18th Jul 2007 07:01
Rio Tinto PLC18 July 2007 Second quarter 2007 operations review • On 12 July 2007 Rio Tinto made a recommended all cash offer for Alcan of $101 per common share, valuing Alcan at $38.1 billion. • The Group's share of iron ore production was a record for the quarter, increasing by 11 per cent compared with the second quarter of 2006, and by 15 per cent compared with the previous quarter, as the brownfield mine expansions continued to add to capacity. • Mined copper production fell by ten per cent compared with the same quarter of 2006 in line with lower grades at Kennecott Utah Copper. • Refined copper production increased by 20 per cent compared with the second quarter of 2006 due to higher production at the Escondida leach plant. • Higher gold grades at Grasberg contributed to a 36 per cent increase in Rio Tinto's share of mined gold production compared with the second quarter of 2006. • Approval was given in July for the $1.8 billion expansion of the Yarwun Alumina Refinery. The expansion will more than double annual production, increasing output by two million tonnes to 3.4 million tonnes by 2011. • A recovery in market conditions led to a six per cent increase in hard coking coal production compared with the corresponding quarter of 2006, despite infrastructure challenges in Queensland. • Production of thermal and semi-soft Australian coal decreased by 27 per cent compared with the second quarter of 2006 following heavy rainfall in June. This compounded the infrastructure challenges of congested port and railway infrastructure experienced throughout the quarter. • Uranium production increased by 46 per cent compared with the second quarter of 2006, with the Ranger operation able to process higher grade ore mined prior to the heavy rainfalls experienced in the first quarter of 2007. This more than offset a reduction in Rossing production from lower grades. • Diamond production at Diavik set a new quarterly record. All currency figures in this report are US dollars unless otherwise stated IRON ORE AND IRON Rio Tinto share of production (000 tonnes) Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06 Hamersley 28,030 +22% +17% 51,941 +20%Robe River 6,932 -3% +7% 13,392 +2%IOC (pellets and concentrate) 1,730 -34% +22% 3,144 -30% Record production and shipments were achieved by the Australian operations inboth the half year and the quarter ending 30 June 2007. In light of continuedstrong demand for iron ore, Rio Tinto announced its intention to undertakestudies into a further expansion of annual production capacity to 320 milliontonnes. The new blended product, Pilbara Blend, was successfully introduced at the endof June, replacing an existing product range. Pilbara Blend tonnage willrepresent approximately 15 per cent of traded world seaborne iron ore and willprovide both customer and internal logistics benefits. Increases in contractor and other mining costs in the Pilbara continued tosqueeze margins. Hamersley and Robe River Hamersley Iron production was a record quarter as the Yandicoogina and otherbrownfield expansions continued to deliver additional tonnage. Increased production rates were achieved during the second quarter, despitescheduled shutdowns associated with the integration of major capacity upgradesthroughout the operations. All recently completed major upgrades at Tom Price,Paraburdoo and Dampier Port performed well. The next round of capacity expansions are progressing on schedule and withinbudget. The first ore from the Yandicoogina Junction South East orebody wasmined in May, four months ahead of schedule. Production rates at theYandicoogina mine are due to reach 52 million tonnes per annum by the end ofSeptember making it the largest of Rio Tinto's 11 Pilbara mines. The secondstage Dampier port upgrade at Parker Point, expansion of the Cape Lambert portand Hope Downs mine construction remain on schedule. HIsmelt The HIsmelt plant underwent a major refurbishment during the second quarter,which included a vessel reline. As a result, there was no production during thequarter. During the refurbishment, a number of ancillary equipment issues, thathad previously been identified as limiting production rates, were addressed. Theplant has since resumed operation. Iron Ore Company of Canada Production of concentrates and pellets at the Iron Ore Company of Canadarecovered from the strike which commenced on 9 March and continued into thesecond quarter, ending on 25 April. ENERGY US thermal coal Rio Tinto share of production (000 tonnes) Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06 