20th Jul 2005 07:00
Rio Tinto PLC20 July 2005 Second quarter 2005 operations review • Most operations continued to produce at, or near, capacity in response to strong demand. • Hamersley produced and shipped record volumes of iron ore in the second quarter as commissioning of the major infrastructure expansion progressed. Production of both copper and gold from the Grasberg mine was also significantly higher than in the comparative period of 2004 when the focus was on recovery from the 2003 material slippage. • Mining at Kennecott Utah Copper favoured higher molybdenum grade ore to take advantage of the strong market for that product. First half molybdenum production was in excess of full year production for 2004. The scheduled smelter maintenance shut down, which impacted refined copper and gold production, was completed as planned. • First half alumina production was 45 per cent higher than the first half of 2004 due to the ramp-up of the new Comalco Alumina Refinery and continued process stability at QAL and Eurallumina. All the aluminium smelters continued to operate at, or close to, capacity. • Australian coal production remained constrained by port and rail capacity. The approval of a queue management system at Dalrymple Bay resulted in shorter vessel queues, but only towards the end of the period. • An agreement to form a joint venture to develop the Hope Downs iron ore deposits in Western Australia was announced in July 2005. The development of the project will further strengthen Rio Tinto's position as Australia's prime supplier of iron ore. All currency figures in this report are US Dollars unless otherwise stated. IRON ORE Rio Tinto share of production (000 tonnes) Q2 05 vs Q2 04 vs Q1 05 H1 05 vs H1 04Hamersley 22,846 +24% +22% 41,501 +21%Robe River 6,489 -9% -1% 13,061 +4%IOC (pellets and concentrate) 2,459 +12% +22% 4,472 +7% Demand was strong from all markets throughout the first half of the year andproduction was at record levels. Brownfield mine expansions at Tom Price,Marandoo and Nammuldi were announced in April 2005 to add to the extensive mine,rail and port expansion, construction of which is now well advanced. In July2005 an agreement to form a joint venture with Hancock Prospecting for thedevelopment of the Hope Downs project was announced. This will furtherstrengthen Rio Tinto's position as the prime supplier of iron ore fromAustralia. The new HIsmelt (R) direct iron smelting plant entered itscommissioning phase in the second quarter of 2005. First hot metal was producedin mid-June. Hamersley Hamersley achieved record production and shipments in both the second quarterand the first half of the year. Commissioning of the major port and railinfrastructure expansion has commenced and will continue progressively throughthe second half of the year. Robe River First half production was a record although May shipments were affected by heavyrain at Cape Lambert, and West Angelas production was affected by a planned twoweek shutdown as part of the expansion of capacity to 25 million tonnes perannum. Iron Ore Company of Canada Improved employee productivity under the new collective agreement and improvedplant availability resulted in record first half pellet production, nine percent above the first half of 2004. Concentrate production increased due to millinfrastructure upgrades. ENERGY US thermal coal Rio Tinto share of production (000 tonnes) Q2 05 vs Q2 04 vs Q1 05 H1 05 vs H1 04Kennecott Energy 28,916 +0% -1% 58,156 +3% Second quarter production was marginally below the first quarter of the year asshipments were disrupted by two train derailments on the main line in May andongoing railroad maintenance. Increased railroad maintenance is expected tocontinue through the summer, and possibly later into the year, which willadversely affect Powder River Basin coal shipments. Approval was given for the expansion of Antelope mine and development of theWest Antelope reserves which were recently purchased. At a capital cost ofUS$87 million, this will facilitate the optimisation of the current facilitiesand enable production to be increased in line with market demand. Australian coal Rio Tinto share of production (000 tonnes) Q2 05 vs Q2 04 vs Q1 05 H1 05 vs H1 04Rio Tinto Coal Australia Hard coking coal 1,952 -7% +3% 3,855 +17% Other coal 7,298 -15% -9% 15,290 -4% Available port and rail capacity continued to constrain export shipments fromthe Australian coal operations. A queue management system was successfullyimplemented at Dalrymple Bay from late April although it was only in the latterpart of the period that the vessel queue reduced