Rio Tinto 2QPR 2003
Rio Tinto PLC
23 July 2003
Production Report for the Quarter Ended 30 June 2003
• Iron ore production in the second quarter of 2003 was 19 per cent
above the second quarter of 2002 driven by strong demand from key markets.
Shipments from Hamersley were six per cent above the second quarter of 2002 and
port congestion is likely to remain an issue while demand remains strong.
Shipments of West Angelas ore continue to firm reflecting widespread market
acceptance and a growing customer base.
• Rio Tinto's share of aluminium production, including its additional
share of Boyne Island that was purchased in July 2002, was two per cent above
the second quarter of 2002. Production at Tiwai Point continued to be
constrained by higher spot power prices in New Zealand and production from Boyne
Island was affected by anode quality issues. Production of alumina was in line
with the second quarter of 2002.
• Production from the Australian and Indonesian coal operations was
four per cent below the second quarter of 2002. Coal & Allied shut down for an
extended period over Easter to reduce coal inventory levels caused by poor
export market conditions.
• Production of US coal was four per cent above the second quarter of
2002. Production and train availability were affected by unusually heavy
rainfall in the second quarter of 2003.
• Mined copper production was slightly above the second quarter of
2002. Increased production from Escondida following the commissioning of the
new Laguna Seca concentrator offset the effect of the disposal of Rio Tinto's 25
per cent interest in the Alumbrera mine which was completed in March 2003.
• Mined gold production was three per cent above the second quarter of
2002. Higher grades at Grasberg more than offset lower grades at Kennecott Utah
Copper and the sale of Peak and Alumbrera. Molybdenum and silver grades at
Kennecott Utah Copper were also significantly lower.
• Refined copper production was down 36 per cent and refined gold
production was less than half that of the second quarter of 2002. The failure
at the Kennecott Utah Copper acid plant reported in the first quarter led to
anode shortages in the second quarter which significantly affected refinery
production.
• Production of industrial minerals reflected market demand. Titanium
dioxide production continues to be managed in line with market demand with both
QIT and RBM operating below capacity. Borates production was marginally higher
than in the previous quarter.
For further information, please contact:
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Website: www.riotinto.com
RIO TINTO PRODUCTION SUMMARY
RIO TINTO SHARE OF PRODUCTION
QUARTER HALF YEAR % CHANGE
2002 2003 2003 2002 2003 Q2 03 Q2 03 1H 03
Q2 Q1 Q2 1H 1H vs vs vs
Principal Commodities Q1 03 Q2 02 1H 02
Alumina ('000 t) 489 493 495 981 988 0% 1% 1%
Aluminium ('000 t) 193.9 202.7 198.5 385.0 401.2 -2% 2% 4%
Borates ('000 t) 130 139 143 260 282 3% 10% 8%
Coal - Australian and Indonesian ('000 t) 10,852 10,474 10,450 21,873 20,924 0% -4% -4%
Coal - US ('000 t) 26,020 25,424 26,944 51,873 52,368 6% 4% 1%
Copper - mined ('000 t) 228.3 231.1 231.6 428.9 462.7 0% 1% 8%
Copper - refined ('000 t) 108.7 96.0 69.2 212.8 165.2 -28% -36% -22%
Diamonds ('000 cts) 8,433 7,156 6,560 14,610 13,716 -8% -22% -6%
Gold - mined ('000 ozs) 745 765 765 1,431 1,530 0% 3% 7%
Gold - refined ('000 ozs) 133 96 65 260 161 -32% -51% -38%
Iron ore ('000 t) 21,600 23,167 25,623 44,107 48,790 11% 19% 11%
Titanium dioxide feedstock ('000 t) 318 290 319 646 608 10% 0% -6%
Other Metals & Minerals
Bauxite ('000 t) 2,859 2,958 3,236 5,739 6,194 9% 13% 8%
Lead - mined ('000 t) 9.5 10.0 11.5 17.9 21.4 15% 21% 20%
Molybdenum ('000 t) 1.3 1.2 1.1 3.0 2.3 -8% -18% -23%
Nickel in matte (tonnes) 1,290 2,619 523 3,353 3,142 -80% -59% -6%
Nickel - refined (tonnes) 835 604 830 1,778 1,434 37% -1% -19%
Salt ('000 t) 1,085 970 1,124 2,188 2,094 16% 4% -4%
Silver - mined ('000 ozs) 4,318 3,960 4,410 8,511 8,370 11% 2% -2%
Silver - refined ('000 ozs) 1,104 975 644 1,894 1,619 -34% -42% -15%
Talc ('000 t) 346 358 328 669 686 -8% -5% 3%
Tin (tonnes) 36 - 24 159 24 - -32% -85%
Uranium (tonnes) 1,131 873 1,484 2,291 2,357 70% 31% 3%
Zinc - mined ('000 t) 22.8 26.8 29.0 45.3 55.8 8% 27% 23%
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
2Q 3Q 4Q 1Q 2Q 1H 1H
Interest 2002 2002 2002 2003 2003 2002 2003
ALUMINA
Production ('000 tonnes)
Eurallumina 56% 139 145 142 139 136 280 276
Queensland Alumina 39% 350 342 337 354 358 701 712
Rio Tinto total alumina production 489 487 479 493 495 981 988
ALUMINIUM
Refined production ('000 tonnes)