Rio Tinto Energy America 30,318 -4% 0% 60,675 -1% Production during the second quarter of 2007 was consistent with the previousquarter but four per cent below the same quarter of 2006 with unusually wetspring weather slowing rail shipments and coal production. Australian coal Rio Tinto share of production (000 tonnes) Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06Rio Tinto Coal Australia Hard coking coal 1,633 +6% +14% 3,071 +15% Other coal 5,898 -27% -16% 12,939 -18% Production of hard coking coal benefited from an improvement in the coking coalmarket but was restricted due to infrastructure problems in Queensland. The New South Wales operations were impacted by heavy rains in June whichresulted in the declaration of force majeure by Rio Tinto subsidiary Coal &Allied. Reduced port throughput from infrastructure limitations led to continueddelays in shipping and a resultant decrease in production as the effects werefelt along the Hunter Valley coal chain. Uranium Rio Tinto share of production (000 lbs) Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06 Energy Resources of Australia 2,236 +170% +48% 3,743 +29%Rossing 971 -29% -25% 2,263 -14% Processing of high grade ore mined and stockpiled at the Ranger mine prior tothe heavy rainfall during the first quarter of 2007 led to a recovery inproduction levels in the second quarter of 2007. Production in the secondquarter of 2007 was 170 per cent higher than the corresponding quarter of 2006when heavy rainfalls from a cyclone prevented access to high grade ore. Second quarter production at Rossing was impacted by low grades as a result ofwaste stripping in the Trolley 10 pushback. Trolley 10 is expected to be thenext main source of ore, with stripping expected to be completed during theearly part of the third quarter. DIAMONDS AND MINERALS Diamonds Rio Tinto share of production (000 carats) Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06 Argyle 4,414 -41% +27% 7,884 -38%Diavik 1,975 +21% +27% 3,526 +30% Diamond production at Argyle remained constrained due to continued low feedgrade associated with current mining locations. Ongoing variability inproduction levels can be expected as the mine reaches the end of the open-pitlife, and transitions to an underground operation. Record production at Diavik was achieved during the quarter with strongthroughput and continued higher grades contributing to the 21 per cent increasecompared with the second quarter of 2006. Minerals Rio Tinto share of production (000 tonnes) Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06 Borates 145 +2% +12% 274 +1%Titanium dioxide feedstocks 367 +4% +4% 718 +3% Second quarter borates production was 12 per cent higher than the first quarterin line with a seasonal increase in customer demand. Increased production of titanium dioxide feedstocks reflected the current marketstrength, particularly in the chloride sector, with sustained European demandoffsetting weakness in the US. ALUMINIUM Rio Tinto share of production (000 tonnes) Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06Rio Tinto Aluminium Bauxite 4,233 +11% 0% 8,462 +10% Alumina 685 -20% +4% 1,346 -18% Aluminium 216.5 +5% +2% 428.2 +3% Second quarter bauxite production was 11 per cent above the second quarter of2006 reflecting severe weather conditions that occurred in the prior year andthe commissioning of the second shiploader. Alumina production at Yarwun in the second quarter was the second highest onrecord following maintenance shutdowns during the first quarter of the year. RioTinto's overall share of alumina production in the second quarter of 2007 was 20per cent lower than the same quarter of 2006 following the sale of its interestin the Eurallumina refinery in October 2006. Production at the aluminium smelters was five per cent above the correspondingquarter of 2006. Tiwai Point production was ten per cent higher than the secondquarter of 2006 when low rainfall in the hydropower catchment area resulted incells being taken out of circuit. COPPER Rio Tinto share of production (000 tonnes) Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06Kennecott Utah Copper Mined copper (000 tonnes) 55.6 -19% +3% 109.7 -16% Refined copper (000 tonnes) 67.9 0% -3% 137.6 -1% Molybdenum (000 tonnes) 3.8 +8% -19% 8.5 +7% Mined gold (000 ozs) 121 -19% +12% 228 -19% Refined gold (000 ozs) 147 +4% +27% 262 +1%Escondida Mined copper (000 tonnes) 105.2 -1% -6% 216.7 +2% Refined copper (000 tonnes) 19.7 +222% -1% 39.6 +180%Grasberg JV Mined copper (000 tonnes) 5.6 -45% -3% 11.4 -48% Mined