19th Jan 2005 07:00
Rio Tinto PLC19 January 2005 Fourth quarter 2004 operations review Overview • Fourth quarter production was strong across all the major products. • Operations at Comalco's new alumina refinery commenced three months ahead of schedule with the first shipment in November. • Hamersley produced and shipped record volumes of iron ore. • New operations in coking coal, diamonds and iron ore continued to perform well. • The signing of agreements formalising closer co-operation between Hamersley and Robe, the approval of further development at Diavik, and the purchase of the West Antelope coal reserves by Kennecott Energy took place in the quarter. • Strong markets continue to create opportunities to divest non-core assets. The sale of Rio Tinto's interest in the Morro do Ouro gold mine was completed in the fourth quarter. • The pre-tax charge for exploration and evaluation in 2004 was $60 million higher than in 2003 reflecting increased iron ore exploration in Western Australia and evaluation work on projects transferred to product groups during the year. All currency figures in this report are US dollars unless otherwise stated IRON ORE Rio Tinto share of production (000 tonnes)_______________________________________________________________________________________________________ Q4 04 vs Q4 03 vs Q3 04 FY 04 vs FY 03Hamersley 20,171 +7% +2% 74,231 +7%Robe River 6,299 -5% -8% 25,684 +7%IOC 2,058 -6% +554% 6,541 -22%_______________________________________________________________________________________________________ Demand remained strong across the full product range, with all markets showingcontinued strength, particularly China. In late October, Rio Tinto and its Japanese partners in the Robe River JointVenture signed agreements formalising closer co-operation between Hamersley Ironand Robe including the technical exchange initiatives announced earlier in theyear. Hamersley Increased capacity at Yandicoogina and the ramp-up of Eastern Range underpinneda strong quarter, with record production and shipments. Including Channartonnages, production lifted in the last quarter to a record 84 million tonnesper year rate. Robe River Production from West Angelas was lower than the previous quarter due to thetiming of maintenance in advance of production ramp-up in 2005. Robe met salesexpectations due to strong sales from Pannawonica which reflected increasedshipments to China. Iron Ore Company of Canada Production progressively returned to normal during the quarter following theresolution of the industrial dispute which severely disrupted third quarter 2004production. ENERGY US Thermal Coal Rio Tinto share of production (000 tonnes) __________________________________________________________________________________________________________ Q4 04 vs Q4 03 vs Q3 04 FY 04 vs FY 03Kennecott Energy 31,072 +9% +2% 117,734 +9%__________________________________________________________________________________________________________ Production from all mines in 2004 was higher than in 2003. Demand was strongfor the higher energy coals of Colowyo and Spring Creek. Kennecott Energy successfully bid for an additional 177 million tonnes ofin-situ coal reserves at West Antelope at a cost of $146 million. Australian Coal Rio Tinto share of production (000 tonnes) _______________________________________________________________________________________________________ Q4 04 vs Q4 03 vs Q3 04 FY 04 vs FY 03Rio Tinto Coal Australia Hard coking coal 1,389 +46% -33% 6,760 +193% Other coal 3,868 -8% -9% 16,214 -2%_______________________________________________________________________________________________________Coal & Allied Other coal 4,387 +10% -4% 16,729 +9%_______________________________________________________________________________________________________ Other coal includes thermal, semi-soft and semi-hard coking coal In response to strong demand for both thermal and coking coal, the Australianoperations continued to operate generally at the capacity permitted by rail andport infrastructure in New South Wales and Queensland. Rio Tinto Coal Australia Full year production from the new Hail Creek coking coal mine was over fivemillion tonnes and a capacity expansion to eight million tonnes was approved inthe second half of the year. Production at Blair Athol was in line with previous quarters, but sales werelower due to the timing of shipments around the year end and congestion at theDalrymple Bay Coal Terminal. Production at Kestrel was also lower than previousquarters due to a scheduled long wall changeover. Coal & Allied Production at Bengalla was lower than in previous quarters as mining progressedthrough an area with a higher strip ratio. Total production at Coal & Allied'sother mines exceeded the previous quarter and the corresponding period of 2003. INDUSTRIAL MINERALS Rio Tinto share of production (000 