Anglesey 51% 17.2 17.6 18.1 18.3 18.3 35.4 36.6
Bell Bay 100% 39.9 41.6 42.1 40.7 41.8 80.2 82.5
Boyne Island (a) 59% 71.0 77.3 79.4 77.7 75.7 138.0 153.4
Tiwai Point 79% 65.9 65.6 68.8 66.1 62.7 131.5 128.8
Rio Tinto total aluminium production 193.9 202.0 208.4 202.7 198.5 385.0 401.2
BAUXITE
Production ('000 tonnes)
Boke 4% 121 121 118 58 179 243 236
Weipa 100% 2,738 2,863 2,882 2,901 3,057 5,496 5,958
Rio Tinto total bauxite production 2,859 2,984 3,000 2,958 3,236 5,739 6,194
BORATES
Borates ('000 tonnes B2O3 content)
Rio Tinto total borate production 100% 130 132 136 139 143 260 282
COAL Coal
Australian coal operations ('000 type
tonnes)
Coal & Allied Industries (b):
Bengalla 30% S 493 359 459 393 538 768 931
Hunter Valley Operations 76% S 1,831 1,791 1,716 1,789 1,617 3,249 3,406
76% M 659 465 640 606 609 1,427 1,215
Mount Thorley Operations 61% S 340 363 386 309 219 702 528
61% M 295 229 221 216 200 622 416
Moura (c) 0% S 139 - - - - 407 -
0% M 230 - - - - 552 -
Narama (c) 0% S - - - - - 135 -
Ravensworth East (c) 0% S - - - - - 281 -
Warkworth 42% S 570 582 787 688 485 1,217 1,172
42% M 75 66 18 47 71 147 118
Pacific Coal:
Blair Athol Coal 71% S 1,846 2,407 2,030 2,237 1,857 3,976 4,094
Kestrel Coal 80% S 322 274 494 285 320 581 604
80% M 501 383 536 366 459 1,006 825
Tarong Coal 100% S 1,422 1,254 1,695 1,451 1,738 2,736 3,189
Total Australian coal 8,724 8,172 8,981 8,386 8,112 17,806 16,498
Indonesian coal operations ('000 tonnes)
Kaltim Prima Coal (d) 50% S 2,128 2,540 2,264 2,088 2,338 4,066 4,426
US coal operations ('000 tonnes)
Kennecott Energy
Antelope 100% S 6,075 6,452 6,457 6,233 6,648 11,410 12,881
Colowyo (e) 100% S 1,309 1,229 1,174 1,110 1,194 2,486 2,304
Cordero Rojo 100% S 8,990 7,474 9,160 8,187 8,535 18,090 16,722
Decker 50% S 1,046 1,196 1,198 679 730 2,118 1,409
Jacobs Ranch 100% S 6,593 7,315 8,007 7,402 7,544 13,462 14,945
Spring Creek 100% S 2,007 1,719 2,067 1,814 2,293 4,307 4,108
Total US coal 26,020 25,385 28,063 25,424 26,944 51,873 52,368
Rio Tinto total coal production 36,872 36,097 39,307 35,899 37,394 73,745 73,292
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 7.
RIO TINTO SHARE OF PRODUCTION (continued)
2Q 3Q 4Q 1Q 2Q 1H 1H
Interest 2002 2002 2002 2003 2003 2002 2003
COPPER
Mine production ('000 tonnes)
Alumbrera (f) 0% 12.8 11.5 13.9 8.7 - 25.6 8.7
Bingham Canyon 100% 64.3 64.4 69.0 64.8 67.8 126.8 132.6
Escondida 30% 61.0 47.9 68.7 74.4 79.8 109.7 154.2
Grasberg - FCX (g) 15% 26.4 30.0 30.1 27.3 28.0 47.4 55.3
Grasberg - Joint Venture (g) 40% 39.1 39.6 40.9 33.7 34.5 67.5 68.3
Neves Corvo 49% 10.8 8.5 9.5 11.0 9.9 19.9 20.8
Northparkes 80% 8.4 6.7 6.1 5.7 5.4 17.9 11.1
Palabora 49% 5.5 6.0 5.6 5.5 6.1 14.1 11.6
Rio Tinto total mine production 228.3 214.4 243.8 231.1 231.6 428.9 462.7
Refined production ('000 tonnes)
Atlantic Copper (g) 16% 10.5 10.2 10.5 10.1 10.3 20.8 20.4
Escondida 30% 11.3 9.3 10.0 10.7 11.0 22.3 21.7
Kennecott Utah Copper 100% 76.1 68.1 74.6 67.4 38.5 151.0 105.9
Palabora 49% 10.8 11.3 10.0 7.8 9.4 18.8 17.3
Rio Tinto total refined production 108.7 99.0 105.1 96.0 69.2 212.8 165.2
DIAMONDS
Production ('000 carats)
Argyle (h) 100% 8,411 9,013 9,936 6,909 6,004 14,554 12,913
Diavik 60% - - - 247 512 - 759
Merlin 100% 22 33 28 - 44 57 44
Rio Tinto total diamond production 8,433 9,046 9,964 7,156 6,560 14,610 13,716
GOLD
Mine production ('000 ounces)
Alumbrera (f) 0% 49 40 48 31 - 100 31
Barneys Canyon 100% 22 16 10 9 10 49 19
Bingham Canyon 100% 95 103 89 67 67 220 134
Cortez/Pipeline 40% 118 101 102 127 102 230 229
Escondida 30% 12 7 11 11 13 20 24
Grasberg - FCX (g) 15% 69 131 103 89 132 121 221
Grasberg - Joint Venture (g) 40% 141 208 227 163 241 227 404
Greens Creek 70% 20 18 18 16 19 37 35
Kelian 90% 115 158 109 166 112 218 277
Lihir 16% 25 22 27 21 21 49 42
Morro do Ouro 51% 30 30 27 25 27 58 52
Northparkes 80% 8 9 7 8 7 17 15
Peak (f) 0% 20 30 20 20 - 47 20
Rawhide 51% 11 9 10 7 9 23 16
Rio Tinto Zimbabwe 56% 6 5 4 3 4 12 7
Others - 2 2 2 1 2 4 3
Rio Tinto total mine production 745 890 814 765 765 1,431 1,530
Refined production ('000 ounces)
Kennecott Utah Copper 100% 133 123 105 96 65 260 161
IRON ORE
Production ('000 tonnes)
Channar 60% 1,446 1,454 1,940 1,699 1,465 2,963 3,164
Corumba 100% 201 282 271 221 282 305 503
Hamersley 100% 14,078 15,711 13,121 13,616 15,900 28,731 29,516
Iron Ore Company of Canada (i) (j) 59% 2,189 1,296 1,868 1,816 2,126 4,004 3,941
Robe River 53% 3,686 5,345 5,558 5,815 5,851 8,104 11,666
Rio Tinto total mine production 21,600 24,087 22,757 23,167 25,623 44,107 48,790
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 7.