gold (000 ozs) 97 +410% +30% 171 +508% Kennecott Utah Copper Lower grades of copper and gold at Bingham Canyon, which were in line with thecompany's expectations, resulted in mined copper production declining by 19 percent compared with the second quarter of 2006. Molybdenum production increased by eight per cent compared with thecorresponding quarter of 2006 as a result of higher recoveries. The smelter continued to operate at targeted levels with refined production ofcopper and gold consistent with the same quarter of 2006. Escondida Second quarter mined copper production was just below the corresponding quarterof 2006, reflecting lower grades and higher recoveries. Refined copperproduction increased by 222 per cent compared with the second quarter of 2006with sulphide leach production having ramped up in the latter half of 2006. Grasberg Changes in the metal sharing rate for 2007 were a major factor in lowering RioTinto's share of copper production and increasing its share of gold productionin the second quarter of 2007, compared with the same quarter of 2006. Highergold grades also contributed to this positive variance. Other copper operations Lower copper production at Northparkes was in line with an expected decline ingrades in the E26 block cave as this resource nears the end of life ahead ofbringing E48 into production. Daily production from the Palabora underground mine averaged in excess of 33,500tonnes. EXPLORATION AND EVALUATION Pre-tax expenditure on exploration and evaluation charged to the profit and lossaccount in the first half of 2007 was $194 million compared with $113 million insame period of 2006. $32 million of this expenditure was charged againstbusiness unit earnings. Higher evaluation expenditure at Simandou, Resolutionand La Granja accounted for much of the increase. A summary of activity for the period is as follows: Product Group Advanced projects Greenfield programmes Aluminium Curua, Brazil: Government-sponsored Brazil, Australia environmental management plans expected to take two to three years. Copper Sulawesi nickel, Indonesia: Contract of Russia (RioNor JV), Kazakhstan, US, Work negotiations continued Mexico, Chile, Peru, Argentina Lakeview nickel-copper, US: resource estimation work underway Diamonds & Minerals Bunder diamonds, India India, Canada, Russia, Mauritania and Mali Xai Xai and Inhambane ilmenite, (diamonds); Australia, Canada, US and Mozambique Turkey (industrial minerals) Jarandol and Jadar borates,Serbia Namekara vermiculite, Uganda:order of magnitude studies underway Energy Chapudi thermal coal, South Africa: order Colombia, Canada, US, South Africa and of magnitude study completed Mongolia Whitehorse thermal coal and Sweetwater uranium, US: order of magnitude studies underway Iron Ore Pilbara, Australia: delineation drilling Brazil and Guinea; title applications in underway at several advanced prospects several new countries Mine-lease exploration continued at a number of Rio Tinto businesses includingKennecott Utah Copper, Northparkes, Greens Creek, Energy Resources of Australia,Rossing, Argyle, Diavik and Pilbara Iron. Pre-feasibility or feasibility work progressed on a number of projects includingResolution (copper/gold, US), La Granja (copper, Peru), Eagle (nickel/copper,US), Potasio Rio Colorado (potash, Argentina), Kintyre (uranium, Australia),Simandou (iron ore, Guinea) and several Pilbara iron ore deposits. Rio Tintocontinues to monitor work by Northern Dynasty Minerals at the Pebblecopper-gold-molybdenum deposit in Alaska. The Oyu Tolgoi copper-gold project moved a step closer to finalisation with theMongolian Government's announcement that it had completed the draft InvestmentAgreement on 26 June 2007. The Agreement will now be submitted to the MongolianNational Parliament. This is expected to be the final step in the Government'sapproval process. Approval will also be needed from the boards of Rio Tinto andIvanhoe Mines, the Canadian joint venture partner. The Agreement provides forthe Mongolian Government to own a 34 per cent stake in the project. For further information, please contact: LONDON AUSTRALIAMedia Relations Media RelationsChristina Mills Ian HeadOffice: +44 (0) 20 8080 1306 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7825 275 605 Mobile: +61 (0) 408 360 101 Nick Cobban Amanda BuckleyOffice: +44 (0) 20 8080 1305 Office: +61 (0) 3 9283 3627Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 419 801 349 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) 408 335 309 David 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.com