18th Oct 2006 07:01
Rio Tinto PLC18 October 2006 Third quarter 2006 operations review • Record iron ore production was achieved in the quarter as the Pilbara expansion programme continued to deliver additional capacity. • Higher grades and improved recovery rates at Kennecott Utah Copper delivered record molybdenum production. • Mined copper production was lower due to industrial action at Escondida and refined copper production was down due to the commencement of a scheduled smelter shutdown at Kennecott Utah Copper. • Production at the Comalco Alumina Refinery was only slightly below the record second quarter production, despite two planned major maintenance shutdowns during the quarter. • Titanium dioxide feedstock production continued to reflect the strength of current customer demand and the expansion of the UGS plant. • US coal production was at similar levels to the record production achieved in the previous quarter. • Production of hard coking coal continued to recover but year to date output remained lower than 2005 reflecting customer demand. • Diavik achieved record diamond production in the quarter. All currency figures in this report are US dollars unless otherwise stated IRON ORE AND IRON Rio Tinto share of production (000 tonnes) Q3 06 vs Q3 05 vs Q2 06 9 mths 06 vs 9 mths 05Hamersley 25,221 +14% +9% 68,634 +8%Robe River 7,570 +3% +5% 20,733 +2%IOC (pellets and concentrate) 2,412 +5% -9% 6,923 +2% Demand for iron ore remained strong in all markets during the quarter.Expansion projects in the Pilbara remained largely on schedule and withinbudget. Hamersley and Robe River Record quarterly iron ore production and sales in the Pilbara were achieved asthe ramp up of mine and port capacity expansions started to take effect. Despite continued recovery from the impact of cyclone activity experiencedearlier in the year, Hamersley production was up nine per cent on the previousquarter due to additional capacity coming on stream at the Yandicoogina mine andthe first full quarter of production from the newly commissioned Nammuldi mine. Additional processing of low grade material at the West Angelas mine was themain contributor to Robe River's three per cent increase in production comparedwith the corresponding period last year. HIsmelt HIsmelt produced 25,800 tonnes of pig iron during the quarter as the plantcontinued to ramp up to nameplate capacity of 800,000 tonnes a year. During thequarter the plant achieved around 70 per cent availability, with peak productionat 65 per cent of nameplate capacity. Iron Ore Company of Canada Third quarter pellet and concentrate production was below the previous quarterdue to planned maintenance activities. Year to date pellet production was sevenper cent lower than the corresponding period last year as a result of theextreme weather conditions experienced in the first quarter and a change inproduct mix in favour of concentrate production. Concentrate production in thefirst nine months of this year was up 60 per cent on the same period last year. ENERGY US thermal coal Rio Tinto share of production (000 tonnes) Q3 06 vs Q3 05 vs Q2 06 9 mths 06 vs 9 mths 05Rio Tinto Energy America 31,302 +11% -1% 92,463 +7% Third quarter production continued to reflect the recovery of rail capacity fromthe 2005 maintenance campaign as well as the capacity expansions underway at theSpring Creek and Antelope mines. The commissioning of a new dragline at JacobsRanch earlier in the year also contributed to a new quarterly production recordat that mine. Australian coal Rio Tinto share of production (000 tonnes) Q3 06 vs Q3 05 vs Q2 06 9 mths 06 vs 9 mths 05Rio Tinto Coal Australia Hard coking coal 1,732 -1% +13% 4,393 -22% Other coal 7,665 -4% -5% 23,376 +0% Production of hard coking coal was 13 per cent higher than the previous quarterreflecting a partial recovery in customer demand. Year to date production was22 per cent below the first nine months of last year reflecting softness in thehard coking coal market. Production from the Hunter Valley operations was aligned with the allocation setunder the Port Waratah Coal Services (PWCS) capacity balancing system. Howeverduring the quarter, coal producers in the Hunter Valley voted not to continuewith the capacity balancing system in 2007. This will allow the Port ofNewcastle to operate on a take or pay basis and as a result, PWCS