Q2 Production Report - Pt.2
Rio Tinto PLC
25 July 2001
PART 2
DIAMONDS
Argyle Diamonds
Total production from mining operations at Argyle Diamonds (Rio Tinto
99.8%(a)) in Western Australia.
(100% basis)
Ore processed
('000 tonnes):
AK1 ore 2,780 2,597 2,466 2,697 2,423 5,356 5,120
Alluvial ore 1,108 1,492 1,048 1,007 1,204 2,368 2,211
Total ore
processed 3,888 4,089 3,514 3,704 3,627 7,723 7,331
Diamonds recovered ('000 carats):
AK1 7,247 6,439 5,354 4,918 4,759 13,630 9,677
Alluvial 281 318 166 164 263 568 427
Total
recovered 7,527 6,757 5,520 5,082 5,022 14,198 10,104
(a) During the second half of 2000, Rio Tinto increased its interest in
Argyle from 59.7% to 99.8% by virtue of its acquisition of Ashton Mining.
AK1 carat production was lower in the second quarter of 2001 than in the
comparable period of 2000 due to ongoing processing of lower grade ore to
facilitate pit development.
Alluvials carat production was higher than in the previous two quarters
due to mining higher grade blocks.
Ashton Mining
Total Rio Tinto share of production from the Ashton Mining (Rio Tinto 100%
(a)) interests apart from Argyle.
(Rio Tinto share)
Ore processed
('000 tonnes) - - 95 95 155 - 250
Diamonds recovered
('000 carats) - - 37 15 22 - 36
(a) Production data are shown from 10 November 2000, the effective date
of acquisition of Ashton Mining.
Carat production in the second quarter of 2001 increased compared with the
first quarter of 2001, following resumption of operations at Merlin in May
that had been suspended due to the effect of wet weather.
IRON ORE
2Q 3Q 4Q 1Q 2Q 1H 1H
2000 2000 2000 2001 2001 2000 2001
Hamersley Iron
Total production and shipments are for all the mines operated by Hamersley
Iron (Rio Tinto 100%). These mines are Paraburdoo, Mount Tom Price,
Marandoo, Yandicoogina, Brockman (all Rio Tinto 100%) and Channar (Rio
Tinto 60%) all in Western Australia.
(100% basis)
Saleable iron ore produced
('000 tonnes):
Paraburdoo, Mount Tom Price,
Marandoo, Brockman and
Yandicoogina 12,978 14,642 14,857 13,579 14,352 25,596 27,931
Channar 2,465 2,732 2,811 2,453 2,716 5,059 5,169
Total
production 15,443 17,374 17,668 16,032 17,068 30,655 33,100
Total shipments
('000 tonnes) 16,870 17,301 17,722 15,312 16,504 32,032 31,816
In the first half of 2001, Hamersley achieved record first half
production; 8% higher than the previous first half record in 1999. Second
quarter production was 11% higher than the previous second quarter record,
in 2000. This was achieved despite an extended delay at a port dumper,
which caused a number of train cancellations. Shipments for the first half
and second quarter of 2001 were slightly below last year due to lower
shipments to Japan and Europe, partly offset by higher sales to China.
Iron Ore Company of Canada
Total production from the Carol Lake operations (Rio Tinto 56.1% (a)) in
Labrador, Canada.
(100% basis)
Carol Lake operations
Saleable production:
Concentrates
('000 tonnes) - 567 868 638 1,019 - 1,657
Pellets
('000 tonnes) - 1,609 3,092 2,702 3,306 - 6,008
Shipments:
Concentrate
('000 tonnes) - 718 1,124 652 1,098 - 1,750
Pellets
('000 tonnes) - 1,781 2,517 1,987 2,824 - 4,811
(a) Rio Tinto acquired its interest in Iron Ore Company of Canada as part
of the purchase of North Limited. Production data are shown from 11 August
2000, the effective date of the acquisition.
The second quarter saw a significant improvement in IOC's production
performance, with a new quarterly record being set for pellet production
and new daily pellet production records being set for all pellet types
during the quarter. Commissioning of a new fleet of haulage trucks
resulted in a dramatic improvement in fleet availability. First half sales
were lower than last year due to the softening of the European and North
American steel markets.
Rio Tinto Brasil Limitada
Total production at the Corumba mine (Rio Tinto 100%) in Corumba, Mato
Grosso do Sul, Brazil.
Corumba mine
Total iron ore
production
('000 tonnes) (a) 173 281 178 156 116 319 272
(a) Production includes by-product fines.
Production was lower in the second quarter of 2001, than in previous quarters,
due to a delay until June 2001 in renewing a major sales contract.
Robe River Iron Associates
Total production from the Pannawonica mine (Rio Tinto 53% (a)) in Western
Australia.
(100% basis)
Pannawonica mine
Saleable production
('000 tonnes) - 4,831 7,954 6,781 6,970 - 13,751
Shipments
('000 tonnes) - 5,600 7,295 7,305 7,136 - 14,441
(a) Rio Tinto acquired its interest in Robe River as part of the purchase
of North Limited. Production data are shown from 11 August 2000, the
effective date of the acquisition.
Production for the second quarter of 2001 was 3% higher compared with the
previous quarter. Production was adversely affected in the second quarter
of 2001 by machinery maintenance and commitment to training. With the
commissioning of an additional process plant, production levels are
expected to improve.
