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Rio Tinto releases first quarter production results

Mining News - Published on Thu, 19 Apr 2018

Image Source: SteelGuru
Mr JS Jacques chief executive of Rio Tinto said that “We delivered a solid operational performance across most commodities in the first quarter of 2018. Our world-class Pilbara iron ore assets continue to demonstrate flexibility and the benefits of increased productivity, and production at our bauxite and copper assets was also higher. We announced USD 5 billion of divestments in the quarter, highlighting our ongoing drive to strengthen the portfolio and raise return on assets. By continuing to advance our mine-to-market productivity programme, whilst maintaining our focus on the disciplined allocation of cash, we will continue to deliver superior returns to our shareholders.”

Principal Commodities2017 Q12017 Q42018 Q12017Q1 18 vs Q1 17Q1 18 vs Q4 17
Alumina2047207719908131-3.00%-4.00%
Aluminium8898878463551-5.00%-5.00%
Bauxite1130313762126535079612.00%-8.00%
Borates1231201245171.00%3.00%
Coal - hard coking1583232211027704-30.00%-53.00%
Coal - thermal10009661119406512.00%16.00%
Copper - mined84.2148.6139.3478.165.00%-6.00%
Copper - refined3844.956.1197.248.00%25.00%
Diamonds4152720746162162711.00%-36.00%
Iron Ore6622675656714362824848.00%-6.00%
Titanium dioxide slag3323412941315-12.00%-14.00%
Uranium1573182115156650-4.00%-17.00%
 


Key points

1. Pilbara iron ore shipments of 80.3 million tonnes (100 % basis) in the first quarter were five % higher than the first quarter of 2017, benefitting from productivity improvements and fewer weather disruptions.

2. Bauxite production of 12.7 million tonnes was 12 % higher than the corresponding quarter of 2017, due to continued operational improvements. Third party shipments increased by 19 % to 8.2 million tonnes due to firm demand and higher port availability.

3.Aluminium production of 0.8 million tonnes was five per cent lower than the first quarter of 2017 due primarily to disruptions at the Becancour smelter in Canada.

4. Mined copper production of 139.3 thousand tonnes was 65 % higher than the first quarter of 2017, as output recovered at Escondida following a labour union strike in the first half of last year.

5.Titanium dioxide slag production was 12 per cent lower than the first quarter of 2017 due to operational and labour disruptions at Richards Bay Minerals. Guidance has accordingly been revised to 1.1 to 1.3 million tonnes (previously 1.2 to 1.4 million tonnes).

6.Hard coking coal production of 1.1 million tonnes was 30 % lower than the first quarter of 2017 due primarily to the longwall changeover and maintenance works at Kestrel.

7.The major growth projects remain on track. The Silvergrass iron ore mine continues to ramp up, Amrun is on schedule for first bauxite shipment in the first half of 2019 and construction of the first drawbell at Oyu Tolgoi Underground is expected in mid-2020.

8. Total divestments announced in 2018 total USD 5 billion, subject to completion conditions, including:
a). Binding offers for the Aluminium Dunkerque smelter in France for USD 500 million and the ISAL aluminium smelter in Iceland for USD 345 million. The sales are expected to complete in the second quarter of 2018.
b). Binding offers for the group’s remaining coal assets, including the Hail Creek and Kestrel mines in Queensland and the Winchester South and Valeria development projects, for total consideration of USD 4.15 billion. The sales are expected to complete principally in the second half of 2018.

Source :

Posted By : Rabi Wangkhem on Thu, 19 Apr 2018
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