tonnes)_______________________________________________________________________________________________________ Q4 04 vs Q4 03 vs Q3 04 FY 04 vs FY 03Borates 137 +2% -11% 565 +1%Titanium dioxide feedstock 319 +9% +8% 1,192 0%_______________________________________________________________________________________________________ Fourth quarter and full year production of borates was slightly above thecorresponding periods of 2003 reflecting improvement in some end use markets.Demand for boric acid remains strong. Full year production of titanium dioxidefeedstock was in line with 2003. Demand for Rio Tinto Iron & Titanium's iron,steel, rutile and zircon co-products remained strong. ALUMINIUM Rio Tinto share of production (000 tonnes) _______________________________________________________________________________________________________ Q4 04 vs Q4 03 vs Q3 04 FY 04 vs FY 03Rio Tinto Aluminium Bauxite 3,333 +7% +6% 12,828 +4% Alumina 671 +28% +27% 2,231 +11% Aluminium 209.1 -1% -1% 836.5 +2%_______________________________________________________________________________________________________ Increased bauxite production in the fourth quarter reflected the commissioningof the NeWeipa project in November 2004. QAL suffered an interruption to itspower supply in October which reduced production by about 85,000 tonnes (33,000tonnes Rio Tinto share), but otherwise enjoyed strong production for the balanceof the year, reflecting high process stability. Production at Eurallumina andall the smelters was strong. The commissioning phase of the Comalco Alumina Refinery continued to go well.First shipments were made in November, three months ahead of schedule. COPPER Rio Tinto share of production_______________________________________________________________________________________________________ Q4 04 vs Q4 03 vs Q3 04 FY 04 vs FY 03Kennecott Utah Copper Mined copper (000 tonnes) 73.9 +3% +17% 263.7 -6% Refined copper (000 tonnes) 61.6 +3% -2% 246.7 +7% Mined gold (000 ozs) 114 +16% +48% 330 -3% Refined gold (000 ozs) 68 -16% -8% 300 -3%_______________________________________________________________________________________________________Escondida Mined copper (000 tonnes) 91.8 +31% +5% 362.1 +22%_______________________________________________________________________________________________________Grasberg JV Mined copper (000 tonnes) 24.0 +109% +162% 48.0 -56% Mined gold (000 ozs) 35 -64% +57% 83 -89%_______________________________________________________________________________________________________ Kennecott Utah Copper Fourth quarter production of copper, gold and molybdenum in concentratesreflected higher grades. Copper anode production was adversely impacted by aten day smelter maintenance shutdown in the fourth quarter. Escondida As in the third quarter, copper production from Escondida reflected lower coppergrades. Due to improved processing rates, ore feed to the mill included lowergrade material that was not in the original mine plan. Full year productionreflects the return to the normal mine plan from the beginning of the year andan increase in mill throughput rates due to operational improvements. Grasberg Fourth quarter production of copper and gold was higher than the preceding threequarters as recovery from the material slippage in the fourth quarter of 2003continued. Mill throughput rates improved and grades were higher as ore wassourced from the higher grade areas of the open pit. As required by the participation agreement, the metal strip, which determinesthe allocation of volumes between the joint venture partners, has been adjustedas a result of the 2003 material slippage. The table below sets out theadjustments for 2004 and 2005 agreed between Freeport and Rio Tinto based onFreeport's current expectations of 2005 Grasberg production. Rio Tinto's shareof the insurance settlement relating to the slippage, which will be recognisedin 2004 net earnings, is $30 million before tax. Copper (m lbs) 2004 2005 Original metal strip 1,052 1,082 Adjustment (178) 111 _______ _______ Adjusted metal strip 874 1,193 ======= ======= Gold (000 oz) 2004 2005 Original metal strip 1,657 1,695 Adjustment (280) 175 _______ _______ Adjusted metal strip 1,377 1,870 ======= ======= Rio Tinto has a 40% interest in production in excess of each year's metal strip Other copper operations Copper production from the Palabora underground mine improved but remained belowdesign capacity. As previously announced, the balance sheet value of Palabora'scopper assets is being assessed in light of the completion of a business reviewand the ongoing strength of the rand against the US dollar. The outcome of thisassessment will be reflected in the financial results for the year ended 31December 2004. Production from the new Northparkes Lift 2 continued to ramp up during thefourth quarter. DIAMONDS Rio Tinto share of production (000 carats)_______________________________________________________________________________________________________ Q4 04 vs Q4 03 vs Q3 04 FY 04 vs FY 03Argyle 9,011 +8% +69% 20,620 -33%Diavik 901 +36% -34% 4,545 +98%_______________________________________________________________________________________________________ Argyle Output from the Argyle open pit began to return to normal in the fourth quarterof 2004 following tight mining conditions earlier in the year which led to theprocessing of lower grade ore. Diavik Diavik continued to perform well. Production in the fourth quarter was lowerthan the two preceding quarters due to scheduled plant maintenance and theprocessing of lower grade material from the A154N pipe. The construction of anew dike and funding for the further study of the viability of undergroundmining, including the construction of an exploratory decline, were approved inDecember 2004. EXPLORATION AND EVALUATION Total pre-tax expenditure on exploration and evaluation charged to the profitand loss account in 2004 was $187 million compared with $127 million in 2003. Exploration drilling continued on copper targets in Peru, Turkey, Alaska andUtah. Diamond exploration continued in Canada, Botswana, India and Brazil.Iron ore exploration continued in the Hamersley Basin (Western Australia) and inwest Africa. Exploration on coking coal opportunities continued in southernAfrica, Australia and Canada. 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). ASSET DISPOSALS The sale to Nippon Steel of an eight per cent interest in the Hail Creek JointVenture, and the increase in the combined share of the original participants,Marubeni Coal and Sumisho Coal Development, by two per cent was completed in thequarter. Rio Tinto will receive around $150 million for the sale of theseinterests in the Hail Creek Joint Venture together with the sale of a 47 percent interest in the Beasley River iron ore deposit to its joint venturepartners in Robe River. The sale of Rio Tinto's 51 per cent interest in Rio Paracatu Mineracao (RPM),the owner of the Morro do Ouro mine in Brazil, was completed on 31 December2004. The consideration, which is subject to a working capital adjustment, was$260 million. The remaining price participation rights relating to copper production fromSomincor, which was sold in the first half of the year, were themselves sold for$22 million. The sale of the Marcona copper deposit was completed in December 2004. RioTinto has received $13 million, of which $5 million has been re-invested in thepurchaser, Chariot Resources. A further $7 million will be payable to Rio Tintoon the second anniversary of the transaction and further payments of up to $5million are contingent on the development of a mine. For further information, please contact: LONDON AUSTRALIAMedia Relations Media RelationsLisa Cullimore Ian HeadOffice: +44 (0) 20 7753 2305 Office: +61 (0) 3 9283 3620Mobile: +44 (0) 7730 418 385 Mobile: +61 (0) 408 360 101 Investor Relations Investor RelationsPeter Cunningham Dave SkinnerOffice: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628Mobile: +44 (0) 7711 596 570 Mobile: +61 (0) 408 335 309Richard Brimelow Susie CreswellOffice: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639Mobile: +44 (0) 7753 783 825 Mobile: +61 (0) 418 933 792 Website: www.riotinto.com RIO TINTO PRODUCTION SUMMARYRIO TINTO SHARE OF PRODUCTION __________________________ ____________________ _______________________ QUARTER FULL YEAR % CHANGE __________________________ ____________________ _______________________ 2003 2004 2004 2003 2004 Q4 04 Q4 04 2004 Q4 Q3 Q4 vs vs vsPrincipal Commodities Q3 04 Q4 03 2003 __________________________ ____________________ _______________________ Alumina ('000 t) 526 530 671 2,014 2,231 27% 28% 11%Aluminium ('000 t) 211.7 210.4 209.1 816.6 836.5 -1% -1% 2%Borates ('000 t) 134 153 137 559 565 -11% 2% 1%Coal - hard coking coal ('000 t) 950 2,070 1,389 2,311 6,760 -33% 46% 193%Coal - other Australian/Indonesian ('000 t) 8,379 8,803 8,255 38,262 32,943 -6% -1% -14%Coal - US ('000 t) 28,417 30,398 31,072 108,177 117,734 2% 9% 9%Copper - mined ('000 t) 182.9 174.7 204.9 867.0 753.1 17% 12% -13%Copper - refined ('000 t) 90.2 82.5 81.1 349.1 332.6 -2% -10% -5%Diamonds ('000 cts) 8,968 6,688 9,946 33,272 25,202 49% 11% -24%Gold - mined ('000 ozs) 511 367 428 2,731 1,552 17% -16% -43%Gold - refined ('000 ozs) 81 74 68 308 300 -8% -16% -3%Iron ore ('000 t) 27,997 27,307 28,903 102,613 107,757 6% 3% 5%Titanium dioxide feedstock ('000 t) 293 296 319 1,192 1,192 8% 9% 0% __________________________ ____________________ _______________________ Other Metals & Minerals __________________________ ____________________ _______________________ Bauxite ('000 t) 3,103 3,157 3,333 12,316 12,828 6% 7% 4%Lead - mined ('000 t) 14.2 3.4 3.4 47.6 25.1 0% -76% -47%Molybdenum ('000 t) 1.1 1.5 2.8 4.6 6.8 92% 155% 48%Nickel - refined (tonnes) 1,011 - - 3,474 1,619 - - -53%Salt ('000 t) 1,120 1,271 1,131 4,633 4,792 -11% 1% 3%Silver - mined ('000 ozs) 4,959 3,569 4,031 18,311 14,830 13% -19% -19%Silver - refined ('000 ozs) 653 854 944 2,963 3,344 11% 45% 13%Talc ('000 t) 321 371 354 1,357 1,443 -5% 11% 6%Tin (tonnes) 60 - - 100 59 - - -41%Uranium (tonnes) 1,406 1,610 1,575 5,158 5,974 -2% 12% 16%Zinc - mined ('000 t) 30.4 10.7 11.7 113.0 73.8 9% -62% -35% __________________________ ____________________ _______________________ 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 full year figures. RIO TINTO SHARE OF PRODUCTION Rio FULL FULL Tinto 4Q 1Q 2Q 3Q 4Q YEAR YEAR interest 2003 2004 2004 2004 2004 2003 2004________________________________________________________________________________________________________________ALUMINAProduction ('000 tonnes)Comalco Alumina Refinery (a) 100% - - - - 175 - 175Eurallumina 56% 148 145 144 155 154 573 597Queensland Alumina 39% 378 368 373 375 342 1,440 1,459 ______________________________________________________________Rio Tinto total alumina production 526 514 517 530 671 2,014 2,231________________________________________________________________________________________________________________ALUMINIUMRefined production ('000 tonnes)Anglesey 51% 18.7 18.3 18.2 18.9 18.4 72.4 73.8Bell Bay 100% 41.9 41.8 40.8 38.2 41.2 166.6 162.0Boyne Island 59% 80.9 80.5 79.7 82.0 79.1 311.1 321.2Tiwai Point 79% 70.2 69.5 68.3 71.2 70.4 266.5 279.5 ______________________________________________________________Rio Tinto total aluminium production 211.7 210.1 207.0 210.4 209.1 816.6 836.5________________________________________________________________________________________________________________BAUXITEProduction ('000 tonnes)Boke (b) 0% 58 121 58 - - 418 179Weipa 100% 3,045 2,887 3,273 3,157 3,333 11,898 12,649 ______________________________________________________________Rio Tinto total bauxite production 3,103 3,008 3,331 3,157 3,333 12,316 12,828________________________________________________________________________________________________________________BORATESBorates ('000 tonnes B2O3 content)Rio Tinto total borate production 100% 134 134 141 153 137 559 565________________________________________________________________________________________________________________COAL - HARD COKINGRio Tinto Coal Australia (c) ('000tonnes) Hail Creek Coal (d) 82% 608 831 1,325 1,376 1,100 812 4,633 Kestrel Coal 80% 342 369 776 693 289 1,499 2,127 ______________________________________________________________Rio Tinto total hard coking coal production 950 1,200 2,101 2,070 1,389 2,311 6,760________________________________________________________________________________________________________________COAL - OTHER *Australian coal operations ('000 tonnes)Coal & Allied Industries Bengalla 30% 608 325 462 526 295 1,879 1,609 Hunter Valley Operations 76% 2,272 1,988 2,625 2,671 2,762 9,091 10,046 Mount Thorley Operations 61% 491 407 576 593 573 1,910 2,149 Warkworth 42% 616 612 774 783 757 2,469 2,926Rio Tinto Coal Australia (b) Blair Athol Coal 71% 2,197 2,180 2,206 2,169 2,157 8,890 8,712 Kestrel Coal 80% 292 98 167 173 61 1,159 499 Tarong Coal 100% 1,713 1,678 1,787 1,888 1,651 6,538 7,004 ______________________________________________________________Total Australian other coal 8,189 7,287 8,597 8,803 8,255 31,935 32,943 ______________________________________________________________Indonesian coal operations ('000 tonnes)Kaltim Prima Coal (e) 0% 191 - - - - 6,327 -US coal operations ('000 tonnes)Kennecott Energy Antelope 100% 6,795 5,919 6,628 7,152 7,229 26,806 26,928 Colowyo (f) 1,138 1,467 1,415 1,494 1,412 4,535 5,788 Cordero Rojo 100% 8,501 8,589 8,263 9,023 9,358 32,671 35,233 Decker 50% 1,203 514 1,062 1,104 1,235 3,679 3,916 Jacobs Ranch 100% 8,706 8,649 8,705 8,833 8,792 32,418 34,979 Spring Creek 100% 2,074 2,265 2,789 2,791 3,046 8,069 10,892 ______________________________________________________________Total US coal 28,417 27,403 28,861 30,398 31,072 108,177 117,734 ______________________________________________________________Rio Tinto total other coal production 36,797 34,690 37,459 39,201 39,327 146,439 150,677________________________________________________________________________________________________________________ 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, semi-soft coking coal and semi-hard coking coal. See footnotes on page 12. RIO TINTO SHARE OF PRODUCTION (continued) Rio FULL FULL Tinto 4Q 1Q 2Q 3Q 4Q YEAR YEAR interest 2003 2004 2004 2004 2004 2003 2004________________________________________________________________________________________________________________COPPERMine production ('000 tonnes)Alumbrera (g) 0% - - - - - 8.7 -Bingham Canyon 100% 71.6 62.5 64.0 63.3 73.9 281.8 263.7Escondida 30% 70.1 83.8 99.1 87.5 91.8 297.8 362.1Grasberg - FCX (h) 0% 7.7 5.5 - - - 84.5 5.5Grasberg - Joint Venture (h) 40% 11.5 5.5 9.3 9.2 24.0 108.7 48.0Neves Corvo (i) 0% 9.6 11.6 11.4 - - 38.0 23.0Northparkes 