Rio Tinto 2QOR 2007
Rio Tinto PLC
18 July 2007
Second quarter 2007 operations review
• On 12 July 2007 Rio Tinto made a recommended all cash offer for Alcan of
$101 per common share, valuing Alcan at $38.1 billion.
• The Group's share of iron ore production was a record for the quarter,
increasing by 11 per cent compared with the second quarter of 2006, and
by 15 per cent compared with the previous quarter, as the brownfield mine
expansions continued to add to capacity.
• Mined copper production fell by ten per cent compared with the same quarter
of 2006 in line with lower grades at Kennecott Utah Copper.
• Refined copper production increased by 20 per cent compared with the second
quarter of 2006 due to higher production at the Escondida leach plant.
• Higher gold grades at Grasberg contributed to a 36 per cent increase in Rio
Tinto's share of mined gold production compared with the second quarter of
2006.
• Approval was given in July for the $1.8 billion expansion of the Yarwun
Alumina Refinery. The expansion will more than double annual production,
increasing output by two million tonnes to 3.4 million tonnes by 2011.
• A recovery in market conditions led to a six per cent increase in hard
coking coal production compared with the corresponding quarter of 2006,
despite infrastructure challenges in Queensland.
• Production of thermal and semi-soft Australian coal decreased by 27 per cent
compared with the second quarter of 2006 following heavy rainfall in June.
This compounded the infrastructure challenges of congested port and railway
infrastructure experienced throughout the quarter.
• Uranium production increased by 46 per cent compared with the second quarter
of 2006, with the Ranger operation able to process higher grade ore mined
prior to the heavy rainfalls experienced in the first quarter of 2007. This
more than offset a reduction in Rossing production from lower grades.
• Diamond production at Diavik set a new quarterly record.
All currency figures in this report are US dollars unless otherwise stated
IRON ORE AND IRON
Rio Tinto share of production (000 tonnes)
Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06
Hamersley 28,030 +22% +17% 51,941 +20%
Robe River 6,932 -3% +7% 13,392 +2%
IOC (pellets and concentrate) 1,730 -34% +22% 3,144 -30%
Record production and shipments were achieved by the Australian operations in
both the half year and the quarter ending 30 June 2007. In light of continued
strong demand for iron ore, Rio Tinto announced its intention to undertake
studies into a further expansion of annual production capacity to 320 million
tonnes.
The new blended product, Pilbara Blend, was successfully introduced at the end
of June, replacing an existing product range. Pilbara Blend tonnage will
represent approximately 15 per cent of traded world seaborne iron ore and will
provide both customer and internal logistics benefits.
Increases in contractor and other mining costs in the Pilbara continued to
squeeze margins.
Hamersley and Robe River
Hamersley Iron production was a record quarter as the Yandicoogina and other
brownfield expansions continued to deliver additional tonnage.
Increased production rates were achieved during the second quarter, despite
scheduled shutdowns associated with the integration of major capacity upgrades
throughout the operations. All recently completed major upgrades at Tom Price,
Paraburdoo and Dampier Port performed well.
The next round of capacity expansions are progressing on schedule and within
budget. The first ore from the Yandicoogina Junction South East orebody was
mined in May, four months ahead of schedule. Production rates at the
Yandicoogina mine are due to reach 52 million tonnes per annum by the end of
September making it the largest of Rio Tinto's 11 Pilbara mines. The second
stage Dampier port upgrade at Parker Point, expansion of the Cape Lambert port
and Hope Downs mine construction remain on schedule.
HIsmelt
The HIsmelt plant underwent a major refurbishment during the second quarter,
which included a vessel reline. As a result, there was no production during the
quarter. During the refurbishment, a number of ancillary equipment issues, that
had previously been identified as limiting production rates, were addressed. The
plant has since resumed operation.
Iron Ore Company of Canada
Production of concentrates and pellets at the Iron Ore Company of Canada
recovered from the strike which commenced on 9 March and continued into the
second quarter, ending on 25 April.
ENERGY
US thermal coal
Rio Tinto share of production (000 tonnes)
Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06
Rio Tinto Energy America 30,318 -4% 0% 60,675 -1%
Production during the second quarter of 2007 was consistent with the previous
quarter but four per cent below the same quarter of 2006 with unusually wet
spring weather slowing rail shipments and coal production.
Australian coal
Rio Tinto share of production (000 tonnes)
Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06
Rio Tinto Coal Australia
Hard coking coal 1,633 +6% +14% 3,071 +15%
Other coal 5,898 -27% -16% 12,939 -18%
Production of hard coking coal benefited from an improvement in the coking coal
market but was restricted due to infrastructure problems in Queensland.
The New South Wales operations were impacted by heavy rains in June which
resulted in the declaration of force majeure by Rio Tinto subsidiary Coal &
Allied. Reduced port throughput from infrastructure limitations led to continued
delays in shipping and a resultant decrease in production as the effects were
felt along the Hunter Valley coal chain.
Uranium
Rio Tinto share of production (000 lbs)
Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06
Energy Resources of Australia 2,236 +170% +48% 3,743 +29%
Rossing 971 -29% -25% 2,263 -14%
Processing of high grade ore mined and stockpiled at the Ranger mine prior to
the heavy rainfall during the first quarter of 2007 led to a recovery in
production levels in the second quarter of 2007. Production in the second
quarter of 2007 was 170 per cent higher than the corresponding quarter of 2006
when heavy rainfalls from a cyclone prevented access to high grade ore.
Second quarter production at Rossing was impacted by low grades as a result of
waste stripping in the Trolley 10 pushback. Trolley 10 is expected to be the
next main source of ore, with stripping expected to be completed during the
early part of the third quarter.
DIAMONDS AND MINERALS
Diamonds
Rio Tinto share of production (000 carats)
Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06
Argyle 4,414 -41% +27% 7,884 -38%
Diavik 1,975 +21% +27% 3,526 +30%
Diamond production at Argyle remained constrained due to continued low feed
grade associated with current mining locations. Ongoing variability in
production levels can be expected as the mine reaches the end of the open-pit
life, and transitions to an underground operation.