High resolution photographs available at: www.newscast.co.uk RIO TINTO PRODUCTION SUMMARYRIO TINTO SHARE OF PRODUCTION QUARTER HALF YEAR % CHANGE 2006 2007 2007 2006 2007 Q2 07 Q2 07 H1 07 Q2 Q1 Q2 H1 H1 vs vs vsPrincipal Commodities Q2 06 Q1 07 H1 06 Alumina ('000 t) 854 661 685 1,632 1,346 -20% 4% -18%Aluminium ('000 t) 206.6 211.7 216.5 413.7 428.2 5% 2% 3%Borates ('000 t) 142 129 145 271 274 2% 12% 1%Coal - hard coking coal ('000 t) 1,535 1,438 1,633 2,661 3,071 6% 14% 15%Coal - other Australian ('000 t) 8,093 7,041 5,898 15,711 12,939 -27% -16% -18%Coal - US ('000 t) 31,680 30,357 30,318 61,161 60,675 -4% 0% -1%Copper - mined ('000 t) 207.4 198.1 186.4 410.8 384.5 -10% -6% -6%Copper - refined ('000 t) 83.9 101.6 100.7 169.5 202.3 20% -1% 19%Diamonds ('000 cts) 9,206 5,033 6,413 15,530 11,446 -30% 27% -26%Gold - mined ('000 ozs) 240 278 327 461 606 36% 18% 32%Gold - refined ('000 ozs) 141 115 147 259 262 4% 27% 1%Iron ore ('000 t) 33,315 32,245 37,117 61,984 69,361 11% 15% 12%Titanium dioxide feedstock ('000 t) 353 351 367 697 718 4% 4% 3%Uranium ('000 lbs) 2,201 2,799 3,207 5,525 6,006 46% 15% 9% Other Metals & MineralsBauxite ('000 t) 3,815 4,229 4,233 7,658 8,462 11% 0% 10%Lead ('000 t) 2.2 2.9 2.8 5.2 5.7 25% -6% 9%Molybdenum ('000 t) 3.5 4.7 3.8 7.9 8.5 8% -19% 7%Pig Iron ('000 t) 17 13 0 19 13 -100% -100% -32%Salt ('000 t) 1,441 1,116 958 2,650 2,075 -33% -14% -22%Silver - mined ('000 ozs) 3,270 3,272 3,480 6,450 6,753 6% 6% 5%Silver - refined ('000 ozs) 1,008 870 1,014 2,406 1,884 1% 16% -22%Talc ('000 t) 346 352 326 727 679 -6% -7% -7%Zinc ('000 t) 7.1 8.8 7.5 15.6 16.3 5% -15% 4% 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 2006 2006 2006 2007 2007 2006 2007ALUMINAProduction ('000 tonnes)Eurallumina (a) 0% 152 158 52 - - 304 -Queensland Alumina 39% 381 361 384 365 362 750 727Yarwun (b) 100% 322 302 360 296 323 578 619Rio Tinto total alumina production 854 821 795 661 685 1,632 1,346 ALUMINIUMRefined production ('000 tonnes)Anglesey 51% 18.1 18.7 18.1 17.5 18.9 36.6 36.4Bell Bay 100% 43.7 45.1 45.5 43.6 45.0 86.9 88.6Boyne Island 59% 80.9 82.7 81.0 81.7 82.3 161.3 164.1Tiwai Point 79% 63.9 68.8 71.2 68.9 70.2 128.9 139.1Rio Tinto total aluminium production 206.6 215.2 215.8 211.7 216.5 413.7 428.2 BAUXITEProduction ('000 tonnes)Weipa 100% 3,815 4,036 4,444 4,229 4,233 7,658 8,462 BORATESProduction ('000 tonnes B2O3 content)Rio Tinto Minerals - borates 100% 142 137 145 129 145 271 274 COAL - HARD COKINGRio Tinto Coal Australia ('000 tonnes) Hail Creek Coal 82% 797 1,119 1,193 1,124 1,032 1,414 2,156 Kestrel Coal 80% 739 613 324 314 601 1,247 915Rio Tinto total hard coking coal production 1,535 1,732 1,516 1,438 1,633 2,661 3,071 COAL - OTHER *Rio Tinto Coal Australia ('000 tonnes) Bengalla 30% 426 490 434 398 324 755 722 Blair Athol Coal 71% 1,778 1,840 1,911 1,667 1,580 3,509 3,248 Hunter Valley Operations 76% 2,639 2,161 2,180 2,004 1,818 4,763 3,822 Kestrel Coal 80% 232 213 121 151 271 357 423 Mount Thorley Operations 61% 549 452 595 497 409 1,312 906 Tarong Coal 100% 1,685 1,713 1,778 1,736 1,021 3,488 2,757 Warkworth 42% 784 796 764 586 475 1,528 1,062Total Australian other coal 8,093 7,665 7,782 7,041 5,898 15,711 12,939Rio Tinto Energy America ('000 tonnes) Antelope 100% 7,849 7,760 7,640 7,691 7,682 15,349 15,374 Colowyo (c) 1,497 1,431 1,358 1,224 1,342 2,965 2,566 Cordero Rojo 100% 9,121 8,775 9,524 9,060 9,034 17,796 18,094 Decker 50% 807 775 866 744 784 1,583 1,528 Jacobs Ranch 100% 8,879 9,220 9,646 8,537 8,478 17,392 17,015 Spring Creek 100% 3,527 3,341 3,764 3,100 2,999 6,076 6,099Total US coal 31,680 31,302 32,797 30,357 30,318 61,161 60,675Rio Tinto total other coal production 39,773 38,967 40,580 37,398 36,216 76,872 73,615 COPPERMine production ('000 tonnes)Bingham Canyon 100% 68.7 68.9 66.4 54.1 55.6 130.3 109.7Escondida 30% 105.9 81.1 99.8 111.5 105.2 213.1 216.7Grasberg - Joint Venture (d) 40% 10.2 8.3 15.8 5.8 5.6 22.1 11.4Northparkes 80% 16.5 16.8 17.8 13.7 9.8 32.1 23.5Palabora (e) 58% 6.1 7.8 10.0 13.0 10.2 13.3 23.2Rio Tinto total mine production 207.4 182.8 209.8 198.1 186.4 410.8 384.5Refined production ('000 tonnes)Escondida 30% 6.1 9.1 17.1 19.9 19.7 14.1 39.6Kennecott Utah Copper 100% 67.7 55.1 24.2 69.7 67.9 138.5 137.6Palabora (e) 58% 10.2 11.4 12.7 12.0 13.2 16.8 25.2Rio Tinto total refined production 83.9 75.6 54.0 101.6 100.7 169.5 202.3 DIAMONDSProduction ('000 carats)Argyle 100% 7,509 8,330 8,026 3,470 4,414 12,722 7,884Diavik 60% 1,632 1,697 1,495 1,551 1,975 2,705 3,526Murowa 78% 66 44 39 12 24 103 36Rio Tinto total diamond