Coal & Allied second quarter

RNS Number : 6816V

Rio Tinto PLC

15 July 2009

MEDIA RELEASE

15 July 2009

Production report for the quarter ended 30 June 2009

	CNA	2Q	3Q	4Q	1Q	2Q	1H	1H
'000 tonnes (100% basis)	interest	2008	2008	2008	2009	2009	2008	2009

Saleable production Hunter Valley Operations	100%
Thermal coal		1,830	1,645	2,268	2,212	2,383	3,972	4,595
Semi-soft coking coal		1,078	629	475	492	346	1,760	838
		2,908	2,274	2,744	2,704	2,729	5,732	5,433

Bengalla Mine	40%
Thermal coal		1,607	1,296	1,402	1,126	1,438	2,659	2,564

Mount Thorley Operations (a)	80%
Thermal coal		428	918	53	513	478	809	991
Semi-soft coking coal		41	287	508	57	157	373	214
		469	1,205	561	570	635	1,182	1,205

Warkworth Mine (a)	55.6%
Thermal coal		1,507	964	1,658	1,064	918	3,030	1,982
Semi-soft coking coal		46	215	125	75	217	46	292
		1,553	1,179	1,783	1,139	1,135	3,076	2,274

Total Mount Thorley Warkworth		2,022	2,384	2,344	1,709	1,770	4,258	3,479


Total coal production		6,537	5,954	6,490	5,539	5,937	12,651	11,476

Total sales (b)		6,233	6,196	6,605	5,214	6,184	12,283	11,398

Coal & Allied share
Coal production		4,788	4,413	4,745	4,244	4,443	9,452	8,687
Coal sales ('000 tonnes)		4,660	4,625	4,810	4,044	4,629	9,231	8,673

Production can be sourced from either mining lease and is allocated over the year based on the tonnage commitment ratio contractually agreed between the Mount Thorley and Warkworth joint ventures.
Sales relate only to coal mined by the operations and exclude traded coal.

Production figures are sometimes more precise than the rounded numbers shown, hence small differences may result between the total of the quarter figures and the full year figures.

Production

Coal & Allied's share of saleable coal production for the quarter was 4.4mt, five per cent higher than the March quarter, and seven per cent lower than the corresponding quarter last year.

Wet weather continued to impact the operations, but to a lesser extent than in the first quarter. Hunter Valley Operations' production increased by one per cent on the previous quarter. Bengalla's coal production was 28 per cent higher than the preceding quarter, primarily due to improved mining conditions and a variation in coal seams, partially offset by delays associated with the commissioning of a new ROM hopper. Mount Thorley Warkworth's production increased four per cent from the March quarter, however was 13 per cent below the same quarter last year due primarily to an increased strip ratio.

The production of semi soft coking coal is 38 per cent lower in the first half of 2009 compared with the first half of 2008. Semi soft coking coal production was increased in 2008 to take advantage of the high semi soft coking coal prices relative to thermal coal prices at that time.

Sales

Coal & Allied's share of coal sales in the second quarter was 15 per cent higher than the previous quarter largely due to the timing of higher domestic sales and available port allocation.

During May, a reduction of 1mt in the declared coal chain capacity was announced due to a rail outage caused by heavy rains in late March/early April. This will have an impact of approximately 250kt on Coal & Allied's annual port allocation for 2009.