Record production at Diavik was achieved during the quarter with strong
throughput and continued higher grades contributing to the 21 per cent increase
compared with the second quarter of 2006.
Minerals
Rio Tinto share of production (000 tonnes)
Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06
Borates 145 +2% +12% 274 +1%
Titanium dioxide feedstocks 367 +4% +4% 718 +3%
Second quarter borates production was 12 per cent higher than the first quarter
in line with a seasonal increase in customer demand.
Increased production of titanium dioxide feedstocks reflected the current market
strength, particularly in the chloride sector, with sustained European demand
offsetting weakness in the US.
ALUMINIUM
Rio Tinto share of production (000 tonnes)
Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06
Rio Tinto Aluminium
Bauxite 4,233 +11% 0% 8,462 +10%
Alumina 685 -20% +4% 1,346 -18%
Aluminium 216.5 +5% +2% 428.2 +3%
Second quarter bauxite production was 11 per cent above the second quarter of
2006 reflecting severe weather conditions that occurred in the prior year and
the commissioning of the second shiploader.
Alumina production at Yarwun in the second quarter was the second highest on
record following maintenance shutdowns during the first quarter of the year. Rio
Tinto's overall share of alumina production in the second quarter of 2007 was 20
per cent lower than the same quarter of 2006 following the sale of its interest
in the Eurallumina refinery in October 2006.
Production at the aluminium smelters was five per cent above the corresponding
quarter of 2006. Tiwai Point production was ten per cent higher than the second
quarter of 2006 when low rainfall in the hydropower catchment area resulted in
cells being taken out of circuit.
COPPER
Rio Tinto share of production (000 tonnes)
Q2 07 vs Q2 06 vs Q1 07 H1 07 vs H1 06
Kennecott Utah Copper
Mined copper (000 tonnes) 55.6 -19% +3% 109.7 -16%
Refined copper (000 tonnes) 67.9 0% -3% 137.6 -1%
Molybdenum (000 tonnes) 3.8 +8% -19% 8.5 +7%
Mined gold (000 ozs) 121 -19% +12% 228 -19%
Refined gold (000 ozs) 147 +4% +27% 262 +1%
Escondida
Mined copper (000 tonnes) 105.2 -1% -6% 216.7 +2%
Refined copper (000 tonnes) 19.7 +222% -1% 39.6 +180%
Grasberg JV
Mined copper (000 tonnes) 5.6 -45% -3% 11.4 -48%
Mined gold (000 ozs) 97 +410% +30% 171 +508%
Kennecott Utah Copper
Lower grades of copper and gold at Bingham Canyon, which were in line with the
company's expectations, resulted in mined copper production declining by 19 per
cent compared with the second quarter of 2006.
Molybdenum production increased by eight per cent compared with the
corresponding quarter of 2006 as a result of higher recoveries.
The smelter continued to operate at targeted levels with refined production of
copper and gold consistent with the same quarter of 2006.
Escondida
Second quarter mined copper production was just below the corresponding quarter
of 2006, reflecting lower grades and higher recoveries. Refined copper
production increased by 222 per cent compared with the second quarter of 2006
with sulphide leach production having ramped up in the latter half of 2006.
Grasberg
Changes in the metal sharing rate for 2007 were a major factor in lowering Rio
Tinto's share of copper production and increasing its share of gold production
in the second quarter of 2007, compared with the same quarter of 2006. Higher
gold grades also contributed to this positive variance.
Other copper operations
Lower copper production at Northparkes was in line with an expected decline in
grades in the E26 block cave as this resource nears the end of life ahead of
bringing E48 into production.
Daily production from the Palabora underground mine averaged in excess of 33,500
tonnes.
EXPLORATION AND EVALUATION
Pre-tax expenditure on exploration and evaluation charged to the profit and loss
account in the first half of 2007 was $194 million compared with $113 million in
same period of 2006. $32 million of this expenditure was charged against
business unit earnings. Higher evaluation expenditure at Simandou, Resolution
and La Granja accounted for much of the increase.
A summary of activity for the period is as follows:
Product Group Advanced projects Greenfield programmes
Aluminium Curua, Brazil: Government-sponsored Brazil, Australia
environmental management plans expected
to take two to three years.
Copper Sulawesi nickel, Indonesia: Contract of Russia (RioNor JV), Kazakhstan, US,
Work negotiations continued Mexico, Chile, Peru, Argentina
Lakeview nickel-copper, US: resource
estimation work underway
Diamonds & Minerals Bunder diamonds, India India, Canada, Russia, Mauritania and Mali
Xai Xai and Inhambane ilmenite, (diamonds); Australia, Canada, US and
Mozambique Turkey (industrial minerals)
Jarandol and Jadar borates,Serbia
Namekara vermiculite, Uganda:order of
magnitude studies underway
Energy Chapudi thermal coal, South Africa: order Colombia, Canada, US, South Africa and
of magnitude study completed Mongolia
Whitehorse thermal coal and Sweetwater
uranium, US: order of magnitude studies
underway
Iron Ore Pilbara, Australia: delineation drilling Brazil and Guinea; title applications in
underway at several advanced prospects several new countries
Mine-lease exploration continued at a number of Rio Tinto businesses including
Kennecott Utah Copper, Northparkes, Greens Creek, Energy Resources of Australia,
Rossing, Argyle, Diavik and Pilbara Iron.
Pre-feasibility or feasibility work progressed on a number of projects including
Resolution (copper/gold, US), La Granja (copper, Peru), Eagle (nickel/copper,
US), Potasio Rio Colorado (potash, Argentina), Kintyre (uranium, Australia),
Simandou (iron ore, Guinea) and several Pilbara iron ore deposits. Rio Tinto
continues to monitor work by Northern Dynasty Minerals at the Pebble
copper-gold-molybdenum deposit in Alaska.
