Rio Tinto - 2nd QPR

Rio Tinto PLC 18 July 2002 Rio Tinto Quarterly Production Report For the Quarter ending 30 June 2002 * Iron ore production in the second quarter of 2002 was 3% lower than the same period of last year. Hamersley shipments were a second quarter record, exceeding the previous record by 3% due to strengthening demand from most Asian markets. Second quarter production from the Robe River joint venture was in line with last year. * Production from the Australian and Indonesian coal operations was in line with the second quarter of 2001. Coal & Allied will reduce production from its Hunter Valley Operations by one million tonnes in the second half of 2002 in line with market demand. * US coal production was down 3% on the second quarter of last year in line with market demand which was affected by mild weather conditions. * Second quarter mined copper production was 4% below the same period of last year. The closure of the North Concentrator at Kennecott coupled with the mining of hard ore reduced Kennecott mine production by 30%. This was partially offset by a higher joint venture share of Grasberg production and higher production from Escondida as grades improved. * Refined copper production from Kennecott was 35% above the second quarter of last year as a result of higher smelter availability. * Mined gold production was 21% lower than in the second quarter of last year due to lower grades at Kennecott and Grasberg. * Aluminium production was marginally above last year. Rio Tinto's share of alumina production was 18% above the same period last year primarily due to the acquisition of additional equity in Queensland Alumina in September 2001. * Diamond production was 68% above the second quarter of last year due to higher grades. Lower grade ore was processed in the first half of 2001 to facilitate pit development. * Second quarter titanium dioxide feedstock production was 14% below the same period last year as production was curtailed in line with market demand. Borates production was down 6%. The interim financial results will be released on Thursday 25 July 2002. For further information contact: LONDON MELBOURNE Media Relations Media Relations Lisa Cullimore Ian Head + 44 (0) 0 7753 2305 + 61 (0) 3 9283 3620 Investor Relations Investor Relations Peter Cunningham Dave Skinner + 44 (0)7711 596570 + 61 (0) 3 9283 3628 Richard Brimelow Daphne Morros + 44 (0) 20 7753 2326 + 61 (0) 3 9283 3639 Website: www.riotinto.com RIO TINTO PRODUCTION SUMMARY RIO TINTO share of production % Change Quarter HALF YEAR Q2 02 Q2 02 1H 02 2001 2002 2002 2001 2002 vs vs vs Q2 Q1 Q2 1H 1H Q1 02 Q2 01 1H 01 Principal Commodities Alumina ('000 t) 413 492 489 807 981 -1% 18% 22% Aluminium ('000 t) 189.7 191.1 193.9 377.7 385.0 1% 2% 2% Borates ('000 t) 139 130 130 287 260 0% -6% -9% Coal - Australian and Indonesian ('000 t) 10,810 11,021 10,852 20,251 21,873 -2% 0% 8% Coal - US ('000 t) 26,785 25,853 26,020 53,192 51,873 1% -3% -2% Copper - mined ('000 t) 237.6 200.6 228.5 475.7 429.1 14% -4% -10% Copper - refined ('000 t) 84.8 104.2 108.7 185.3 212.8 4% 28% 15% Diamonds ('000 cts) 5,019 6,180 8,433 10,106 14,613 36% 68% 45% Gold - mined ('000 ozs) 946 687 745 1,841 1,431 9% -21% -22% Gold - refined ('000 ozs) 87 127 133 189 260 5% 53% 37% Iron ore ('000 t) 22,218 22,507 21,600 42,892 44,107 -4% -3% 3% Titanium dioxide feedstock ('000 t) 371 328 318 727 646 -3% -14% -11% Other Metals & Minerals Bauxite ('000 t) 2,940 2,881 2,859 5,972 5,739 -1% -3% -4% Lead - mined ('000 t) 10.3 8.4 9.5 19.6 17.9 13% -7% -9% Molybdenum ('000 t) 2.2 1.7 1.3 5.0 3.0 -18% -39% -40% Nickel in matte (tonnes) 2,487 2,063 1,290 5,197 3,353 -37% -48% -35% Nickel - refined (tonnes) 925 943 835 1,835 1,778 -12% -10% -3% Salt ('000 t) 1,020 1,103 1,085 1,920 2,188 -2% 6% 14% Silver - mined ('000 ozs) 4,618 4,192 4,318 9,252 8,511 3% -6% -8% Silver - refined ('000 ozs) 834 790 1,104 1,491 1,894 40% 32% 27% Talc ('000 t) 318 322 346 640 669 7% 9% 4% Tin (tonnes) 210 123 36 324 159 -71% -83% -51% Uranium (tonnes) 960 1,160 1,131 2,366 2,291 -2% -18% -3% Zinc - mined ('000 t) 24.5 22.5 22.8 49.8 45.3 1% -7% -9% Zinc - refined ('000 t) 2.3 - - 20.4 - - - - Throughout this report, figures in italics indicate adjustments made since the figure was previously quoted on the equivalent page. The figures shown for production are sometimes more precise than the rounded numbers shown, hence small differences may result between the total of the quarter figures and the half year figures. Rio Tinto Share of Production 2Q 3Q 4Q 1Q 2Q 1H 1H Interest 2001 2001 2001 2002 2002 2001 2002 ALUMINA Production ('000 tonnes) Eurallumina 56% 142 127 151 141 139 279 280 Queensland Alumina (a) 39% 271 308 368 352 350 528 701 Rio Tinto total alumina production 413 435 519 492 489 807 981 ALUMINIUM Refined production ('000 tonnes) Anglesey 51% 18.2 17.4 17.5 18.2 17.2 36.2 35.4 Bell Bay 100% 39.8 41.3 40.4 40.3 39.9 79.1 80.2 Boyne Island (b) 54% 67.3 70.6 73.4 67.0 71.0 133.5 138.0 Tiwai Point 79% 64.4 62.4 65.0 65.6 65.9 128.8 131.5 Rio Tinto total aluminium production 189.7 191.7 196.3 191.1 193.9 377.7 385.0 BAUXITE Production ('000 tonnes) Boke 4% 120 175 55 122 121 239 243 Weipa 100% 2,820 2,680 2,913 2,759 2,738 5,733 5,496 Rio Tinto total bauxite production 2,940 2,855 2,968 2,881 2,859 5,972 5,739 BORATES Borates ('000 tonnes B2O3 content) Rio Tinto total borate production 100% 139 142 134 130 130 287 260 Coal COAL Type Australian coal operations ('000 tonnes) Coal & Allied Industries(c): Bengalla (d) 29% S 414 312 423 275 493 683 768 Hunter Valley Operations 73% S 1,031 1,914 1,933 1,419 1,831 2,098 3,249 73% M 705 687 633 767 659 1,593 1,427 Mount Thorley Operations 58% S 341 373 376 362 340 624 702 58% M 313 403 313 327 295 539 622 Moura (d) 0% S 330 208 184 268 139 475 407 0% M 290 282 247 323 230 550 552 Narama (d) 0% S 280 205 162 135 - 422 135 Ravensworth East (d) 0% S 357 281 332 281 - 483 281 Warkworth (d) 40% S 635 584 463 647 570 1,023 1,217 40% M 76 21 57 72 75 144 147 Pacific Coal: Blair Athol Coal 71% S 2,057 2,000 1,329 2,130 1,846 4,216 3,976 Kestrel Coal 80% S 250 348 185 259 322 429 581 80% M 468 572 287 505 501 795 1,006 Tarong Coal 100% S 1,396 1,253 1,333 1,314 1,422 2,689 2,736 Total Australian coal 8,942 9,443 8,256 9,083 8,724 16,764 17,806 Indonesian coal operations ('000 tonnes) Kaltim Prima Coal (e) 50% S 1,869 2,263 2,055 1,938 2,128 3,488 4,066 US coal operations ('000 tonnes) Kennecott Energy Antelope 100% S 5,355 5,525 6,038 5,335 6,075 10,781 11,410 Colowyo (f) 100% S 1,334 1,350 1,271 1,177 1,309 2,610 2,486 Cordero Rojo 100% S 9,621 9,676 10,453 9,100 8,990 19,323 18,090 Decker 50% S 975 993 1,133 1,072 1,046 2,130 2,118 Jacobs Ranch 100% S 7,138 5,404 7,067 6,869 6,593 14,141 13,462 Spring Creek 100% S 2,362 2,185 2,375 2,300 2,007 4,207 4,307 Total US coal 26,785 25,133 28,337 25,853 26,020 53,192 51,873 Rio Tinto total coal production 37,595 36,839 38,648 36,874 36,872 73,443 73,745 Mine production figures for metals refer to the total quantity of metal produced in concentrates or dore bullion irrespective of whether these products are then refined on-site. Key to coal type: S = Steaming/thermal coal, M = Metallurgical/coking coal. See footnotes on page 6. 