customers willnot have their coal handling requirements reduced to match the capacity of thecoal chain. Uranium Production at the Ranger mine recovered from the heavy rainfall and throughputissues experienced in the second quarter of 2006, contributing to a 35 per centincrease in uranium production in the quarter. Production at Rossing was inline with the previous quarter. INDUSTRIAL MINERALS Rio Tinto share of production (000 tonnes) Q3 06 vs Q3 05 vs Q2 06 9 mths 06 vs 9 mths 05Borates 136 -3% -4% 408 -0%Titanium dioxide feedstocks 338 +3% -4% 1,035 +6% Borates production was at similar levels to the previous quarter and thecorresponding quarter of 2005. Year to date production was in line with thecorresponding period last year. Titanium dioxide feedstock production in the first nine months of the year wassix per cent higher than 2005 reflecting continued strength in market demand.The UGS expansion from 325,000 to 375,000 tonnes per annum is proceeding asscheduled and is due for completion at the end of the year. ALUMINIUM Rio Tinto share of production (000 tonnes) Q3 06 vs Q3 05 vs Q2 06 9 mths 06 vs 9 mths 05Rio Tinto Aluminium Bauxite 4,036 +7% +6% 11,695 +7% Alumina 821 +13% -4% 2,452 +11% Aluminium 215.2 -1% +4% 629.0 -1% Third quarter bauxite production was seven per cent higher than thecorresponding period last year due to increased capacity resulting from theNeWeipa project. Production at the Comalco Alumina Refinery was only slightly below the recordproduction achieved in the second quarter, despite two planned major shutdownsduring the quarter. The Comalco Alumina Refinery is on schedule to reachnameplate capacity by the end of the year as planned. Production at Queensland Alumina and Eurallumina was in line with previousquarters. During the quarter, Rio Tinto announced the sale of its 56.2 per centinterest in the Eurallumina SpA refinery. The completion of the sale isconditional on customary joint venture partner rights. Production from all aluminium smelters was ahead of the previous quarter and,with the exception of NZAS, the corresponding quarter last year. Aluminiumproduction from the Tiwai Point smelter was lower due to the gradual return ofsome cells which were out of circuit as a result of power reductions caused bylow rainfall in the hydropower catchment area. COPPER Rio Tinto share of production (000 tonnes) Q3 06 vs Q3 05 vs Q2 06 9 mths 06 vs 9 mths 05Kennecott Utah Copper Mined copper (000 tonnes) 68.9 +37% +0% 199.1 +18% Refined copper (000 55.1 -19% -19% 193.7 +16% tonnes) Molybdenum (000 tonnes) 4.7 +20% +34% 12.6 +14% Mined gold (000 ozs) 135 +41% -9% 417 +32% Refined gold (000 ozs) 137 +48% -3% 395 +53%Escondida Mined copper (000 tonnes) 81.1 -20% -23% 294.2 +5%Grasberg JV Mined copper (000 tonnes) 8.3 -65% -19% 30.4 -57% Mined gold (000 ozs) 8 -94% -58% 36 -91% Kennecott Utah Copper Mined production of copper, molybdenum and gold benefited from higher gradescompared with the corresponding period last year. Despite lower grades than inthe previous quarter, mined copper production was unchanged due to higherthroughput at the concentrator. Record molybdenum production in the thirdquarter was due to higher grades and improved recovery rates. Refined copper production was significantly lower than the same period last yeardue to a major smelter shutdown which started in early September and is expectedto be completed shortly. Refined gold production was in line with the previousquarter and higher than the comparative period last year due to a reduction ininventories. Escondida Third quarter mined copper production was 23 per cent lower than the previousquarter due to strike action over wage negotiations for most of August. Thestrike action ended on 2 September. Grasberg Lower grades for copper, gold and silver as a result of mine sequencing led tolower production for all three metals compared with the same quarter of 2005. Rio Tinto's share of production is also affected by the metal strip, whichdetermines the allocation of volumes between the joint venture partners. Thestructure of the agreement means that Rio Tinto's share of production is gearedto fluctuations in total production volumes. Rio Tinto's share of productionfrom the Grasberg mine is expected to be lower in 2006 and 2007 relative toprevious years, before increasing in 2008 and beyond. Other copper operations At