Rio Tinto’s mineral production for the first half of 2016 was significantly up on the corresponding period of 2015. Iron ore production from the Pilbara was up 10%, to 160.8 Mt, in line with annual guidance. Bauxite production rose 9%, to 23.2 Mt, with aluminium production up 10%, to 1,797 kt. Mined copper was up just 1%, to 282.3 kt.
Coking coal production fell 8% to 3.8 Mt and thermal coal production was in line with H1 2015 at 10.7 Mt.
The performance of the iron ore operations in Australia reflects minimal weather impacts as well as the successful implementation of operational improvements and the ramp up of expanded and new mines across the Pilbara. The second phase of the Nammuldi Incremental Tonnes project, which will take annual mine capacity from 5 to 10 Mt/y, is due to come into production in Q4 16.
The 9% increase in bauxite production was primarily due to Weipa (up 3%), Gove (up 23%) and Sangaredi in Guinea (up 22%).The increase in copper production came from strong performances at both Rio Tinto Kennecott and Oyu Tolgoi, which offset a weaker performance from Escondida. Oyu Tolgoi’s production was up 23% on higher grades and throughput. Escondida’s copper output fell by 23% as the average copper grade fell from 1.40% to 0.97%.
By-product gold production from the copper mines fell 11% to 176 koz, with significant falls at Bingham Canyon and Oyu Tolgoi (lower grade) being partially offset by a forecast 29 koz increase in gold from the Grasberg joint venture.
On 6 May 2016, Rio Tinto and its partners, the Government of Mongolia and Turquoise Hill Resources, announced the next stage in the development of Oyu Tolgoi underground mine and the partners have drawn down over US$4 billion of project financing.
Rio’s production up in most minerals in H1 2016: RIO