The Oyu Tolgoi copper-gold project moved a step closer to finalisation with the
Mongolian Government's announcement that it had completed the draft Investment
Agreement on 26 June 2007. The Agreement will now be submitted to the Mongolian
National Parliament. This is expected to be the final step in the Government's
approval process. Approval will also be needed from the boards of Rio Tinto and
Ivanhoe Mines, the Canadian joint venture partner. The Agreement provides for
the Mongolian Government to own a 34 per cent stake in the project.
For further information, please contact:
LONDON AUSTRALIA
Media Relations Media Relations
Christina Mills Ian Head
Office: +44 (0) 20 8080 1306 Office: +61 (0) 3 9283 3620
Mobile: +44 (0) 7825 275 605 Mobile: +61 (0) 408 360 101
Nick Cobban Amanda Buckley
Office: +44 (0) 20 8080 1305 Office: +61 (0) 3 9283 3627
Mobile: +44 (0) 7920 041 003 Mobile: +61 (0) 419 801 349
Investor Relations Investor Relations
Nigel Jones Dave Skinner
Office: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628
Mobile: +44 (0) 7917 227 365 Mobile: +61 (0) 408 335 309
David Ovington Susie Creswell
Office: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639
Mobile: +44 (0) 7920 010 978 Mobile: +61 (0) 418 933 792
Website: www.riotinto.com
High resolution photographs available at: www.newscast.co.uk
RIO TINTO PRODUCTION SUMMARY
RIO TINTO SHARE OF PRODUCTION
QUARTER HALF YEAR % CHANGE
2006 2007 2007 2006 2007 Q2 07 Q2 07 H1 07
Q2 Q1 Q2 H1 H1 vs vs vs
Principal Commodities Q2 06 Q1 07 H1 06
Alumina ('000 t) 854 661 685 1,632 1,346 -20% 4% -18%
Aluminium ('000 t) 206.6 211.7 216.5 413.7 428.2 5% 2% 3%
Borates ('000 t) 142 129 145 271 274 2% 12% 1%
Coal - hard coking coal ('000 t) 1,535 1,438 1,633 2,661 3,071 6% 14% 15%
Coal - other Australian ('000 t) 8,093 7,041 5,898 15,711 12,939 -27% -16% -18%
Coal - US ('000 t) 31,680 30,357 30,318 61,161 60,675 -4% 0% -1%
Copper - mined ('000 t) 207.4 198.1 186.4 410.8 384.5 -10% -6% -6%
Copper - refined ('000 t) 83.9 101.6 100.7 169.5 202.3 20% -1% 19%
Diamonds ('000 cts) 9,206 5,033 6,413 15,530 11,446 -30% 27% -26%
Gold - mined ('000 ozs) 240 278 327 461 606 36% 18% 32%
Gold - refined ('000 ozs) 141 115 147 259 262 4% 27% 1%
Iron ore ('000 t) 33,315 32,245 37,117 61,984 69,361 11% 15% 12%
Titanium dioxide feedstock ('000 t) 353 351 367 697 718 4% 4% 3%
Uranium ('000 lbs) 2,201 2,799 3,207 5,525 6,006 46% 15% 9%
Other Metals & Minerals
Bauxite ('000 t) 3,815 4,229 4,233 7,658 8,462 11% 0% 10%
Lead ('000 t) 2.2 2.9 2.8 5.2 5.7 25% -6% 9%
Molybdenum ('000 t) 3.5 4.7 3.8 7.9 8.5 8% -19% 7%
Pig Iron ('000 t) 17 13 0 19 13 -100% -100% -32%
Salt ('000 t) 1,441 1,116 958 2,650 2,075 -33% -14% -22%
Silver - mined ('000 ozs) 3,270 3,272 3,480 6,450 6,753 6% 6% 5%
Silver - refined ('000 ozs) 1,008 870 1,014 2,406 1,884 1% 16% -22%
Talc ('000 t) 346 352 326 727 679 -6% -7% -7%
Zinc ('000 t) 7.1 8.8 7.5 15.6 16.3 5% -15% 4%
Throughout this report, figures in italics indicate adjustments made since the
figure was previously quoted on the equivalent page.
Production figures are sometimes more precise than the rounded numbers shown,
hence small differences may result between the total of the quarter figures and
the half year figures.