RIO TINTO SHARE OF PRODUCTION (continued)
2Q 3Q 4Q 1Q 2Q 1H 1H
Interest 2002 2002 2002 2003 2003 2002 2003
LEAD
Mine production ('000 tonnes)
Greens Creek 70% 4.6 3.5 3.8 3.8 4.0 8.4 7.8
Zinkgruvan 100% 4.9 9.2 6.0 6.2 7.5 9.5 13.7
Rio Tinto total mine production 9.5 12.7 9.8 10.0 11.5 17.9 21.4
MOLYBDENUM
Mine production ('000 tonnes)
Bingham Canyon 100% 1.3 1.7 1.4 1.2 1.1 3.0 2.3
NICKEL
Nickel in matte (tonnes)
Fortaleza 100% 1,290 510 2,410 2,619 523 3,353 3,142
Toll refined metal production (tonnes)
Rio Tinto Zimbabwe - Empress 56% 835 987 829 604 830 1,778 1,434
SALT
Production ('000 tonnes)
Dampier Salt 65% 1,085 1,223 1,255 970 1,124 2,188 2,094
SILVER
Mine production ('000 ounces)
Bingham Canyon 100% 924 866 841 762 808 1,956 1,570
Escondida 30% 244 182 259 315 360 453 675
Grasberg - FCX (g) 15% 201 233 219 236 255 352 491
Grasberg - Joint Venture (g) 40% 193 264 470 111 229 308 340
Greens Creek 70% 2,029 1,955 1,724 1,750 1,968 3,988 3,718
Zinkgruvan 100% 302 545 383 363 447 626 810
Others - 425 383 372 422 343 827 765
Rio Tinto total mine production 4,318 4,427 4,269 3,960 4,410 8,511 8,370
Refined production ('000 ounces)
Kennecott Utah Copper 100% 1,104 1,178 965 975 644 1,894 1,619
TALC
Production ('000 tonnes)
Luzenac Group 99.9% 346 341 318 358 328 669 686
TIN
Mine production (tonnes)
Neves Corvo 49% 36 - 11 - 24 159 24
TITANIUM DIOXIDE FEEDSTOCK
Production ('000 tonnes)
Rio Tinto Iron & Titanium 100% 318 309 319 290 319 646 608
URANIUM
Production (tonnes U3O8)
Energy Resources of Australia 68% 668 773 977 859 1,019 1,319 1,878
Rossing 69% 463 580 335 14 465 972 479
Rio Tinto total uranium production 1,131 1,353 1,311 873 1,484 2,291 2,357
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 7.
RIO TINTO SHARE OF PRODUCTION (continued)
2Q 3Q 4Q 1Q 2Q 1H 1H
Interest 2002 2002 2002 2003 2003 2002 2003
ZINC
Mine production ('000 tonnes)
Greens Creek 70% 12.4 11.1 11.9 12.1 13.4 23.8 25.5
Zinkgruvan 100% 10.4 13.6 12.9 14.7 15.6 21.5 30.3
Rio Tinto total mine production 22.8 24.7 24.8 26.8 29.0 45.3 55.8
(a) Rio Tinto acquired an approximately 5% additional interest in production
from the Boyne Island smelter with effect from August 2002.
(b) Rio Tinto increased its stake in Coal & Allied from 72.7% to 75.7% on 17
September 2002.
(c) 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.
(d) 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. On 21 July 2003 Rio Tinto announced that it had agreed
to sell its 50% interest in PT Kaltim Prima Coal. Completion of the sale, which
is subject to various approvals, is anticipated in October 2003.
(e) 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.
(f) Rio Tinto completed the sale of its 25% interest in Minera Alumbrera
together with its wholly owned Peak Gold Mine on 17 March 2003. Production data
are shown up to the date of sale.
(g) Through its interest in Freeport-McMoRan-Copper & Gold (FCX), Rio Tinto
had, as of 30 June 2003, a 14.9% share in the Grasberg mine and a 16.4% 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 expansions of the Grasberg facilities since 1998.
(h) 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.
(i) Rio Tinto owns 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.
(j) Rio Tinto increased its shareholding in Iron Ore Company of Canada
from 56.1% to 58.7% on 20 December 2002.
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
2002 2002 2002 2003 2003 2002 2003
ALUMINIUM
Rio Tinto Aluminium (a)
Total production at Rio Tinto's aluminium operations: Weipa (Rio Tinto 100%) in
Queensland, Australia; Boke (Rio Tinto 4%) in Guinea; Eurallumina (Rio Tinto
56.2%) in Sardinia, Italy; Queensland Alumina (Rio Tinto 38.6%) in Queensland,
Australia; Anglesey Aluminium (Rio Tinto 51%) in the UK; Bell Bay (Rio Tinto
100%) in Tasmania, Australia; Boyne Island (Rio Tinto 59.4% (b)) in Queensland,
Australia and Tiwai Point (Rio Tinto 79.4%) in New Zealand.
(100% basis)
Weipa mine
Beneficiated bauxite production ('000 tonnes) 2,738 2,863 2,882 2,901 3,057 5,496 5,958
Metal grade bauxite shipments ('000 tonnes) 2,783 2,737 2,882 2,778 2,768 5,513 5,546
Calcined bauxite production ('000 tonnes) 41 22 30 41 49 90 90
Boke mine
Bauxite production ('000 tonnes) 2,884 3,176 3,124 2,365 3,077 5,741 5,442
Eurallumina refinery
Alumina production ('000 tonnes) 248 259 253 248 243 499 491
Queensland Alumina refinery
Alumina production ('000 tonnes) 906 884 873 916 928 1,817 1,844
Anglesey Aluminium smelter
Primary aluminium production ('000 tonnes) 33.7 34.4 35.6 35.8 35.9 69.4 71.7
Bell Bay smelter
Primary aluminium production ('000 tonnes) 39.9 41.6 42.1 40.7 41.8 80.2 82.5
Boyne Island smelter (b)
Primary aluminium production ('000 tonnes) 130.2 133.1 131.8 129.7 129.0 255.3 258.7
Tiwai Point smelter
Primary aluminium production ('000 tonnes) 82.5 84.3 84.7 83.3 78.2 164.9 161.5
Sales of primary aluminium ('000 tonnes) (c) 200.5 189.4 203.4 191.1 210.6 392.5 401.8
(a) From 1 June 2003, management of Rio Tinto's 51% interest in Anglesey
Aluminium was transferred to the Aluminium product group from the Copper product
group.
(b) Rio Tinto acquired an approximately 5% additional interest in production
from the Boyne Island smelter with effect from August 2002.
(c) Rio Tinto's share of sales of primary metal from its four smelting
operations.
In the second quarter of 2003, the Weipa mine achieved, for the first time,
three consecutive months of production greater than one million tonnes.
Alumina production from Queensland Alumina in the second quarter of 2003
continued at more normal levels compared with 2002 production which was affected
by unexpected power outages and unscheduled maintenance.