2Q 3Q 4Q 1Q 2Q 1H 1H Interest 2001 2001 2001 2002 2002 2001 2002 COPPER Mine production ('000 tonnes) Alumbrera 25% 12.4 12.0 12.3 12.8 12.8 23.6 25.6 Bingham Canyon 100% 92.4 73.1 67.2 62.5 64.3 172.4 126.8 Escondida 30% 55.9 59.2 53.2 48.7 61.2 120.0 109.9 Grasberg - FCX (g) 15% 24.1 22.9 21.2 21.0 26.4 49.4 47.4 Grasberg - Joint Venture (g) 40% 25.1 23.0 19.1 28.4 39.1 52.2 67.5 Neves Corvo (h) 49% 10.6 8.4 10.5 9.0 10.8 21.8 19.9 Northparkes 80% 10.7 11.4 11.0 9.5 8.4 21.7 17.9 Palabora (i) 49% 6.4 12.5 11.2 8.6 5.5 14.7 14.1 Rio Tinto total mine production 237.6 222.7 205.8 200.6 228.5 475.7 429.1 Refined production ('000 tonnes) Atlantic Copper (g) 17% 7.8 10.5 10.7 10.3 10.5 18.0 20.8 Escondida 30% 11.5 11.4 11.4 11.0 11.3 22.4 22.3 Kennecott Utah Copper 100% 56.3 43.7 67.3 74.9 76.1 123.3 151.0 Palabora (i) 49% 9.2 9.9 11.0 8.0 10.8 21.6 18.8 Rio Tinto total refined production 84.8 75.5 100.4 104.1 108.7 185.3 212.8 DIAMONDS Production ('000 carats) Argyle (j) 100% 5,012 8,032 7,929 6,146 8,411 10,084 14,557 Merlin 100% 7 13 20 34 22 22 57 Rio Tinto total diamond production 5,019 8,045 7,950 6,180 8,433 10,106 14,613 GOLD Mine production ('000 ounces) Alumbrera 25% 44 44 47 51 49 77 100 Barneys Canyon 100% 30 32 41 27 22 67 49 Bingham Canyon 100% 179 142 120 125 95 330 220 Cortez/Pipeline 40% 122 118 118 111 118 240 230 Escondida 30% 7 7 8 8 12 14 20 Grasberg - FCX (g) 15% 111 99 70 52 69 218 121 Grasberg - Joint Venture (g) 40% 238 220 199 86 141 460 227 Greens Creek 70% 15 15 15 17 20 31 37 Kelian 90% 87 117 110 103 115 181 218 Lihir 16% 26 29 20 24 25 56 49 Morro do Ouro 51% 23 23 24 28 30 48 58 Northparkes 80% 10 7 9 9 8 18 17 Peak 100% 29 28 25 27 20 49 47 Rawhide 51% 14 13 12 12 11 27 23 Rio Tinto Zimbabwe 56% 10 9 8 6 6 20 12 Others - 2 2 3 2 2 5 4 Rio Tinto total mine production 946 906 830 687 745 1,841 1,431 Refined production ('000 ounces) Kennecott Utah Copper 100% 87 88 112 127 133 189 260 IRON ORE Production ('000 tonnes) Channar 60% 1,630 1,622 1,929 1,517 1,446 3,101 2,963 Corumba 100% 116 206 164 104 201 272 305 Hamersley 100% 14,352 15,748 15,149 14,653 14,078 27,931 28,731 Iron Ore Company Of Canada (k) 56% 2,426 2,028 1,841 1,815 2,189 4,300 4,004 Robe River 53% 3,694 4,607 4,379 4,418 3,686 7,288 8,104 Rio Tinto total mine production 22,218 24,212 23,462 22,507 21,600 42,892 44,107 Mine production figures for metals refer to the total quantity of metal produced in concentrates or dore bullion irrespective of whether these products are then refined on-site, except for the data for iron ore which represent production of saleable quantities of ore plus pellets. See footnotes on page 6. 2Q 3Q 4Q 1Q 2Q 1H 1H Interest 2001 2001 2001 2002 2002 2001 2002 LEAD Mine production ('000 tonnes) Greens Creek 70% 3.4 3.7 3.7 3.7 4.6 7.0 8.4 Zinkgruvan 100% 6.9 5.8 6.1 4.7 4.9 12.6 9.5 Rio Tinto Total mine production 10.3 9.5 9.8 8.4 9.5 19.6 17.9 MOLYBDENUM Mine production ('000 tonnes) Bingham Canyon 100% 2.2 1.5 1.6 1.7 1.3 5.0 3.0 NICKEL Nickel in matte (tonnes) Fortaleza 100% 2,487 2,989 1,984 2,063 1,290 5,197 3,353 Total refined metal production (tonnes) Rio Tinto Zimbabwe - Empress 56% 925 992 892 943 835 1,835 1,778 SALT Production ('000 tonnes) Dampier 65% 1,020 1,007 1,322 1,103 1,085 1,920 2,188 SILVER Mine production ('000 ounces) Bingham Canyon 100% 1,328 1,076 1,042 1,032 924 2,357 1,956 Escondida 30% 266 227 212 209 244 521 453 Grasberg - FCX (g) 15% 183 162 141 151 201 397 352 Grasberg - Joint Venture (g) 40% 193 178 193 115 193 269 308 Greens Creek 70% 1,795 1,814 1,809 1,960 2,029 4,080 3,988 Zinkgruvan 100% 396 326 427 324 302 743 626 Others - 456 396 447 401 425 885 827 Rio Tinto total mine production 4,618 4,180 4,272 4,192 4,318 9,252 8,511 Refined production ('000 ounces) Kennecott Utah Copper 100% 834 626 765 790 1,104 1,491 1,894 TALC Production ('000 tonnes) Luzenac Group 99.9% 318 311 315 322 346 640 669 TIN Mine production (tonnes) Neves Corvo (h) 49% 210 192 72 123 36 324 159 TITANIUM DIOXIDE FEEDSTOCK Production ('000 tonnes) Rio Tinto Iron & Titanium 100% 371 359 341 328 318 727 646 URANIUM Production (tonnes U3O8) Energy Resources of Australia 68% 648 540 790 650 668 1,551 1,319 Palabora (i) 49% 5 4 - - - 11 - Rossing 69% 308 544 462 510 463 804 972 Rio Tinto total uranium production 960 1,087 1,252 1,160 1,131 2,366 2,291 Mine production figures for metals refer to the total quantity of metal produced in concentrates or dore bullion irrespective of whether these products are then refined on-site. The nickel in matte production reflects the contained tonnage of nickel. See footnotes on page 6. 2Q 3Q 4Q 1Q 2Q 1H 1H Interest 2001 2001 2001 2002 2002 2001 2002 ZINC Mine production ('000 tonnes) Greens Creek 70% 9.7 10.6 10.5 11.4 12.4 19.7 23.8 Zinkgruvan 100% 14.8 15.1 16.6 11.1 10.4 30.1 21.5 Rio Tinto total mine production 24.5 25.7 27.1 22.5 22.8 49.8 45.3 Refined production ('000 tonnes) Norzink (l) 0% 2.3 - - - - 20.4 - (a) Comalco increased its holding in Queensland Alumina Limited from 30.3% to 38.6%, with effect from September 2001. (b) Comalco has agreed to acquire an additional interest in production from the Boyne Island smelter, which should become effective in the third quarter of 2002. (c) During March 2001, Rio Tinto increased its stake in Coal & Allied from 70.9% to 72.7%. (d) Production data are shown from 29 January 2001, the effective date of Coal & Allied's acquisition of the Australian coal businesses of the Peabody Group. Effective on the same date, Coal & Allied acquired an additional 11.8% interest in the Warkworth mine. On 14 March 2002, Coal & Allied completed the sale of its interests in Narama and Ravensworth. Coal & Allied sold its interest in the Moura coal mine with effect from 24 May 2002. Production data are shown up to the dates of sale. (e) Rio Tinto has a 50% share in Kaltim Prima and, under the terms of its Coal Agreement, the Indonesian Government is entitled to a 13.5% share of Kaltim Prima's production. Rio Tinto's share of production shown is before deduction of the Government share. (f) Kennecott Energy has a partnership interest in the Colowyo mine, but, as it is responsible under a management agreement for the operation of the mine, all of Colowyo's output is included in Rio Tinto's share of production. (g) Through its interest in Freeport-McMoRan-Copper & Gold (FCX), Rio Tinto had, as of 30 June 2002, a 15.0% share in the Grasberg mine and a 16.5% share in Atlantic Copper. Through a joint venture agreement with FCX, Rio Tinto is entitled, as shown separately in the above tables, to 40% of additional material mined as a consequence of the expansion of the Grasberg facilities in 1998. (h) In January 2002, Rio Tinto agreed to sell its interest in the Neves Corvo mine subject to certain conditions. (i) In July 2001, Rio Tinto increased its holding in Palabora from 48.6% to 49.2%. (j) Rio Tinto's interest in the Argyle Diamond mine increased from 99.8% to 100% on 29 April 2002, following the purchase of the outstanding units in the Western Australian Diamond Trust. (k) During the first half of 2001, Rio Tinto acquired 20.3% of the Labrador Iron Ore Royalty Income Fund. The Fund has a shareholding in Iron Ore Company of Canada but this has not been included in the calculation of tonnage attributable to Rio Tinto. (l) Rio Tinto completed the sale of its interest in Norzink on 17 April 2001. Where Rio Tinto's beneficial interest in an operation has changed, as indicated above, the share of production has been calculated using the weighted average interest over the relevant periods. OPERATIONAL DATA 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 ALUMINIUM Anglesey Aluminium Total production at Anglesey Aluminium (Rio Tinto 51%) in the UK. (100% basis) Aluminium hot metal production ('000 tonnes) 35.7 34.0 34.2 35.7 33.7 71.0 69.4 Comalco Total production at Comalco operations; Weipa (Rio Tinto 100%) in Australia; Boke (Rio Tinto 4%) in Guinea; Eurallumina (Rio Tinto 56.2%) in Italy; Queensland Alumina (Rio Tinto 38.6% (a)) in Australia; Bell Bay (Rio Tinto 100%) in Australia; Boyne Island (Rio Tinto 54.2%) in Australia and Tiwai Point (Rio Tinto 79.4%) in New Zealand. (100% basis) Weipa mine, Queensland Beneficiated bauxite production ('000 tonnes) 2,820 2,680 2,913 2,759 2,738 5,733 5,496 Metal grade bauxite shipments ('000 tonnes) 2,658 2,678 2,831 2,730 2,783 5,499 5,513 Calcined bauxite production ('000 tonnes) 41 49 23 49 41 74 90 Boke mine Bauxite production ('000 tonnes) 2,983 3,046 2,790 2,857 2,953 6,151 5,810 Eurallumina SpA, Sardinia Alumina production ('000 tonnes) 254 226 269 251 248 498 499 Queensland Alumina Limited, Queensland Alumina production ('000 tonnes) 894 930 953 911 906 1,741 1,817 Bell Bay, Tasmania Primary aluminium production ('000 tonnes) 39.8 41.3 40.4 40.3 39.9 79.1 80.2 Boyne Island, Queensland (b) Primary aluminium production ('000 tonnes) 125.2 129.7 131.5 125.1 130.2 247.7 255.3 Tiwai Point Primary aluminium production ('000 tonnes) 81.4 78.7 81.2 82.4 82.5 162.4 164.9 Sales of aluminium attributable to Comalco ('000 tonnes) 183.5 185.8 165.4 177.4 178.9 338.6 356.3 (a) Comalco increased its shareholding in Queensland Alumina Limited from 30.3% to 38.6% with effect from September 2001. (b) Comalco has agreed to acquire an additional interest in production from the Boyne Island smelter, this should become effective in the third quarter of 2002. Weipa production in the first half of 2002 was decreased in response to reduced market demand. Queensland Alumina production in the first half of 2002 improved compared with the first half of 2001 due to reduced maintenance being required in 2002. Boyne Island production in the second quarter of 2002 was favourably affected by improved current efficiency when compared with the first quarter of 2002 and the second quarter of 2001; a power outage at the Boyne Island smelter had caused reduced production in the first quarter of 2002. Production at the Tiwai Point and Bell Bay smelters in the second quarter of 2002 was in line with production in previous quarters. Tiwai Point, however, remained power constrained. Aluminium sales in the first half of 2002 improved compared with the first half of 2001 with additional sales into the US market together with higher sales of value added products. BORATES Rio Tinto Borax Total production at the Boron mine (Rio Tinto 100%) in California, US and at the Tincalayu, Sijes, Porvenir and Maggie mines (Rio Tinto 100%) in Argentina. (100% basis) Borates ('000 tonnes) (a) 139 142 134 130 130 287 260 (a) Production is expressed as B2O3 content. Lower borate production in the second quarter of 2002 compared with the equivalent period of 2001 reflected inventory management. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 COAL Coal & Allied Industries Limited (a) Total production and sales from the Bengalla mine (Rio Tinto 29%); Hunter Valley Operations (Rio Tinto 73%); the Mount Thorley Operations (Rio Tinto 58%); the Narama mine (Rio Tinto 0%); the Ravensworth East mine (Rio Tinto 0%) and the Warkworth mine (Rio Tinto 40%), all in New South Wales, and the Moura mine (sold on 24 May 2002) in Queensland, Australia. (100% basis) Bengalla mine (b) Thermal coal production ('000 tonnes) 1,423 1,073 1,454 944 1,696 2,367 2,640 Hunter Valley Operations Thermal coal production ('000 tonnes) 1,418 2,632 2,659 1,951 2,518 2,918 4,469 Semi-soft coking coal production ('000 tonnes) 970 945 871 1,055 907 2,218 1,962 Mount Thorley Operations Thermal coal production ('000 tonnes) 588 643 648 623 584 1,085 1,207 Semi-soft coking coal production ('000 tonnes) 540 694 540 562 508 937 1,070 Moura mine (b)(c) Thermal coal production ('000 tonnes) 825 521 459 670 348 1,195 1,018 Semi-soft coking coal production ('000 tonnes) 722 472 438 577 377 1,365 954 Coking coal production ('000 tonnes) 3 234 179 230 197 25 427 Narama mine (b)(c) Thermal coal production ('000 tonnes) 769 564 445 370 - 1,168 370 Ravensworth East mine (b)(c) Thermal coal production ('000 tonnes) 