RIO TINTO SHARE OF PRODUCTION
Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H
interest 2006 2006 2006 2007 2007 2006 2007
ALUMINA
Production ('000 tonnes)
Eurallumina (a) 0% 152 158 52 - - 304 -
Queensland Alumina 39% 381 361 384 365 362 750 727
Yarwun (b) 100% 322 302 360 296 323 578 619
Rio Tinto total alumina production 854 821 795 661 685 1,632 1,346
ALUMINIUM
Refined production ('000 tonnes)
Anglesey 51% 18.1 18.7 18.1 17.5 18.9 36.6 36.4
Bell Bay 100% 43.7 45.1 45.5 43.6 45.0 86.9 88.6
Boyne Island 59% 80.9 82.7 81.0 81.7 82.3 161.3 164.1
Tiwai Point 79% 63.9 68.8 71.2 68.9 70.2 128.9 139.1
Rio Tinto total aluminium production 206.6 215.2 215.8 211.7 216.5 413.7 428.2
BAUXITE
Production ('000 tonnes)
Weipa 100% 3,815 4,036 4,444 4,229 4,233 7,658 8,462
BORATES
Production ('000 tonnes B2O3 content)
Rio Tinto Minerals - borates 100% 142 137 145 129 145 271 274
COAL - HARD COKING
Rio Tinto Coal Australia ('000 tonnes)
Hail Creek Coal 82% 797 1,119 1,193 1,124 1,032 1,414 2,156
Kestrel Coal 80% 739 613 324 314 601 1,247 915
Rio Tinto total hard coking coal production 1,535 1,732 1,516 1,438 1,633 2,661 3,071
COAL - OTHER *
Rio Tinto Coal Australia ('000 tonnes)
Bengalla 30% 426 490 434 398 324 755 722
Blair Athol Coal 71% 1,778 1,840 1,911 1,667 1,580 3,509 3,248
Hunter Valley Operations 76% 2,639 2,161 2,180 2,004 1,818 4,763 3,822
Kestrel Coal 80% 232 213 121 151 271 357 423
Mount Thorley Operations 61% 549 452 595 497 409 1,312 906
Tarong Coal 100% 1,685 1,713 1,778 1,736 1,021 3,488 2,757
Warkworth 42% 784 796 764 586 475 1,528 1,062
Total Australian other coal 8,093 7,665 7,782 7,041 5,898 15,711 12,939
Rio Tinto Energy America ('000 tonnes)
Antelope 100% 7,849 7,760 7,640 7,691 7,682 15,349 15,374
Colowyo (c) 1,497 1,431 1,358 1,224 1,342 2,965 2,566
Cordero Rojo 100% 9,121 8,775 9,524 9,060 9,034 17,796 18,094
Decker 50% 807 775 866 744 784 1,583 1,528
Jacobs Ranch 100% 8,879 9,220 9,646 8,537 8,478 17,392 17,015
Spring Creek 100% 3,527 3,341 3,764 3,100 2,999 6,076 6,099
Total US coal 31,680 31,302 32,797 30,357 30,318 61,161 60,675
Rio Tinto total other coal production 39,773 38,967 40,580 37,398 36,216 76,872 73,615
COPPER
Mine production ('000 tonnes)
Bingham Canyon 100% 68.7 68.9 66.4 54.1 55.6 130.3 109.7
Escondida 30% 105.9 81.1 99.8 111.5 105.2 213.1 216.7
Grasberg - Joint Venture (d) 40% 10.2 8.3 15.8 5.8 5.6 22.1 11.4
Northparkes 80% 16.5 16.8 17.8 13.7 9.8 32.1 23.5
Palabora (e) 58% 6.1 7.8 10.0 13.0 10.2 13.3 23.2
Rio Tinto total mine production 207.4 182.8 209.8 198.1 186.4 410.8 384.5
Refined production ('000 tonnes)
Escondida 30% 6.1 9.1 17.1 19.9 19.7 14.1 39.6
Kennecott Utah Copper 100% 67.7 55.1 24.2 69.7 67.9 138.5 137.6
Palabora (e) 58% 10.2 11.4 12.7 12.0 13.2 16.8 25.2
Rio Tinto total refined production 83.9 75.6 54.0 101.6 100.7 169.5 202.3
DIAMONDS
Production ('000 carats)
Argyle 100% 7,509 8,330 8,026 3,470 4,414 12,722 7,884
Diavik 60% 1,632 1,697 1,495 1,551 1,975 2,705 3,526
Murowa 78% 66 44 39 12 24 103 36
Rio Tinto total diamond production 9,206 10,071 9,561 5,033 6,413 15,530 11,446
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.
* Coal - other includes thermal coal and semi-soft coking coal.
See footnotes on page 11.
RIO TINTO SHARE OF PRODUCTION (continued)
Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H
interest 2006 2006 2006 2007 2007 2006 2007
GOLD
Mine production ('000 ounces)
Barneys Canyon 100% 3 5 3 2 3 7 5
Bingham Canyon 100% 146 131 118 106 117 274 223
Cortez/Pipeline 40% 27 55 61 45 61 62 107
Escondida 30% 15 11 14 14 14 27 28
Grasberg - Joint Venture (d) 40% 19 8 59 74 97 28 171
Greens Creek 70% 9 11 13 11 11 20 22
Northparkes 80% 16 23 21 20 18 32 38
Rawhide 51% 3 3 3 3 3 7 6
Others - 2 3 3 3 3 4 5
Rio Tinto total mine production 240 249 294 278 327 461 606
Refined production ('000 ounces)
Kennecott Utah Copper 100% 141 137 67 115 147 259 262
IRON ORE & IRON
Production ('000 tonnes)
Channar 60% 1,486 1,591 1,591 1,585 1,743 2,697 3,328
Corumba 100% 455 538 549 460 424 895 885
Eastern Range (f) 2,021 2,326 2,112 2,166 1,670 3,777 3,836
Hamersley 100% 19,536 21,304 20,964 20,161 24,617 36,940 44,777
Iron Ore Company of Canada 59% 2,640 2,412 2,519 1,413 1,730 4,511 3,144
Robe River 53% 7,178 7,570 7,321 6,460 6,932 13,163 13,392
Rio Tinto total mine production 33,315 35,740 35,057 32,245 37,117 61,984 69,361
Pig iron production ('000 tonnes)
HIsmelt(R) 60% 17 15 19 13 0 19 13
LEAD
Mine production ('000 tonnes)
Greens Creek 70% 2.2 3.2 3.4 2.9 2.8 5.2 5.7
MOLYBDENUM
Mine production ('000 tonnes)
Bingham Canyon 100% 3.5 4.7 4.2 4.7 3.8 7.9 8.5
SALT
Production ('000 tonnes)
Rio Tinto Minerals - salt 65% 1,441 1,447 1,307 1,116 958 2,650 2,075
SILVER
Mine production ('000 ounces)
Bingham Canyon 100% 1,217 1,033 928 856 981 2,252 1,838
Escondida 30% 565 439 533 563 592 1,021 1,155
Grasberg - Joint Venture (d) 40% 30 87 534 0 114 49 114
Greens Creek 70% 1,231 1,794 1,754 1,666 1,627 2,682 3,293
Others - 228 190 226 187 166 445 353
Rio Tinto total mine production 3,270 3,543 3,975 3,272 3,480 6,450 6,753
Refined production ('000 ounces)
Kennecott Utah Copper 100% 1,008 1,148 598 870 1,014 2,406 1,884
TALC
Production ('000 tonnes)
Rio Tinto Minerals - talc 100% 346 340 325 352 326 727 679
TITANIUM DIOXIDE FEEDSTOCK
Production ('000 tonnes)
Rio Tinto Iron & Titanium 100% 353 338 380 351 367 697 718
URANIUM (g)
Production ('000 lbs U3O8)
Energy Resources of Australia 68% 829 1,654 2,541 1,507 2,236 2,897 3,743
Rossing 69% 1,372 1,308 1,534 1,292 971 2,627 2,263
Rio Tinto total uranium production 2,201 2,962 4,075 2,799 3,207 5,525 6,006
ZINC
Mine production ('000 tonnes)
Greens Creek 70% 7.1 7.6 10.2 8.8 7.5 15.6 16.3
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 11.