significantly. At the port of Newcastle, where a capacity balancing system has been in placefor over a year, June sales were affected by longer vessel queues due toproducers scheduling of vessels to meet second quarter shipment allocations. Production volumes reflect both the effects of shipping constraints and thenormal variation in line with the mining sequence. INDUSTRIAL MINERALS Rio Tinto share of production (000 tonnes) Q2 05 vs Q2 04 vs Q1 05 H1 05 vs H1 04Borates 146 +4% +20% 268 -2%Titanium dioxide feedstock 328 +13% +2% 649 +12% As in the first quarter of the year, demand in end use markets continued to berobust although Rio Tinto Iron & Titanium's iron and steel co-product marketssoftened somewhat in the second quarter. Titanium dioxide feedstock productionat QIT and RBM was similar to the first quarter but well above the first half of2004. QIT's Upgraded Slag (UGS) expansion continued to ramp up from 250,000tonnes towards 325,000 tonnes in line with the commissioning schedule.Production of borates returned to normal following unusually wet weather in thefirst quarter. ALUMINIUM Rio Tinto share of production (000 tonnes) Q2 05 vs Q2 04 vs Q1 05 H1 05 vs H1 04Rio Tinto Aluminium Bauxite 3,674 +10% +7% 7,117 +12% Alumina 779 +51% +10% 1,490 +45% Aluminium 213.3 +3% +2% 421.6 +1% Bauxite production continued to increase following the completion of the NeWeipamine expansion and the ramp-up of the new Comalco Alumina Refinery whichproduced 228,000 tonnes in the quarter. Good process stability at QAL resulted in quarterly production of over onemillion tonnes for the first time. Production from Eurallumina was in line withthe first quarter but marginally below the record levels achieved in the secondhalf of 2004. All smelters continued to produce at, or close to, capacity. COPPER Rio Tinto share of production Q2 05 vs Q2 04 vs Q1 05 H1 05 vs H1 04Kennecott Utah Copper Mined copper (000 tonnes) 56.7 -11% -9% 118.8 -6% Refined copper (000 tonnes) 41.5 -33% -27% 98.7 -19% Molybdenum (000 tonnes) 3.3 +250% -16% 7.1 +181% Mined gold (000 ozs) 100 +58% -16% 219 +57% Refined gold (000 ozs) 76 -1% -16% 166 +5%Escondida Mined copper (000 tonnes) 94.1 -5% +11% 179.0 -2%Grasberg JV Mined copper (000 tonnes) 22.0 +137% -14% 47.8 +222% Mined gold (000 ozs) 140 +632% -12% 300 +1081% Kennecott Utah Copper In order to take advantage of the current strong market for molybdenum, mineproduction was optimised to maximise molybdenum production and so copperconcentrate production was lower than in the previous quarters. Both gold andmolybdenum grades were significantly above the first half of 2004. Molybdenumproduction also increased as a result of modifications to the molybdenum circuitat the concentrator. An expansion of the molybdenum plant, which is designed toincrease recoveries, was completed in June 2005. The May smelter maintenance shutdown proceeded as planned with no major issues. Escondida Mined copper production was below the second quarter of 2004, but above thefirst quarter of 2005 reflecting variations in grade due to mine sequencing.Mill throughput continued to be optimised, resulting in improved dailyproduction rates. Grasberg Production of both copper and gold was below the first quarter of 2005 as aresult of scheduled mine sequencing. Harder ore adversely affected mill rates.Production in the first half of 2005 was significantly above the first half of2004 when resources were dedicated to recovery from the 2003 material slippage.Rio Tinto's share of production has been calculated using the adjusted jointventure allocation, known as the metal strip, which was described in the 2004fourth quarter operations review. Other Production at Palabora reached nameplate capacity in the quarter, averaging inexcess of 30ktpd for both May and June. Nameplate capacity was also achieved atNorthparkes in June. DIAMONDS Rio Tinto share of production (000 carats) Q2 05 vs Q2 04 vs Q1 05 H1 05 vs H1 04Argyle 9,424 +253% +9% 18,057 +187%Diavik 1,509 +11% +44% 2,558 +12% Argyle Production at Argyle continued at normal levels in the second quarter of 2005,substantially above the comparable period of 2004, when lower grade ore wasprocessed as a result of tight mining conditions. Diavik Production from Diavik was a quarterly record with higher volumes of oreprocessed offsetting the effects of lower grades. EXPLORATION AND EVALUATION Pre-tax expenditure on exploration and evaluation charged to the profit and lossaccount in the first half of 2005 was $93 million compared with $72 million inthe first half of 2004. Following the presentational changes announced in May2005, some of