production 9,206 10,071 9,561 5,033 6,413 15,530 11,446 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 11. RIO TINTO SHARE OF PRODUCTION (continued) Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2006 2006 2006 2007 2007 2006 2007GOLDMine production ('000 ounces)Barneys Canyon 100% 3 5 3 2 3 7 5Bingham Canyon 100% 146 131 118 106 117 274 223Cortez/Pipeline 40% 27 55 61 45 61 62 107Escondida 30% 15 11 14 14 14 27 28Grasberg - Joint Venture (d) 40% 19 8 59 74 97 28 171Greens Creek 70% 9 11 13 11 11 20 22Northparkes 80% 16 23 21 20 18 32 38Rawhide 51% 3 3 3 3 3 7 6Others - 2 3 3 3 3 4 5Rio Tinto total mine production 240 249 294 278 327 461 606Refined production ('000 ounces)Kennecott Utah Copper 100% 141 137 67 115 147 259 262 IRON ORE & IRONProduction ('000 tonnes)Channar 60% 1,486 1,591 1,591 1,585 1,743 2,697 3,328Corumba 100% 455 538 549 460 424 895 885Eastern Range (f) 2,021 2,326 2,112 2,166 1,670 3,777 3,836Hamersley 100% 19,536 21,304 20,964 20,161 24,617 36,940 44,777Iron Ore Company of Canada 59% 2,640 2,412 2,519 1,413 1,730 4,511 3,144Robe River 53% 7,178 7,570 7,321 6,460 6,932 13,163 13,392Rio Tinto total mine production 33,315 35,740 35,057 32,245 37,117 61,984 69,361Pig iron production ('000 tonnes)HIsmelt(R) 60% 17 15 19 13 0 19 13 LEADMine production ('000 tonnes)Greens Creek 70% 2.2 3.2 3.4 2.9 2.8 5.2 5.7 MOLYBDENUMMine production ('000 tonnes)Bingham Canyon 100% 3.5 4.7 4.2 4.7 3.8 7.9 8.5 SALTProduction ('000 tonnes)Rio Tinto Minerals - salt 65% 1,441 1,447 1,307 1,116 958 2,650 2,075 SILVERMine production ('000 ounces)Bingham Canyon 100% 1,217 1,033 928 856 981 2,252 1,838Escondida 30% 565 439 533 563 592 1,021 1,155Grasberg - Joint Venture (d) 40% 30 87 534 0 114 49 114Greens Creek 70% 1,231 1,794 1,754 1,666 1,627 2,682 3,293Others - 228 190 226 187 166 445 353Rio Tinto total mine production 3,270 3,543 3,975 3,272 3,480 6,450 6,753Refined production ('000 ounces)Kennecott Utah Copper 100% 1,008 1,148 598 870 1,014 2,406 1,884 TALCProduction ('000 tonnes)Rio Tinto Minerals - talc 100% 346 340 325 352 326 727 679 TITANIUM DIOXIDE FEEDSTOCKProduction ('000 tonnes)Rio Tinto Iron & Titanium 100% 353 338 380 351 367 697 718 URANIUM (g)Production ('000 lbs U3O8)Energy Resources of Australia 68% 829 1,654 2,541 1,507 2,236 2,897 3,743Rossing 69% 1,372 1,308 1,534 1,292 971 2,627 2,263Rio Tinto total uranium production 2,201 2,962 4,075 2,799 3,207 5,525 6,006 ZINCMine production ('000 tonnes)Greens Creek 70% 7.1 7.6 10.2 8.8 7.5 15.6 16.3 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 11. RIO TINTO SHARE OF PRODUCTION (continued)Production data notes (a) Rio Tinto sold its 56.2% share in Eurallumina with an effective date of31 October 2006 and production data are shown up to that date. (b) Yarwun was previously known as Comalco Alumina Refinery. (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. Rio Tinto's share of production reflects actual production for the firsthalf of 2007. (e) Rio Tinto's shareholding in Palabora varied during 2006 due to theprogressive conversion of debentures into ordinary shares. (f) Rio Tinto's share of production includes 100% of the production fromthe Eastern Range mine. Under the terms of the joint venture agreement,Hamersley Iron manages the operation and is obliged to purchase all mineproduction from the joint venture. (g) With effect from the second quarter of 2007 Rio Tinto is reportinguranium production as '000 lbs U3O8 rather than tonnes. 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 2007. RIO TINTO OPERATIONAL DATA Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H interest 2006 2006 2006 2007 2007 2006 2007ALUMINIUMRio Tinto AluminiumWeipa mine 100.0%Queensland, AustraliaBeneficiated bauxite production ('000 tonnes) 3,815 4,036 4,444 4,229 4,233 7,658 8,462Metal grade bauxite shipments ('000 tonnes) 3,596 4,023 4,451 4,263 4,157 7,384 8,421Calcined bauxite production ('000 tonnes) 40 49 43 43 45 87 88Eurallumina refinery (a) 0.0%Sardinia, ItalyAlumina production ('000 tonnes) 270 281 92 - - 541 -Queensland Alumina refinery 38.6%Queensland, AustraliaAlumina production ('000 tonnes) 986 936 993 945 938 1,942 1,882Yarwun alumina refinery (b) 100.0%Queensland, AustraliaAlumina production ('000 tonnes) 322 302 360 296 323 578 619Anglesey Aluminium smelter 51.0%United KingdomPrimary aluminium production ('000 tonnes) 35.5 36.6 35.4 35.2 36.8 71.7 72.0Bell Bay smelter 100.0%Tasmania, AustraliaPrimary aluminium production ('000 tonnes) 43.7 45.1 45.5 43.6 45.0 86.9 88.6Boyne Island smelter 59.4%Queensland, AustraliaPrimary