RIO TINTO SHARE OF PRODUCTION (continued)
Production data notes
(a) Rio Tinto sold its 56.2% share in Eurallumina with an effective date of
31 October 2006 and production data are shown up to that date.
(b) Yarwun was previously known as Comalco Alumina Refinery.
(c) In view of Rio Tinto Energy America's responsibilities under a
management agreement for the operation of the Colowyo mine, all of Colowyo's
output is included in Rio Tinto's share of production.
(d) Through a joint venture agreement with Freeport-McMoRan Copper & Gold
(FCX), Rio Tinto is entitled to 40% of additional material mined as a
consequence of expansions and developments of the Grasberg facilities since
1998. Rio Tinto's share of production reflects actual production for the first
half of 2007.
(e) Rio Tinto's shareholding in Palabora varied during 2006 due to the
progressive conversion of debentures into ordinary shares.
(f) Rio Tinto's share of production includes 100% of the production from
the Eastern Range mine. Under the terms of the joint venture agreement,
Hamersley Iron manages the operation and is obliged to purchase all mine
production from the joint venture.
(g) With effect from the second quarter of 2007 Rio Tinto is reporting
uranium production as '000 lbs U3O8 rather than tonnes.
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. Rio Tinto percentage interest shown above is
at 30 June 2007.
RIO TINTO OPERATIONAL DATA
Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H
interest 2006 2006 2006 2007 2007 2006 2007
ALUMINIUM
Rio Tinto Aluminium
Weipa mine 100.0%
Queensland, Australia
Beneficiated bauxite production ('000 tonnes) 3,815 4,036 4,444 4,229 4,233 7,658 8,462
Metal grade bauxite shipments ('000 tonnes) 3,596 4,023 4,451 4,263 4,157 7,384 8,421
Calcined bauxite production ('000 tonnes) 40 49 43 43 45 87 88
Eurallumina refinery (a) 0.0%
Sardinia, Italy
Alumina production ('000 tonnes) 270 281 92 - - 541 -
Queensland Alumina refinery 38.6%
Queensland, Australia
Alumina production ('000 tonnes) 986 936 993 945 938 1,942 1,882
Yarwun alumina refinery (b) 100.0%
Queensland, Australia
Alumina production ('000 tonnes) 322 302 360 296 323 578 619
Anglesey Aluminium smelter 51.0%
United Kingdom
Primary aluminium production ('000 tonnes) 35.5 36.6 35.4 35.2 36.8 71.7 72.0
Bell Bay smelter 100.0%
Tasmania, Australia
Primary aluminium production ('000 tonnes) 43.7 45.1 45.5 43.6 45.0 86.9 88.6
Boyne Island smelter 59.4%
Queensland, Australia
Primary aluminium production ('000 tonnes) 135.9 138.0 136.5 136.1 137.8 270.6 273.9
Tiwai Point smelter 79.4%
New Zealand
Primary aluminium production ('000 tonnes) 79.9 86.5 89.3 86.7 88.2 161.5 174.8
Rio Tinto Aluminium share
Share of primary aluminium sales ('000 tonnes) 208.0 208.5 233.3 195.5 225.8 408.2 421.3
(a) Rio Tinto sold its 56.2% share in Eurallumina with an effective date of
31 October 2006 and production data are shown up to that date.
(b) Yarwun alumina refinery was previously known as Comalco Alumina Refinery.
BORATES
Rio Tinto Minerals - borates 100.0%
California, US and Argentina
Borates ('000 tonnes) (a) 142 137 145 129 145 271 274
(a) Production is expressed as B2O3 content.
Rio Tinto percentage interest shown above is at 30 June 2007. The data represent full production and sales on a 100%
basis unless otherwise stated.
RIO TINTO OPERATIONAL DATA
Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H
interest 2006 2006 2006 2007 2007 2006 2007
COAL
Rio Tinto Coal Australia
Bengalla mine 30.3%
New South Wales, Australia
Thermal coal production ('000 tonnes) 1,406 1,618 1,433 1,315 1,070 2,494 2,385
Blair Athol Coal mine 71.2%
Queensland, Australia
Thermal coal production ('000 tonnes) 2,496 2,583 2,682 2,341 2,218 4,925 4,559
Hail Creek Coal mine 82.0%
Queensland, Australia
Hard coking coal production ('000 tonnes) 971 1,365 1,455 1,371 1,259 1,724 2,629
Hunter Valley Operations 75.7%
New South Wales, Australia
Thermal coal production ('000 tonnes) 3,136 2,435 2,264 2,316 2,020 5,522 4,336
Semi-soft coking coal production ('000 tonnes) 350 419 616 331 381 769 713
Kestrel Coal mine 80.0%
Queensland, Australia
Thermal coal production ('000 tonnes) 290 266 151 189 339 446 528
Hard coking coal production ('000 tonnes) 923 766 404 392 751 1,559 1,143
Mount Thorley Operations 60.6%
New South Wales, Australia
Thermal coal production ('000 tonnes) 582 494 857 657 538 1,551 1,195
Semi-soft coking coal production ('000 tonnes) 325 253 125 163 137 615 300
Tarong Coal mine 100.0%
Queensland, Australia
Thermal coal production ('000 tonnes) 1,685 1,713 1,778 1,736 1,021 3,488 2,757
Warkworth mine 42.1%
New South Wales, Australia
Thermal coal production ('000 tonnes) 1,766 1,803 1,686 1,343 914 3,525 2,257
Semi-soft coking coal production ('000 tonnes) 96 90 130 51 216 107 267
Total hard coking coal production ('000 tonnes) 1,895 2,131 1,859 1,763 2,010 3,283 3,773
Total hard coking coal sales ('000 tonnes) 1,471 1,779 1,962 1,776 1,605 2,691 3,381
Total other coal production ('000 tonnes) (a) 12,133 11,673 11,722 10,443 8,854 23,442 19,297
Total other coal sales ('000 tonnes) (b) (c) 11,882 11,845 11,173 11,127 9,762 23,742 20,889
Total coal production ('000 tonnes) 14,027 13,804 13,581 12,206 10,864 26,725 23,070
Total coal sales ('000 tonnes) 13,353 13,624 13,135 12,903 11,368 26,433 24,271
Rio Tinto Coal Australia share
Share of hard coking coal sales ('000 tonnes) 1,196 1,450 1,603 1,447 1,306 2,189 2,753
Share of other coal sales ('000 tonnes) (b) (c) 8,022 7,743 7,525 7,523 6,453 16,008 13,976
(a) Other coal production includes thermal coal and semi-soft coking coal.