Aluminium production for the second quarter of 2003 from the Tiwai Point and
Boyne Island smelters was lower than in the previous quarter due to power
constraints in New Zealand and the instability of lines 1 and 2 at Boyne
resulting from anode quality. Tiwai Point resumed taking spot power on 21 June
2003 and began restarting cells at the rate of about half a cell per day.
Aluminium sales in the second quarter of 2003 were higher than in the previous
quarter of 2003 due to a reduction of in-transit metal and some sales deferred
from the previous quarter.
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) 130 132 136 139 143 260 282
(a) Production is expressed as B2O3 content.
Production in the second quarter of 2003 was 3% higher than in the previous
quarter and 10% higher than in the equivalent period of 2002.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
COAL
Coal & Allied Industries Limited (a)
Total production and sales from the mines operated by Coal & Allied Industries
in Australia: Bengalla (Rio Tinto 30%); Hunter Valley Operations (Rio Tinto
76%); Mount Thorley Operations (Rio Tinto 61%); and Warkworth (Rio Tinto 42%),
all in New South Wales.
(100% basis)
Bengalla mine
Thermal coal production ('000 tonnes) 1,696 1,228 1,517 1,298 1,776 2,640 3,074
Hunter Valley Operations
Thermal coal production ('000 tonnes) 2,518 2,448 2,266 2,363 2,136 4,469 4,499
Semi-soft coking coal production ('000 tonnes) 907 636 845 800 805 1,962 1,605
Mount Thorley Operations
Thermal coal production ('000 tonnes) 584 621 637 510 361 1,207 871
Semi-soft coking coal production ('000 tonnes) 508 392 365 356 330 1,070 686
Moura mine (b)
Thermal coal production ('000 tonnes) 348 - - - - 1,018 -
Semi-soft coking coal production ('000 tonnes) 377 - - - - 954 -
Coking coal production ('000 tonnes) 197 - - - - 427 -
Narama mine (b)
Thermal coal production ('000 tonnes) - - - - - 370 -
Ravensworth East mine (b)
Thermal coal production ('000 tonnes) - - - - - 387 -
Warkworth mine
Thermal coal production ('000 tonnes) 1,411 1,430 1,871 1,634 1,152 3,013 2,786
Semi-soft coking coal production ('000 tonnes) 186 162 42 112 168 364 280
Total Coal & Allied Industries
Total coal production ('000 tonnes) 8,732 6,915 7,544 7,074 6,728 17,881 13,802
Total sales ('000 tonnes) (c) 8,425 6,851 7,486 7,174 6,633 17,211 13,807
(a) Rio Tinto increased its stake in Coal & Allied from 72.7% to 75.7% on 17
September 2002.
(b) 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.
(c) Sales relate only to coal mined by the operations and exclude traded
coal.
Total production for the second quarter of 2003 was nearly 5% lower than in the
first quarter of 2003 as production was adjusted to align with market demand.
Higher production from the Bengalla mine in the second quarter of 2003 resulted
from mining a highly productive area of the pit. The quarter on quarter
variation in production from Bengalla is a result of the mining sequence.
Operational changes are being implemented from August 2003 to reduce saleable
production capacity by 3.6 million tonnes. In addition, clean coal stockpiles
will be cut by 500,000 tonnes and in-pit inventories by 1.5 million tonnes. The
changes include moving from seven day to five day rosters, working less overtime
and reducing the use of contract labour across the operations. Bengalla will not
be impacted by these changes.
Shipments for the second quarter of 2003 were 7.5% lower than in the first
quarter of 2003 and 21% lower than in the second quarter of 2002, reflecting the
decision to reduce sales due to soft markets for export thermal coal.
Kaltim Prima Coal
Total production and shipments from the Kaltim Prima Coal mine (Rio Tinto 50%
(a)) in Indonesia, including the share of production attributed to the
Indonesian Government (see footnote (d) on page 7).
(100% basis)
Thermal coal:
Production ('000 tonnes) 4,256 5,080 4,527 4,177 4,675 8,133 8,852
Shipments ('000 tonnes) 3,546 4,871 4,911 4,522 3,937 7,405 8,459
(a) On 21 July 2003, Rio Tinto announced that it had agreed to sell its 50%
interest in PT Kaltim Prima Coal. Completion of the sale, which is subject to
various approvals, is anticipated in October 2003.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
COAL (continued)
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; Colowyo in Colorado, where
Kennecott Energy has a partnership interest and full management responsibility -
(see footnote (e) on page 7); Cordero Rojo (Rio Tinto 100%) in Wyoming; Decker
(Rio Tinto 50%) in Montana; Jacobs Ranch (Rio Tinto 100%) in Wyoming and Spring
Creek (Rio Tinto 100%) in Montana.
(100% basis)
Antelope mine
Thermal coal production ('000 tonnes) 6,075 6,452 6,457 6,233 6,648 11,410 12,881
Colowyo mine
Thermal coal production ('000 tonnes) 1,309 1,229 1,174 1,110 1,194 2,486 2,304
Cordero Rojo mine
Thermal coal production ('000 tonnes) 8,990 7,474 9,160 8,187 8,535 18,090 16,722
Decker mine
Thermal coal production ('000 tonnes) 2,092 2,391 2,395 1,357 1,460 4,235 2,817
Jacobs Ranch mine
Thermal coal production ('000 tonnes) 6,593 7,315 8,007 7,402 7,544 13,462 14,945
Spring Creek mine
Thermal coal production ('000 tonnes) 2,007 1,719 2,067 1,814 2,293 4,307 4,108
Total Kennecott Energy
Total coal production ('000 tonnes) 27,066 26,580 29,260 26,103 27,674 53,990 53,777
Production in the first half of 2003 was slightly lower than in the first half
of 2002 due in part to lower market demand. Unusually high rainfall during the
first half of 2003, and in particular in the second quarter of 2003, both at the
Powder River Basin mine sites and in the Midwest, adversely affected production
and train availability.
Pacific Coal
Total production and sales from the mines operated by Pacific Coal in
Queensland, Australia: Blair Athol Coal (Rio Tinto 71.2%), Kestrel Coal (Rio
Tinto 80%) and Tarong Coal (Rio Tinto 100%).
