Rio increases iron ore production by 6%

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Mining giant Rio Tinto says global iron ore production increased to 61 million tonnes in the March quarter, up six per cent on the same period last year.

Rio Tinto said its 2013 iron ore production guidance remains unchanged at 265 million tonnes from global operations in Australia and Canada, subject to weather constraints.

Rio said Pilbara iron ore operations swiftly recovered from the cyclone season and were now running at full capacity of 237 million tonnes per year.

Rio chief executive Sam Walsh said the company’s operations achieved a solid performance in the first quarter, recovering rapidly from the seasonal weather disruptions.

“Our two major growth projects in the Pilbara and in Mongolia achieved significant milestones in the first quarter,” Mr Walsh said in the company’s first quarter operations review.

Both projects remain on track for production this year.

He said the company was making good progress in achieving its cost reduction targets for 2013.

“Cost savings are tracking on target in the year to date as the impact of headcount reductions and productivity gains are gathering pace,” the company said.

However, it said global iron ore production was five per cent lower than fourth quarter production in December 2012 due to bad weather.

Rio said three tropical cyclones forced shiploading to be suspended or slowed for several days on each occasion.

“Despite this temporary closure of the ports for shipping, the mine sites, and rail haulage from mine to port, continued to operate at close to capacity throughout the period,” the company said.

Rio said the expansion of Pilbara capacity to 290 million tonnes per year remains on budget and on time to achieve the accelerated completion date in the third quarter of this year.

During the first quarter the company installed a new shiploader with a 55 million tonne annual capacity on the new wharf at Cape Lambert.

Rio added that its forecast copper production was being re-assessed following the recent mine slide at Bingham Canyon.

As a result the company estimates that 2013 copper production at Kennecott Utah Copper will be less than previously anticipated by approximately 125,000 tonnes and 100,000 tonnes.

Meanwhile, commercial production remains on track at the Oyu Tolgoi copper-gold mine by the end of June 2013 subject to discussions with the Mongolian government.