491 386 457 387 - 668 387 Warkworth mine (b) Thermal coal production ('000 tonnes) 1,571 1,446 1,145 1,602 1,411 2,550 3,013 Semi-soft coking coal production ('000 tonnes) 187 51 140 178 186 359 364 Total Coal & Allied Total coal production ('000 tonnes) 9,507 9,661 9,435 9,149 8,732 16,855 17,881 Total sales ('000 tonnes) (d) 9,507 9,009 9,503 8,786 8,425 17,201 17,211 (a) During March 2001, Rio Tinto increased its stake in Coal & Allied from70.88% to 72.71%. (b) Coal & Allied purchased the Australian coal businesses (see note (c)) of the Peabody Group effective 29 January 2001. Effective on the same date Coal & Allied acquired an additional 11.8% interest in the Warkworth mine. (c) The sale of Coal & Allied's share of Narama and Ravensworth was completed on 14 March 2002. Coal & Allied sold its interest in the Moura coal mine with effect from 24 May 2002. (d) Sales relate only to coal mined by the operations and exclude traded coal. Coal production for the second quarter of 2002 was down from the previous quarter and the second quarter of 2001 due to the sale of the Ravensworth East, Narama and Moura mines. Production at the remaining mines was 13% higher in the second quarter of 2002 when compared with the first. Production will be reduced by one million tonnes at Hunter Valley Operations in the second half of 2002 to bring production into line with expected market demand. First half 2001 figures for Moura, Warkworth, Ravensworth East, Narama and Bengalla mines are taken from the date of acquisition and reflect five months of ownership. Kaltim Prima Coal Total production and shipments from Kaltim Prima Coal (Rio Tinto 50%) in Indonesia, including the share of production attributed to the Indonesian Government (see footnote (e) on page 6). (100% basis) Thermal Coal: Production ('000 tonnes) 3,737 4,526 4,110 3,877 4,256 6,975 8,133 Shipments ('000 tonnes) 3,622 4,205 4,505 3,859 3,546 6,931 7,405 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 Kennecott Energy and Coal Company Total production from the mines operated by Kennecott Energy and Coal Company in the US: Antelope (Rio Tinto 100%) in Wyoming; Cordero Rojo (Rio Tinto 100%) in Wyoming; Jacobs Ranch (Rio Tinto 100%) in Wyoming; Spring Creek (Rio Tinto 100%) in Montana; Decker (Rio Tinto 50%) in Montana and Colowyo in Colorado, where Kennecott Energy has a partnership interest and full management responsibility (see footnote (f) on page 6). (100% basis) Antelope mine Thermal coal production ('000 tonnes) 5,355 5,525 6,038 5,335 6,075 10,781 11,410 Colowyo mine Thermal coal production ('000 tonnes) 1,334 1,350 1,271 1,177 1,309 2,610 2,486 Cordero Rojo mine Thermal coal production ('000 tonnes) 9,621 9,676 10,453 9,100 8,990 19,323 18,090 Decker mine Thermal coal production ('000 tonnes) 1,949 1,985 2,266 2,143 2,092 4,259 4,235 Jacobs Ranch mine Thermal coal production ('000 tonnes) 7,138 5,404 7,067 6,869 6,593 14,141 13,462 Spring Creek mine Thermal coal production ('000 tonnes) 2,362 2,185 2,375 2,300 2,007 4,207 4,307 Total Kennecott Energy Total coal production ('000 tonnes) 27,759 26,125 29,470 26,924 27,066 55,321 53,990 Production for the second quarter of 2002, which was 2% lower than for the same period of 2001, was in line with demand. Prices for coal remained soft due to the effect on demand of an unusually mild winter and spring, coupled with the US economic slowdown. Utility coal stockpile volumes remained high. Pacific Coal Total production and sales from the Blair Athol Coal mine (Rio Tinto 71.2%), the Kestrel Coal mine (Rio Tinto 80%) and the Tarong Coal mine (Rio Tinto 100%) all in Queensland, Australia. (100% basis) Blair Athol Coal mine Thermal coal: Production ('000 tonnes) 2,887 2,808 1,865 2,990 2,591 5,919 5,581 Sales ('000 tonnes) 3,151 2,419 1,814 3,549 2,429 6,077 5,978 Kestrel Coal mine Thermal coal: Production ('000 tonnes) 312 435 231 323 403 536 726 Sales ('000 tonnes) 105 104 225 100 169 317 269 Coking coal: Production ('000 tonnes) 585 715 359 631 626 994 1,257 Sales ('000 tonnes) 535 483 312 298 456 849 754 Semi-hard coking coal: (a) Sales ('000 tonnes) 238 378 457 196 485 400 681 Tarong Coal mine Thermal coal: Production ('000 tonnes) 1,396 1,253 1,333 1,314 1,422 2,689 2,736 Sales ('000 tonnes) 1,300 1,236 1,474 1,242 1,273 2,610 2,515 Total Pacific Coal Total coal production ('000 tonnes) 5,181 5,211 3,788 5,258 5,042 10,138 10,300 (a) Semi-hard coking coal is a mixture of thermal coal and coking coal. The product mix is customer dependent. Production at Blair Athol in the first half of 2002 was lower than in the first half of 2001 mainly as a consequence of reducing the high, stock levels prevailing at the end of 2001. Kestrel production in the first half of 2002 compared favourably with production in the first half of 2001, with longwall equipment reliability issues resolved and improved mining conditions. Tarong sales were lower in the first half of 2002, compared with the first half of 2001, due to a unit shutdown at the Tarong power station in the first quarter of 2002. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 COPPER & GOLD Alumbrera Total production and sales at the Bajo de la Alumbrera mine (Rio Tinto 25%) in Argentina. (100% basis) Ore treated ('000 tonnes) 7,483 7,515 7,142 7,145 7,676 14,524 14,821 Average ore grades: Copper (%) 0.74 0.71 0.74 0.76 0.75 0.72 0.75 Gold (g/t) 0.98 0.97 1.05 1.11 1.02 0.89 1.06 Concentrates produced ('000 tonnes) 177.3 174.5 178.3 183.4 187.4 337.7 370.8 Copper in concentrates: Production ('000 tonnes) 49.6 48.1 49.2 51.0 51.2 94.2 102.2 Sales ('000 tonnes) 57.0 39.3 53.6 50.9 49.0 94.9 99.9 Production of gold in concentrates ('000 ounces) 166 166 178 188 183 293 370 Production of gold in dore ('000 ounces) 9 9 10 15 15 16 30 Total gold sales ('000 ounces) 193 146 200 202 191 311 394 Escondida Total production at the Escondida mine (Rio Tinto 30%) in Chile. (100% basis) Sulphide ore treated ('000 tonnes) 10,650 11,204 10,060 10,452 11,312 21,778 21,764 Average copper grade (%) 1.82 1.75 1.72 1.53 1.74 1.88 1.64 Mill production (metals in concentrates): Contained copper ('000 tonnes) 160.6 161.0 144.4 134.9 170.9 337.7 305.8 Contained gold ('000 ounces) 24 25 28 27 41 48 68 Contained silver ('000 ounces) 887 757 705 698 813 1,736 1,511 Oxide ore treated ('000 tonnes) 2,494 3,162 3,225 3,054 3,240 5,854 6,294 Average copper grade (%) 1.03 1.15 1.01 0.91 1.02 1.07 0.96 Contained copper in leachate/mined material ('000 tonnes) 26 36 33 28 33 62 61 Refined production: Oxide plant production ('000 tonnes) 38.3 38.1 38.1 36.8 37.5 74.8 74.3 Escondida mill production (metals in concentrates) for the second quarter of 2002 reflected fiscal year-end inventory clean-out and better than anticipated mill performance. This is a short term aberration in copper output and does not interfere with the commitment of Escondida to reduce copper production by 160,000 tonnes over a fourteen month period ending in December 2002. As a result, copper production for 2002 will be slightly less than that achieved in 2001, in spite of the scheduled start-up of the Phase IV expansion in September 2002. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 Freeport-McMoRan Copper & Gold Total production and sales at the Grasberg mine (Rio Tinto 15.0% (a)) in Papua, Indonesia, and the Atlantic Copper smelter (Rio Tinto 16.5%) in Spain. (100% basis) Grasberg mine Ore treated ('000 tonnes) 21,842 22,500 21,780 21,979 21,806 42,507 43,785 Average mill head grades: Copper (%) 1.04 0.96 0.89 0.90 1.14 1.08 1.02 Gold (g/t) 1.57 1.36 1.03 0.73 0.98 1.62 0.85 Silver (g/t) 3.33 3.03 2.99 2.76 3.63 3.39 3.19 Production of metals in concentrates: Copper in concentrates ('000 tonnes) 193.9 183.3 167.8 167.9 215.1 398.3 383.0 Gold in concentrates ('000 ounces) 1,013 915 693 432 599 1,988 1,031 Silver in concentrates ('000 ounces) 1,478 1,313 1,184 1,120 1,532 3,048 2,652 Sales of payable metals in concentrates: (b) Copper in concentrates ('000 tonnes) 203.1 181.8 166.6 161.7 194.2 377.1 355.9 Gold in concentrates ('000 ounces) 1,062 904 700 420 516 1,895 936 Silver in concentrates ('000 ounces) 1,238 1,030 934 863 1,090 2,316 1,953 (a) See note (g) on page 6 for details of Rio Tinto's 15.0% interest in Grasberg and 40% interest in the expansion. (b) Net of smelter deductions. In the second quarter of 2002, average mill head grades for copper and gold improved compared with the first quarter of 2002, resulting in higher production and sales. Production and sales of gold in the second quarter of 2002 declined significantly, compared with the corresponding period of 2001, because of lower ore grades. Atlantic Copper smelter Concentrate smelted ('000 tonnes) 195.3 240.1 250.2 258.3 242.5 400.8 500.8 Copper anodes produced ('000 tonnes) (c) 60.9 77.0 76.8 77.2 69.0 126.2 146.2 Copper cathodes produced ('000 tonnes) 47.2 63.0 64.3 61.8 63.6 108.0 125.4 Copper cathode sales ('000 tonnes) (d) 58.6 62.6 66.7 61.6 63.7 120.1 125.3 (c) New metal excluding recycled material. (d) Refers to copper cathode and wire rod sales. Higher production and sales levels in the second quarter of 2002, compared with the equivalent 2001 period, reflected the impact on production and sales in the second quarter of 2001 of a scheduled 27-day major maintenance shutdown. Kelian Equatorial Mining Total production and sales from the Kelian gold mine (Rio Tinto 90%) in East Kalimantan, Indonesia. (100% basis) Ore treated ('000 tonnes) 1,610 1,789 1,893 1,716 1,857 3,320 3,573 Average ore grades: Gold (g/t) 2.49 2.95 2.71 2.62 2.71 2.55 2.66 Silver (g/t) 6.03 5.80 5.42 4.92 5.09 5.98 5.01 Production: Gold ('000 ounces) 96 130 123 114 128 201 242 Silver ('000 ounces) 80 87 85 88 89 166 177 Sales: Gold ('000 ounces) 99 121 134 109 125 211 234 Silver ('000 ounces) 68 - - - 256 190 256 Mill throughput and gold production in the second quarter of 2002 were higher than in the previous quarter as cracking in the ball mill shell stabilised resulting in less downtime. Silver sales recommenced in the second quarter of 2002 following resolution of the tax issue. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 Kennecott Minerals Company Total production at the mines of Kennecott Minerals Company in the US; Cortez/Pipeline (Rio Tinto 40%) in Nevada; Greens Creek (Rio Tinto 70%) in Alaska and Rawhide (Rio Tinto 51%) in Nevada. (100% basis) Cortez/Pipeline mine Ore treated Milled ('000 tonnes) 842 784 829 825 837 1,586 1,662 Leached ('000 tonnes) 4,896 4,675 3,797 3,804 2,339 7,082 6,143 Sold for roasting ('000 tonnes) 99 113 101 102 96 176 198 Average ore grade: Gold Milled (g/t) 8.21 8.41 9.23 8.29 8.19 8.78 8.24 Leached (g/t) 1.20 1.01 1.00 1.10 0.99 1.21 1.06 Sold for roasting (g/t) 12.15 6.84 7.84 8.50 8.77 14.02 8.63 Gold produced ('000 ounces) 304 294 295 278 296 599 574 Ore treatment rates and grades varied according to areas being mined and ore type. Production was principally from Phase IV of the Pipeline pit during the second quarter. The first phase of the new 1.6 million square metre leach pad was completed, with ore placed in June 2002. Leach solution will be processed through the new carbon plant during the third quarter. Greens Creek mine Ore treated ('000 tonnes) 139 154 157 160 167 286 327 Average ore grades: Gold (g/t) 6.74 6.31 6.36 6.51 7.57 6.99 7.05 Silver (g/t) 735 684 673 722 688 819 705 Zinc (%) 12.4 12.0 11.7 12.5 13.3 12.4 12.9 Lead (%) 4.7 4.7 4.6 4.7 5.3 4.9 5.0 Metals produced in concentrates: Gold ('000 ounces) 21 22 22 24 29 44 53 Silver ('000 ounces) 2,555 2,582 2,575 2,789 2,887 5,807 5,676 Zinc ('000 tonnes) 13.8 15.1 14.9 16.2 17.6 28.0 33.8 Lead ('000 tonnes) 4.8 5.2 5.2 5.3 6.6 9.9 11.9 Mill throughput continued to increase through optimization efforts. The change to paste backfill and longhole stoping, commissioned during the second quarter, provided increased productivity at reduced production costs. Metal grades varied with the mining sequence and ore zone sourcing. Longhole stope mining in the West Ore Zone provided higher zinc grades to the ore mix. Rawhide mine Ore treated ('000 tonnes) 1,510 1,418 1,433 1,407 1,313 2,872 2,720 Average ore grades: Gold (g/t) 0.99 0.99 0.86 1.03 1.11 0.99 1.07 Silver (g/t) 14.8 19.0 15.9 14.2 14.8 15.3 14.5 Metals produced in dore: Gold ('000 ounces) 27 25 24 23 22 52 45 Silver ('000 ounces) 201 177 175 193 212 378 405 Ore processing rates varied due to ore extraction constraints in the final benches of the mine, changing ore hardness and maintenance requirements. Silver grade fluctuated with the area mined. Lower gold and silver production reflected delays in recovery from the leach pads due to higher stacking and lower pad permeability. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 Kennecott Utah Copper Total production at Kennecott's Barneys Canyon mine (Rio Tinto 100%) and Bingham Canyon mine, smelter and refinery (Rio Tinto 100%) both in Utah, US. Barneys Canyon Mine Ore treated ('000 tonnes) 549 639 432 102 - 929 102 Average ore grade: Gold (g/t) 3.52 3.71 3.15 1.17 - 3.16 1.17 Gold produced in dore and concentrates ('000 ounces) 30 32 41 27 22 67 49 Gold production in the second quarter of 2002 was lower than in the first quarter of 2002 and the second quarter of 2001 principally due to timing of flows from the heap leach pads. Mining operations ceased in December 2001. Crushing operations have ceased as inventory has been liquidated. Bingham Canyon Mine Ore treated ('000 tonnes) 12,792 11,163 10,203 9,999 9,840 27,200 19,839 Average ore grade: Copper (%) 0.82 0.74 0.73 0.69 0.70 0.72 0.69 Gold (g/t) 0.61 0.58 0.55 0.57 0.41 0.53 0.49 Silver (g/t) 4.07 3.91 3.99 3.93 3.50 3.46 3.72 Molybdenum (%) 0.048 0.037 0.035 0.039 0.034 0.049 0.036 Copper concen- trates produced ('000 tonnes) 312 261 239 219 251 608 470 Average concentrate grade (% Cu) 29.6 28.0 28.0 28.5 25.5 28.3 26.9 Production of metals in copper concentrates: Copper ('000 tonnes) (a) 92.4 73.1 67.2 62.5 64.3 172.4 126.8 Gold ('000 ounces) 179 142 120 125 95 330 220 Silver ('000 ounces) 1,328 1,076 1,042 1,032 924 2,357 1,956 Molybdenum concentrates produced ('000 tonnes) 3.8 2.8 2.8 3.0 2.5 8.9 5.5 Molybdenum in concentrates ('000 tonnes) 2.2 1.5 1.6 1.7 1.3 5.0 3.0 Kennecott smelter & refinery Copper concentrates smelted ('000 tonnes) 236 256 271 258 279 448 537 Copper anodes produced ('000 tonnes) (b) 65.1 42.1 76.0 76.7 74.6 126.1 151.3 Production of refined metal: Copper ('000 tonnes) 56.3 43.7 67.3 74.9 76.1 123.3 151.0 Gold ('000 ounces) (c) 87 88 112 127 133 189 260 Silver ('000 ounces) (c) 834 626 765 790 1,104 1,491 1,894 (a) Includes a small amount of copper in precipitates. (b) New metal excluding recycled material. (c) Includes gold and silver in intermediate products. Second quarter 2002 mine production of all products was lower than in the second quarter of 2001, mainly due to lower ore grade and the June 2001 closure of the North Concentrator, which had an annual capacity of about 60,000 tonnes per annum of copper in concentrate. Mine production was further affected by the processing of hard ore. Compared with the first quarter of 2002, gold, silver and molybdenum output was lower due to lower grades; copper production was slightly higher due to favourable ore grade. First half 2002 mine production of all products was less than in the first half of 2001 principally due to the June 2001 closure of the North Concentrator. Smelter and refinery performance improved in the second quarter of 2002 compared with the previous quarters largely due to higher plant availability. Lihir Gold Total production at the Lihir gold mine (Rio Tinto 16.3%) in Papua New Guinea. (100% basis) Ore treated ('000 tonnes) 864 966 827 905 968 1,826 1,873 Average ore grade: gold (g/t) 6.59 6.00 5.43 5.50 5.64 6.62 5.57 Gold produced ('000 ounces)(a) 160 178 123 148 154 347 301 (a) Gold production represents quantity of gold poured. Production for the second quarter of 2002 was higher than in the first quarter of 2002 due to higher plant availability and higher head grade. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 Northparkes Joint Venture Total production and sales at the Northparkes mine (Rio Tinto 80%) in New South Wales, Australia. (100% basis) Sulphide ore treated ('000 tonnes) 1,295 1,371 1,444 1,397 1,399 2,610 2,796 Average ore grade: Copper (%) 1.17 1.18 1.11 1.00 0.91 1.18 0.95 Gold (g/t) 0.39 0.28 0.32 0.34 0.34 0.34 0.34 Copper concentrates produced ('000 tonnes) 35.2 37.3 36.2 30.2 29.9 70.7 60.1 Contained copper in concentrates: Saleable production ('000 tonnes) 13.4 14.3 13.8 11.9 10.5 27.1 22.4 Sales ('000 tonnes)(a) 14.5 10.4 10.5 10.4 8.9 23.8 19.3 Contained gold in concentrates: Saleable production ('000 ounces) 12.7 8.7 10.8 11.3 10.1 22.0 21.4 Sales ('000 ounces) (a) 12.0 6.1 8.2 10.4 7.7 17.4 18.1 (a) Rio Tinto's 80% share of material from the Joint Venture. Ore production from the Lift 1 E26 underground block cave continued to decline as the cave nears mining completion. Additional drawpoints were closed during the quarter, as assessed grades fell below economic shut off limits. High clay content continued to provide production challenges. Mill feed was again supplemented from lower copper grade open cut stockpiles. Palabora Total production at the Palabora mine, smelter and refinery (Rio Tinto 49.2%(a)) in South Africa. (100% basis) Palabora mine Ore treated ('000 tonnes) 2,745 4,056 3,555 2,558 2,005 6,912 4,563 Average ore grade: copper (%) 0.59 0.70 0.72 0.77 0.66 0.60 0.72 Copper concentrates produced ('000 tonnes) 42.6 72.8 66.3 55.8 35.9 94.5 91.8 Average concentrate grade: copper (%) 31.0 35.0 34.3 31.4 31.2 31.9 31.3 Copper in concentrates ('000 tonnes) 13.2 25.5 22.8 17.5 11.2 30.2 28.8 Palabora smelter/refinery New concentrate smelted on site ('000 tonnes) 77.3 86.9 70.7 65.7 64.5 152.8 130.2 New copper anodes produced ('000 tonnes)(b) 19.7 22.9 16.7 17.8 23.1 45.5 40.9 Refined new copper produced ('000 tonnes) 18.9 20.1 22.2 16.2 22.0 44.5 38.2 By-products: Magnetite concentrate ('000 tonnes) 43 55 59 51 49 87 101 Uranium oxide (tonnes) 10 8 - - - 23 - Baddeleyite (several grades) ('000 tonnes) 1.3 1.0 - - - 2.9 - Refined nickel sulphate (tonnes) 59 38 74 73 88 133 161 Vermiculite Plant Vermiculite produced ('000 tonnes) 34.9 47.2 42.1 44.0 57.1 70.9 101.1 (a) Rio Tinto increased its holding in Palabora from 48.6% to 49.2% in July 2001. (b) Contained copper in anodes; anode production includes a small amount produced from purchased material. New copper in concentrate was low as a result of reduced ore supply following the closure of the open pit and limited availability of underground ore. The declining head grades, low recovery and throughput due to hard ores processed contributed to the low concentrate production. The smelter feed had to be supplemented by low and variable grade ex-stockpile concentrate and by cold matte. Anode copper production was therefore constrained by low matte supply from the reverberatory furnace to the converters. Delays experienced during an acid plant shut down also affected copper production. Cathode production was in line with anode supply from the smelter. The stable refinery operation boosted nickel and precious metal production. Vermiculite production was higher than in the equivalent quarter of 2001, which was hampered by wet in pit conditions and by low availability of plant and heavy equipment. Uranium and baddeleyite production ceased with the closure of the heavy minerals plant in August 2001. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 Peak Gold Mine Total production and sales from the Peak Gold mine (Rio Tinto 100%) in New South Wales, Australia. Ore treated ('000 tonnes) 149 144 153 157 151 297 307 Average ore grades: Gold (g/t) 6.60 6.82 5.57 5.81 4.74 5.58 5.29 Silver (g/t) 4.36 24.63 5.94 3.16 3.16 4.83 3.16 Copper (%) 0.50 0.38 0.47 0.44 0.28 0.44 0.36 Lead (%) 0.76 1.01 0.50 0.29 0.21 0.86 0.25 Zinc (%) 1.18 2.08 0.77 0.42 0.19 1.46 0.31 Bullion produced ('000 ounces) 32 41 25 27 23 54 50 Containing: Gold ('000 ounces) 26 25 23 25 18 45 43 Silver ('000 ounces) 6 14 1 2 3 9 5 Gold recovered in concentrates ('000 ounces) 3 3 2 2 2 4 4 Total gold production ('000 ounces) 29 28 25 27 20 49 47 Bullion sales (fine gold) ('000 ounces) 22 25 23 27 18 44 45 Copper in concentrate ('000 tonnes): Production 0.4 0.1 0.2 0.2 0.1 0.5 0.3 Sales - - 1.1 - - - - Lead/zinc in concentrate ('000 tonnes): Production 1.6 1.1 0.2 - - 3.3 - Sales 1.8 0.6 1.4 0.9 - 4.1 0.9 Increased mill feed from the lower grade New Cobar open cut put, pending a ramp up in production levels from the newly developed New Occidental underground deposit, reduced ore grades and associated metal production. Rio Tinto Brasil Limitada Total production at the Morro do Ouro gold mine (Rio Tinto 51%) in Minas Gerais, Brazil. (100% basis) Morro do Ouro Mine Ore treated ('000 tonnes) 3,868 4,115 4,567 4,692 4,722 7,806 9,414 Average ore grade: gold (g/t) 0.47 0.43 0.42 0.48 0.49 0.47 0.49 Refined gold produced ('000 ounces) 46 46 47 55 59 94 114 Production increased from 2001 levels due to increased plant availability and improved head grades. Rio Tinto Zimbabwe Total production at Rio Tinto Zimbabwe's gold operations (Rio Tinto 56%) in Zimbabwe. (100% basis) Cam Dump reprocessing Ore treated ('000 tonnes) 261 - - - - 499 - Average ore grade: gold (g/t) 1.49 - - - - 1.39 - Total gold produced ('000 ounces) 2 - - - - 5 - Patchway mine (a) Ore treated ('000 tonnes) 24 25 24 23 21 48 44 Average ore grade: gold (g/t) 4.35 4.88 4.62 4.41 3.47 4.22 3.96 Total gold produced ('000 ounces) 3 4 3 3 2 6 5 Renco mine Ore treated ('000 tonnes) 63 67 69 61 65 127 126 Average ore grade: gold (g/t) 7.02 6.84 5.95 5.03 4.68 7.24 4.85 Total gold produced ('000 ounces) 12 13 11 8 9 26 17 Total Rio Tinto Zimbabwe Total gold produced ('000 ounces) 17 17 14 11 11 36 21 (a) Includes low grade material. Production ceased at Cam Dump in June 2001. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 Somincor Total production at the Neves Corvo mine (Rio Tinto 49% (a)) in Portugal. (100% basis) Neves Corvo mine Total ore treated ('000 tonnes)(b) 551 406 484 453 475 1,131 928 Of which, treated to extract tin ('000 tonnes) 59 49 25 8 7 116 14 Average ore grades: Copper (%) 4.61 4.95 5.07 4.85 5.26 4.65 5.06 Tin (%) 1.65 1.80 1.21 4.52 2.09 1.56 3.38 Copper production: Copper concentrates produced ('000 tonnes) 89.7 72.1 88.1 74.6 90.8 184.2 165.4 Copper concentrate grade: copper (%) 24.1 23.9 24.2 24.8 24.3 24.1 24.5 Copper in concentrates produced ('000 tonnes) 21.6 17.2 21.3 18.5 22.1 44.4 40.5 Tin production: Tin concentrates produced ('000 tonnes) 0.8 0.7 0.2 0.4 0.1 1.2 0.5 Tin concentrate grade: tin (%) 55.9 58.7 61.0 62.2 60.5 55.9 61.8 Tin in concentrates produced ('000 tonnes) 0.4 0.4 0.1 0.3 0.1 0.7 0.3 (a) In January 2002, Rio Tinto agreed to sell its interest in the Neves Corvo mine subject to certain conditions. (b) Total ore treated for both copper and tin production. DIAMONDS Argyle Diamonds Total production from mining operations at Argyle Diamonds (Rio Tinto 100%) (a) in Western Australia. (100% basis) Ore processed ('000 tonnes): AK1 ore 2,423 2,669 2,524 2,501 2,519 5,120 5,020 Alluvial ore 1,204 999 980 882 780 2,211 1,662 Total ore processed 3,627 3,668 3,504 3,383 3,299 7,331 6,683 Diamonds recovered ('000 carats): AK1 4,759 7,808 7,739 5,878 8,241 9,677 14,119 Alluvial 263 239 206 277 174 427 451 Total recovered 5,022 8,048 7,945 6,155 8,415 10,104 14,570 (a) Rio Tinto's interest in the Argyle Diamond mine increased from 99.8% to 100% on 29 April 2002, following the purchase of the outstanding units in the Western Australian Diamond Trust. Ore processed by the AK1 plant was in line with previous quarters. Carats recovered from AK1 reflected a return to higher grade ore in accordance with pit development schedules. 2002 alluvial ore processed reflected a lower proportion of mined material suitable for in-pit screening. Merlin Rio Tinto share of production from the Merlin mine (Rio Tinto 100%) in the Northern Territory, Australia. Ore processed ('000 tonnes) 61 141 135 191 195 155 385 Diamonds Recovered ('000 carats) 7 13 20 34 22 22 57 Ore processed reflected the benefits of improved availability and favourable ore type. Carats recovered were lower than in the previous quarter, reflecting processing of lower grade ore in accordance with planned mining sequences. IRON ORE 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 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 14,352 15,748 15,149 14,653 14,078 27,931 28,731 Channar 2,716 2,704 3,215 2,528 2,409 5,169 4,938 Total production 17,068 18,452 18,364 17,181 16,487 33,100 33,669 Total shipments ('000 tonnes) 16,504 16,710 16,831 13,179 16,984 31,816 30,163 A new first half production record was set in 2002, exceeding the previous record by 1.7%, despite second quarter production levels being 3.4% lower year on year. The increase in production was required to meet customer preference for fines product. Second quarter 2002 shipments exceeded the record set last year by 2.9%, due to strong demand in most Asian markets. Iron Ore Company of Canada Total production and shipments from the Carol Lake operations (Rio Tinto 56.1%) in Newfoundland & Labrador and Quebec in Canada. (100% basis) Carol Lake operations Saleable production: Concentrates ('000 tonnes) 1,019 630 717 589 1,568 1,657 2,157 Pellets ('000 tonnes) 3,306 2,986 2,564 2,647 2,334 6,008 4,981 Shipments: Concentrate ('000 tonnes) 1,098 727 938 704 869 1,750 1,573 Pellets ('000 tonnes) 2,824 2,207 2,704 1,370 3,094 4,811 4,464 Saleable production in the second quarter of 2002 improved compared with the first quarter of 2002, however, it was lower than in the second quarter of 2001, mainly due to equipment availability problems in the mining operation. Action plans are being implemented to address these equipment availability issues. During the second quarter of 2002 pellet production was intentionally reduced to support the requirement for concentrate sales. Pellet sales increased in the second quarter of 2002 due mainly to increased sales to non-US customers and the deferral of pellet sales from the first quarter. 