Rio achieves record iron ore sales

October 13, 2011

Australia's biggest iron ore producer Rio Tinto has set a new quarterly record for sales of the steelmaking commodity.

It also achieved a quarterly record for hard coking coal production, also used in the production of steel.

Rio sold 60 million tonnes of iron ore from its Pilbara operations in Western Australia, saying that ports and rail recovered strongly from bad weather earlier in the year.

It produced 50 million tonnes of iron ore during the quarter, up five per cent on the same quarter in 2010.

The company said its iron ore division was operating at full capacity.

The resources giant was selling all iron ore it produced and its growth programme was on track, supported by the strength of its balance sheet, chief executive Tom Albanese said in a statement.

The sales result was above analysts expectations.

The company's shares had shot up 3.48 per cent, or $2.37 per cent, to $69.83 at 1553 AEDT.

Rio Tinto, the world's second-largest iron producer after Vale of Brazil, is targeting 240 million tonnes production for calendar 2011, after first-half production of only 15 million tonnes.

Iron ore represents more than 70 per cent of group earnings.

The company said mined copper was hit by lower grades at Escondida and Kennecott Utah Copper and was down 32 per cent on the third quarter of 2010.

Bauxite production was up seven per cent on the prior corresponding period, with aluminium up two per cent but alumina down five per cent.

Coal production from the Queensland and NSW coal mines rebounded from the severe rains in the first half of the year, the company said.

Australian hard coking coal production set a new quarterly record and was 14 per cent higher than the third quarter of 2010 and 55 per cent higher than the second quarter.

Other production from the Australian coal operations favoured semi-soft coal which was 57 per cent higher than the third quarter of 2010 with thermal coal three per cent lower.

(sourced AAP)