(b) Other coal sales includes thermal coal, semi-soft coking coal and
semi-hard coking coal (a mixture of thermal coal and coking coal).
(c) Sales relate only to coal mined by the operations and exclude traded
coal.
Rio Tinto Energy America
Antelope mine 100.0%
Wyoming, US
Thermal coal production ('000 tonnes) 7,849 7,760 7,640 7,691 7,682 15,349 15,374
Colowyo mine (a)
Colorado, US
Thermal coal production ('000 tonnes) 1,497 1,431 1,358 1,224 1,342 2,965 2,566
Cordero Rojo mine 100.0%
Wyoming, US
Thermal coal production ('000 tonnes) 9,121 8,775 9,524 9,060 9,034 17,796 18,094
Decker mine 50.0%
Montana, US
Thermal coal production ('000 tonnes) 1,614 1,551 1,733 1,488 1,568 3,166 3,056
Jacobs Ranch mine 100.0%
Wyoming, US
Thermal coal production ('000 tonnes) 8,879 9,220 9,646 8,537 8,478 17,392 17,015
Spring Creek mine 100.0%
Montana, US
Thermal coal production ('000 tonnes) 3,527 3,341 3,764 3,100 2,999 6,076 6,099
Total coal production ('000 tonnes) 32,487 32,077 33,664 31,101 31,103 62,744 62,204
Total coal sales ('000 tonnes) 32,487 32,077 33,661 31,101 31,103 62,744 62,204
(a) In view of Rio Tinto Energy America's responsibilities under a
management agreement for the operation of the Colowyo mine, all of Colowyo's
output is included in Rio Tinto's share of production.
Rio Tinto percentage interest shown above is at 30 June 2007. The data represent full production and sales on a 100%
basis unless otherwise stated.
RIO TINTO OPERATIONAL DATA
Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H
interest 2006 2006 2006 2007 2007 2006 2007
COPPER & GOLD
Escondida 30.0%
Chile
Sulphide ore to concentrator ('000 tonnes) 21,473 18,258 22,585 23,450 23,064 43,315 46,514
Average copper grade (%) 1.63 1.55 1.55 1.62 1.58 1.63 1.60
Mill production (metals in concentrates):
Contained copper ('000 tonnes) 295.9 234.0 289.4 319.1 305.6 598.7 624.7
Contained gold ('000 ounces) 49 35 46 45 48 89 93
Contained silver ('000 ounces) 1,882 1,464 1,777 1,877 1,973 3,405 3,850
Ore to leach ('000 tonnes) (a) 15,536 14,712 9,659 15,509 8,435 31,693 23,944
Average copper grade (%) 0.37 0.25 0.45 0.34 0.53 0.35 0.41
Contained copper in leachate/mined
material ('000 tonnes) 57 36 43 52 45 112 98
Refined production from leach plants:
Copper cathode production ('000 tonnes) 20 30 57 66 66 47 132
Freeport-McMoRan Copper & Gold
Grasberg mine (a) 0.0% (40.0% of the expansion)
Papua, Indonesia
Ore treated ('000 tonnes) 20,353 21,170 22,681 20,563 20,394 39,865 40,957
Average mill head grades:
Copper (%) 0.72 0.85 1.08 1.21 0.77 0.72 0.99
Gold (g/t) 0.67 0.83 0.95 2.01 1.14 0.79 1.58
Silver (g/t) 3.84 3.46 3.87 4.75 2.36 4.02 3.56
Production of metals in concentrates:
Copper in concentrates ('000 tonnes) 121.7 152.9 220.3 225.6 137.1 237.6 362.7
Gold in concentrates ('000 ounces) 336 471 589 1,182 634 821 1,816
Silver in concentrates ('000 ounces) 1,170 1,453 2,083 2,273 869 2,073 3,141
Sales of payable metals in concentrates: (b)
Copper in concentrates ('000 tonnes) 108.8 155.5 211.3 194.2 150.1 222.8 344.4
Gold in concentrates ('000 ounces) 294 487 564 1,010 723 780 1,733
Silver in concentrates ('000 ounces) 844 1,167 1,592 1,571 821 1,555 2,392
(a) Through a joint venture agreement with Freeport-McMoRan Copper & Gold
(FCX), Rio Tinto is entitled to 40% of additional material mined as a
consequence of expansions and developments of the Grasberg facilities since
1998. The first half 2007 results include the first quarter 2007 actuals and
second quarter 2007 forecasts from FCX's most recent five-year plan. FCX is not
releasing its actual 100% operating data for the second quarter 2007 until the
release of its 2007 second-quarter and six-month results on 25 July 2007.
(b) Net of smelter deductions.
Rio Tinto percentage interest shown above is at 30 June 2007. The data represent full production and sales on a 100%
basis unless otherwise stated.