(100% basis)
Blair Athol Coal mine
Thermal coal:
Production ('000 tonnes) 2,591 3,379 2,849 3,140 2,607 5,581 5,747
Sales ('000 tonnes) 2,429 3,413 2,913 3,237 2,689 5,978 5,925
Kestrel Coal mine
Thermal coal:
Production ('000 tonnes) 403 342 617 356 400 726 756
Sales ('000 tonnes) 169 101 135 404 163 269 567
Coking coal:
Production ('000 tonnes) 626 479 670 458 574 1,257 1,032
Sales ('000 tonnes) 456 330 394 122 274 754 395
Semi-hard coking coal:(a)
Sales ('000 tonnes) 485 567 380 449 475 681 925
Tarong Coal mine
Thermal coal:
Production ('000 tonnes) 1,422 1,254 1,695 1,451 1,738 2,736 3,189
Sales ('000 tonnes) 1,273 1,404 1,503 1,635 1,614 2,515 3,249
Total Pacific Coal
Total coal production ('000 tonnes) 5,042 5,453 5,831 5,405 5,319 10,300 10,723
(a) Semi-hard coking coal is a mixture of thermal coal and coking coal. The
product mix is customer dependent.
Lower Blair Athol production and sales for the second quarter of 2003 compared
with the first quarter of 2003 were mainly the result of restricted access to a
single mining face and a maintenance shutdown at the coal plant. Tarong
production was higher in the second quarter of 2003 compared with the first
quarter of 2003 following commissioning of the Tarong North Power Station.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
COPPER & GOLD
Alumbrera
Total production and sales at the Bajo de la Alumbrera mine (Rio Tinto 0% (a))
in Argentina.
(100% basis)
Ore treated ('000 tonnes) 7,676 8,033 8,704 7,053 - 14,821 7,053
Average ore grades:
Copper (%) 0.75 0.62 0.69 0.54 - 0.75 0.54
Gold (g/t) 1.02 0.78 0.85 0.69 - 1.06 0.69
Concentrates produced ('000 tonnes) 187.4 168.0 204.7 130.9 - 370.8 130.9
Copper in concentrates:
Production ('000 tonnes) 51.2 45.9 55.6 34.9 - 102.2 34.9
Sales ('000 tonnes) 49.0 41.1 53.0 37.0 - 99.9 37.0
Production of gold in concentrates ('000 ounces) 183 148 176 108 - 370 108
Production of gold in dore ('000 ounces) 15 13 17 16 - 30 16
Total gold sales ('000 ounces) 191 148 187 132 - 394 132
(a) Rio Tinto completed the sale of its 25% holding in Minera Alumbrera on
17 March 2003.
Escondida
Total production at the Escondida mine (Rio Tinto 30%)
in Chile.
(100% basis)
Sulphide ore treated ('000 tonnes) 11,312 10,141 14,631 16,744 16,416 21,764 33,160
Average copper grade (%) 1.74 1.45 1.59 1.49 1.62 1.64 1.55
Mill production (metals in concentrates):
Contained copper ('000 tonnes) 170.3 125.6 191.8 210.8 230.7 305.2 441.5
Contained gold ('000 ounces) 41 23 35 37 43 68 80
Contained silver ('000 ounces) 813 606 864 1,050 1,200 1,511 2,250
Oxide ore treated ('000 tonnes) 3,240 3,316 3,164 3,408 3,188 6,294 6,596
Average copper grade (%) 1.02 1.03 1.18 1.10 1.11 0.96 1.10
Contained copper in leachate/mined material 33 34 37 37 35 61 73
('000 tonnes)
Refined production:
Oxide plant production ('000 tonnes) 37.5 31.1 33.3 35.5 36.8 74.3 72.3
Escondida mill production for the first half of 2003 reflected the start of the
new Laguna Seca concentrator in the fourth quarter of 2002. Lower ore grades
during the first half of 2003 compared with the first half of 2002 were in line
with the previously announced plan to constrain copper production at Escondida.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
COPPER & GOLD (continued)
Freeport-McMoRan Copper & Gold
Total production and sales at Grasberg (Rio Tinto 14.9% (a)) in Papua,
Indonesia, and Atlantic Copper (Rio Tinto 16.4%) in Spain.
(100% basis)
Grasberg mine
Ore treated ('000 tonnes) 21,806 20,220 21,996 21,438 20,141 43,785 41,579
Average mill head grades:
Copper (%) 1.14 1.31 1.23 1.15 1.24 1.02 1.19
Gold (g/t) 0.98 1.85 1.44 1.26 1.95 0.85 1.59
Silver (g/t) 3.63 4.01 4.05 3.88 4.18 3.19 4.02
Production of metals in concentrates:
Copper in concentrates ('000 tonnes) 215.1 239.8 241.6 216.5 223.1 383.0 439.6
Gold in concentrates ('000 ounces) 599 1,086 913 760 1,126 1,031 1,886
Silver in concentrates ('000 ounces) 1,532 1,822 1,928 1,692 1,944 2,652 3,636
Sales of payable metals in concentrates: (b)
Copper in concentrates ('000 tonnes) 194.2 242.6 234.6 210.7 212.1 355.9 422.8
Gold in concentrates ('000 ounces) 516 1,096 902 742 1,080 936 1,823
Silver in concentrates ('000 ounces) 1,090 1,476 1,487 1,315 1,485 1,953 2,800
(a) See note (g) on page 7 for details of Rio Tinto's 14.9% interest in
Grasberg and 40% interest in the expansion.
(b) Net of smelter deductions.
In the second quarter of 2003, copper and gold production and sales improved
compared with the first quarter of 2003 and the second quarter of 2002 because
of higher average mill head grades, particularly for gold.
Atlantic Copper smelter
Concentrates and scrap smelted ('000 tonnes) 242.5 258.2 257.7 242.1 244.6 500.8 486.7
Copper anodes produced ('000 tonnes) (c) 69.0 74.6 77.2 72.4 74.3 146.2 146.7
Copper cathodes produced ('000 tonnes) 63.6 61.5 63.5 61.2 62.5 125.4 123.7
Copper cathode sales ('000 tonnes) (d) 63.7 62.2 65.0 62.9 63.6 125.3 126.5
(c) New metal excluding recycled material.
(d) Refers to copper cathode and wire rod sales.
Kelian Equatorial Mining
Total production and sales at the Kelian gold mine (Rio Tinto 90%) in East Kalimantan,
Indonesia.