this expenditure will be charged against business unit earnings. Exploration drilling continued on copper targets in Chile, Turkey, Mexico and inthe US. Diamond exploration continued in Canada, Botswana, Mauritania, Indiaand Brazil. Iron ore exploration continued in the Hamersley Basin (WesternAustralia) and in west Africa. Exploration for thermal and coking coalopportunities continued in southern Africa, Australia and Canada. At La Sampala(nickel, Indonesia), scoping studies are underway. Brownfield exploration is under way at a number of Rio Tinto businesses, withnotable efforts to expand resources being made in the Pilbara, at KUC, on theFreeport and Cortez joint ventures, at Greens Creek, and at Northparkes. Evaluation work continued at Eagle (nickel/copper, US), Sari Gunay (gold, Iran),Resolution (copper/gold, US), Potasio Rio Colorado (potash, Argentina) andSimandou (iron ore, Guinea). Reflecting the positive progress so far in itsevaluation and pilot work at Potasio Rio Colorado, Rio Tinto exercised itsoption over the Potasio Rio Colorado project in July 2005 to take full ownershipof the project. For further information, please contact: LONDON AUSTRALIA Media Relations Media Relations Lisa Cullimore Ian Head Office: +44 (0) 20 7753 2305 Office: +61 (0) 3 9283 3620 Mobile: +44 (0) 7730 418 385 Mobile: +61 (0) 408 360 101 Investor Relations Investor Relations Nigel Jones Dave Skinner Office: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628 Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309 Richard Brimelow Susie Creswell Office: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639 Mobile: +44 (0) 7753 783 825 Mobile: +61 (0) 418 933 792 Website: www.riotinto.com RIO TINTO PRODUCTION SUMMARYRIO TINTO SHARE OF PRODUCTION QUARTER HALF YEAR % CHANGE 2004 2005 2005 2004 2005 Q2 05 Q2 05 H1 05 Q2 Q1 Q2 H1 H1 vs vs vsPrincipal Commodities Q1 05 Q2 04 H1 04Alumina ('000 t) 517 710 779 1,030 1,490 10% 51% 45%Aluminium ('000 t) 207.0 208.3 213.3 417.1 421.6 2% 3% 1%Borates ('000 t) 141 122 146 275 268 20% 4% -2%Coal - hard coking coal ('000 t) 2,101 1,902 1,952 3,301 3,855 3% -7% 17%Coal - other Australian ('000 t) 8,597 7,993 7,298 15,885 15,290 -9% -15% -4%Coal - US ('000 t) 28,861 29,240 28,916 56,264 58,156 -1% 0% 3%Copper - mined ('000 t) 193.4 188.2 190.1 373.4 378.3 1% -2% 1%Copper - refined ('000 t) 81.6 77.8 62.0 169.0 139.8 -20% -24% -17%Diamonds ('000 cts) 4,033 9,733 10,985 8,568 20,719 13% 172% 142%Gold - mined ('000 ozs) 376 460 420 757 881 -9% 12% 16%Gold - refined ('000 ozs) 77 90 76 158 166 -16% -1% 5%Iron ore ('000 t) 28,048 27,618 32,166 51,547 59,784 16% 15% 16%Titanium dioxide feedstock ('000 t) 291 321 328 577 649 2% 13% 12%Other Metals & MineralsBauxite ('000 t) 3,331 3,443 3,674 6,339 7,117 7% 10% 12%Lead - mined ('000 t) 8.1 3.4 3.3 18.4 6.7 -1% -59% -64%Molybdenum ('000 t) 0.9 3.9 3.3 2.5 7.1 -16% 250% 181%Salt ('000 t) 1,257 1,383 1,392 2,390 2,776 1% 11% 16%Silver - mined ('000 ozs) 3,465 4,020 3,726 7,230 7,746 -7% 8% 7%Silver - refined ('000 ozs) 768 755 1,138 1,546 1,893 51% 48% 22%Talc ('000 t) 361 357 363 717 720 2% 0% 0%Uranium (tonnes) 1,357 1,593 1,352 2,788 2,945 -15% 0% 6%Zinc - mined ('000 t) 21.5 10.0 10.4 51.4 20.4 4% -52% -60% 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 2004 2004 2004 2005 2005 2004 2005ALUMINAProduction ('000 tonnes)Comalco Alumina Refinery (a) 100% - - 175 196 228 - 425Eurallumina 56% 144 155 154 148 150 289 298Queensland Alumina 39% 373 375 342 366 401 741 767Rio Tinto total alumina production 517 530 671 710 779 1,030 1,490ALUMINIUMRefined production ('000 tonnes)Anglesey 51% 18.2 18.9 18.4 18.2 18.2 36.5 36.4Bell Bay 100% 40.8 38.2 41.2 42.8 43.5 82.6 86.3Boyne Island 59% 79.7 82.0 79.1 79.5 81.6 160.2 161.1Tiwai Point 79% 68.3 71.2 70.4 67.8 70.0 137.8 137.8Rio Tinto total aluminium production 207.0 210.4 209.1 208.3 213.3 417.1 421.6BAUXITEProduction ('000 tonnes)Boke (b) 0% 58 - - - - 179 -Weipa 100% 3,273 3,157 3,333 3,443 3,674 6,160 7,117Rio Tinto total bauxite production 3,331 3,157 3,333 3,443 3,674 6,339 7,117BORATESBorates ('000 tonnes B2O3 content)Rio Tinto total borate production 100% 141 153 137 122 146 275 268COAL - HARD COKINGRio Tinto Coal Australia (c) ('000 tonnes) Hail Creek Coal (d) 82% 1,325 1,376 1,100 1,136 1,223 2,156 2,360 Kestrel Coal 80% 776 693 289 766 729 1,145 1,495Rio Tinto total hard coking coal production 2,101 2,070 1,389 1,902 1,952 3,301 3,855COAL - OTHER *Rio Tinto Coal Australia (c) ('000 tonnes) Bengalla 30% 462 526 295 433 386 787 819 Blair Athol Coal 71% 2,206 2,169 2,157 1,892 1,789 4,386 3,681 Hunter Valley Operations 76% 