,315 1,219 1,477 1,468 1,497 2,629 2,965Cordero Rojo mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 8,736 7,687 8,642 8,675 9,121 17,905 17,796Decker mine 50.0%Montana, USThermal coal production ('000 tonnes) 1,745 1,683 1,781 1,552 1,614 2,825 3,166Jacobs Ranch mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 8,188 8,014 8,590 8,513 8,879 17,219 17,392Spring Creek mine 100.0%Montana, USThermal coal production ('000 tonnes) 3,018 3,243 3,122 2,549 3,527 5,516 6,076 Total coal production ('000 tonnes) 29,789 29,131 30,025 30,257 32,487 59,568 62,744Total coal sales ('000 tonnes) 29,789 29,131 30,025 30,257 32,487 59,568 62,744 (a) Rio Tinto Energy America was previously known as Kennecott Energy. (b) In view of Rio Tinto Energy America's responsibilities under amanagement agreement for the operation of the Colowyo mine, all of Colowyo'soutput is included in Rio Tinto's share of production. Rio Tinto percentage interest shown above is at 30 June 2006. The data represent full production and sales on a 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2005 2005 2005 2006 2006 2005 2006COPPER & GOLDEscondida 30.0%ChileSulphide ore to concentrator ('000 tonnes) 21,725 22,255 22,161 21,843 21,473 41,638 43,315Average copper grade (%) 1.51 1.59 1.58 1.62 1.63 1.46 1.63Mill production (metals inconcentrates): Contained copper ('000 tonnes) 277.8 304.4 304.0 302.8 295.9 519.0 598.7 Contained gold ('000 ounces) 44 42 43 40 49 98 89 Contained silver ('000 ounces) 1,462 1,682 1,975 1,522 1,882 2,908 3,405Ore to leach ('000 tonnes) (a) 4,218 4,214 4,261 16,158 15,536 8,455 31,693Average copper grade (%) 0.85 0.82 0.72 0.34 0.37 0.92 0.35Contained copper in leachate/mined material('000 tonnes) 36 35 31 55 57 78 112Refined production from leach plants: Copper cathode production ('000 tonnes) 37.2 34.1 34.8 26.8 20.3 75.1 47.1 (a) Escondida has recently commenced leaching of sulphide ore. The figuresfor 2006 show aggregate feed to and production from both the oxide and sulphideleach processes. Freeport-McMoRan Copper & Gold (a)Grasberg mine 0.0% (40.0% of the expansion)Papua, IndonesiaOre treated ('000 tonnes) 19,271 19,899 21,791 19,512 20,353 37,217 39,865Average mill head grades: Copper (%) 0.98 1.06 1.31 0.72 0.72 1.06 0.72 Gold (g/t) 1.43 1.16 2.33 0.92 0.67 1.52 0.79 Silver (g/t) 4.54 4.36 5.36 4.21 3.84 4.89 4.02Production of metals inconcentrates: Copper in concentrates ('000 164.1 185.5 260.8 115.9 121.7 347.6 237.6tonnes) Gold in concentrates ('000 750 609 1,400 485 336 1,537 821ounces) Silver in concentrates ('000 1,576 1,662 2,489 903 1,170 3,380 2,073ounces)Sales of payable metals in concentrates: (b) Copper in concentrates ('000 164.4 179.9 249.0 114.0 108.8 337.4 222.8tonnes) Gold in concentrates ('000 759 594 1,342 486 294 1,502 780ounces) Silver in concentrates ('000 1,257 1,284 1,897 711 844 2,614 1,555ounces) (a) Through a joint venture agreement with Freeport-McMoRan Copper & Gold(FCX), Rio Tinto is entitled to 40% of additional material mined as aconsequence of expansions and developments of the Grasberg facilities since1998. (b) Net of smelter deductions. Kelian Equatorial Mining (a) 90.0%East Kalimantan, IndonesiaOre treated ('000 tonnes) - - - - - 826 -Average ore grades: Gold (g/t) - - - - - 1.68 - Silver (g/t) - - - - - 2.29 -Production: Gold ('000 ounces) 8 - - - - 43 - Silver ('000 ounces) 4 - - - - 32 -Sales: Gold ('000 ounces) 10 - - 42 - 100 42 Silver ('000 ounces) 304 - - - - 304 - (a) Kelian ceased processing ore on 7 February 2005 and the final gold pourwas on 27 May 2005. Mine closure programmes including reclamation,rehabilitation and sustainable monitoring continue. Rio Tinto percentage interest shown above is at 30 June 2006. The data represent full production and sales on a 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2005 2005 2005 2006 2006 2005 2006COPPER & GOLD (continued)Kennecott Minerals CompanyCortez/Pipeline mine 40.0%Nevada, USOre treated Milled ('000 tonnes) 868 759 798 756 745 1,690 1,501 Leached ('000 tonnes) 5,962 5,725 3,352 3,812 4,464 13,983 8,276 Sold for roasting ('000 tonnes) 72 90 73 35 - 114 35Average ore grade: gold Milled (g/t) 5.62 4.81 4.71 2.33 2.13 5.21 2.23 Leached (g/t) 0.60 0.49 0.49 0.39 0.37 0.64 0.38 Sold for roasting (g/t) 6.52 6.73 8.89 6.50 - 6.79 6.50Gold produced ('000 ounces) 274 223 186 87 68 495 155Greens Creek mine 70.3%Alaska, USOre treated ('000 tonnes) 178 154 151 158 157 346 315Average ore grades: Gold (g/t) 5.22 4.71 5.02 4.54 3.97 5.34 4.26 Silver (g/t) 608 527 615 533 471 670 502 Zinc (%) 10.5 9.6 10.4 10.0 8.4 10.7 9.2 Lead (%) 4.1 3.6 3.9 4.0 3.1 4.2 3.6Metals produced in concentrates: Gold ('000 ounces) 20 15 17 16 13 41 29 Silver ('000 ounces) 2,557 1,869 2,222 2,065 1,751 5,573 3,817 Zinc ('000 tonnes) 14.7 11.6 12.4 12.2 10.1 29.0 22.3 Lead ('000 tonnes) 4.7 3.5 3.8 4.3 3.1 9.5 7.4Rawhide mine (a) 51.0%Nevada, USMetals produced in dore: Gold ('000 ounces) 9 7 8 7 6 20 13 Silver ('000 ounces) 88 63 67 63 55 191 118 (a) Mining operations were completed in October 2002 and processing ofstockpiled ores was completed in May 2003. Residual gold and silver productioncontinues from the leach pads. Kennecott Utah CopperBarneys Canyon mine (a) 100.0%Utah, USGold produced ('000 ounces) 4 4 4 4 3 9 7 (a) Mining operations ceased in the first quarter of 2002. Gold continues tobe recovered from leach pads. Bingham Canyon mine 100.0%Utah, USOre treated ('000 tonnes) 11,757 11,875 11,369 11,702 11,739 23,421 23,440Average ore grade: Copper (%) 0.53 0.47 0.51 0.62 0.67 0.56 0.64 Gold (g/t) 0.35 0.34 0.38 0.52 0.56 0.38 0.54 Silver (g/t) 3.36 2.81 3.02 3.73 3.98 3.55 3.85 Molybdenum (%) 0.057 0.052 0.058 0.060 0.055 0.060 0.058Copper concentrates produced ('000 tonnes) 231 193 213 242 263 475 505Average concentrate grade (% Cu) 24.4 26.0 24.1 25.3 26.1 25.0 25.7Production of metals in copper concentrates: Copper ('000 tonnes) (b) 56.7 50.2 51.6 61.6 68.7 118.8 130.3 Gold ('000 ounces) 95 92 99 129 146 210 274 Silver ('000 ounces) 1,050 884 884 1,036 1,217 2,190 2,252Molybdenum concentrates produced ('000 tonnes): 6.3 7.6 8.6 8.2 6.3 13.3 14.5 Molybdenum in concentrates ('000 tonnes) 3.3 3.9 4.6 4.4 3.5 7.1 7.9Kennecott smelter & refinery 100.0%Copper concentrates smelted ('000 tonnes) 224 300 300 270 272 442 542Copper anodes produced ('000 tonnes) (c) 43.1 68.6 67.3 66.4 65.7 93.5 132.1Production of refined metal: Copper ('000 tonnes) 41.5 68.1 65.1 70.9 67.7 98.7 138.5 Gold ('000 ounces) (d) 76 92 110 118 141 166 259 Silver ('000 ounces) (d) 1,138 830 814 1,398 1,008 