aluminium production ('000 tonnes) 135.9 138.0 136.5 136.1 137.8 270.6 273.9Tiwai Point smelter 79.4%New ZealandPrimary aluminium production ('000 tonnes) 79.9 86.5 89.3 86.7 88.2 161.5 174.8Rio Tinto Aluminium shareShare of primary aluminium sales ('000 tonnes) 208.0 208.5 233.3 195.5 225.8 408.2 421.3 (a) Rio Tinto sold its 56.2% share in Eurallumina with an effective date of31 October 2006 and production data are shown up to that date. (b) Yarwun alumina refinery was previously known as Comalco Alumina Refinery. BORATESRio Tinto Minerals - borates 100.0%California, US and ArgentinaBorates ('000 tonnes) (a) 142 137 145 129 145 271 274(a) Production is expressed as B2O3 content. Rio Tinto percentage interest shown above is at 30 June 2007. 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 2006 2006 2006 2007 2007 2006 2007COALRio Tinto Coal AustraliaBengalla mine 30.3%New South Wales, AustraliaThermal coal production ('000 tonnes) 1,406 1,618 1,433 1,315 1,070 2,494 2,385Blair Athol Coal mine 71.2%Queensland, AustraliaThermal coal production ('000 tonnes) 2,496 2,583 2,682 2,341 2,218 4,925 4,559Hail Creek Coal mine 82.0%Queensland, AustraliaHard coking coal production ('000 tonnes) 971 1,365 1,455 1,371 1,259 1,724 2,629Hunter Valley Operations 75.7%New South Wales, AustraliaThermal coal production ('000 tonnes) 3,136 2,435 2,264 2,316 2,020 5,522 4,336Semi-soft coking coal production ('000 tonnes) 350 419 616 331 381 769 713Kestrel Coal mine 80.0%Queensland, AustraliaThermal coal production ('000 tonnes) 290 266 151 189 339 446 528Hard coking coal production ('000 tonnes) 923 766 404 392 751 1,559 1,143Mount Thorley Operations 60.6%New South Wales, AustraliaThermal coal production ('000 tonnes) 582 494 857 657 538 1,551 1,195Semi-soft coking coal production ('000 tonnes) 325 253 125 163 137 615 300Tarong Coal mine 100.0%Queensland, AustraliaThermal coal production ('000 tonnes) 1,685 1,713 1,778 1,736 1,021 3,488 2,757Warkworth mine 42.1%New South Wales, AustraliaThermal coal production ('000 tonnes) 1,766 1,803 1,686 1,343 914 3,525 2,257Semi-soft coking coal production ('000 tonnes) 96 90 130 51 216 107 267 Total hard coking coal production ('000 tonnes) 1,895 2,131 1,859 1,763 2,010 3,283 3,773Total hard coking coal sales ('000 tonnes) 1,471 1,779 1,962 1,776 1,605 2,691 3,381Total other coal production ('000 tonnes) (a) 12,133 11,673 11,722 10,443 8,854 23,442 19,297Total other coal sales ('000 tonnes) (b) (c) 11,882 11,845 11,173 11,127 9,762 23,742 20,889 Total coal production ('000 tonnes) 14,027 13,804 13,581 12,206 10,864 26,725 23,070Total coal sales ('000 tonnes) 13,353 13,624 13,135 12,903 11,368 26,433 24,271Rio Tinto Coal Australia shareShare of hard coking coal sales ('000 tonnes) 1,196 1,450 1,603 1,447 1,306 2,189 2,753Share of other coal sales ('000 tonnes) (b) (c) 8,022 7,743 7,525 7,523 6,453 16,008 13,976 (a) Other coal production includes thermal coal and semi-soft coking coal. (b) Other coal sales includes thermal coal, semi-soft coking coal andsemi-hard coking coal (a mixture of thermal coal and coking coal). (c) Sales relate only to coal mined by the operations and exclude tradedcoal. Rio Tinto Energy AmericaAntelope mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 7,849 7,760 7,640 7,691 7,682 15,349 15,374Colowyo mine (a)Colorado, USThermal coal production ('000 tonnes) 1,497 1,431 1,358 1,224 1,342 2,965 2,566Cordero Rojo mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 9,121 8,775 9,524 9,060 9,034 17,796 18,094Decker mine 50.0%Montana, USThermal coal production ('000 tonnes) 1,614 1,551 1,733 1,488 1,568 3,166 3,056Jacobs Ranch mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 8,879 9,220 9,646 8,537 8,478 17,392 17,015Spring Creek mine 100.0%Montana, USThermal coal production ('000 tonnes) 3,527 3,341 3,764 3,100 2,999 6,076 6,099 Total coal production ('000 tonnes) 32,487 32,077 33,664 31,101 31,103 62,744 62,204Total coal sales ('000 tonnes) 32,487 32,077 33,661 31,101 31,103 62,744 62,204 (a) 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 2007. 