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Rio Tinto posts 8% hike in Q4 iron production

MELBOURNE: Rio Tinto Ltd said yesterday its fourth quarter iron output was 8% higher than for the previous corresponding period.
But the mining giant said fourth quarter refined copper output fell 37% from the same period a year earlier.
Iron ore production in the fourth quarter rose to 35.057 million tonnes, from 32.522 million tonnes in the last three months of 2005, helping boost production for last year by 7% to 132.78 million tonnes.
Production at Hamersley was the main driver, up 8% for the full year to 93.302 million tonnes.
“Global iron ore demand remained strong in all markets during 2006,” Rio Tinto said in a statement.
“This strength was reflected in Hamersley’s 9.5% increase in the price of lump and fine ores supplied to China’s Baosteel for the 2007 contract year, announced on Dec 22.”
But the company said that in the Pilbara, annual production was impacted by extreme weather conditions early in the year and the challenge of recovering and expanding production when operating at full capacity.
“Ongoing acute shortages of mining inputs in the region continue to put pressure on costs,” Rio Tinto said.
Refined copper production during the fourth quarter fell 37% to 54,000 tonnes, leading to a 5% dip in full year production to 299,200 tonnes.
Mined copper for the quarter was steady at 209,800 tonnes, but rose 2% for the year to 803,500.
Quarterly thermal coal production in the US rose 13% to 32.797 million tonnes, while Australian hard coking coal sank 4% to 1.516 million tonnes.
Other Australian coal production rose 3% to 7.782 million tonnes in the quarter.
“Annual and quarterly production records were set at Rio Tinto Energy America,” Rio Tinto said.
“This performance, together with improved rail availability following maintenance activity in 2005, contributed to an 8% increase in production for the year.” – AAP