(100% basis)
Ore treated ('000 tonnes) 1,857 1,787 1,953 1,844 1,833 3,573 3,677
Average ore grades:
Gold (g/t) 2.71 3.83 2.66 3.71 2.53 2.66 3.12
Silver (g/t) 5.09 5.92 4.55 5.83 5.11 5.01 5.47
Production:
Gold ('000 ounces) 128 176 121 184 124 242 308
Silver ('000 ounces) 89 96 75 112 96 177 208
Sales:
Gold ('000 ounces) 125 154 154 150 147 234 297
Silver ('000 ounces) 256 129 115 154 - 256 154
Ore treated during the second quarter of 2003 was consistent with prior
quarters. During the second quarter of 2003, mining activities ceased and lower
grade stockpiled ore was processed. Silver sales were deferred until a saleable
quantity is accumulated.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
COPPER & GOLD (continued)
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) 837 873 868 919 791 1,662 1,709
Leached ('000 tonnes) 2,339 1,770 2,924 2,538 3,261 6,143 5,799
Sold for roasting ('000 tonnes) 96 13 82 140 151 198 291
Average ore grade: gold
Milled (g/t) 8.19 7.17 6.14 8.92 5.83 8.24 7.49
Leached (g/t) 0.99 0.98 1.00 1.09 1.06 1.06 1.07
Sold for roasting (g/t) 8.77 7.96 8.66 7.83 6.63 8.63 7.21
Gold produced ('000 ounces) 296 252 256 317 254 574 572
Mill and roast throughput increased during the first half of 2003 whilst leach
throughput was slightly lower. Total gold production in the first half of 2003
was similar to that produced in the same period of 2002.
Greens Creek mine
Ore treated ('000 tonnes) 167 168 170 171 176 327 347
Average ore grades:
Gold (g/t) 7.57 6.93 6.81 6.31 6.97 7.05 6.64
Silver (g/t) 688 701 595 604 655 705 630
Zinc (%) 13.3 11.8 12.4 12.9 13.4 12.9 13.2
Lead (%) 5.3 4.4 4.4 4.6 4.7 5.0 4.7
Metals produced in concentrates:
Gold ('000 ounces) 29 25 25 23 27 53 50
Silver ('000 ounces) 2,887 2,782 2,454 2,491 2,801 5,676 5,292
Zinc ('000 tonnes) 17.6 15.8 16.9 17.3 19.0 33.8 36.3
Lead ('000 tonnes) 6.6 5.0 5.4 5.3 5.7 11.9 11.1
Silver grade improved in the second quarter of 2003 compared with the first
quarter, as a result of mine sequencing and mining higher silver grade ore
zones.
Rawhide mine
Ore treated ('000 tonnes) 1,313 1,330 1,335 1,230 384 2,720 1,614
Average ore grades:
Gold (g/t) 1.11 1.01 0.69 0.51 0.51 1.07 0.51
Silver (g/t) 14.8 14.4 13.3 9.4 9.1 14.5 9.4
Metals produced in dore:
Gold ('000 ounces) 22 18 19 14 17 45 32
Silver ('000 ounces) 212 149 134 127 158 405 285
Mining operations were completed in October 2002. Processing of stockpiled ores
was completed in May 2003. Gold production will continue from the leach pads
while site reclamation activities are underway.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
COPPER & GOLD (continued)
Kennecott Utah Copper
Total production at Barneys Canyon, Bingham Canyon, and the Kennecott smelter
and refinery (all Rio Tinto 100%) in Utah, US.
Barneys Canyon mine
Ore treated ('000 tonnes) - - - - - 102 -
Average ore grade: gold (g/t) - - - - - 1.17 -
Gold produced in dore and concentrates ('000 ounces) 22 16 10 9 10 49 19
Mining operations ceased in the first quarter of 2002. Gold continues to be
recovered from leach pads.
Bingham Canyon mine
Ore treated ('000 tonnes) 9,840 10,256 10,625 10,929 11,284 19,839 22,213
Average ore grade:
Copper (%) 0.70 0.67 0.71 0.68 0.67 0.69 0.67
Gold (g/t) 0.41 0.43 0.36 0.28 0.25 0.49 0.27
Silver (g/t) 3.50 3.22 3.02 2.99 2.67 3.72 2.82
Molybdenum (%) 0.034 0.037 0.026 0.022 0.020 0.036 0.021
Copper concentrates produced ('000 tonnes) 251 243 279 282 287 470 569
Average concentrate grade (% Cu) 25.5 26.5 24.6 22.9 23.6 26.9 23.3
Production of metals in copper concentrates:
Copper ('000 tonnes) (a) 64.3 64.4 69.0 64.8 67.8 126.8 132.6
Gold ('000 ounces) 95 103 89 67 67 220 134
Silver ('000 ounces) 924 866 841 762 808 1,956 1,570
Molybdenum concentrates produced ('000 tonnes): 2.5 3.1 2.6 2.2 2.3 5.5 4.5
Molybdenum in concentrates ('000 tonnes) 1.3 1.7 1.4 1.2 1.1 3.0 2.3
Kennecott smelter & refinery
Copper concentrates smelted ('000 tonnes) 279 259 300 231 261 537 492
Copper anodes produced ('000 tonnes) (b) 74.6 63.4 79.0 53.7 53.2 151.3 106.9
Production of refined metal:
Copper ('000 tonnes) 76.1 68.1 74.6 67.4 38.5 151.0 105.9
Gold ('000 ounces) (c) 133 123 105 96 65 260 161
Silver ('000 ounces) (c) 1,104 1,178 965 975 644 1,894 1,619
(a) Includes a small amount of copper in precipitates.
(b) New metal excluding recycled material.
(c) Includes gold and silver in intermediate products.
By-product grades continued to fall in the second quarter of 2003 and are now
significantly lower than last year. As previously announced, lower by-product
grades are expected to continue until 2005.
Anode production in both the first and second quarters of 2003 was affected by
the failure of the final absorption tower of the acid plant in March 2003, which
stopped smelter production for three weeks. Anode production was also affected
by the processing of lower grade concentrates. Copper to sulphur ratios were
also lower. The resultant shortage of anodes caused output of refined copper,
gold and silver to be significantly lower in the second quarter. The refinery
returned to full capacity at the end of the second quarter of 2003.
Lihir Gold
Total production at the Lihir mine (Rio Tinto 16.3%) in Papua
New Guinea.