1,893 2,406 (b) Includes a small amount of copper in precipitates. (c) New metal excluding recycled material. (d) Includes gold and silver in intermediate products. Rio Tinto percentage interest shown above is at 30 June 2006. The data represent full production and sales on a 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2005 2005 2005 2006 2006 2005 2006COPPER & GOLD (continued)Lihir Gold (a) 0.0%Papua New GuineaOre treated ('000 tonnes) 1,051 917 - - - 1,854 -Average ore grade: gold (g/t) 4.41 7.15 - - - 4.41 -Gold produced ('000 ounces) (b) 130 193 - - - 231 - (a) On 30 November 2005, Rio Tinto sold its interest in Lihir Gold; it hadagreed in September 2005 to relinquish the management agreement for Lihir. Theproduction data are shown up to 30 September 2005, from which date the Rio Tintointerest in Lihir was held as an investment rather than being equity accounted. (b) Gold production represents quantity of gold poured. Northparkes Joint Venture 80.0%New South Wales, AustraliaOre treated ('000 tonnes) 1,360 1,372 1,421 1,425 1,438 2,660 2,862Average ore grades: Copper (%) 0.97 1.17 1.27 1.45 1.53 1.01 1.49 Gold (g/t) 0.43 0.47 0.49 0.56 0.58 0.44 0.57Copper concentrates produced ('000 tonnes) 33.7 39.5 43.9 48.4 52.5 63.8 100.8Contained copper in concentrates: Saleable production ('000 tonnes) 11.9 14.7 16.7 19.4 20.7 22.6 40.1 Sales ('000 tonnes) (a) 9.8 11.0 13.1 14.3 17.1 19.2 31.4Contained gold in concentrates: Saleable production ('000 ounces) 13.4 15.0 16.1 18.6 19.9 25.9 38.5 Sales ('000 ounces) (a) 9.0 10.6 14.7 13.3 16.4 24.6 29.7 (a) Rio Tinto's 80% share of material from the Joint Venture. Palabora (a) 46.4% South AfricaOre treated ('000 tonnes) 2,459 2,572 2,349 2,646 2,633 4,615 5,279Average ore grade: copper (%) 0.71 0.71 0.72 0.71 0.70 0.71 0.70Copper concentrates produced ('000 tonnes) 48.4 52.9 47.8 51.5 43.0 96.4 94.5Average concentrate grade: copper (%) 32.2 31.3 31.2 29.9 30.5 30.8 30.1Copper in concentrates ('000 tonnes) 15.6 16.6 14.9 15.4 13.1 29.7 28.5Palabora smelter/refineryNew concentrate smelted on site ('000 tonnes) 71.7 75.2 82.2 42.0 83.3 147.0 125.3New copper anodes produced ('000 tonnes) 19.4 22.7 22.4 10.0 24.0 39.3 34.0Refined new copper produced ('000 tonnes) 19.0 22.1 20.6 14.3 21.9 37.7 36.2By-products:Magnetite concentrate ('000 tonnes) 189 267 231 251 296 390 547Refined nickel sulphate (tonnes) 57 37 57 35 28 91 63Vermiculite plantVermiculite produced ('000 tonnes) 54 53 55 48 48 102 95 (a) During the second half of 2005, the conversion of debentures intoordinary shares resulted in a dilution of Rio Tinto's shareholding in Palaborafrom 49.2% to 47.2%. The conversions continued during the first half of 2006 andthe Rio Tinto shareholding on 30 June 2006 was 46.4%. DIAMONDSArgyle Diamonds 100.0%Western AustraliaAK1 ore processed ('000 tonnes) 2,358 2,111 2,158 1,956 2,131 4,700 4,087AK1 diamonds produced ('000 carats) 9,393 5,995 6,455 5,214 7,509 18,026 12,722Diavik Diamonds 60.0%Northwest Territories, CanadaOre processed ('000 tonnes) 612 619 497 492 608 1,106 1,100Diamonds recovered ('000 carats) 2,515 2,177 1,831 1,788 2,720 4,264 4,508Murowa Diamonds 77.8%ZimbabweOre processed ('000 tonnes) 28 49 73 66 61 57 126Diamonds recovered ('000 carats) 67 61 57 48 85 133 133 Rio Tinto