2,625 2,671 2,762 2,525 2,292 4,613 4,817 Kestrel Coal 80% 167 173 61 160 227 265 387 Mount Thorley Operations 61% 576 593 573 597 648 983 1,245 Tarong Coal 100% 1,787 1,888 1,651 1,784 1,334 3,464 3,118 Warkworth 42% 774 783 757 602 622 1,386 1,224Total Australian other coal 8,597 8,803 8,255 7,993 7,298 15,885 15,290Kennecott Energy ('000 tonnes) Antelope 100% 6,628 7,152 7,229 6,687 6,788 12,547 13,474 Colowyo (e) 1,415 1,494 1,412 1,315 1,315 2,882 2,629 Cordero Rojo 100% 8,263 9,023 9,358 9,170 8,736 16,852 17,905 Decker 50% 1,062 1,104 1,235 540 872 1,576 1,412 Jacobs Ranch 100% 8,705 8,833 8,792 9,032 8,188 17,354 17,219 Spring Creek 100% 2,789 2,791 3,046 2,497 3,018 5,054 5,516Total US coal 28,861 30,398 31,072 29,240 28,916 56,264 58,156Rio Tinto total other coal production 37,459 39,201 39,327 37,233 36,214 72,149 73,446COPPERMine production ('000 tonnes)Bingham Canyon 100% 64.0 63.3 73.9 62.1 56.7 126.5 118.8Escondida 30% 99.1 87.5 91.8 84.9 94.1 182.9 179.0Grasberg - FCX (f) 0% - - - - - 5.5 -Grasberg - Joint Venture (f) 40% 9.3 9.2 24.0 25.7 22.0 14.8 47.8Neves Corvo (g) 0% 11.4 - - - - 23.0 -Northparkes 80% 4.7 6.0 7.4 8.6 9.5 10.6 18.1Palabora 49% 4.9 8.7 7.9 6.9 7.7 10.2 14.6Rio Tinto total mine production 193.4 174.7 204.9 188.2 190.1 373.4 378.3Refined production ('000 tonnes)Atlantic Copper (f) 0% - - - - - 7.0 -Escondida 30% 11.4 11.4 11.6 11.4 11.2 22.7 22.5Kennecott Utah Copper 100% 61.7 63.1 61.6 57.2 41.5 122.0 98.7Palabora 49% 8.5 8.0 8.0 9.2 9.3 17.3 18.6Rio Tinto total refined production 81.6 82.5 81.1 77.8 62.0 169.0 139.8 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 Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2004 2004 2004 2005 2005 2004 2005DIAMONDSProduction ('000 carats)Argyle 100% 2,669 5,328 9,011 8,633 9,424 6,282 18,057Diavik 60% 1,364 1,358 901 1,049 1,509 2,286 2,558Murowa (h) 78% - 2 34 51 52 - 104Rio Tinto total diamond production 4,033 6,688 9,946 9,733 10,985 8,568 20,719GOLDMine production ('000 ounces)Barneys Canyon 100% 4 5 5 4 4 11 9Bingham Canyon 100% 59 72 109 115 95 128 210Cortez/Pipeline 40% 115 105 87 88 110 228 198Escondida 30% 16 16 15 16 13 34 29Grasberg - FCX (f) 0% - - - - - 14 -Grasberg - Joint Venture (f) 40% 19 22 35 159 140 25 300Greens Creek 70% 16 15 14 15 14 32 29Kelian (i) 90% 73 64 90 31 8 141 38Lihir (j) 14% 24 22 24 15 E 19 40 E 34Morro do Ouro (k) 0% 23 24 23 - - 48 -Northparkes 80% 15 14 18 10 11 32 21Rawhide 51% 7 6 6 6 5 14 10Rio Tinto Zimbabwe (l) 0% 3 - - - - 6 -Others - 2 1 1 2 2 4 3Rio Tinto total mine production 376 367 428 460 420 757 881Refined production ('000 ounces)Kennecott Utah Copper 100% 77 74 68 90 76 158 166IRON OREProduction ('000 tonnes)Channar 60% 1,516 1,623 1,312 1,524 1,311 2,920 2,835Corumba 100% 306 352 375 377 372 574 749Eastern Range (m) 645 1,050 1,272 1,295 1,831 648 3,126Hamersley 100% 16,273 17,140 17,587 15,836 19,704 30,680 35,540Iron Ore Company of Canada (n) 59% 2,199 315 2,058 2,014 2,459 4,169 4,472Robe River 53% 7,110 6,828 6,299 6,572 6,489 12,557 13,061Rio Tinto total mine production 28,048 27,307 28,903 27,618 32,166 51,547 59,784LEADMine production ('000 tonnes)Greens Creek 70% 3.9 3.4 3.4 3.4 3.3 7.2 6.7Zinkgruvan (o) 0% 4.2 - - - - 11.2 -Rio Tinto total mine production 8.1 3.4 3.4 3.4 3.3 18.4 6.7MOLYBDENUMMine production ('000 tonnes)Bingham Canyon 100% 0.9 1.5 2.8 3.9 3.3 2.5 7.1NICKELToll refined metal production (tonnes)Rio Tinto Zimbabwe - Empress (l) 0% 648 - - - - 1,619 -SALTProduction ('000 tonnes)Dampier Salt 65% 1,257 1,271 1,131 1,383 1,392 2,390 2,776SILVERMine production ('000 ounces)Bingham Canyon 100% 785 947 1,121 1,140 1,050 1,515 2,190Escondida 30% 482 404 427 434 439 893 872Grasberg - FCX (f) 0% - - - - - 79 -Grasberg - Joint Venture (f) 40% 53 135 583 118 249 66 366Greens Creek 70% 1,584 1,813 1,664 2,120 1,797 3,344 3,916Zinkgruvan (o) 0% 225 - - - - 651 -Others - 336 270 235 209 193 682 402Rio Tinto total mine production 3,465 3,569 4,031 4,020 3,726 7,230 7,746Refined production ('000 ounces)Kennecott Utah Copper 100% 768 854 944 755 1,138 1,546 1,893 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. E = Estimated number. RIO TINTO SHARE OF PRODUCTION (continued) Rio 2Q 3Q 4Q 1Q 2Q 1H 1H Tinto interest 2004 2004 2004 2005 2005 2004 2005TALCProduction ('000 tonnes)Luzenac Group 99.9% 361 371 354 357 363 717 720TINMine production (tonnes)Neves Corvo (g) 0% 38 - - - - 59 -TITANIUM DIOXIDE FEEDSTOCKProduction ('000 tonnes)Rio Tinto Iron & Titanium 100% 291 296 319 321 328 577 649URANIUMProduction (tonnes U3O8)Energy Resources of Australia 68% 751 931 1,026 1,001 855 1,560 1,856Rossing 69% 607 679 