RIO TINTO OPERATIONAL DATA
Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H
interest 2006 2006 2006 2007 2007 2006 2007
COPPER & GOLD (continued)
Kennecott Minerals Company
Cortez/Pipeline mine 40.0%
Nevada, US
Ore treated
Milled ('000 tonnes) 745 956 842 763 697 1,501 1,461
Leached ('000 tonnes) 4,464 7,452 7,312 11,007 5,956 8,276 16,963
Sold for roasting ('000 tonnes) - - - - - 35 -
Average ore grade: gold
Milled (g/t) 2.13 2.89 2.64 2.49 2.80 2.23 2.64
Leached (g/t) 0.37 0.43 0.42 0.52 0.51 0.38 0.51
Sold for roasting (g/t) - - - - - 6.50 -
Gold produced ('000 ounces) 68 136 153 113 154 155 267
Greens Creek mine 70.3%
Alaska, US
Ore treated ('000 tonnes) 157 162 187 166 148 315 314
Average ore grades:
Gold (g/t) 3.97 4.39 4.82 4.44 4.57 4.26 4.50
Silver (g/t) 471 619 540 562 624 502 591
Zinc (%) 8.4 8.9 10.1 9.5 9.1 9.2 9.3
Lead (%) 3.1 4.0 3.6 3.6 3.8 3.6 3.7
Metals produced in concentrates:
Gold ('000 ounces) 13 16 19 16 15 29 31
Silver ('000 ounces) 1,751 2,553 2,497 2,371 2,316 3,817 4,687
Zinc ('000 tonnes) 10.1 10.8 14.5 12.5 10.6 22.3 23.2
Lead ('000 tonnes) 3.1 4.6 4.8 4.2 3.9 7.4 8.1
Rawhide mine (a) 51.0%
Nevada, US
Metals produced in dore:
Gold ('000 ounces) 6 7 6 5 6 13 12
Silver ('000 ounces) 55 64 50 51 54 118 105
(a) Mining operations were completed in October 2002 and processing of
stockpiled ores was completed in May 2003. Residual gold and silver production
continues from the leach pads.
Kennecott Utah Copper
Barneys Canyon mine (a) 100.0%
Utah, US
Gold produced ('000 ounces) 3 5 3 2 3 7 5
(a) Mining operations ceased in the first quarter of 2002. Gold continues to
be recovered from leach pads.
Bingham Canyon mine 100.0%
Utah, US
Ore treated ('000 tonnes) 11,739 12,333 12,083 11,922 12,499 23,440 24,421
Average ore grade:
Copper (%) 0.67 0.62 0.63 0.56 0.53 0.64 0.54
Gold (g/t) 0.56 0.47 0.44 0.43 0.42 0.54 0.43
Silver (g/t) 3.98 3.22 3.09 3.14 3.07 3.85 3.10
Molybdenum (%) 0.055 0.057 0.055 0.056 0.050 0.058 0.053
Copper concentrates produced ('000 tonnes) 263 269 245 202 234 505 437
Average concentrate grade (% Cu) 26.1 25.5 27.1 26.7 23.6 25.7 25.1
Production of metals in copper concentrates:
Copper ('000 tonnes) (b) 68.7 68.9 66.4 54.1 55.6 130.3 109.7
Gold ('000 ounces) 146 131 118 106 117 274 223
Silver ('000 ounces) 1,217 1,033 928 856 981 2,252 1,838
Molybdenum concentrates produced ('000 tonnes): 6.3 8.3 7.4 8.3 6.7 14.5 15.0
Molybdenum in concentrates ('000 tonnes) 3.5 4.7 4.2 4.7 3.8 7.9 8.5
Kennecott smelter & refinery 100.0%
Copper concentrates smelted ('000 tonnes) 272 220 156 272 297 542 569
Copper anodes produced ('000 tonnes) (c) 65.7 50.4 33.3 69.0 73.7 132.1 142.7
Production of refined metal:
Copper ('000 tonnes) 67.7 55.1 24.2 69.7 67.9 138.5 137.6
Gold ('000 ounces) (d) 141 137 67 115 147 259 262
Silver ('000 ounces) (d) 1,008 1,148 598 870 1,014 2,406 1,884
(b) Includes a small amount of copper in precipitates.
(c) New metal excluding recycled material.
(d) Includes gold and silver in intermediate products.
Rio Tinto percentage interest shown above is at 30 June 2007. The data represent full production and sales on a 100%
basis unless otherwise stated.
RIO TINTO OPERATIONAL DATA
Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H
interest 2006 2006 2006 2007 2007 2006 2007
COPPER & GOLD (continued)
Northparkes Joint Venture 80.0%
New South Wales, Australia
Ore treated ('000 tonnes) 1,438 1,427 1,499 1,367 1,363 2,862 2,730
Average ore grades:
Copper (%) 1.53 1.57 1.57 1.38 1.01 1.49 1.20
Gold (g/t) 0.58 0.69 0.71 0.78 0.67 0.57 0.73
Copper concentrates produced ('000 tonnes) 52.5 52.4 54.2 42.2 32.4 100.8 74.6
Contained copper in concentrates:
Saleable production ('000 tonnes) 20.7 21.0 22.2 17.2 12.3 40.1 29.4
Sales ('000 tonnes) (a) 17.1 14.4 15.6 16.3 16.5 31.4 32.9
Contained gold in concentrates:
Saleable production ('000 ounces) 19.9 29.3 26.0 25.6 22.2 39.5 47.8
Sales ('000 ounces) (a) 16.4 16.1 17.0 19.1 15.3 29.7 34.4
(a) Rio Tinto's 80% share of material from the Joint Venture.