80% 5.2 5.8 4.7 6.0 7.4 21.7 24.0Palabora 49% 7.1 5.2 4.9 8.7 7.9 25.8 26.8 ______________________________________________________________Rio Tinto total mine production 182.9 180.0 193.4 174.7 204.9 867.0 753.1Refined production ('000 tonnes)Atlantic Copper (h) 0% 8.6 7.0 - - - 38.1 7.0Escondida 30% 11.4 11.3 11.4 11.4 11.6 44.3 45.6Kennecott Utah Copper 100% 59.9 60.3 61.7 63.1 61.6 230.6 246.7Palabora 49% 10.3 8.8 8.5 8.0 8.0 36.1 33.2 ______________________________________________________________Rio Tinto total refined production 90.2 87.4 81.6 82.5 81.1 349.1 332.6________________________________________________________________________________________________________________DIAMONDSProduction ('000 carats)Argyle 100% 8,307 3,612 2,669 5,328 9,011 30,910 20,620Diavik 60% 661 922 1,364 1,358 901 2,300 4,545Merlin 100% - - - - - 62 -Murowa (j) 78% - - - 2 34 - 36 ______________________________________________________________Rio Tinto total diamond production 8,968 4,534 4,033 6,688 9,946 33,272 25,202________________________________________________________________________________________________________________GOLDMine production ('000 ounces)Alumbrera (g) 0% - - - - - 31 -Barneys Canyon 100% 6 7 4 5 5 35 22Bingham Canyon 100% 92 69 59 72 109 305 308Cortez/Pipeline 40% 106 113 115 105 87 434 421Escondida 30% 16 18 16 16 15 55 65Grasberg - FCX (h) 0% 26 14 - - - 354 14Grasberg - Joint Venture (h) 40% 96 6 19 22 35 722 83Greens Creek 70% 17 16 16 15 14 70 61Kelian 90% 74 69 73 64 90 422 295Lihir (k) 14% 25 16 24 22 E 24 88 E 87Morro do Ouro (l) 0% 26 25 23 24 23 103 96Northparkes 80% 15 17 15 14 18 39 63Peak (g) 0% - - - - - 20 -Rawhide 51% 8 7 7 6 6 32 25Rio Tinto Zimbabwe (m) 0% 3 3 3 - - 14 6Others - 2 2 2 1 1 7 7 ______________________________________________________________Rio Tinto total mine production 511 381 376 367 428 2,731 1,552 ______________________________________________________________Refined production ('000 ounces)Kennecott Utah Copper 100% 81 81 77 74 68 308 300________________________________________________________________________________________________________________IRON OREProduction ('000 tonnes)Channar 60% 1,417 1,404 1,516 1,623 1,312 6,208 5,855Corumba 100% 279 268 306 352 375 1,074 1,301Eastern Range (n) - 3 645 1,050 1,272 - 2,970Hamersley 100% 17,462 14,407 16,273 17,140 17,587 63,056 65,407Iron Ore Company of Canada (o) 59% 2,191 1,969 2,199 315 2,058 8,353 6,541Robe River 53% 6,649 5,447 7,110 6,828 6,299 23,922 25,684 ______________________________________________________________Rio Tinto total mine production 27,997 23,499 28,048 27,307 28,903 102,613 107,757________________________________________________________________________________________________________________ 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 12. E = Estimated number. RIO TINTO SHARE OF PRODUCTION (continued) Rio FULL FULL Tinto 4Q 1Q 2Q 3Q 4Q YEAR YEAR interest 2003 2004 2004 2004 2004 2003 2004________________________________________________________________________________________________________________LEADMine production ('000 tonnes)Greens Creek 70% 4.1 3.3 3.9 3.4 3.4 15.8 13.9Zinkgruvan (p) 0% 10.1 7.0 4.2 - - 31.8 11.2 ______________________________________________________________Rio Tinto total mine production 14.2 10.3 8.1 3.4 3.4 47.6 25.1________________________________________________________________________________________________________________MOLYBDENUMMine production ('000 tonnes)Bingham Canyon 100% 1.1 1.6 0.9 1.5 2.8 4.6 6.8________________________________________________________________________________________________________________NICKELNickel in matte (tonnes)Fortaleza (q) 0% 1,524 - - - - 5,950 -Toll refined metal production (tonnes)Rio Tinto Zimbabwe - Empress (m) 0% 1,011 971 648 - - 3,474 1,619________________________________________________________________________________________________________________SALTProduction ('000 tonnes)Dampier Salt 65% 1,120 1,133 1,257 1,271 1,131 4,633 4,792________________________________________________________________________________________________________________SILVERMine production ('000 ounces)Bingham Canyon 100% 1,105 730 785 947 1,121 3,548 3,584Escondida 30% 368 411 482 404 427 1,418 1,724Grasberg - FCX (h) 0% 46 79 - - - 745 79Grasberg - Joint Venture (h) 40% 466 13 53 135 583 1,126 784Greens Creek 70% 2,035 1,761 1,584 1,813 1,664 8,226 6,821Zinkgruvan (p) 0% 571 426 225 - - 1,841 651Others - 366 346 336 270 235 1,407 1,187 ______________________________________________________________Rio Tinto total mine production 4,959 3,766 3,465 3,569 4,031 18,311 14,830 ______________________________________________________________Refined production ('000 ounces)Kennecott Utah Copper 100% 653 778 768 854 944 2,963 3,344________________________________________________________________________________________________________________TALCProduction ('000 tonnes)Luzenac