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