percentage interest shown above is at 30 June 2006. The data represent full production and sales on a 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2005 2005 2005 2006 2006 2005 2006IRON ORE & IRONHamersley IronWestern AustraliaSaleable iron ore production ('000 tonnes): Paraburdoo, Mount Tom Price, Marandoo, Yandicoogina, Brockman and Nammuldi 100.0% 19,704 18,915 19,931 17,404 19,536 35,540 36,940 Channar 60.0% 2,185 2,284 1,634 2,018 2,476 4,725 4,494 Eastern Range (a) 1,831 1,897 1,536 1,756 2,021 3,126 3,777Total production ('000 tonnes) 23,720 23,097 23,101 21,178 24,033 43,392 45,211Total sales ('000 tonnes) (b) 21,885 22,387 25,793 20,982 22,611 41,909 43,593 (a) Rio Tinto owns 54% of the Eastern Range mine. Under the terms of thejoint venture agreement, Hamersley Iron manages the operation and is obliged topurchase all mine production from the joint venture and therefore all of theproduction is included in Rio Tinto's share of production. (b) Sales represent iron ore exported from Western Australian ports. HIsmelt(R) (a) 60.0%Western AustraliaPig iron production ('000 tonnes) - - 9 4 28 - 32 (a) HIsmelt(R) commenced production during September 2005. Iron Ore Company of CanadaNewfoundland & Labrador and Quebec in CanadaCarol Lake operations 58.7%Saleable iron ore production: Concentrates ('000 tonnes) 745 581 683 341 1,292 1,052 1,633 Pellets ('000 tonnes) 3,442 3,322 3,445 2,846 3,206 6,564 6,052Sales: Concentrate ('000 tonnes) 612 552 755 316 555 816 871 Pellets ('000 tonnes) 3,326 2,951 4,230 2,150 3,282 5,670 5,432Rio Tinto BrasilCorumba mine 100.0%Mato Grosso do Sul, BrazilSaleable iron ore production ('000 tonnes) (a) 372 371 290 440 455 749 895Sales ('000 tonnes) 243 391 276 418 413 636 831(a) Production includes by-product fines.Robe River Iron AssociatesPannawonica mine 53.0%Western AustraliaSaleable iron ore production ('000 7,574 8,076 7,998 6,481 7,273 14,907 13,754tonnes)Sales ('000 tonnes) 7,118 7,802 8,203 6,756 7,135 15,057 13,892West Angelas mine 53.0%Western AustraliaSaleable iron ore production ('000 4,670 5,775 5,891 4,813 6,270 9,737 11,082tonnes)Sales ('000 tonnes) 4,469 5,902 6,187 4,745 5,833 9,401 10,578 Rio Tinto percentage interest shown above is at 30 June 2006. The data represent full production and sales on a 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2005 2005 2005 2006 2006 2005 2006SALTDampier Salt 64.9%Western AustraliaSalt production ('000 tonnes) 2,144 1,726 2,480 1,862 2,219 4,274 4,081TALCThe Luzenac Group 100.0%Australia, Europe, and North AmericaTalc production ('000 tonnes) 365 328 346 381 346 690 727TITANIUM DIOXIDE FEEDSTOCKRio Tinto Iron & Titanium 100.0%Canada and South Africa(Rio Tinto share)Titanium dioxide feedstock production ('000 tonnes) 328 327 335 344 354 649 699URANIUMEnergy Resources of Australia LtdRanger mine 68.4%Northern Territory, AustraliaProduction (tonnes U3O8) 1,369 1,514 1,521 1,372 550 2,868 1,922Rossing Uranium Ltd 68.6%NamibiaProduction (tonnes U3O8) 725 1,038 1,086 830 908 1,587 1,738 Rio Tinto percentage interest shown above is at 30 June 2006. The data represent full production and sales on a 100% basis unless otherwise stated. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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