Group 99.9% 321 356 361 371 354 1,357 1,443________________________________________________________________________________________________________________TINMine production (tonnes)Neves Corvo (i) 0% 60 21 38 - - 100 59________________________________________________________________________________________________________________TITANIUM DIOXIDE FEEDSTOCKProduction ('000 tonnes)Rio Tinto Iron & Titanium 100% 293 287 291 296 319 1,192 1,192________________________________________________________________________________________________________________URANIUMProduction (tonnes U3O8)Energy Resources of Australia 68% 858 809 751 931 1,026 3,512 3,517Rossing 69% 548 622 607 679 549 1,647 2,457 ______________________________________________________________Rio Tinto total uranium production 1,406 1,431 1,357 1,610 1,575 5,158 5,974________________________________________________________________________________________________________________ZINCMine production ('000 tonnes)Greens Creek 70% 11.3 10.7 11.0 10.7 11.7 48.5 44.1Zinkgruvan (p) 0% 19.1 19.2 10.5 - - 64.5 29.7 ______________________________________________________________Rio Tinto total mine production 30.4 29.9 21.5 10.7 11.7 113.0 73.8________________________________________________________________________________________________________________ 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. The nickel in matte production reflects the contained tonnageof nickel. See footnotes on page 12. RIO TINTO SHARE OF PRODUCTION (continued) Production data notes (a) Comalco Alumina Refinery started production in the fourth quarter of 2004. (b) Rio Tinto completed the sale of its 4.0% interest in the Boke mine on 25 June 2004. Production data are shown up to the date of sale. (c) Rio Tinto Coal Australia was previously known as Pacific Coal. (d) Rio Tinto reduced its shareholding in Hail Creek from 92.0% to 82.0% on 15 November 2004. (e) Rio Tinto had a 50% share in Kaltim Prima and, under the terms of its Coal Agreement, the Indonesian Government was entitled to a 13.5% share of Kaltim Prima's production. Rio Tinto's share of production shown is before deduction of the Government share. Rio Tinto completed the sale of its interest in PT Kaltim Prima Coal on 10 October 2003. Production data are shown up to the date of sale. (f) Kennecott Energy has a partnership interest in the Colowyo mine but, as it 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. (g) Rio Tinto completed the sale of its 25% interest in Minera Alumbrera together with its wholly owned Peak Gold Mine on 17 March 2003. Production data are shown up to the date of sale. (h) From mid 1995 until 30 March 2004, Rio Tinto held 23.93 million shares of Freeport-McMoRan-Copper & Gold (FCX) common stock from which it derived a share 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 shown separately in the above tables, to 40% of additional material mined as a consequence of expansions and developments of the Grasberg facilities since 1998. (i) Rio Tinto completed the sale of its 49% interest in Somincor on 18 June 2004. Production data are shown up to the date of sale. (j) Ore mining and processing at Murowa commenced during the third quarter of 2004. (k) Following a placement of shares on 13 November 2003, and a subsequent allotment of shares under a Share Purchase Plan on 23 January 2004, Rio Tinto's interest in Lihir changed from 16.3% to 14.5%. Rio Tinto's share of gold production includes an estimate of the production from the Lihir gold mine for the fourth quarter of 2004. The actual fourth quarter production, which may be different from the figure in this report, will be announced by Lihir Gold Ltd on 27 January 2005. The estimate in this report is based on subtracting the nine month production from the indicative full year 2004 production of 600,000 oz previously disclosed in the Managing Director's report to the Lihir Gold Ltd AGM 27 April 2004). (l) Rio Tinto sold its interest in Morro do Ouro on the 31 December 2004. Production data are shown up to the date of sale. (m) 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 but will retain a reduced cash participation in its gold and nickel assets for a period of ten years. (n) Rio Tinto's share of production includes 100% of the production from the Eastern Range mine, which commenced production in March 2004. Under the terms of the joint venture agreement, Hamersley Iron manages the operation and is obliged to purchase all mine production from the joint venture. (o) Rio Tinto owns 19% of the Labrador Iron Ore Royalty Income Fund. The Fund has a shareholding in Iron Ore Company of Canada but this has not been included in the calculation of tonnage attributable to Rio Tinto. (p) Rio Tinto completed the sale of its 100% interest in the Zinkgruvan mine on 2 June 2004. Production data are shown up to the date of sale. (q) Rio Tinto completed the sale of its 100% interest in the Fortaleza nickel mine on 16 January 2004. The sale was effective from 1 January 2004. 