Palabora total mill throughput, levels of concentrate smelted and anodesproduced were in line with the previous quarter. Increased production atNorthparkes reflected the continued mining of higher grade ore from the Lift 2area. DIAMONDS Rio Tinto share of production (000 carats) Q3 06 vs Q3 05 vs Q2 06 9 mths 06 vs 9 mths 05Argyle 8,330 +39% +11% 21,052 -12%Diavik 1,697 +30% +4% 4,402 +14% Argyle Increased carat production was achieved in the third quarter due to highergrades. However continued variability in production levels is expected as themine approaches the end of the open-pit life and transitions to an undergroundoperation. Diavik Despite the challenges of the early closure of the ice road, Diavik achievedrecord carat production in the quarter. Production was four per cent higherthan the previous quarter and 30 per cent higher than the same period last year,largely as a result of improvements in throughput. EXPLORATION AND EVALUATION Pre-tax expenditure on exploration and evaluation charged to the profit and lossaccount in the first nine months of 2006 was $175 million compared with $168million in the first nine months of 2005. $38 million of this expenditure wascharged against business unit earnings. Exploration drilling was sustained on copper targets in Chile, Argentina,Kazakhstan, and the US. Exploration in Russia continued as part of the RioNorJoint Venture. Diamond exploration remained focused on targets in Canada,Botswana, Mauritania, India and Brazil. Iron ore exploration continued inWestern Australia and west Africa. Exploration for thermal and coking coalcontinued in southern Africa, North America, South America and Mongolia. AtChapudi coal in South Africa progress continued on drilling and securing landtenements. Exploration for bauxite is ongoing in Brazil. 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 Tintois monitoring the work by Northern Dynasty Minerals at the Pebblecopper-gold-molybdenum deposit in Alaska. Contract of Work negotiations continueat La Sampala nickel in Indonesia. CORPORATE ACTIVITY During the quarter Rio Tinto's shares in Ashton Mining of Canada were taken upby Stornoway Diamonds under its takeover bid for Ashton. In exchange for theshares in Ashton, Rio Tinto will receive cash totaling approximately C$29.6million and 25.6 million Stornoway common shares. CAPITAL MANAGEMENT PROGRAMME During the first nine months of 2006, the Group bought back $1,750 million ofRio Tinto plc shares under the 2006/2007 $2.5 billion share buyback programmeannounced on 2 February 2006. In addition, a special dividend of $1.5 billionwas paid on 6 April, bringing the total returned to shareholders to date underthe 2006/07 programme to $3,250 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 010978 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 NINE MONTHS % CHANGE 2005 2006 2006 2005 2006 Q3 06 Q3 06 9 Mths 06 Q3 Q2 Q3 vs vs vsPrincipal Commodities Q2 06 Q3 05 9 Mths 05Alumina ('000 t) 725 854 821 2,214 2,452 -4% 13% 11%Aluminium ('000 t) 216.6 206.6 215.2 638.1 629.0 4% -1% -1%Borates ('000 t) 141 142 136 409 408 -4% -3% 0%Coal - hard coking coal ('000 t) 1,755 1,535 1,732 5,610 4,393 13% -1% -22%Coal - other Australian ('000 t) 7,996 8,093 7,665 23,287 23,376 -5% -4% 0%Coal - US ('000 t) 28,290 31,680 31,302 86,446 92,463 -1% 11% 7%Copper - mined ('000 t) 195.4 207.4 182.8 573.7 593.6 -12% -6% 3%Copper - refined ('000 t) 89.2 83.9 75.6 229.0 245.1 -10% -15% 7%Diamonds ('000 cts) 7,349 9,206 10,071 28,037 25,602 9% 37% -9%Gold - mined ('000 ozs) 376 240 246 1,257 707 3% -35% -44%Gold - refined ('000 ozs) 92 141 137 258 395 -3% 48% 53%Iron ore ('000 t) 32,187 33,315 35,740 91,972 97,723 7% 11% 6%Titanium dioxide feedstock ('000 t) 327 353 338 976 1,035 -4% 3% 6%Other Metals & MineralsBauxite ('000 t) 3,781 3,815 4,036 10,898 11,695 6% 7% 7%Lead - mined ('000 t) 2.5 2.2 3.2 9.2 8.5 47% 31% -8%Molybdenum ('000 t) 3.9 3.5 4.7 11.0 12.6 34% 20% 14%Pig Iron ('000 t) - 16.6 15.5 - 34.5 -7% - -Salt ('000 t) 1,121 1,441 1,447 3,896 4,098 0% 29% 5%Silver - mined ('000 ozs) 3,197 3,270 3,354 10,943 9,803 3% 5% -10%Silver - refined ('000 ozs) 830 1,008 1,148 2,723 3,554 14% 38% 30%Talc ('000 t) 328 346 340 1,018 1,066 -2% 4% 5%Uranium (tonnes) 1,747 998 1,344 4,797 3,850 35% -23% -20%Zinc - mined ('000 t) 8.1 7.1 7.6 28.5 23.2 7% -7% -19% 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 