PERTH (miningweekly.com) − Diversified resources giant Rio Tinto increased its iron-ore production to a record in the fourth quarter, as the miner pushed ahead with its expansion programme in Western Australia.

The Pilbara mines produced a record 62-million tons in the three months to December, and some 231-million tons in 2011. Record global iron-ore production was also achieved, with output climbing to 65-million tons in the December quarter, and 245-million tons in the full year.

However, despite the record production levels, ore shipments of 239-million tons in 2011 were below production, owing to extreme weather conditions experienced in the first half of the year.

“This was another record-breaking year in the Pilbara, with both quarterly and full-year iron-ore production and shipments beating previous achievements as our expansion programme continues apace,” said CEO Tom Albanese on Tuesday.

“Across the group, production has bounced back from the severe weather conditions experienced in the first half, which had the biggest impact on Australian iron-ore, coal and uranium,” he added.

Rio was currently undertaking the expansion of its Pilbara operations to increase production to some 283-million tons a year by the end of 2013. The feasibility study for the second phase of the Cape Lambert expansion also continued during the quarter under review, and was expected to increase the Pilbara capacity to 353-million tons a year the first half of 2015.

The mining giant was also accelerating the development of the Simandou mega mine project, in Guinea, and approved a further $221-million for continued studies, and $1.1-billion in funding commitments for early works.

First ore shipment from Simandou was expected by mid-2015.

Meanwhile, Albanese reported that copper production for the quarter ended December was down by some 23% as lower grades affected the Escondida operation in Chile, and the Kennecott Utah operation.

At Escondida, Rio produced some 65 300 t of copper. The miner noted that fourth quarter mined copper production rebounded from the third quarter, which was impacted by a work stoppage, halting operations for 15 days. Lower ore grades and the work stoppage impacted full year production.

At the Kennecott Utah operation, Rio produced 47 100 t of copper in the fourth quarter. Copper contained in concentrates was higher than the prior two quarters but was lower than the fourth quarter of 2010 due to variability in ore grades. Fourth quarter molybdenum production was below prior periods owing to lower grades.

Full year production of copper, gold and silver was lower than 2010 as mining progressed through lower-grade areas of the openpit, as previously guided. Molybdenum production in 2011 was higher than 2010 owing to higher recoveries.

Higher ore grades are expected at Kennecott Utah in the second half of 2012 and into 2013. A 26 day maintenance shutdown at the smelter is planned for the second quarter of 2012 to take advantage of the mining of lower-grade areas of the pit.

COAL

Meanwhile, Rio said on Tuesday that Australian hard coking coal production was 16% higher in the period under review, compared with the fourth quarter of 2010 and 2% lower year-on-year.

Hard coking coal production reached 2.6-million tons in the quarter under review, and more than 8.8-million tons in the full year.

Australian thermal coal was 3% lower year-on-year, at 17.7-million tons, while semi-soft coal production slipped 7%, to 2.8-million tons, compared with 2010.

The decline in production was primarily assigned to maintenance work at the Claremont operation, a temporary shutdown to the upgrade plant at Bengella as part of expansion activities, as well as a four-week dragline failure at the Mount Thorley Warkworth operation.

First production from Rio Tinto Coal Mozambique’s Benga mine was expected to be processed through the wash plant in the early part of the first quarter with the first shipment of hard coking coal from the Beira port expected around the end of the first quarter, the miner said.

BAUXITE

The miner also reported that during the full year, bauxite production increased by some 7%, while aluminium production was up 1% and alumina production was down 1%.

Rio Tinto Alcan’s bauxite production was 13% higher than the fourth quarter of 2010, reaching 7.5-million tons, while Pacific Aluminium produced 1.9-million tons during the same period.

Alumina production for Rio Tinto Alcan was 1.5-million tons, while Pacific Aluminium produced 786 000 t during the quarter. Aluminium production in turn reached 600 000 t at Rio Tinto’s Alcan operations, while Pacific Aluminium produced 361 000 t.

In October last year, Rio announced that it would be streamlining its aluminium product group, following a strategic review. Six Australian and New Zealand assets have been transferred into Pacific Aluminium and seven other noncore assets have been transferred out of Rio Tinto Alcan.

The group’s annual aluminium capacity has been reduced by 462 000 t across the entire portfolio, owing to the orderly shutdown of two-thirds of Alma and power issues at Lynemouth and Shawinigan.

 

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