(100% basis)
Ore treated ('000 tonnes) 968 891 1,063 933 924 1,873 1,857
Average ore grade: gold (g/t) 5.64 5.25 5.44 4.92 4.65 5.57 4.79
Gold produced ('000 ounces) (a) 154 138 168 131 128 301 259
(a) Gold production represents quantity of gold poured.
Ore treated and gold produced in the second quarter of 2003 were affected by a
10 day total shutdown of the plant, at the end of May, for maintenance of the
SAG mill and autoclaves. Gold production was further affected by lower grades.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
COPPER & GOLD (continued)
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) 1,399 1,237 1,331 1,306 1,315 2,796 2,621
Average ore grades:
Copper (%) 0.91 0.81 0.69 0.67 0.62 0.95 0.64
Gold (g/t) 0.34 0.41 0.31 0.31 0.32 0.34 0.32
Copper concentrates produced ('000 tonnes) 29.9 23.0 20.1 20.1 18.7 60.1 38.9
Contained copper in concentrates:
Saleable production ('000 tonnes) 10.5 8.4 7.6 7.1 6.8 22.4 13.9
Sales ('000 tonnes) (a) 8.9 5.9 4.7 8.0 3.8 19.3 11.8
Contained gold in concentrates:
Saleable production ('000 ounces) 10.1 11.0 8.4 9.5 9.0 21.4 18.5
Sales ('000 ounces) (a) 7.7 6.6 6.0 13.4 6.0 18.1 19.4
(a) Rio Tinto's 80% share of material from the Joint Venture.
Copper production continued to decline, reflecting lower realised head grades
from the near exhausted E26 Lift 1 orebody. This trend will continue until E26
Lift 2 commences production in 2004 and reaches its full potential in 2005.
Palabora
Total production at Palabora (Rio Tinto 49.2%) in South
Africa.
(100% basis)
Palabora mine
Ore treated ('000 tonnes) 2,005 2,722 2,648 2,453 2,726 4,563 5,179
Average ore grade: copper (%) 0.66 0.54 0.56 0.59 0.60 0.72 0.60
Copper concentrates produced ('000 tonnes) 35.9 40.5 35.7 35.3 38.2 91.8 73.5
Average concentrate grade: copper (%) 31.2 29.9 31.9 31.5 32.7 31.3 32.1
Copper in concentrates ('000 tonnes) 11.2 12.1 11.4 11.1 12.5 28.8 23.6
Palabora smelter/refinery
New concentrate smelted on site ('000 tonnes) 64.5 68.7 59.7 57.5 73.7 130.2 131.2
New copper anodes produced ('000 tonnes) (a) 23.1 22.5 18.9 15.8 20.1 40.9 35.9
Refined new copper produced ('000 tonnes) 22.0 23.0 20.4 15.9 19.2 38.2 35.1
By-products:
Magnetite concentrate ('000 tonnes) 49 31 40 44 51 101 95
Refined nickel sulphate (tonnes) 88 67 85 61 27 161 88
Vermiculite plant
Vermiculite produced ('000 tonnes) 57.1 62.5 59.8 51.2 53.9 101.1 105.1
(a) Contained copper in anodes; anode production includes a small amount
produced from purchased material.
Ore grade and tonnage treated rose during the second quarter of 2003 in line
with an improvement in underground production. The underground mine produced at
an average rate of 16,300 tonnes per day in June 2003 and a record single day's
production of 24,400 tonnes was achieved during the month. Work is ongoing to
reach the target level of 30,000 tonnes per day by the end of 2003. New copper
in concentrate production was in line with ore supply. Total concentrate smelted
comprised run-of-mine production, smelter secondaries, low grade concentrate
stocks and imported concentrate. Anode and refined copper production were in
line with the availability of concentrate.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
COPPER & GOLD (continued)
Peak Gold Mine
Total production and sales from the Peak Gold Mine (Rio Tinto 0% (a)) in New South
Wales, Australia.
Ore treated ('000 tonnes) 151 159 144 144 - 307 144
Average ore grades:
Gold (g/t) 4.74 6.33 5.13 5.23 - 5.29 5.23
Silver (g/t) 3.16 2.79 3.09 3.16 - 3.16 3.16
Copper (%) 0.28 0.21 0.21 0.13 - 0.36 0.13
Lead (%) 0.21 0.22 0.15 0.11 - 0.25 0.11
Zinc (%) 0.19 0.35 0.13 0.00 - 0.31 0.00
Bullion produced ('000 ounces) 23 32 23 23 - 50 23
Containing:
Gold ('000 ounces) 18 29 20 20 - 43 20
Silver ('000 ounces) 3 5 3 3 - 5 3
Gold recovered in concentrates ('000 ounces) 2 1 0 - - 4 -
Total gold production ('000 ounces) 20 30 20 20 - 47 20
Bullion sales (fine gold) ('000 ounces) 18 26 22 20 - 45 20
Copper in concentrate ('000 tonnes):
Production 0.1 0.0 0.0 - - 0.3 -
Sales - 0.8 0.2 - - - -
(a) Rio Tinto completed the sale of its wholly owned Peak Gold Mine on 17
March 2003.
Rio Tinto Brasil Limitada
Total production at Morro do Ouro (Rio Tinto 51%) in Minas
Gerais, Brazil.
(100% basis)
Morro do Ouro mine
Ore treated ('000 tonnes) 4,722 4,406 4,544 4,530 4,586 9,414 9,116
Average ore grade: gold (g/t) 0.49 0.55 0.48 0.44 0.46 0.49 0.45
Refined gold produced ('000 ounces) 59 59 52 49 53 114 102
Gold production in the first half of 2003 was below the 2002 average due to
mining in a lower grade area of the pit with harder ores.
Rio Tinto Zimbabwe
Total production at Rio Tinto Zimbabwe's gold operations (Rio Tinto 56%) in
Zimbabwe.
(100% basis)
Patchway mine (a)
Ore treated ('000 tonnes) 21 24 15 19 19 44 38
Average ore grade: gold (g/t) 3.47 2.53 2.01 2.17 2.10 3.96 2.13
Total gold produced ('000 ounces) 2 2 1 1 1 5 2
Renco mine
Ore treated ('000 tonnes) 65 63 65 49 60 126 109
Average ore grade: gold (g/t) 4.68 3.95 3.46 3.80 3.56 4.85 3.67
Total gold produced ('000 ounces) 9 7 7 5 6 17 11
Total Rio Tinto Zimbabwe
Total gold produced ('000 ounces) 11 9 8 6 7 21 13
(a) Includes low grade material.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
COPPER & GOLD (continued)
Somincor
Total production at Neves Corvo (Rio Tinto 49%) in
Portugal.