NICKEL
Rio Tinto Brasil Limitada
Total nickel in matte production at the Fortaleza mine (Rio Tinto 100%) in
Brazil
Fortaleza mine
Production
(tonnes) 2,170 1,333 2,674 2,710 2,487 4,731 5,197
Production was lower in the second quarter of 2001 due to a 12 day
unscheduled shutdown of the electric arc furnace in April and due to
national energy reduction requirements.
Rio Tinto Zimbabwe
Total refined metal production at the Empress Nickel refinery (Rio Tinto 56%)
in Zimbabwe.
(100% basis)
Empress Nickel refinery
Production
(tonnes) 1,676 1,869 1,654 1,623 1,651 3,412 3,274
SALT
Dampier Salt
Total production of salt from Dampier and Lake MacLeod (Rio Tinto 64.9%)
in Western Australia.
(100% basis)
Salt production
('000 tonnes) 1,338 1,142 1,095 1,385 1,571 2,362 2,956
TALC
The Luzenac Group
Total talc production from Luzenac Group operations in Europe (Rio Tinto
99.9%) and North America (Rio Tinto 100%).
(100% basis)
Talc production
('000 tonnes) 315 324 302 323 319 636 641
TITANIUM DIOXIDE FEEDSTOCK
Rio Tinto Iron and Titanium
Rio Tinto share of titanium dioxide feedstock production in Canada and
South Africa.
(Rio Tinto share)
Titanium dioxide
feedstock
production
('000 tonnes) 310 341 368 356 371 659 727
URANIUM
Energy Resources of Australia Ltd
Production at the Ranger mine (68.4% Rio Tinto (a)) in the Northern
Territory, Australia.
(100% basis)
Ranger mine
Production
(tonnes U3O8) - 548 1,216 1,320 947 - 2,267
(a) Rio Tinto acquired its interest in ERA as part of the purchase of
North Limited. Production data are shown from 11 August 2000, the
effective date of the acquisition.
Rossing Uranium Ltd
Total uranium production at the Rossing Uranium mine (Rio Tinto 68.58%) in
Namibia.
(100% basis)
Production
(tonnes U3O8) 726 821 836 724 449 1,544 1,173
Production in the second quarter of 2001 was reduced due to a major
maintenance shutdown in April.
ZINC
Norzink AS
Total refined zinc production at the Norzink smelter (Rio Tinto 50% (a))
in Norway.
(100% basis)
Production
('000 tonnes) 32.9 35.2 34.7 36.3 4.5 68.5 40.9
(a) Rio Tinto completed the sale of its interest in Norzink on 17 April
2001.
Zinkgruvan Mining AB
Total production at the Zinkgruvan mine (Rio Tinto 100% (a)) in Sweden.
Ore treated
('000 tonnes) - 127 179 201 203 - 404
Average grades:
Zinc (%) - 10.1 11.1 8.2 8.0 - 8.1
Lead (%) - 3.8 4.3 3.3 3.9 - 3.6
Silver (g/t) - 107 112 75 87 - 81
Production of zinc
concentrate
('000 tonnes) - 22.7 33.9 28.0 26.6 - 54.6
Production of lead
concentrate
('000 tonnes) - 5.5 9.1 7.9 9.6 - 17.5
Production of
metal in
concentrates:
Zinc
('000 tonnes) - 12.8 18.7 15.3 14.8 - 30.1
Lead
('000 tonnes) - 3.9 6.6 5.7 6.9 - 12.7
Silver
('000 tonnes) - 271 431 347 396 - 744
(a) Rio Tinto acquired its interest in Zinkgruvan as part of North
Limited. Production data are shown from 11 August 2000, the effective
date of the acquisition.
Zinc grades were relatively high in 2000 and, as expected, they have been
lower in 2001.
Exploration
Expenditure
Total pre-tax exploration expenditure charged to the profit and loss account
for the first half of 2001 was US$54 million compared with US$58 million for
the first half of 2000.
Ongoing Programmes
Country Commodity Programme Summary
Indonesia Copper and In Block A, delineation drilling continued
gold on porphyry gold-copper mineralisation
within the Ertsberg intrusion and on
extensions to the Kucing Liar skarn system
on the periphery of the Grasberg intrusion.
Turkey Copper and Drilling continued on the Cukur Dere gold-
gold copper prospect in eastern Turkey in
alliance with Anatolia Minerals.
North America Copper An agreement was signed allowing Rio Tinto
to earn a 55% interest in BHP Billiton's
deep high-grade porphyry copper discovery
at the Superior mine in Arizona. Drilling
of the prospect will commence in July.
South America Copper Early encouragement was obtained from
reconnaissance drilling of the Shougang
option Marcona copper-gold property in
southern Peru.
India Diamonds First-pass sampling was completed on
recently granted reconnaissance permits in
Karnataka and Andhra Pradesh.
Guinea Diamonds A 500 tonne surface bulk sample was
collected from the K23 pipe on the
Trivalence option Aredor diamond concession
in southeastern Guinea.
Iran Gold Further encouragement was obtained from
drilling of the Dashkasan bulk tonnage gold
prospect in Kurdistan.
Guinea Iron Ore Drilling recommenced at the Simandou lump
hematite prospect in southeastern Guinea.
China Nickel Exploration around the Jinchuan nickel mine
commenced in joint venture with the Gansu
Qinqi Mineral Company.
Australia Phosphate Drilling and metallurgical test work
continued at the Wonarah phosphate deposit
in the Northern Territory.