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 31 December 2004. RIO TINTO OPERATIONAL DATA FULL FULL Rio Tinto 4Q 1Q 2Q 3Q 4Q YEAR YEAR interest 2003 2004 2004 2004 2004 2003 2004_____________________________________________________________________________________________________________________ALUMINIUMRio Tinto Aluminium Weipa mine 100.0%Queensland, AustraliaBeneficiated bauxite production ('000 3,045 2,887 3,273 3,157 3,333 11,898 12,649tonnes)Metal grade bauxite shipments ('000 tonnes) 3,160 2,981 2,861 3,213 3,242 11,415 12,298Calcined bauxite production ('000 tonnes) 29 44 36 45 44 161 168Boke mine (a) 0.0%GuineaBauxite production ('000 tonnes) 3,648 2,812 2,961 - - 12,060 5,773Comalco Alumina Refinery (b) 100.0%Queensland, AustraliaAlumina production ('000 tonnes) - - - - 175 - 175Eurallumina refinery 56.2%Sardinia, ItalyAlumina production ('000 tonnes) 263 258 256 275 274 1,021 1,064Queensland Alumina refinery 38.6%Queensland, AustraliaAlumina production ('000 tonnes) 980 954 966 971 887 3,731 3,778Anglesey Aluminium smelter 51.0%United KingdomPrimary aluminium production ('000 tonnes) 36.7 35.9 35.6 37.2 36.1 141.9 144.8Bell Bay smelter 100.0%Tasmania, AustraliaPrimary aluminium production ('000 tonnes) 41.9 41.8 40.8 38.2 41.2 166.6 162.0Boyne Island smelter 59.4%Queensland, AustraliaPrimary aluminium production ('000 tonnes) 133.8 134.7 134.3 135.8 135.8 520.9 540.5Tiwai Point smelter 79.4%New ZealandPrimary aluminium production ('000 tonnes) 87.9 87.1 86.0 88.7 88.6 334.4 350.3Rio Tinto Aluminium shareShare of primary aluminium sales ('000 tonnes) 213.1 203.5 218.5 208.5 210.2 820.0 840.7 (a) Rio Tinto completed the sale of its 4.0% interest in the Boke mine on 25 June 2004. Production data are shown up to the date of sale. (b) Comalco Alumina Refinery started production in the fourth quarter of 2004. _____________________________________________________________________________________________________________________BORATESRio Tinto Borax 100.0% California, US and ArgentinaBorates ('000 tonnes) (a) 134 134 141 153 137 559 565 (a) Production is expressed as B2O3 content._____________________________________________________________________________________________________________________ Rio Tinto percentage interest shown above is at 31 December 2004. The datarepresent full production and sales on a 100% basis unless otherwise stated. _____________________________________________________________________________________________________________________RIO TINTO OPERATIONAL DATA FULL FULL Rio Tinto 4Q 1Q 2Q 3Q 4Q YEAR YEAR interest 2003 2004 2004 2004 2004 2003 2004_____________________________________________________________________________________________________________________COALCoal & Allied Industries Limited Bengalla mine 30.3%New South Wales, AustraliaThermal coal production ('000 tonnes) 2,008 1,075 1,525 1,737 975 6,203 5,312Hunter Valley Operations 75.7%New South Wales, AustraliaThermal coal production ('000 tonnes) 2,620 2,255 2,738 2,838 3,340 9,146 11,172Semi-soft coking coal production ('000 tonnes) 381 371 729 689 308 2,862 2,097Mount Thorley Operations 60.6%New South Wales, AustraliaThermal coal production ('000 tonnes) 433 514 710 722 817 1,720 2,762Semi-soft coking coal production ('000 tonnes) 377 158 240 258 129 1,432 785Warkworth mine 42.1%New South Wales, AustraliaThermal coal production ('000 tonnes) 1,371 1,217 1,394 1,381 1,560 5,369 5,552Semi-soft coking coal production ('000 tonnes) 93 237 447 479 239 500 1,403 ______________________________________________________________Total coal production ('000 tonnes) 7,284 5,826 7,784 8,105 7,368 27,232 29,083 ______________________________________________________________Total coal sales ('000 tonnes) (a) 7,278 6,424 7,486 7,931 6,835 27,887 28,677 ______________________________________________________________Coal & Allied Industries share ______________________________________________________________Share of coal production ('000 tonnes) 5,266 4,401 5,861 6,040 5,795 20,272 22,097 ______________________________________________________________Share of coal sales ('000 tonnes) (a) 5,456 4,776 5,669 6,002 5,120 21,084 21,566 ______________________________________________________________ (a) Sales relate only to coal mined by the operations and exclude traded coal. _____________________________________________________________________________________________________________________Kaltim Prima Coal (a) Indonesia 0.0%Thermal coal: Production ('000 tonnes) 381 - - - - 12,655 - Shipments ('000 tonnes) 309 - - - - 12,810 - (a) Rio Tinto completed the sale of its 50% interest in PT Kaltim Prima Coal on 10 October 2003. Production data are shown up to the date of sale. _____________________________________________________________________________________________________________________Kennecott