Rio Tinto's Q4 iron-ore output jumps 49%

JOHANNESBURG (miningweekly.com) – Diversified giant Rio Tinto’s iron-ore output surged by 49% in the fourth quarter of 2009, as a result of continued high demand from China, CE Tom Albanese reported on Thursday.

“In the Pilbara [region] we achieved record sales for both the quarter and the full year and both global and Pilbara production set new records in 2009,” he told shareholders in a statement.

The miner’s global iron-ore production increased to 47,2-million tons for the quarter, compared with 31,7-million tons produced in the fourth quarter of 2008.

Attributable iron-ore production for the full year rose 12% to 172-million tons, compared with 153-million tons the year before.

The Pilbara operations had produced 56-million tons of iron-ore in the fourth quarter, 45-million tons of which was attributable to Rio Tinto, representing a 45% increase on iron-ore output in the fourth quarter of 2008.

Rio Tinto stated that the Pilbara system had consistently operated at a run rate in excess of its nameplate capacity of 220-million tons a year during the second half of 2009, which reflects the successful implementation of new infrastructure, control systems and recent mine expansions.

Work at the Mesa A and Brockman 4 mines, which were required to secure a capacity of the Pilbara mines at about 220-million tons a year, were ahead of schedule, with both mines expected to start production during the first half of this year.

Meanwhile, the group had also recorded higher output at its copper, gold and coal operations, but suffered some setbacks at its aluminium and uranium operations.

“We are seeing recovery across most of our key commodities, although we continue to be cautious on the state of the global economy going into 2010, as stimulus packages start to wind down,” said Albanese.

Mined copper production for the fourth quarter was up 36% to 203 000 t, compared with 149 000 t in the fourth quarter of the previous year, owing to higher production at the Escondida mine, in South America, and the Grasberg mine, in Indonesia.

Mined copper output at the Escondida mine was up 30% year-on-year for the fourth quarter, while refined copper production rose 9% for the quarter.

Refined copper output for the quarter increased by 15% to 105 000 t, compared with 91 000 t the year before, as a result of higher concentrate grades and a further improvement in performance at the Kennecott Utah Copper, in North America.

Refined copper production was up 28% year-on-year to 412 000 t for the full year.

Further, mined gold production increased by 141% to 1,1-million ounces for the 2009 full year, compared with the 460 000 oz mined the year before.

Refined gold production was up 58% to 479 000 oz, compared with 303 000 oz in 2008.

However, Rio Tinto’s uranium production declined by 20% to 3,3-million pounds in the fourth quarter, compared with the 4,1-million pounds produced in the fourth quarter of 2008.

This was mainly as a result of lower grades at the group’s Energy Resources of Australia operation.

Full-year uranium output remained flat compared with 2008.

Rio Tinto had also maintained production cutbacks in its aluminium business in response to market conditions, with Rio Tinto Alcan’s yearly run rate ending the year 9% down on the start of 2009.