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 2006 2006 2006 2007 2007 2006 2007COPPER & GOLDEscondida 30.0%ChileSulphide ore to concentrator ('000 tonnes) 21,473 18,258 22,585 23,450 23,064 43,315 46,514Average copper grade (%) 1.63 1.55 1.55 1.62 1.58 1.63 1.60Mill production (metals in concentrates): Contained copper ('000 tonnes) 295.9 234.0 289.4 319.1 305.6 598.7 624.7 Contained gold ('000 ounces) 49 35 46 45 48 89 93 Contained silver ('000 ounces) 1,882 1,464 1,777 1,877 1,973 3,405 3,850Ore to leach ('000 tonnes) (a) 15,536 14,712 9,659 15,509 8,435 31,693 23,944Average copper grade (%) 0.37 0.25 0.45 0.34 0.53 0.35 0.41Contained copper in leachate/mined material ('000 tonnes) 57 36 43 52 45 112 98Refined production from leach plants: Copper cathode production ('000 tonnes) 20 30 57 66 66 47 132 Freeport-McMoRan Copper & GoldGrasberg mine (a) 0.0% (40.0% of the expansion)Papua, IndonesiaOre treated ('000 tonnes) 20,353 21,170 22,681 20,563 20,394 39,865 40,957Average mill head grades: Copper (%) 0.72 0.85 1.08 1.21 0.77 0.72 0.99 Gold (g/t) 0.67 0.83 0.95 2.01 1.14 0.79 1.58 Silver (g/t) 3.84 3.46 3.87 4.75 2.36 4.02 3.56Production of metals in concentrates: Copper in concentrates ('000 tonnes) 121.7 152.9 220.3 225.6 137.1 237.6 362.7 Gold in concentrates ('000 ounces) 336 471 589 1,182 634 821 1,816 Silver in concentrates ('000 ounces) 1,170 1,453 2,083 2,273 869 2,073 3,141Sales of payable metals in concentrates: (b) Copper in concentrates ('000 tonnes) 108.8 155.5 211.3 194.2 150.1 222.8 344.4 Gold in concentrates ('000 ounces) 294 487 564 1,010 723 780 1,733 Silver in concentrates ('000 ounces) 844 1,167 1,592 1,571 821 1,555 2,392 (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. The first half 2007 results include the first quarter 2007 actuals andsecond quarter 2007 forecasts from FCX's most recent five-year plan. FCX is notreleasing its actual 100% operating data for the second quarter 2007 until therelease of its 2007 second-quarter and six-month results on 25 July 2007. (b) Net of smelter deductions. Rio Tinto percentage interest shown above is at 30 June 2007. 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 2006 2006 2006 2007 2007 2006 2007COPPER & GOLD (continued)Kennecott Minerals CompanyCortez/Pipeline mine 40.0%Nevada, USOre treated Milled ('000 tonnes) 745 956 842 763 697 1,501 1,461 Leached ('000 tonnes) 4,464 7,452 7,312 11,007 5,956 8,276 16,963 Sold for roasting ('000 tonnes) - - - - - 35 -Average ore grade: gold Milled (g/t) 2.13 2.89 2.64 2.49 2.80 2.23 2.64 Leached (g/t) 0.37 0.43 0.42 0.52 0.51 0.38 0.51 Sold for roasting (g/t) - - - - - 6.50 -Gold produced ('000 ounces) 68 136 153 113 154 155 267 Greens Creek mine 70.3%Alaska, USOre treated ('000 tonnes) 157 162 187 166 148 315 314Average ore grades: Gold (g/t) 3.97 4.39 4.82 4.44 4.57 4.26 4.50 Silver (g/t) 471 619 540 562 624 502 591 Zinc (%) 8.4 8.9 10.1 9.5 9.1 9.2 9.3 Lead (%) 3.1 4.0 3.6 3.6 3.8 3.6 3.7Metals produced in concentrates: Gold ('000 ounces) 13 16 19 16 15 29 31 Silver ('000 ounces) 1,751 2,553 2,497 2,371 2,316 3,817 4,687 Zinc ('000 tonnes) 10.1 10.8 14.5 12.5 10.6 22.3 23.2 Lead ('000 tonnes) 3.1 4.6 4.8 4.2 3.9 7.4 8.1 Rawhide mine (a) 51.0%Nevada, USMetals produced in dore: Gold ('000 ounces) 6 7 6 5 6 13 12 Silver ('000 ounces) 55 64 50 51 54 118 105 (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) 3 5 3 2 3 7 5 (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) 11,739 12,333 12,083 11,922 12,499 23,440 24,421Average ore grade: Copper (%) 0.67 0.62 0.63 0.56 0.53 0.64 0.54 Gold (g/t) 0.56 0.47 0.44 0.43 0.42 0.54 0.43 Silver (g/t) 3.98 3.22 3.09 3.14 3.07 3.85 3.10 Molybdenum (%) 0.055 0.057 0.055 0.056 0.050 0.058 0.053Copper concentrates produced ('000 tonnes) 263 269 245 202 234 505 437Average concentrate grade (% Cu) 26.1 25.5 27.1 26.7 23.6 25.7 25.1Production of metals in copper concentrates: Copper ('000 tonnes) (b) 68.7 68.9 66.4 54.1 55.6 130.3 109.7 Gold ('000 ounces) 146 131 118 106 117 274 223 Silver ('000 ounces) 1,217 1,033 928 856 981 2,252 1,838Molybdenum concentrates produced ('000 tonnes): 6.3 8.3 7.4 8.3 6.7 14.5 15.0 Molybdenum in concentrates ('000 tonnes) 3.5 4.7 4.2 4.7 3.8 7.9 8.5Kennecott smelter & refinery 100.0%Copper concentrates smelted ('000 tonnes) 272 220 156 272 297 542 569Copper anodes produced ('000 tonnes) (c) 65.7 50.4 33.3 69.0 73.7 132.1 142.7Production of refined metal: Copper ('000 tonnes) 67.7 55.1 24.2 69.7 67.9 138.5 137.6 Gold ('000 ounces) (d) 141 137 67 115 147 259 262 Silver ('000 ounces) (d) 1,008 1,148 598 870 1,014 2,406 1,884 (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 2007. 