549 592 497 1,228 1,089Rio Tinto total uranium production 1,357 1,610 1,575 1,593 1,352 2,788 2,945ZINCMine production ('000 tonnes)Greens Creek 70% 11.0 10.7 11.7 10.0 10.4 21.7 20.4Zinkgruvan (o) 0% 10.5 - - - - 29.7 -Rio Tinto total mine production 21.5 10.7 11.7 10.0 10.4 51.4 20.4 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. See footnotes below. Production data notes (a) Comalco Alumina Refinery started production in the fourth quarter of2004. (b) Rio Tinto completed the sale of its 4.0% interest in the Boke mine on 25June 2004. Production data are shown up to the date of sale. (c) Rio Tinto Coal Australia manages all the operations below; including themines which were previously reported separately under the Coal & Allied name. (d) Rio Tinto reduced its shareholding in Hail Creek from 92.0% to 82.0% on15 November 2004. (e) Kennecott Energy has a partnership interest in the Colowyo mine but, asit is responsible under a management agreement for the operation of the mine,all of Colowyo's output is included in Rio Tinto's share of production. (f) From mid 1995 until 30 March 2004, Rio Tinto held 23.93 million sharesof Freeport-McMoRan-Copper & Gold (FCX) common stock from which it derived ashare of production. This interest was sold to FCX on 30 March 2004. Also,through a joint venture agreement with FCX, Rio Tinto is entitled, as shownseparately in the above tables, to 40% of additional material mined as aconsequence of expansions and developments of the Grasberg facilities since1998. (g) Rio Tinto completed the sale of its 49% interest in Somincor on 18 June2004. Production data are shown up to the date of sale. (h) Ore mining and processing at Murowa commenced during the third quarterof 2004. (i) Kelian ceased processing ore on the 7 February 2005 and the final goldpour was on 27 May 2005. (j) Rio Tinto's share of gold production includes an estimate of theproduction from the Lihir gold mine for the second quarter of 2005. The actualsecond quarter production, which may be different from the figure in thisreport, will be announced by Lihir Gold on 28 July 2005. The estimate in thisreport is based on the indicative second quarter 2005 production as previouslydisclosed in the Lihir Gold Limited First Quarter Mining and Exploration Report(published 26 April 2005). (k) Rio Tinto sold its interest in Morro do Ouro on the 31 December 2004.Production data are shown up to the date of sale. (l) As a result of the corporate restructuring completed on 8 July 2004,Rio Tinto has ceased to be an ordinary shareholder in the renamed RioZim butwill retain a reduced cash participation in its gold and nickel assets for aperiod of ten years. (m) Rio Tinto's share of production includes 100% of the production from theEastern Range mine, which commenced production in March 2004. Under the terms ofthe joint venture agreement, Hamersley Iron manages the operation and is obligedto purchase all mine production from the joint venture. (n) Rio Tinto sold its 19% of the Labrador Iron Ore Royalty Income Fund on23 March 2005. The Fund has a shareholding in Iron Ore Company of Canada butthis has not been included in the calculation of tonnage attributable to RioTinto. (o) Rio Tinto completed the sale of its 100% interest in the Zinkgruvan mineon 2 June 2004. Production data are shown up to the date of sale. 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 2005. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2004 2004 2004 2005 2005 2004 2005ALUMINIUMRio Tinto AluminiumWeipa mine 100.0%Queensland, AustraliaBeneficiated bauxite production ('000 3,273 3,157 3,333 3,443 3,674 6,160 7,117tonnes)Metal grade bauxite shipments ('000 tonnes) 2,861 3,213 3,242 3,466 3,472 5,842 6,938Calcined bauxite production ('000 tonnes) 36 45 44 32 150 80 182Boke mine (a) 0.0%GuineaBauxite production ('000 tonnes) 2,961 - - - - 5,773 -Comalco Alumina Refinery (b) 100.0%Queensland, AustraliaAlumina production ('000 tonnes) - - 175 196 228 - 425Eurallumina refinery 56.2%Sardinia, ItalyAlumina production ('000 tonnes) 256 275 274 264 267 515 531Queensland Alumina refinery 38.6%Queensland, AustraliaAlumina production ('000 tonnes) 966 971 887 948 1,038 1,920 1,986Anglesey Aluminium smelter 51.0%United KingdomPrimary aluminium production ('000 tonnes) 35.6 37.2 36.1 35.6 35.8 71.5 71.3Bell Bay smelter 100.0%Tasmania, AustraliaPrimary aluminium production ('000 tonnes) 40.8 38.2 41.2 42.8 43.5 82.6 86.3Boyne Island smelter 59.4%Queensland, AustraliaPrimary aluminium production ('000 tonnes) 134.3 135.8 135.8 132.5 136.1 269.0 268.5Tiwai Point smelter 79.4%New ZealandPrimary aluminium production ('000 tonnes) 86.0 88.7 88.6 85.4 87.7 173.0 173.1Rio Tinto Aluminium shareShare of primary aluminium sales ('000 tonnes) 218.5 208.5 210.2 196.7 215.3 422.0 412.0 (a) Rio Tinto completed the sale of its 4.0% interest in the Boke mine on 25June 2004. Production data are shown up to the date of sale. (b) Comalco Alumina Refinery started production in the fourth quarter of2004. BORATESRio Tinto Borax 100.0%California, US and ArgentinaBorates ('000 tonnes) (a) 141 153 137 122 146 275 268 (a) Production is expressed as B2O3 content. Rio Tinto percentage interest shown above is at 30 June 2005. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2004 2004 2004 2005 2005 2004 2005COALKennecott Energy and Coal CompanyAntelope mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 6,628 7,152 7,229 6,687 6,788 12,547 13,474Colowyo mine (a)Colorado, USThermal coal production ('000 tonnes) 1,415 1,494 1,412 1,315 1,315 2,882 2,629Cordero Rojo mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 8,263 9,023 9,358 9,170 8,736 16,852 17,905Decker mine 50.0%Montana, USThermal coal production ('000 tonnes) 2,123 2,209 2,471 1,080 1,745 3,151 2,825Jacobs Ranch mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 8,705 8,833 8,792 9,032 8,188 17,354 17,219Spring Creek mine 100.0%Montana, USThermal coal production ('000 tonnes) 2,789 2,791 3,046 2,497 3,018 5,054 5,516 Total coal production ('000 tonnes) 29,923 31,503 32,307 29,780 29,789 57,839 59,568Total coal sales ('000 tonnes) 29,923 31,503 32,307 29,780 29,789 57,839 59,568 (a) Kennecott Energy has a partnership interest in the Colowyo mine but, asit is responsible under a management agreement for the operation of the mine,all of Colowyo's output is included in Rio Tinto's share of production. Rio Tinto percentage interest shown above is at 30 June 2005. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2004 2004 2004 2005 2005 2004 2005COAL (continued)Rio Tinto Coal Australia (a)Bengalla mine 30.3%New South Wales, AustraliaThermal coal production ('000 tonnes) 1,525 1,737 975 1,430 1,274 2,600 2,704Blair Athol Coal mine 71.2%Queensland, AustraliaThermal coal production ('000 tonnes) 3,097 3,045 3,027 2,655 2,512 6,157 5,167Hail Creek Coal mine (b) 82.0%Queensland, AustraliaHard coking coal production ('000 tonnes) 1,441 1,496 1,264 1,386 1,492 2,344 2,878Hunter Valley Operations 75.7%New South Wales, AustraliaThermal coal production ('000 tonnes) 2,738 2,838 3,340 2,765 2,497 4,993 5,262Semi-soft coking coal production ('000 tonnes) 729 689 308 570 530 1,100 1,101Kestrel Coal mine 80.0%Queensland, AustraliaThermal coal production ('000 tonnes) 209 216 76 200 283 331 483Hard coking coal production ('000 tonnes) 970 867 361 957 912 1,431 1,869Mount Thorley Operations 60.6%New South Wales, AustraliaThermal coal production ('000 tonnes) 710 722 817 718 612 1,224 1,330Semi-soft coking coal production ('000 tonnes) 240 258 129 268 458 398 725Tarong Coal mine 100.0%Queensland, AustraliaThermal coal production ('000 tonnes) 1,787 1,888 1,651 1,784 1,334 3,464 3,118Warkworth mine 42.1%New South Wales, AustraliaThermal coal production ('000 tonnes) 1,394 1,381 1,560 1,380 1,335 2,611 2,715Semi-soft coking coal production ('000 tonnes) 447 479 239 50 145 684 195 Total hard coking coal production ('000 tonnes) 2,410 2,363 1,625 2,343 2,403 3,775 4,746Total hard coking coal sales ('000 tonnes) 1,605 2,226 1,734 1,973 2,312 2,904 4,285Total other coal production ('000 tonnes) (c) 12,877 13,254 12,122 11,821 10,979 23,563 22,800Total other coal sales ('000 tonnes) (d) 12,744 13,249 11,526 12,409 10,813 24,005 23,222(e) Total coal production ('000 tonnes) 15,287 15,616 13,748 14,164 13,382 27,338 27,547Total coal sales ('000 tonnes) 14,349 15,475 13,260 14,382 13,126 26,909 27,507Rio Tinto Coal Australia shareShare of hard coking coal sales ('000 tonnes) 1,412 1,948 1,481 1,608 1,881 2,559 3,489Share of other coal sales ('000 tonnes) (d) (e) 8,572 8,882 7,767 8,306 7,241 16,155 15,547 (a) Rio Tinto Coal Australia manages all the operations below; the mines inNew South Wales were previously reported separately under the Coal & Alliedname. (b) Rio Tinto reduced its shareholding in Hail Creek from 92.0% to 82.0% on15 November 2004. (c) Other coal production includes thermal coal and semi-soft coking coal. (d) Other coal sales includes thermal coal, semi-soft coking coal andsemi-hard coking coal (a mixture of thermal coal and coking coal). (e) Sales relate only to coal mined by the operations and exclude tradedcoal. Rio Tinto percentage interest shown above is at 30 June 2005. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2004 2004 2004 2005 2005 2004 2005COPPER & GOLDEscondida 30.0%ChileSulphide ore treated ('000 tonnes) 21,197 20,637 20,925 19,913 21,725 40,816 41,638Average copper grade (%) 1.61 1.47 1.47 1.41 1.51 1.55 1.46Mill production (metals in concentrates): Contained copper ('000 tonnes) 284.2 256.8 265.1 241.1 277.8 523.8 519.0 Contained gold ('000 ounces) 55 53 51 55 44 113 98 Contained silver ('000 ounces) 1,606 1,347 1,424 1,446 1,462 2,976 2,908Oxide ore treated ('000 tonnes) 4,186 3,996 4,282 4,236 4,218 7,365 8,455Average copper grade (%) 1.10 0.87 0.96 0.99 0.85 1.16 0.92Contained copper in leachate/mined material ('000 46 35 41 42 36 86 78tonnes)Refined production: Oxide plant production ('000 tonnes) 37.9 38.0 38.5 37.9 37.2 75.6 75.1Freeport-McMoRan Copper & Gold (a)Grasberg mine 0.0% (40.0% of the expansion)Papua, IndonesiaOre treated ('000 tonnes) 14,946 17,845 21,142 17,946 19,271 28,763 37,217Average mill head grades: Copper (%) 0.82 0.83 1.17 1.14 0.98 0.67 1.06 Gold (g/t) 0.95 0.79 1.20 1.62 1.43 0.69 1.52 Silver (g/t) 4.01 3.74 4.32 5.26 4.54 3.57 4.89Production of metals in concentrates: Copper in concentrates ('000 tonnes) 107.7 129.7 223.1 183.5 164.1 163.5 347.6 Gold in concentrates ('000 ounces) 395 370 684 788 750 531 1,537 Silver in concentrates ('000 ounces) 1,143 1,199 1,956 1,805 1,576 1,882 3,380Sales of payable metals in concentrates: (b) Copper in concentrates ('000 tonnes) 101.7 127.9 213.1 173.0 164.4 154.6 337.4 Gold in concentrates ('000 ounces) 370 372 652 743 759 500 1,502 Silver in concentrates ('000 ounces) 862 943 1,490 1,358 1,257 1,425 2,614 (a) See note (f) on page 10 concerning Rio Tinto's previous direct interestin Freeport-McMoRan Copper & Gold and its continuing 40% interest in theexpansion of Grasberg. (b) Net of smelter deductions. Atlantic Copper smelter 0.0% SpainConcentrates and scrap smelted ('000 tonnes) - - - - - 187.1 -Copper anodes produced ('000 tonnes) (c) - - - - - 57.5 -Copper cathodes produced ('000 tonnes) - - - - - 58.4 -Copper cathode sales ('000 tonnes) (d) - - - - - 50.8 - (c) New metal excluding recycled material. (d) Refers to copper cathode and wire rod sales. Kelian Equatorial Mining (a) 90.0%East Kalimantan, IndonesiaOre treated ('000 tonnes) 2,134 2,057 2,141 826 - 4,253 826Average ore grades: Gold (g/t) 1.84 1.56 2.15 1.68 - 1.71 1.68 Silver (g/t) 4.12 3.90 4.61 2.29 - 4.03 2.29Production: Gold ('000 ounces) 81 71 100 34 8 157 43 Silver ('000 ounces) 52 93 86 27 4 117 32Sales: Gold ('000 ounces) 70 76 19 90 10 183 100 Silver ('000 ounces) - - - - 304 148 304 (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 2005. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2004 2004 2004 2005 2005 2004 2005COPPER & GOLD (continued)Kennecott Minerals CompanyCortez/Pipeline mine 40.0%Nevada, USOre treated Milled ('000 tonnes) 760 794 759 823 868 1,541 1,690 Leached ('000 tonnes) 7,110 9,673 8,619 8,021 5,962 16,357 13,983 Sold for roasting ('000 tonnes) 111 107 109 42 72 207 114Average ore grade: gold Milled (g/t) 6.43 5.31 3.82 4.78 5.62 6.28 5.21 Leached (g/t) 0.73 0.70 0.66 0.67 0.60 0.75 0.64 Sold for roasting (g/t) 6.21 6.90 7.95 7.26 6.52 6.07 6.79Gold produced ('000 ounces) 288 264 217 220 274 571 495Greens Creek mine 70.3%Alaska, USOre treated ('000 tonnes) 177 182 189 168 178 359 346Average ore grades: Gold (g/t) 6.21 5.43 4.95 5.46 5.22 6.03 5.34 Silver (g/t) 560 619 533 735 608 566 670 Zinc (%) 11.9 11.1 10.9 10.8 10.5 11.3 10.7 Lead (%) 4.6 3.9 3.9 4.3 4.1 4.2 4.2Metals produced in concentrates: Gold ('000 ounces) 23 21 20 21 20 45 41 Silver ('000 ounces) 2,254 2,580 2,368 3,016 2,557 4,759 5,573 Zinc ('000 tonnes) 15.6 15.3 16.6 14.2 14.7 30.9 29.0 Lead ('000 tonnes) 5.6 4.8 4.8 4.8 4.7 10.2 9.5Rawhide mine (a) 51.0%Nevada, USMetals produced in dore: Gold ('000 ounces) 13 11 12 11 9 27 20 Silver ('000 ounces) 122 111 121 103 88 230 191 (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. Rio Tinto percentage interest shown above is at 30 June 2005. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2004 2004 2004 2005 2005 2004 2005COPPER & GOLD (continued)Kennecott Utah CopperBarneys Canyon mine (a) 100.0%Utah, USGold produced ('000 ounces) 4 5 5 4 4 11 9 (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) 11,054 11,943 12,219 11,664 11,757 21,551 23,421Average ore grade: Copper (%) 0.62 0.58 0.67 0.60 0.53 0.63 0.56 Gold (g/t) 0.23 0.26 0.38 0.42 0.35 0.25 0.38 Silver (g/t) 2.81 2.95 3.60 3.75 3.36 2.78 3.55 Molybdenum (%) 0.019 0.028 0.055 0.063 0.057 0.023 0.060Copper concentrates produced ('000 tonnes) 277 276 291 243 231 539 475Average concentrate grade (% Cu) 23.1 22.8 25.3 25.5 24.4 23.5 25.0Production of metals in copper concentrates: Copper ('000 tonnes) (b) 64.0 63.3 73.9 62.1 56.7 126.5 118.8 Gold ('000 ounces) 59 72 109 115 95 128 210 Silver ('000 ounces) 785 947 1,121 1,140 1,050 1,515 2,190Molybdenum concentrates produced ('000 tonnes): 1.8 2.8 5.3 7.1 6.3 4.8 13.3 Molybdenum in concentrates ('000 tonnes) 0.9 1.5 2.8 3.9 3.3 2.5 7.1Kennecott smelter & refinery 100.0%Copper concentrates smelted ('000 tonnes) 301 288 229 217 224 580 442Copper anodes produced ('000 tonnes) (c) 64.3 66.1 54.8 50.4 43.1 118.7 93.5Production of refined metal: Copper ('000 tonnes) 61.7 63.1 61.6 57.2 41.5 122.0 98.7 Gold ('000 ounces) (d) 77 74 68 90 76 158 166 Silver ('000 ounces) (d) 768 854 944 755 1,138 1,546 1,893 (b) Includes a small amount of copper in precipitates. (c) New metal excluding recycled material. (d) Includes gold and silver in intermediate products. Northparkes Joint Venture 80.0%New South Wales, AustraliaOre treated ('000 tonnes) 1,157 1,270 1,306 1,300 1,360 2,432 2,660Average ore grades: Copper (%) 0.71 0.75 0.93 1.06 0.97 0.75 1.01 Gold (g/t) 0.68 0.66 0.59 0.46 0.43 0.71 0.44Copper concentrates produced ('000 tonnes) 16.6 21.7 25.5 30.2 33.7 35.8 63.8Contained copper in concentrates: Saleable production ('000 tonnes) 5.9 7.5 9.3 10.7 11.9 13.2 22.6 Sales ('000 tonnes) (a) 7.2 3.1 6.9 9.4 9.8 10.0 19.2Contained gold in concentrates: Saleable production ('000 ounces) 18.7 17.2 22.5 12.5 13.4 39.7 25.9 Sales ('000 ounces) (a) 21.7 11.4 18.1 15.5 9.0 30.4 24.6 (a) Rio Tinto's 80% share of material from the Joint Venture. Rio Tinto percentage interest shown above is at 30 June 2005. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2004 2004 2004 2005 2005 2004 2005COPPER & GOLD (continued)Palabora 49.2%Palabora mineSouth AfricaOre treated ('000 tonnes) 1,897 2,345 2,314 2,156 2,459 3,998 4,615Average ore grade: copper (%) 0.74 0.75 0.73 0.72 0.71 0.75 0.71Copper concentrates produced ('000 tonnes) 35.4 64.2 52.2 48.0 48.4 71.3 96.4Average concentrate grade: copper (%) 28.3 27.7 30.6 29.3 32.2 29.0 30.8Copper in concentrates ('000 tonnes) 10.0 17.8 16.0 14.1 15.6 20.7 29.7Palabora smelter/refineryNew concentrate smelted on site ('000 tonnes) 68.0 59.0 67.0 75.2 71.7 127.4 147.0New copper anodes produced ('000 tonnes) 19.7 14.4 17.3 20.0 19.4 35.5 39.3Refined new copper produced ('000 tonnes) 17.2 16.2 16.2 18.7 19.0 35.1 37.7By-products:Magnetite concentrate ('000 tonnes) 160 144 165 201 189 265 390Refined nickel sulphate (tonnes) 37 36 41 34 57 90 91Vermiculite plantVermiculite produced ('000 tonnes) 51.5 52.7 50.8 48.1 53.6 89.9 101.7Rio Tinto Brasil LimitadaMorro do Ouro mine (a) 0.0%Minas Gerais, BrazilOre treated ('000 tonnes) 4,271 4,409 4,163 - - 8,770 -Average ore grade: gold (g/t) 0.46 0.44 0.46 - - 0.45 -Refined gold produced ('000 ounces) 45 48 46 - - 95 - (a) Rio Tinto sold its interest in Morro do Ouro on 31 December 2004.Production data are shown up to the date of sale. Rio Tinto Zimbabwe (a)Renco mine 0.0%ZimbabweOre treated ('000 tonnes) 85 - - - - 146 -Average ore grade: gold (g/t) 3.43 - - - - 3.30 -Total gold produced ('000 ounces) 6 - - - - 11 - (a) As a result of the corporate restructuring completed on 8 July 2004, RioTinto has ceased to be an ordinary shareholder in the renamed RioZim but willretain a reduced cash participation in its gold and nickel assets for a periodof ten years. Somincor (a)Neves Corvo mine 0.0%PortugalTotal ore treated ('000 tonnes) (b) 430 - - - - 878 - of which, treated to extract tin ('000 tonnes) 8 - - - - 13 -Average ore grades: Copper (%) 6.07 - - - - 6.04 - Tin (%) 1.80 - - - - 1.93 -Copper production: Copper concentrates produced ('000 tonnes) 98.3 - - - - 198.3 - Copper concentrate grade: copper (%) 23.6 - - - - 23.7 - Copper in concentrates produced ('000 tonnes) 23.2 - - - - 46.9 -Tin production: Tin concentrates produced ('000 tonnes) 0.1 - - - - 0.2 - Tin concentrate grade: tin (%) 67.1 - - - - 65.9 - Tin in concentrates produced ('000 tonnes) 0.1 - - - - 0.1 - (a) Rio Tinto completed the sale of its 49% interest in Somincor on 18 June2004. Production data are shown up to the date of sale. (b) Total ore treated for both copper and tin production. Rio Tinto percentage interest shown above is at 30 June 2005. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2004 2004 2004 2005 2005 2004 2005DIAMONDSArgyle Diamonds 100.0%Western AustraliaAK1 ore processed ('000 tonnes) 2,424 2,468 2,618 2,342 2,358 4,490 4,700AK1 diamonds produced ('000 carats) 2,669 5,328 9,011 8,633 9,424 6,282 18,057Diavik Diamonds 60.0%Related Shares:
Rio Tinto