Rio Tinto Expansions Deliver Record Iron Ore Output

Rio Tinto posted record quarterly iron ore production as the expansion of its operations in the Pilbara region of Western Australia continued to bear fruit. Thermal coal production fell in the second quarter after heavy rains disrupted operations and mined copper dipped 10% on lower grades, but analysts said overall the mining giant had a reasonably solid quarter. Production from Rio Tinto’s iron ore operations for the quarter reached a record 37.12 million metric tons, up 11% on the same period last year. A surge in demand from Chinese steel makers has driven up iron ore prices and Rio Tinto is acting to take advantage, carrying out expansions that will boost its iron ore output to 220 million metric tons a year by 2008 and examining a further jump to 320 million tons. Mined copper output for the second quarter was 186,400 tons, down 10% on year due in part to lower grades at the Bingham Canyon mine in the U.S. state of Utah. However, refined copper for the quarter rose 20% on year to 100,700 tons thanks to contributions from a sulphide leach operation at Escondida in Chile. Aluminum output for the quarter rose 5% on year to 216,500 tons while alumina output tumbled 20% as a result of the sale of the Eurallumina refinery in Italy late last year.