Palabora (a) 57.7%
Palabora mine
South Africa
Ore treated ('000 tonnes) 2,633 2,668 2,783 2,886 3,025 5,279 5,910
Average ore grade: copper (%) 0.70 0.72 0.72 0.71 0.70 0.70 0.71
Copper concentrates produced ('000 tonnes) 43.0 53.4 61.0 82.1 56.0 94.5 138.1
Average concentrate grade: copper (%) 30.5 29.4 28.5 27.4 31.5 30.1 29.1
Copper in concentrates ('000 tonnes) 13.1 15.7 17.4 22.5 17.6 28.5 40.2
Palabora smelter/refinery
New concentrate smelted on site ('000 tonnes) 83.3 87.7 75.5 73.6 74.2 125.3 147.8
New copper anodes produced ('000 tonnes) 24.0 22.4 22.2 21.2 22.9 34.0 44.0
Refined new copper produced ('000 tonnes) 21.9 22.9 22.1 20.8 22.9 36.2 43.7
By-products:
Magnetite concentrate ('000 tonnes) 296 299 281 262 321 547 582
Refined nickel sulphate (tonnes) 28 25 32 21 164 63 185
Vermiculite plant
Vermiculite produced ('000 tonnes) 48 52 50 50 50 95 100
(a) Rio Tinto's shareholding in Palabora varied during 2006 due to the
progressive conversion of debentures into ordinary shares.
DIAMONDS
Argyle Diamonds 100.0%
Western Australia
AK1 ore processed ('000 tonnes) 2,131 2,162 2,192 2,168 2,178 4,087 4,346
AK1 diamonds produced ('000 carats) 7,509 8,330 8,026 3,470 4,414 12,722 7,884
Diavik Diamonds 60.0%
Northwest Territories, Canada
Ore processed ('000 tonnes) 608 722 509 520 643 1,100 1,163
Diamonds recovered ('000 carats) 2,720 2,829 2,492 2,585 3,291 4,508 5,876
Murowa Diamonds 77.8%
Zimbabwe
Ore processed ('000 tonnes) 61 44 47 30 46 126 77
Diamonds recovered ('000 carats) 85 57 50 15 31 133 46
Rio Tinto percentage interest shown above is at 30 June 2007. The data represent full production and sales on a 100%
basis unless otherwise stated.
RIO TINTO OPERATIONAL DATA
Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H
interest 2006 2006 2006 2007 2007 2006 2007
IRON ORE & IRON
Hamersley Iron
Western Australia
Saleable iron ore production ('000 tonnes):
Paraburdoo, Mount Tom Price, Marandoo,
Yandicoogina, Brockman and Nammuldi 100.0% 19,536 21,304 20,964 20,161 24,617 36,940 44,777
Channar 60.0% 2,476 2,652 2,652 2,641 2,905 4,494 5,546
Eastern Range (a) 2,021 2,326 2,112 2,166 1,670 3,777 3,836
Total production ('000 tonnes) 24,033 26,282 25,728 24,968 29,192 45,211 54,160
Total sales ('000 tonnes) (b) 23,567 26,680 27,830 23,770 27,317 44,549 51,087
(a) Rio Tinto owns 54% of the Eastern Range mine. Under the terms of the
joint venture agreement, Hamersley Iron manages the operation and is obliged to
purchase all mine production from the joint venture and therefore all of the
production is included in Rio Tinto's share of production.
(b) Sales represent iron ore exported from Western Australian ports.
HIsmelt(R) (a) 60.0%
Western Australia
Pig iron production ('000 tonnes) 28 26 31 21 0 32 21
Iron Ore Company of Canada 58.7%
Newfoundland & Labrador and Quebec in Canada
Saleable iron ore production:
Concentrates ('000 tonnes) 1,291 983 747 82 613 1,632 695
Pellets ('000 tonnes) 3,205 3,124 3,543 2,325 2,334 6,051 4,659
Sales:
Concentrate ('000 tonnes) 555 651 1,392 436 296 871 732
Pellets ('000 tonnes) 3,282 3,198 4,305 1,791 2,727 5,432 4,518
Rio Tinto Brasil
Corumba mine 100.0%
Mato Grosso do Sul, Brazil
Saleable iron ore production ('000 tonnes) (a) 455 538 549 460 424 895 885
Sales ('000 tonnes) 413 462 479 347 245 831 593
(a) Production includes by-product fines.
Robe River Iron Associates
Pannawonica mine 53.0%
Western Australia
Saleable iron ore production ('000 tonnes) 7,273 7,501 8,018 6,168 6,901 13,754 13,069
Sales ('000 tonnes) 7,135 7,685 7,541 5,938 7,230 13,892 13,168
West Angelas mine 53.0%
Western Australia
Saleable iron ore production ('000 tonnes) 6,270 6,781 5,795 6,020 6,178 11,082 12,198
Sales ('000 tonnes) 5,833 6,224 6,513 5,143 6,793 10,578 11,936
Rio Tinto percentage interest shown above is at 30 June 2007. The data represent full production and sales on a 100%
basis unless otherwise stated.
RIO TINTO OPERATIONAL DATA
Rio Tinto 2Q 3Q 4Q 1Q 2Q 1H 1H
interest 2006 2006 2006 2007 2007 2006 2007
SALT
Rio Tinto Minerals - salt 64.9%
Western Australia
Salt production ('000 tonnes) 2,219 2,229 2,013 1,719 1,476 4,081 3,195
TALC
Rio Tinto Minerals - talc 100.0%
Australia, Europe, and North America
Talc production ('000 tonnes) 346 340 325 352 326 727 679
TITANIUM DIOXIDE FEEDSTOCK
Rio Tinto Iron & Titanium 100.0%
Canada and South Africa
(Rio Tinto share)
Titanium dioxide feedstock production ('000 tonnes) 353 338 380 351 367 697 718
URANIUM
Energy Resources of Australia Ltd
Ranger mine 68.4%
Northern Territory, Australia
Production ('000 lbs U3O8) 1,212 2,418 3,715 2,204 3,269 4,237 5,473
Rossing Uranium Ltd 68.6%
Namibia
Production ('000 lbs U3O8) 2,001 1,908 2,237 1,884 1,417 3,831 3,300
Rio Tinto percentage interest shown above is at 30 June 2007. The data represent full production and sales on a 100%
basis unless otherwise stated.
This information is provided by RNS
The company news service from the London Stock Exchange