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 2006 2006 2006 2007 2007 2006 2007COPPER & GOLD (continued)Northparkes Joint Venture 80.0%New South Wales, AustraliaOre treated ('000 tonnes) 1,438 1,427 1,499 1,367 1,363 2,862 2,730Average ore grades: Copper (%) 1.53 1.57 1.57 1.38 1.01 1.49 1.20 Gold (g/t) 0.58 0.69 0.71 0.78 0.67 0.57 0.73Copper concentrates produced ('000 tonnes) 52.5 52.4 54.2 42.2 32.4 100.8 74.6Contained copper in concentrates: Saleable production ('000 tonnes) 20.7 21.0 22.2 17.2 12.3 40.1 29.4 Sales ('000 tonnes) (a) 17.1 14.4 15.6 16.3 16.5 31.4 32.9Contained gold in concentrates: Saleable production ('000 ounces) 19.9 29.3 26.0 25.6 22.2 39.5 47.8 Sales ('000 ounces) (a) 16.4 16.1 17.0 19.1 15.3 29.7 34.4 (a) Rio Tinto's 80% share of material from the Joint Venture. Palabora (a) 57.7%Palabora mineSouth AfricaOre treated ('000 tonnes) 2,633 2,668 2,783 2,886 3,025 5,279 5,910Average ore grade: copper (%) 0.70 0.72 0.72 0.71 0.70 0.70 0.71Copper concentrates produced ('000 tonnes) 43.0 53.4 61.0 82.1 56.0 94.5 138.1Average concentrate grade: copper (%) 30.5 29.4 28.5 27.4 31.5 30.1 29.1Copper in concentrates ('000 tonnes) 13.1 15.7 17.4 22.5 17.6 28.5 40.2Palabora smelter/refineryNew concentrate smelted on site ('000 tonnes) 83.3 87.7 75.5 73.6 74.2 125.3 147.8New copper anodes produced ('000 tonnes) 24.0 22.4 22.2 21.2 22.9 34.0 44.0Refined new copper produced ('000 tonnes) 21.9 22.9 22.1 20.8 22.9 36.2 43.7By-products:Magnetite concentrate ('000 tonnes) 296 299 281 262 321 547 582Refined nickel sulphate (tonnes) 28 25 32 21 164 63 185Vermiculite plantVermiculite produced ('000 tonnes) 48 52 50 50 50 95 100 (a) Rio Tinto's shareholding in Palabora varied during 2006 due to theprogressive conversion of debentures into ordinary shares. DIAMONDSArgyle Diamonds 100.0%Western AustraliaAK1 ore processed ('000 tonnes) 2,131 2,162 2,192 2,168 2,178 4,087 4,346AK1 diamonds produced ('000 carats) 7,509 8,330 8,026 3,470 4,414 12,722 7,884Diavik Diamonds 60.0%Northwest Territories, CanadaOre processed ('000 tonnes) 608 722 509 520 643 1,100 1,163Diamonds recovered ('000 carats) 2,720 2,829 2,492 2,585 3,291 4,508 5,876Murowa Diamonds 77.8%ZimbabweOre processed ('000 tonnes) 61 44 47 30 46 126 77Diamonds recovered ('000 carats) 85 57 50 15 31 133 46 Rio Tinto percentage interest shown above is at 30 June 2007. 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 2006 2006 2006 2007 2007 2006 2007IRON ORE & IRONHamersley IronWestern AustraliaSaleable iron ore production ('000 tonnes): Paraburdoo, Mount Tom Price, Marandoo, Yandicoogina, Brockman and Nammuldi 100.0% 19,536 21,304 20,964 20,161 24,617 36,940 44,777 Channar 60.0% 2,476 2,652 2,652 2,641 2,905 4,494 5,546 Eastern Range (a) 2,021 2,326 2,112 2,166 1,670 3,777 3,836Total production ('000 tonnes) 24,033 26,282 25,728 24,968 29,192 45,211 54,160Total sales ('000 tonnes) (b) 23,567 26,680 27,830 23,770 27,317 44,549 51,087 (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) 28 26 31 21 0 32 21Iron Ore Company of Canada 58.7%Newfoundland & Labrador and Quebec in CanadaSaleable iron ore production: Concentrates ('000 tonnes) 1,291 983 747 82 613 1,632 695 Pellets ('000 tonnes) 3,205 3,124 3,543 2,325 2,334 6,051 4,659Sales: Concentrate ('000 tonnes) 555 651 1,392 436 296 871 732 Pellets ('000 tonnes) 3,282 3,198 4,305 1,791 2,727 5,432 4,518Rio Tinto BrasilCorumba mine 100.0%Mato Grosso do Sul, BrazilSaleable iron ore production ('000 tonnes) (a) 455 538 549 460 424 895 885Sales ('000 tonnes) 413 462 479 347 245 831 593(a) Production includes by-product fines.Robe River Iron AssociatesPannawonica mine 53.0%Western AustraliaSaleable iron ore production ('000 tonnes) 7,273 7,501 8,018 6,168 6,901 13,754 13,069Sales ('000 tonnes) 7,135 7,685 7,541 5,938 7,230 13,892 13,168West Angelas mine 53.0%Western AustraliaSaleable iron ore production ('000 tonnes) 6,270 6,781 5,795 6,020 6,178 11,082 12,198Sales ('000 tonnes) 5,833 6,224 6,513 5,143 6,793 10,578 11,936 Rio Tinto percentage interest shown above is at 30 June 2007. 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 2006 2006 2006 2007 2007 2006 2007SALTRio Tinto Minerals - salt 64.9%Western AustraliaSalt production ('000 tonnes) 2,219 2,229 2,013 1,719 1,476 4,081 3,195TALCRio Tinto Minerals - talc 100.0%Australia, Europe, and North AmericaTalc production ('000 tonnes) 346 340 325 352 326 727 679TITANIUM DIOXIDE FEEDSTOCKRio Tinto Iron & Titanium 100.0%Canada and South Africa(Rio Tinto share)Titanium dioxide feedstock production ('000 tonnes) 353 338 380 351 367 697 718URANIUMEnergy Resources of Australia LtdRanger mine 68.4%Northern Territory, AustraliaProduction ('000 lbs U3O8) 1,212 2,418 3,715 2,204 3,269 4,237 5,473Rossing Uranium Ltd 68.6%NamibiaProduction ('000 lbs U3O8) 2,001 1,908 2,237 1,884 1,417 3,831 3,300 Rio Tinto percentage interest shown above is at 30 June 2007. 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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