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) 116 206 164 104 201 272 305 (a) Production includes by-product fines. Increased production in the second quarter of 2002 reflected renegotiation of a contract with a major customer. Robe River Iron Associates Total production and shipments from the Pannawonica and West Angelas mines (Rio Tinto 53%) in Western Australia. (100% basis) Pannawonica mine Saleable production ('000 tonnes) 6,970 8,692 8,263 8,206 6,275 13,751 14,481 Shipments ('000 tonnes) 7,136 9,087 7,582 8,334 7,179 14,444 15,513 West Angelas mine Saleable production ('000 tonnes) - - - 129 680 - 809 Shipments ('000 tonnes) - - - - 131 - 131 Production in the first half of 2002 was 5% higher than in the first half of 2001 due to the strong first quarter 2002 result, but 15% down compared with the second half of 2001 due largely to a maintenance shutdown in April 2002. Shipments in the first half of 2002 increased by 7% compared with the first half of 2001 due to stronger global demand, but were down 7% compared with the second half of 2001, due to softer Asian demand for Robe products in the second quarter of 2002. Operational production at West Angelas commenced in the second quarter of 2002. Sales to date from West Angelas comprised trial shipments to Japanese customers. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 NICKEL Rio Tinto Brasil Limitada Total nickel in matte production at the Fortaleza mine (Rio Tinto 100%) in Brazil Fortaleza mine Production (tonnes) 2,487 2,989 1,984 2,063 1,290 5,197 3,353 Production in the first half of 2002 was below the 2001 average due to low ore availability from underground resulting from poor ground conditions. Rio Tinto Zimbabwe Total refined metal production at the Empress Nickel refinery (Rio Tinto 56%) in Zimbabwe. (100% basis) Empress Nickel refinery Production (tonnes) 1,651 1,770 1,591 1,683 1,489 3,274 3,172 SALT Dampier Salt Total production of salt from Dampier, Lake MacLeod and Port Hedland (a)(Rio Tinto 64.9%) in Western Australia. (100% basis) Salt production ('000 tonnes) 1,571 1,550 2,035 1,699 1,671 2,956 3,370 (a) Production from the Port Hedland operation (Dampier Salt 100%) is included with effect from 17 August 2001. TALC The Luzenac Group Total talc production from Luzenac Group operations in Australia (Rio Tinto 100%), Europe (Rio Tinto 99.9%), and North America (Rio Tinto 100%). (100% basis) Talc production ('000 tonnes) 319 312 316 323 347 641 669 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) 371 359 341 328 318 727 646 Titanium dioxide feedstock production in the second quarter of 2002 was below that of the second quarter of 2001 as production was curtailed in line with market demand. 2Q 3Q 4Q 1Q 2Q 1H 1H 2001 2001 2001 2002 2002 2001 2002 URANIUM Energy Resources of Australia Ltd Total production at the Ranger mine (Rio Tinto 68.4%) in the Northern Territory, Australia. (100% basis) Ranger mine Production (tonnes U3O8) 947 789 1,155 951 977 2,267 1,928 Rossing Uranium Ltd Total uranium production at the Rossing Uranium mine (Rio Tinto 68.58%) in Namibia. (100% basis) Production (tonnes U3O8) 449 793 674 743 675 1,173 1,418 ZINC Norzink AS Total refined zinc production at the Norzink smelter (Rio Tinto 0% (a)) in Norway. (100% basis) Production ('000 tonnes) 5 - - - - 41 - (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%) in Sweden. Ore treated ('000 tonnes) 203 195 208 197 188 404 385 Average ore grades: Zinc (%) 8.0 8.5 8.7 6.2 6.1 8.1 6.2 Lead (%) 3.9 3.5 3.7 2.8 3.0 3.6 2.9 Silver (g/t) 87 83 91 71 69 81 70 Production of zinc concentrate ('000 tonnes) 26.6 27.8 30.2 20.0 18.9 54.6 38.9 Production of lead concentrate ('000 tonnes) 9.6 8.6 8.9 7.2 7.2 17.5 14.4 Production of metal in concentrates: Zinc ('000 tonnes) 14.8 15.1 16.6 11.1 10.4 30.1 21.5 Lead ('000 tonnes) 6.9 5.8 6.1 4.7 4.9 12.6 9.5 Silver ('000 ounces) 396 326 427 324 302 743 626 Lower metal grades adversely affected production during the first half of 2002. EXPLORATION Expenditure Total pre-tax exploration expenditure charged to the profit and loss account for the first half of 2002 was US$58 million compared with US$54 million for the first half of 2001. Ongoing Programmes Country Commodity Programme Summary Peru Copper Drilling at the Marcona project has identified a significant iron oxide copper deposit. The deposit is located near the Shougang Hierro Peru iron ore mine approximately 400km south of Lima. USA Copper Drilling at the Resolution deep porphyry copper project in Arizona continued to obtain long intercepts of high grade mineralisation just to the south of the historical Magma mine. Drilling will continue in the third quarter. Iran Gold Exploration drilling recommenced at the Dashkasan porphyry gold prospect. Turkey Gold Exploration recommenced at the Copler porphyry gold prospect. Botswana Diamonds Airborne geophysical surveying continued over diamond tenements in the south of Botswana. Guinea Diamonds Exploration drilling commenced at the Aredor project to test a range of kimberlite targets. India Diamonds Exploration continued on granted reconnaissance permits in Andhra Pradesh and Karnataka. Guinea Iron Ore Drilling continued at Simandou haematite project. The current drilling programme has confirmed potential for a high grade primary resource containing more than 1,000 million tonnes @ 65% Fe. Indonesia Nickel Drilling recommenced at the La Sampala nickel laterite project. Mozambique Titanium Substantial heavy mineral deposits have been discovered in Southern Mozambique, with results to date suggesting resources of 120 million tonnes of ilmenite. The deposits are mineable using low cost conventional dredging methods and are accessible by national and regional roads. Delineation drilling is underway. This information is provided by RNS The company news service from the London Stock Exchange

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