Rio Tinto posts Sept record output for iron ore, alumina and coking coal
Global mining giant Rio Tinto Ltd (ASX: RIO) heralded a breakthrough September quarter for its mining operations as the company revealed on Thursday that its resources sites delivered record yields of iron ore, alumina and coking coal in the three months leading to September 30.
Rio Tinto said that its total iron ore production improved from 43.61 million tonnes to 47.608 million tonnes in the September quarter while its alumina production peaked from 2.24 million tonnes to 2.347 million tonnes, with the company's coking coal production 2.43 million tonnes from 2.39 million tonnes.
Rio Tinto chief executive Tom Albanese said that its September quarterly results marked the company's record production for iron ore, alumina and coking coal as he added that "we continue to run our operations at close to, or above, capacity rates, taking advantage of strong prices for our products."
However, Rio Tinto said that lower grades yield on its Grasberg mine in Indonesia led to declines on its copper and gold production in the same quarter which plunged by 19 percent and 33 percent respectively as against to figures posted in the same period last year.
On the other hand, the company's copper and gold in the US saw spikes of six percent and 46 percent respectively due to the efficient operations of its Kennecott Utah Copper smelter.
Rio Tinto's global iron ore production is projected to reach 179 million tonnes on the back of the 10 percent output surge for the first nine months of the current year and the company's operational improvements on the Pilbara region in Western Australia, where it maintains its Hamersley operations.
For the third quarter alone, Mr Albanese said that Rio Tinto has allocated some $US4 billion or $A4.05 billion for its capital projects that also earmarked investments for the 330 million tonnes per annum expansion of its Pilbara operations.
Rio Tinto's capital approval has so far reached $US5.5 billion or $A5.56 billion and still in line with the company's capex guidance of $US13 billion or $A13.15 billion for the 18 months leading to December 2011.
Overall, Rio Tinto said that the turnaround seen on its global productions is pointing to strengthening market fundamentals this current year, though it admitted that weak spots could still be seen on its US coal division, which saw a 50 percent production decline in the year leading to end of September, and Australian thermal coal segment, weakened by the wet weather prevalent in New South Wales' Hunter Valley.
As of 1538 AEDT on Thursday, Rio Tinto shares were trading up by $3.38 or 4.3 percent to $82.00.