Energy and Coal Company Antelope mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 6,795 5,919 6,628 7,152 7,229 26,806 26,928Colowyo mine (a)Colorado, USThermal coal production ('000 tonnes) 1,138 1,467 1,415 1,494 1,412 4,535 5,788Cordero Rojo mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 8,501 8,589 8,263 9,023 9,358 32,671 35,233Decker mine 50.0%Montana, USThermal coal production ('000 tonnes) 2,406 1,028 2,123 2,209 2,471 7,358 7,831Jacobs Ranch mine 100.0%Wyoming, USThermal coal production ('000 tonnes) 8,706 8,649 8,705 8,833 8,792 32,418 34,979Spring Creek mine 100.0%Montana, USThermal coal production ('000 tonnes) 2,074 2,265 2,789 2,791 3,046 8,069 10,892 ______________________________________________________________ Total coal production ('000 tonnes) 29,620 27,917 29,923 31,503 32,307 111,856 121,649 ______________________________________________________________Total coal sales ('000 tonnes) 29,620 27,917 29,923 31,503 32,307 111,856 121,649 ______________________________________________________________ (a) Kennecott Energy has a partnership interest in the Colowyo mine but, as it 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 31 December 2004. The data represent full production and sales on a 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA FULL FULL Rio Tinto 4Q 1Q 2Q 3Q 4Q YEAR YEAR interest 2003 2004 2004 2004 2004 2003 2004_____________________________________________________________________________________________________________________COAL (continued)Rio Tinto Coal Australia (a) Blair Athol Coal mine 71.2%Queensland, AustraliaThermal coal: Production ('000 tonnes) 3,084 3,060 3,097 3,045 3,027 12,480 12,229 Sales ('000 tonnes) 3,473 2,867 3,218 3,198 2,565 12,577 11,848Hail Creek Coal mine (b) 82.0%Queensland, AustraliaCoking coal: Production ('000 tonnes) 661 903 1,441 1,496 1,264 883 5,104 Sales ('000 tonnes) 622 890 1,069 1,389 1,380 736 4,728Kestrel Coal mine 80.0%Queensland, AustraliaThermal coal: Production ('000 tonnes) 365 122 209 216 76 1,449 623 Sales ('000 tonnes) 177 - - - 63 889 63Coking coal: Production ('000 tonnes) 427 462 970 867 361 1,873 2,659 Sales ('000 tonnes) 357 409 536 837 354 1,084 2,136Semi-hard coking coal:(c) Sales ('000 tonnes) 461 225 258 300 249 1,739 1,033Tarong Coal mine 100.0%Queensland, AustraliaThermal coal: Production ('000 tonnes) 1,713 1,678 1,787 1,888 1,651 6,538 7,004 Sales ('000 tonnes) 1,749 1,744 1,781 1,819 1,814 6,620 7,159 ______________________________________________________________Total coal production ('000 tonnes) 6,250 6,225 7,503 7,512 6,380 23,222 27,619 ______________________________________________________________Total coal sales ('000 tonnes) 6,839 6,135 6,863 7,544 6,425 23,646 26,968 ______________________________________________________________Rio Tinto Coal Australia share ______________________________________________________________Share of coal production ('000 tonnes) 5,152 5,156 6,261 6,300 5,257 18,898 22,974 ______________________________________________________________Share of coal sales ('000 tonnes) 5,591 5,113 5,693 6,286 5,372 19,227 22,463 ______________________________________________________________ (a) Rio Tinto Coal Australia was previously known as Pacific Coal. (b) Rio Tinto reduced its shareholding in Hail Creek from 92.0% to 82.0% on 15 November 2004. (c) Semi-hard coking coal is a mixture of thermal coal and coking coal. The product mix is customer dependent. ____________________________________________________________________________________________________________________COPPER & GOLDAlumbrera (a) 0.0% ArgentinaOre treated ('000 tonnes) - - - - - 7,053 -Average ore grades: Copper (%) - - - - - 0.54 - Gold (g/t) - - - - - 0.69 -Concentrates produced ('000 tonnes) - - - - - 130.9 -Copper in concentrates: Production ('000 tonnes) - - - - - 34.9 - Sales ('000 tonnes) - - - - - 37.0 -Production of gold in concentrates ('000 ounces) - - - - - 108 -Production of gold in dore ('000 ounces) - - - - - 16 -Total gold sales ('000 ounces) - - - - - 132 - (a) Rio Tinto completed the sale of its 25% holding in Minera Alumbrera on 17 March 2003. ____________________________________________________________________________________________________________________Rio Tinto percentage interest shown above is at 31 December 2004. The data represent full production and sales on a 100% basis unless otherwise stated. RIO TINTO OPERATIONAL DATA FULL FULL Rio Tinto 4Q 1Q 2Q 3Q 4Q YEAR YEAR interest 2003 2004 2004 2004 2004 2003 2004____________________________________________________________________________________________________________________COPPER & GOLD (continued)Escondida 30.0% ChileSulphide ore treated ('000 tonnes) 18,299 19,619 21,197 20,637 20,925 70,347 82,378Average copper grade (%) 1.31 1.48 1.61 1.47 1.47 1.43 1.51Mill production (metals in concentrates):Related Shares:
Rio Tinto