nine month figures. RIO TINTO SHARE OF PRODUCTION Rio Tinto 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS interest 2005 2005 2006 2006 2006 2005 2006ALUMINAProduction ('000 tonnes)Comalco Alumina Refinery 100% 191 220 257 322 302 616 880Eurallumina (a) 56% 150 153 152 152 158 448 461Queensland Alumina 39% 384 375 369 381 361 1,151 1,111Rio Tinto total alumina production 725 748 778 854 821 2,214 2,452ALUMINIUMRefined production ('000 tonnes)Anglesey 51% 18.3 18.7 18.5 18.1 18.7 54.7 55.3Bell Bay 100% 43.9 43.6 43.2 43.7 45.1 130.2 132.0Boyne Island 59% 82.4 82.7 80.4 80.9 82.7 243.5 244.0Tiwai Point 79% 72.0 70.6 65.0 63.9 68.8 209.8 197.7Rio Tinto total aluminium production 216.6 215.6 207.1 206.6 215.2 638.1 629.0BAUXITEProduction ('000 tonnes)Weipa 100% 3,781 4,576 3,843 3,815 4,036 10,898 11,695BORATESProduction ('000 tonnes B2O3 content)Rio Tinto Minerals - borates 100% 141 151 130 142 136 409 408COAL - HARD COKINGRio Tinto Coal Australia (b) ('000 tonnes) Hail Creek Coal 82% 1,208 1,270 617 797 1,119 3,568 2,533 Kestrel Coal 80% 547 315 508 739 613 2,042 1,860Rio Tinto total hard coking coal production 1,755 1,585 1,126 1,535 1,732 5,610 4,393COAL - OTHER *Rio Tinto Coal Australia (b) ('000 tonnes) Bengalla 30% 366 622 330 426 490 1,185 1,245 Blair Athol Coal 71% 1,994 1,876 1,730 1,778 1,840 5,675 5,348 Hunter Valley Operations 76% 2,259 2,293 2,124 2,639 2,161 7,076 6,924 Kestrel Coal 80% 143 89 125 232 213 530 570 Mount Thorley Operations 61% 664 491 763 549 452 1,909 1,764 Tarong Coal 100% 1,804 1,549 1,803 1,685 1,713 4,922 5,200 Warkworth 42% 766 657 744 784 796 1,991 2,324Total Australian other coal 7,996 7,576 7,618 8,093 7,665 23,287 23,376Rio Tinto Energy America (c) ('000 tonnes) Antelope 100% 7,287 6,413 7,501 7,849 7,760 20,761 23,109 Colowyo (d) 1,219 1,477 1,468 1,497 1,431 3,848 4,396 Cordero Rojo 100% 7,687 8,642 8,675 9,121 8,775 25,592 26,571 Decker 50% 841 890 776 807 775 2,254 2,358 Jacobs Ranch 100% 8,014 8,590 8,513 8,879 9,220 25,233 26,612 Spring Creek 100% 3,243 3,122 2,549 3,527 3,341 8,758 9,417Total US coal 28,290 29,135 29,481 31,680 31,302 86,446 92,463Rio Tinto total other coal production 36,286 36,710 37,099 39,773 38,967 109,732 115,839COPPERMine production ('000 tonnes)Bingham Canyon 100% 50.2 51.6 61.6 68.7 68.9 169.0 199.1Escondida 30% 101.7 100.4 107.2 105.9 81.1 280.7 294.2Grasberg - Joint Venture (e) 40% 23.6 38.2 11.9 10.2 8.3 71.3 30.4Northparkes 80% 11.8 13.3 15.5 16.5 16.8 29.9 48.8Palabora (f) 58% 8.2 7.2 7.2 6.1 7.8 22.7 21.0Rio Tinto total mine production 195.4 210.7 203.4 207.4 182.8 573.7 593.6Refined production ('000 tonnes)Escondida 30% 10.2 10.4 8.0 6.1 9.1 32.7 23.2Kennecott Utah Copper 100% 68.1 65.1 70.9 67.7 55.1 166.8 193.7Palabora (f) 58% 10.8 9.9 6.7 10.2 11.4 29.4 28.2Rio Tinto total refined production 89.2 85.5 85.6 83.9 75.6 229.0 245.1DIAMONDSProduction ('000 carats)Argyle 100% 5,995 6,455 5,214 7,509 8,330 24,021 21,052Diavik 60% 1,306 1,098 1,073 1,632 1,697 3,865 4,402Murowa 78% 48 44 38 66 44 151 148Rio Tinto total diamond production 7,349 7,598 6,324 9,206 10,071 28,037 25,602 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 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS interest 2005 2005 2006 2006 2006 2005 2006GOLDMine production ('000 ounces)Barneys Canyon 100% 4 4 4 3 5 13 12Bingham Canyon 100% 92 99 129 146 131 302 405Cortez/Pipeline 40% 89 74 35 27 55 287 116Escondida 30% 13 13 12 15 11 42 37Grasberg - Joint Venture (e) 40% 122 248 9 19 8 422 36Greens Creek 70% 11 12 11 9 11 39 31Kelian (g) 90% - - - - - 38 -Lihir (h) 0% 28 - - - - 61 -Northparkes 80% 12 13 16 16 23 33 55Rawhide 51% 3 4 4 3 3 14 10Others - 2 2 2 2 0 5 4Rio Tinto total mine production 376 469 221 240 246 1,257 707Refined production ('000 ounces)Kennecott Utah Copper 100% 92 110 118 141 137 258 395IRON ORE & IRONProduction ('000 tonnes)Channar 60% 1,371 980 1,211 1,486 1,591 4,206 4,288Corumba 100% 371 290 440 455 538 1,121 1,433Eastern Range (i) 1,897 1,536 1,756 2,021 2,326 5,024 6,102Hamersley 100% 18,915 19,931 17,404 19,536 21,304 54,455 58,244Iron Ore Company of Canada (j) 59% 2,292 2,424 1,871 2,640 2,412 6,764 6,923Robe River 53% 7,341 7,362 5,986 7,178 7,570 20,402 20,733Rio Tinto total mine production 32,187 32,522 28,668 33,315 35,740 91,972 97,723Pig iron production ('000 tonnes)HIsmelt(R) (k) 60% - 5 2 