Rio Tinto iron-ore output rises to a record

By: Esmarie Swanepoel, 18th January 2011

PERTH (miningweekly.com)– Diversified mining giant Rio Tinto has set a new quarterly iron-ore production record in the fourth-quarter, with output rising 6% to 65-million tons.
Full-year iron-ore production also rose to a record of 239-million tons, of which 185-million tons was attributable to Rio.
“Running our operations at full capacity was a priority for Rio Tinto in 2010, in an environment of strong prices for most of our commodities,” said CEO Tom Albanese on Tuesday.
“Our success is clearly demonstrated in iron-ore, where we set new quarterly and annual production records.”
At its Pilbara operations, Rio produced a record 61-million tons of iron-ore in the fourth quarter and a record 224-million tons in the full year, as its mines operated at above nameplate capacity. The new Hamersley mines, Brockman 4 and Western Turner Syncline, continued to ramp up while Robe River benefited from rising production at Mesa A.
In October, Robe River reached a new milestone following the export of its one-billionth ton of iron-ore.
Fourth-quarter production of pellets and concentrate at Iron Ore Company of Canada declined by 9% on the same quarter of 2009, reflecting lower mine equipment availability and severe winter weather conditions.
Rio noted that 2010 saw a return to the normal proportions of concentrate and pellet sales in the overall sales mix as demand levels recovered.
Rio’s Australian hard coking coal output rose by 20% in 2010 to 8,97-million, with its fourth-quarter production accounting for 2,28-million tons of the year’s output.
While the December quarter’s production is an increase on that of the same period in 2009, it is 6% lower than the September quarter’s production as a result of heavy rainfall in the final month of the quarter.
Australian thermal coal production decreased by 9% to 18,4-million tons in the year, mainly owing to wet weather in the Hunter Valley.
Rio said on Tuesday that the force majeure declaration at the four Queensland coal mines remained in place.
“All the Queensland coal mines are operational but are still constrained in some way by weather impacts, including the impact on third-party infrastructure,” the miner said, adding that it was currently unable to provide an estimate of the full impact of this adverse weather or the duration of the force majeure declaration.
Fourth-quarter semi-soft coal production at 797 000 t was 20% lower than the corresponding quarter of 2009, but 70% higher than the third quarter, primarily owing to coal seam presentation in the mining sequence relative to comparable periods.
Meanwhile, Rio reported that mined and refined copper production declined by 9% and 6% respectively in the fourth quarter to 185 200 t of mined copper and 99 500 t of refined copper.
Its mined copper production for the year dropped by 16% to 678 100 t and its refined copper output fell by 5% to 392 800 t.
Rio explained that lower ore grades accounted for much of the decrease in the yearly production of copper, gold and silver in concentrates at its Kenncott Utah copper project, in the US. This was partly offset by record mill rates at the Copperton concentrator.
At the Escondida operation, in Chile, fourth-quarter contained copper mill production was 16% lower than the same quarter of 2009, primarily owing to declining grades and an eight-day conveyor shutdown at the Laguna Seca concentrator.
Increased ore hardness and lower shovel availability at the mine led to further decreases in copper concentrate production. This was partly offset by higher levels of recoverable copper in ore stacked for leaching, resulting in an overall decrease in mined copper production of 11%.
INVESTMENTS
Rio approved a further $5,5-billion in value-adding growth projects in the final quarter, including the expansion of its Pilbara iron-ore operations to 283-million tons a year and the first phase of an aluminium smelting pilot plant in Quebec using its new AP60 technology.
Total Pilbara investment approvals in 2010 were $7,2-billion, of which Rio’s share was $5,3-billion. During October, the mining giant announced that it is to invest $3,1-billion in expanding its iron-ore infrastructure capacity in the Pilbara to 283-million tons a year by the end of 2013.
In December, the miner then approved a further $1,2-billion investment to lift its yearly iron-ore production capacity in the Pilbara. The capital will be used for significant expansions at the Brockman 4 and Western Turner Syncline mines.
The third mine earmarked for expansion as part of this programme, Nammuldi, is currently under study, with an investment decision expected in 2011.
Edited by: Mariaan Webb