PERTH (miningweekly.com) – Diversified giant Rio Tinto’s Pilbara expansions have delivered another record quarter of production, with the miner reporting a 5% quarter-on-quarter increase in iron-ore production during the three months ended September.
Third-quarter iron-ore production increased to 76.8-million tonnes, which was also a 12% improvement on the same period a year earlier, bringing the year-to-date production to 21.2-million tonnes.
“We have delivered another strong quarter with record iron-ore production and a solid performance in copper and aluminium. We have seen our first full quarter from the 290-million-tonne-a-year iron-ore expansion in the Pilbara, with the additional tonnes going into our premium Pilbara Blend products,” said Rio CEO Sam Walsh.
During the quarter under review, Rio’s iron-ore shipments increased by 3% on the previous quarter, to 78-million tonnes, bringing the total of iron-ore shipped during the year-to-date to 220.4-million tonnes.
The major reported that infrastructure for expanding the Pilbara operations to 360-million tonnes a year was now about 75% complete, with all rail, marine and wharf works in place. The expansion would be completed by mid-2015.
Meanwhile, Rio had increased its full-year production expectations for its copper division, as mined copper production was up by 15% during the nine months to September, compared with the previous corresponding period.
The increased output was driven by improved recoveries at the Kennecott concentrator, in the US, and the sustained ramp-up of the Oyu Tolgoi project, in Mongolia.
Mined copper production for the year-to-date was 474 700 t, while quarterly production was recorded at 151 800 t. This was 8% below the second-quarter production levels, following a 65-day scheduled smelter shutdown at Kennecott.
For the full year, Rio has increased its production expectations from 585 000 t to 615 000 t, while refined copper production expectations were up from 260 000 t to 300 000 t.
Meanwhile, Rio reported that production of hard coking coal during the first nine months of the year remained in line with that achieved in 2013, despite a 14% quarter-on-quarter drop in production.
During the three months to September, Rio produced 1.92-million tonnes of hard coking coal, taking its year-to-date production to 5.8-million tonnes. Production in the September quarter was negatively affected by the Hail Creek mine prioritising the production of thermal coal from a processing plant by-product stream, to deliver increased margins in the current price environment, and the Kestrel mine ramping up the new South longwall following the completion of mining at Kestrel North in the first quarter of 2014.
Semi-soft coking coal and thermal coal production during the quarter under review declined by 8% on the previous quarter, to 6.1-million tonnes, while year-to-date production was down 3% to 19.5-million tonnes.
Rio on Wednesday also reported that aluminium production for the quarter under review increased by 1% on the previous quarter, to 848 000 t, while year-to-date production remained steady at 2.5-million tonnes.
“Our strategy of focusing on long-life, low-cost assets means we will continue to generate strong cash flows despite a lower price environment, resulting in materially increased and consistent cash returns to shareholders,” Walsh said.