17 15 - 34LEADMine production ('000 tonnes)Greens Creek 70% 2.5 2.7 3.0 2.2 3.2 9.2 8.5MOLYBDENUMMine production ('000 tonnes)Bingham Canyon 100% 3.9 4.6 4.4 3.5 4.7 11.0 12.6SALTProduction ('000 tonnes)Rio Tinto Minerals - salt 65% 1,121 1,610 1,209 1,441 1,447 3,896 4,098SILVERMine production ('000 ounces)Bingham Canyon 100% 884 884 1,036 1,217 1,033 3,074 3,286Escondida 30% 505 593 457 565 439 1,377 1,461Grasberg - Joint Venture (e) 40% 280 718 19 30 87 646 136Greens Creek 70% 1,313 1,562 1,451 1,231 1,794 5,229 4,476Others - 216 226 216 228 0 617 445Rio Tinto total mine production 3,197 3,982 3,180 3,270 3,354 10,943 9,803Refined production ('000 ounces)Kennecott Utah Copper 100% 830 814 1,398 1,008 1,148 2,723 3,554TALCProduction ('000 tonnes)Rio Tinto Minerals - talc 100% 328 346 381 346 340 1,018 1,066TITANIUM DIOXIDE FEEDSTOCKProduction ('000 tonnes)Rio Tinto Iron & Titanium 100% 327 335 344 353 338 976 1,035URANIUMProduction (tonnes U3O8)Energy Resources of Australia 68% 1,035 1,040 938 376 750 2,997 2,064Rossing 69% 712 745 569 622 593 1,801 1,785Rio Tinto total uranium production 1,747 1,785 1,508 998 1,344 4,797 3,850ZINCMine production ('000 tonnes)Greens Creek 70% 8.1 8.7 8.6 7.1 7.6 28.5 23.2 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 announced the sale of its 56.2% share in Eurallumina on 17August 2006. The sale is conditional on customary joint venture partner rightsand the numbers above reflect a full quarter's production. (b) Rio Tinto Coal Australia manages all the operations below; including themines which were previously reported separately under the Coal & Allied name. (c) Rio Tinto Energy America was previously known as Kennecott Energy. (d) 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. (e) 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. (f) 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 nine months of2006 and during the third quarter Rio Tinto also participated in the conversionof debentures. The Rio Tinto shareholding on 30 September 2006 was 57.67%. (g) Kelian ceased processing ore on 7 February 2005 and the final gold pourwas on 27 May 2005. (h) 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. (i) 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. (j) 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. (k) 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 September 2006. RIO TINTO OPERATIONAL DATA Rio Tinto 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS interest 2005 2005 2006 2006 2006 2005 2006ALUMINIUMRio Tinto AluminiumWeipa mine 100.0%Queensland, AustraliaBeneficiated bauxite production ('000 tonnes) 3,781 4,576 3,843 3,815 4,036 10,898 11,695Metal grade bauxite shipments ('000 tonnes) 3,979 4,034 3,788 3,596 4,023 10,917 11,406Calcined bauxite production ('000 tonnes) 34 22 47 40 49 108 136Comalco Alumina Refinery 100.0%Queensland, AustraliaAlumina production ('000 tonnes) 191 220 257 322 302 616 880Eurallumina refinery (a) 56.2%Sardinia, ItalyAlumina production ('000 tonnes) 267 273 271 270 281 798 821Queensland Alumina refinery 38.6%Queensland, AustraliaAlumina production ('000 tonnes) 995 972 956 986 936 2,980 2,877Anglesey Aluminium smelter 51.0%United KingdomPrimary aluminium production ('000 tonnes) 35.8 36.7 36.2 35.5 36.6 107.2 108.4Bell Bay smelter 100.0%Tasmania, AustraliaPrimary aluminium production ('000 tonnes) 43.9 43.6 43.2 43.7 45.1 130.2 132.0Boyne Island smelter 59.4%Queensland, AustraliaPrimary aluminium production ('000 tonnes) 137.9 138.4 134.7 135.9 138.0 406.4 408.6Tiwai Point smelter 79.4%New ZealandPrimary aluminium production ('000 tonnes) 90.2 88.1 81.6 79.9 86.5 263.3 247.9Rio Tinto Aluminium shareShare of primary aluminium sales ('000 tonnes) 221.6 225.0 200.2 208.0 208.5 633.5 616.7 (a) Rio Tinto announced the sale of its 56.2% share in Eurallumina on 17August 2006. The sale is conditional on customary joint venture partner rightsand the numbers above reflect a full quarter's production. BORATESRio Tinto Minerals - Borax 100.0%California, US and ArgentinaBorates ('000 tonnes) (a) 141 151 130 142 136 409 408 (a) Production is expressed as B2O3 content. Rio Tinto percentage interest shown above is at 30 September 2006. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS interest 2005 2005 2006 2006 2006 2005 2006COALRio Tinto Coal Australia (a)Bengalla mine 30.3%New South Wales, AustraliaThermal coal production ('000 tonnes) 1,208 2,053 1,088 1,406 1,618 3,912 4,111Blair Athol Coal mine 71.2%Queensland, AustraliaThermal coal production ('000 tonnes) 2,799 2,634 2,429 2,496 2,583 7,966 7,508Hail Creek Coal mine 82.0%Queensland, AustraliaHard coking coal production ('000 tonnes) 1,473 1,549 753 971 1,365 4,351 3,089Hunter Valley Operations 75.7%New South Wales, AustraliaThermal coal production ('000 tonnes) 2,429 2,651 2,386 3,136 2,435 7,690 7,957Semi-soft coking coal production ('000 tonnes) 555 378 419 350 419 1,656 1,188Kestrel Coal mine 80.0%Queensland, AustraliaThermal coal production ('000 tonnes) 179 112 156 290 266 662 712Hard coking coal production ('000 tonnes) 683 393 635 923 766 2,552 2,325Mount Thorley Operations 60.6%New South Wales, AustraliaThermal coal production ('000 tonnes) 836 529 969 582 494 2,166 2,045Semi-soft coking coal production ('000 tonnes) 261 281 291 325 253 986 868Tarong Coal mine 100.0%Queensland, AustraliaThermal coal production ('000 tonnes) 1,804 1,549 1,803 1,685 1,713 4,922 5,200Warkworth mine 42.1%New South Wales, AustraliaThermal coal production ('000 tonnes) 1,736 1,495 1,759 1,766 1,803 4,451 5,328Semi-soft coking coal production ('000 tonnes) 85 67 11 96 90 280 197 Total hard coking coal production ('000 tonnes) 2,157 1,943 1,388 1,895 2,131 6,903 5,414Total hard coking coal sales ('000 tonnes) 1,557 1,684 1,220 1,471 1,779 5,842 4,470Total other coal production ('000 tonnes) (b) 11,891 11,746 11,309 12,133 11,673 34,691 35,115Total other coal sales ('000 tonnes) (c) (d) 12,424 11,816 11,860 11,882 11,845 35,646 35,588 Total coal production ('000 tonnes) 14,048 13,689 12,698 14,027 13,804 41,595 40,529Total coal sales ('000 tonnes) 13,981 13,500 13,080 13,353 13,624 41,489 40,058Rio Tinto Coal Australia shareShare of hard coking coal sales ('000 tonnes) 1,268 1,374 994 1,196 1,450 4,757 3,639Share of other coal sales ('000 tonnes) (c) (d) 8,399 7,719 7,986 8,022 7,743 23,946 23,751 (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) 7,287 6,413 7,501 7,849 7,760 20,761 23,109Colowyo mine (b)Colorado, USThermal coal production ('000 tonnes) 1,219 1,477 1,468 1,497 1,431 3,848 4,396Cordero Rojo mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 7,687 8,642 8,675 9,121 8,775 25,592 26,571Decker mine 50.0%Montana, USThermal coal production ('000 tonnes) 1,683 1,781 1,552 1,614 1,551 4,507 4,717Jacobs Ranch mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 8,014 8,590 8,513 8,879 9,220 25,233 26,612Spring Creek mine 100.0%Montana, USThermal coal production ('000 tonnes) 3,243 3,122 2,549 3,527 3,341 8,758 9,417 Total coal production ('000 tonnes) 29,131 30,025 30,257 32,487 32,077 88,699 94,821Total coal sales ('000 tonnes) 29,131 30,025 30,257 32,487 32,077 88,699 94,821 (a) Rio Tinto Energy America was previously known as Kennecott Energy. (b) In view of Rio Tinto Energy America's responsibilities under a managementagreement for the operation of the Colowyo mine, all of Colowyo's output isincluded in Rio Tinto's share of production. Rio Tinto percentage interest shown above is at 30 September 2006. The data represent full production and sales ona 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS interest 2005 2005 2006 2006 2006 2005 2006COPPER & GOLDEscondida 30.0%ChileSulphide ore to concentrator ('000 tonnes) 22,255 22,161 21,843 21,473 18,258 63,893 61,573Average copper grade (%) 1.59 1.58 1.62 1.63 1.55 1.51 1.61Mill production (metals in concentrates): Contained copper ('000 tonnes) 304.4 304.0 302.8 295.9 234.0 823.3 832.8 Contained gold ('000 ounces) 42 43 40 49 35 140 124 Contained silver ('000 ounces) 1,682 1,975 1,522 1,882 1,464 4,590 4,869Ore to leach ('000 tonnes) (a) 4,214 4,261 16,158 15,536 14,712 12,669 46,405Average copper grade (%) 0.82 0.72 0.34 0.37 0.25 0.89 0.32Contained copper in leachate/mined material ('000 tonnes) 35 31 55 57 36 112 148Refined production from leach plants: Copper cathode production ('000 tonnes) 34.1 34.8 26.8 20.3 30.4 109.2 77.5 (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) 19,899 21,791 19,512 20,353 21,170 57,116 61,035Average mill head grades: Copper (%) 1.06 1.31 0.72 0.72 0.85 1.06 0.76 Gold (g/t) 1.16 2.33 0.92 0.67 0.83 1.40 0.81 Silver (g/t) 4.36 5.36 4.21 3.84 3.46 4.70 3.82Production of metals in concentrates: Copper in concentrates ('000 tonnes) 185.5 260.8 115.9 121.7 152.9 533.1 390.5 Gold in concentrates ('000 609 1,400 485 336 471 2,146 1,292ounces) Silver in concentrates ('000 ounces) 1,662 2,489 903 1,170 1,453 5,042 3,526Sales of payable metals in concentrates: (b) Copper in concentrates ('000 tonnes) 179.9 249.0 114.0 108.8 155.5 517.3 378.3 Gold in concentrates ('000 594 1,342 486 294 487 2,096 1,267ounces) Silver in concentrates ('000 ounces) 1,284 1,897 711 844 1,167 3,898 2,723 (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) - - - - - 43 - Silver ('000 ounces) - - - - - 32 -Sales: Gold ('000 ounces) - - 42 - - 100 42 Silver ('000 ounces) - - - - - 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 September 2006. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS interest 2005 2005 2006 2006 2006 2005 2006COPPER & GOLD (continued)Kennecott Minerals CompanyCortez/Pipeline mine 40.0%Nevada, USOre treated Milled ('000 tonnes) 759 798 756 745 956 2,449 2,456 Leached ('000 tonnes) 5,725 3,352 3,812 4,464 7,452 19,708 15,728 Sold for roasting ('000 tonnes) 90 73 35 - - 203 35Average ore grade: gold Milled (g/t) 4.81 4.71 2.33 2.13 2.89 5.09 2.48 Leached (g/t) 0.49 0.49 0.39 0.37 0.43 0.60 0.41 Sold for roasting (g/t) 6.73 8.89 6.50 - - 6.76 6.50Gold produced ('000 ounces) 223 186 87 68 136 718 291Greens Creek mine 70.3%Alaska, USOre treated ('000 tonnes) 154 151 158 157 162 500 478Average ore grades: Gold (g/t) 4.71 5.02 4.54 3.97 4.39 5.15 4.30 Silver (g/t) 527 615 533 471 619 626 541 Zinc (%) 9.6 10.4 10.0 8.4 8.9 10.3 9.1 Lead (%) 3.6 3.9 4.0 3.1 4.0 4.0 3.7Metals produced in concentrates: Gold ('000 ounces) 15 17 16 13 16 56 44 Silver ('000 ounces) 1,869 2,222 2,065 1,751 2,553 7,442 6,369 Zinc ('000 tonnes) 11.6 12.4 12.2 10.1 10.8 40.5 33.0 Lead ('000 tonnes) 3.5 3.8 4.3 3.1 4.6 13.1 12.1Rawhide mine (a) 51.0%Nevada, USMetals produced in dore: Gold ('000 ounces) 7 8 7 6 7 27 20 Silver ('000 ounces) 63 67 63 55 64 254 182 (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 3 5 13 12 (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) 11,875 11,369 11,702 11,739 12,33 3 35,295 35,774Average ore grade: Copper (%) 0.47 0.51 0.62 0.67 0.62 0.53 0.64 Gold (g/t) 0.34 0.38 0.52 0.56 0.47 0.37 0.51 Silver (g/t) 2.81 3.02 3.73 3.98 3.22 3.30 3.64 Molybdenum (%) 0.052 0.058 0.060 0.055 0.057 0.057 0.057Copper concentrates produced ('000 tonnes) 193 213 242 263 269 667 774Average concentrate grade (% Cu) 26.0 24.1 25.3 26.1 25.5 25.3 25.7Production of metals in copper concentrates: Copper ('000 tonnes) (b) 50.2 51.6 61.6 68.7 68.9 169.0 199.1 Gold ('000 ounces) 92 99 129 146 131 302 405 Silver ('000 ounces) 884 884 1,036 1,217 1,033 3,074 3,286Molybdenum concentrates produced ('000 tonnes): 7.6 8.6 8.2 6.3 8.3 20.9 22.8 Molybdenum in concentrates ('000 tonnes) 3.9 4.6 4.4 3.5 4.7 11.0 12.6Kennecott smelter & refinery 100.0%Copper concentrates smelted ('000 tonnes) 300 300 270 272 220 742 762Copper anodes produced ('000 tonnes) (c) 68.6 67.3 66.4 65.7 50.4 162.1 182.5Production of refined metal: Copper ('000 tonnes) 68.1 65.1 70.9 67.7 55.1 166.8 193.7 Gold ('000 ounces) (d) 92 110 118 141 137 258 395 Silver ('000 ounces) (d) 830 814 1,398 1,008 1,148 2,723 3,554 (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 OPERATIONAL DATA Rio Tinto 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS interest 2005 2005 2006 2006 2006 2005 2006COPPER & GOLD (continued)Lihir Gold (a) 0.0%Papua New GuineaOre treated ('000 tonnes) 917 - - - - 2,771 -Average ore grade: gold (g/t) 7.15 - - - - 5.32 -Gold produced ('000 ounces) (b) 193 - - - - 424 - (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) 1,372 1,421 1,425 1,438 1,427 4,032 4,290Average ore grades: Copper (%) 1.17 1.27 1.45 1.53 1.57 1.07 1.52 Gold (g/t) 0.47 0.49 0.56 0.58 0.69 0.45 0.61Copper concentrates produced ('000 tonnes) 39.5 43.9 48.4 52.5 52.4 103.3 153.2Contained copper in concentrates: Saleable production ('000 tonnes) 14.7 16.7 19.4 20.7 21.0 37.3 61.1 Sales ('000 tonnes) (a) 11.0 13.1 14.3 17.1 14.4 30.3 45.8Contained gold in concentrates: Saleable production ('000 ounces) 15.0 16.1 19.6 19.9 29.3 40.9 68.7 Sales ('000 ounces) (a) 10.6 14.7 13.3 16.4 16.1 35.2 45.7 (a) Rio Tinto's 80% share of material from the Joint Venture. Palabora (a) 57.7%Palabora mineSouth AfricaOre treated ('000 tonnes) 2,572 2,349 2,646 2,633 2,668 7,187 7,947Average ore grade: copper (%) 0.71 0.72 0.71 0.70 0.72 0.71 0.71Copper concentrates produced ('000 tonnes) 52.9 47.8 51.5 43.0 53.4 149.3 147.9Average concentrate grade: copper (%) 31.3 31.2 29.9 30.5 29.4 31.0 29.9Copper in concentrates ('000 tonnes) 16.6 14.9 15.4 13.1 15.7 46.2 44.1Palabora smelter/refineryNew concentrate smelted on site ('000 tonnes) 75.2 82.2 42.0 83.3 87.7 222.2 213.0New copper anodes produced ('000 tonnes) 22.7 22.4 10.0 24.0 22.4 62.0 56.4Refined new copper produced ('000 tonnes) 22.1 20.6 14.3 21.9 22.9 59.8 59.1By-products:Magnetite concentrate ('000 tonnes) 267 231 251 296 299 657 846Refined nickel sulphate (tonnes) 37 57 35 28 25 129 88Vermiculite plant Vermiculite produced ('000 tonnes) 53 55 48 48 52 155 148 (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 nine months of2006 and during the third quarter Rio Tinto also participated in the conversionof debentures. The Rio Tinto shareholding on 30 September 2006 was 57.67%. DIAMONDSArgyle Diamonds 100.0%Western AustraliaAK1 ore processed ('000 tonnes) 2,111 2,158 1,956 2,131 2,162 6,811 6,249AK1 diamonds produced ('000 carats) 5,995 6,455 5,214 7,509 8,330 24,021 21,052Diavik Diamonds 60.0%Northwest Territories, CanadaOre processed ('000 tonnes) 619 497 492 608 722 1,725 1,822Diamonds recovered ('000 carats) 2,177 1,831 1,788 2,720 2,829 6,441 7,337Murowa Diamonds 77.8%ZimbabweOre processed ('000 tonnes) 49 73 66 61 44 106 170Diamonds recovered ('000 carats) 61 57 48 85 57 194 190 Rio Tinto percentage interest shown above is at 30 September 2006. The data represent full production and sales ona 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS interest 2005 2005 2006 2006 2006 2005 2006IRON ORE & IRONHamersley IronWestern AustraliaSaleable iron ore production ('000 tonnes): Paraburdoo, Mount Tom Price, Marandoo, Yandicoogina, Brockman andNammuldi 100.0% 18,915 19,931 17,404 19,536 21,304 54,455 58,244 Channar 60.0% 2,284 1,634 2,018 2,476 2,652 7,010 7,147 Eastern Range (a) 1,897 1,536 1,756 2,021 2,326 5,024 6,102Total production ('000 tonnes) 23,097 23,101 21,178 24,033 26,282 66,489 71,493Total sales ('000 tonnes) (b) 22,387 25,793 20,982 22,611 26,680 64,297 70,273 (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 26 - 57 (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) 581 683 341 1,291 983 1,633 2,615 Pellets ('000 tonnes) 3,322 3,445 2,846 3,205 3,124 9,886 9,175Sales: Concentrate ('000 tonnes) 552 755 316 555 651 1,368 1,522 Pellets ('000 tonnes) 2,951 4,230 2,150 3,282 3,198 8,621 8,630Rio Tinto BrasilCorumba mine 100.0%Mato Grosso do Sul, BrazilSaleable iron ore production ('000 tonnes) (a) 371 290 440 455 538 1,121 1,433Sales ('000 tonnes) 391 276 418 413 462 1,027 1,292 (a) Production includes by-product fines. Robe River Iron AssociatesPannawonica mine 53.0%Western AustraliaSaleable iron ore production ('000 tonnes) 8,076 7,998 6,481 7,273 7,501 22,983 21,255Sales ('000 tonnes) 7,802 8,203 6,756 7,135 7,619 22,859 21,511West Angelas mine 53.0%Western AustraliaSaleable iron ore production ('000 tonnes) 5,775 5,891 4,813 6,270 6,781 15,512 17,864Sales ('000 tonnes) 5,902 6,187 4,745 5,833 6,117 15,303 16,695 Rio Tinto percentage interest shown above is at 30 September 2006. The data represent full production and sales on a100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA Rio Tinto 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS interest 2005 2005 2006 2006 2006 2005 2006SALTRio Tinto Minerals - Salt 64.9%Western AustraliaSalt production ('000 tonnes) 1,726 2,480 1,862 2,219 2,229 6,000 6,310TALCRio Tinto Minerals - Talc 100.0%Australia, Europe, and North AmericaTalc production ('000 tonnes) 328 346 381 346 340 1,018 1,066TITANIUM DIOXIDE FEEDSTOCKRio Tinto Iron & Titanium 100.0%Canada and South Africa(Rio Tinto share)Titanium dioxide feedstock production 327 335 344 353 338 976 1,035 ('000 tonnes)URANIUMEnergy Resources of Australia LtdRanger mine 68.4%Northern Territory, AustraliaProduction (tonnes U3O8) 1,514 1,521 1,372 550 1,097 4,382 3,019Rossing Uranium Ltd 68.6%NamibiaProduction (tonnes U3O8) 1,038 1,086 830 908 865 2,625 2,603 Rio Tinto percentage interest shown above is at 30 September 2006. The data represent full production and sales on a100% basis unless otherwise stated. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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