(100% basis)
Neves Corvo mine
Total ore treated ('000 tonnes) (a) 475 406 423 425 474 928 899
of which, treated to extract tin ('000 tonnes) 7 - 2 - 8 14 8
Average ore grades:
Copper (%) 5.26 4.87 5.23 6.00 5.07 5.06 5.51
Tin (%) 2.09 - 2.87 - 1.74 3.38 1.74
Copper production:
Copper concentrates produced ('000 tonnes) 90.8 72.3 81.7 93.8 85.5 165.4 179.4
Copper concentrate grade: copper (%) 24.3 23.9 23.7 23.9 23.5 24.5 23.7
Copper in concentrates produced ('000 tonnes) 22.1 17.3 19.4 22.4 20.1 40.5 42.5
Tin production:
Tin concentrates produced ('000 tonnes) 0.1 - 0.0 - 0.1 0.5 0.1
Tin concentrate grade: tin (%) 60.5 - 72.9 - 57.5 61.8 57.5
Tin in concentrates produced ('000 tonnes) 0.1 - 0.0 - 0.0 0.3 0.0
(a) Total ore treated for both copper and tin production.
Tin production resumed in the second quarter of 2003.
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 2,519 2,558 2,525 2,509 2,305 5,020 4,814
Alluvial ore 780 851 348 - - 1,662 -
Total ore processed 3,299 3,409 2,873 2,509 2,305 6,683 4,814
Diamonds produced ('000 carats):
AK1 8,241 8,599 9,482 6,909 6,004 14,119 12,913
Alluvial 174 414 455 - - 451 -
Total produced 8,415 9,013 9,936 6,909 6,004 14,570 12,913
(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 from the AK1 pit was lower than in previous quarters due to
extended maintenance in June. Carats produced reflected lower ore grade from the
northern areas of the pit, in accordance with mining schedules. Production from
the alluvial mining areas ceased in the fourth quarter of 2002.
Diavik Diamonds
Total production from mining operations at Diavik Diamonds (Rio Tinto 60%) in the Northwest Territories,
Canada.
Ore processed ('000 tonnes) - - - 202 304 - 506
Diamonds recovered ('000 carats) - - - 411 854 - 1,265
The process plant ramp-up continued ahead of schedule with ore processed during
the second quarter of 2003 representing approximately 62% of design capacity.
Diamond head grade is increasing as mining moves into the more competent ore
body although it continues to be influenced by processing the mud-rich rock type
that overlays the orebody. The influence of this mud-rich rock type on the
recovered grade should diminish as mining moves deeper into the ore body.
Merlin
Total production from the Merlin mine (Rio Tinto 100%) in the Northern
Territory, Australia.
Ore processed ('000 tonnes) 195 184 217 204 33 385 237
Diamonds recovered ('000 carats) 22 33 28 - 44 57 44
Ore mining and processing ceased during the second quarter of 2003.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
IRON ORE
Hamersley Iron
Total production and shipments 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, Yandicoogina and Brockman 14,078 15,711 13,121 13,616 15,900 28,731 29,516
Channar 2,409 2,423 3,233 2,832 2,442 4,938 5,274
Total production 16,487 18,134 16,354 16,448 18,341 33,669 34,789
Total shipments ('000 tonnes) 16,984 19,284 19,029 17,762 17,948 30,163 35,710
Improved throughput rates lifted production in the second quarter of 2003 by 11%
compared with the second quarter of 2002. Production was up a similar amount
compared with the first quarter of 2003, which was affected by adverse weather
conditions. Shipments in the second quarter of 2003 continued to benefit from
strong demand from key markets, notably China, Taiwan and Japan, which were up
by 43%, 36% and 16% respectively compared with the second quarter of 2002. Port
congestion is likely to remain an issue while demand remains strong.
Iron Ore Company of Canada
Total production and shipments from the Carol Lake operations (Rio Tinto 58.7% (a)) in Newfoundland &
Labrador and Quebec in Canada.
(100% basis)
Carol Lake operations
Saleable production:
Concentrates ('000 tonnes) 1,568 532 494 272 712 2,157 984
Pellets ('000 tonnes) 2,334 1,778 2,816 2,820 2,908 4,981 5,728
Shipments:
Concentrate ('000 tonnes) 869 973 605 290 570 1,573 860
Pellets ('000 tonnes) 3,094 3,612 3,461 1,963 3,761 4,464 5,724
(a) Rio Tinto increased its shareholding in IOC from 56.1% to 58.7% on 20
December 2002.
Concentrate shipments continue to be production constrained. Concentrate
production was adversely affected by the prolonged commissioning of the new
control system on the automatic train operating system, crusher breakdowns and
lower recoveries. Concentrate was diverted to support pellet production for
which demand was strong.
Rio Tinto Brasil
Total production at Corumba (Rio Tinto 100%) in Mato Grosso do
Sul, Brazil.
Corumba mine
Total iron ore production ('000 tonnes) (a) 201 282 271 221 282 305 503
(a) Production includes by-product fines.
Production in the first half of 2003 was higher than for the first half of 2002
due to increased customer demand. This was despite the seasonal low river level
early in 2003 which restricted shipping.
Robe River Iron Associates
Total production and shipments from Robe River Iron Associates operations (Rio Tinto 53%) in Western
Australia.
(100% basis)
Pannawonica mine
Saleable iron ore production ('000 tonnes) 6,275 8,186 8,639 8,055 8,361 14,481 16,416
Sales ('000 tonnes) 7,179 8,848 7,612 7,054 8,137 15,513 15,191
West Angelas mine
Saleable iron ore production ('000 tonnes) 680 1,898 1,847 2,917 2,678 809 5,595
Sales ('000 tonnes) 131 1,777 1,532 2,908 2,943 131 5,851
Production of Robe River ore from the Pannawonica mine for the second quarter of
2003 was 33% higher than in the second quarter of 2002, which was affected by an
extended plant shut in April 2002. Sales of Robe River ore in the second quarter
of 2003 were up 15% compared with the first quarter of 2003 in response to
continued strong demand from key markets.
Production of West Angelas ore in the second quarter of 2003 was 8% lower than
in the first quarter of 2003, as the operation focused on moving waste ore in
preparation for the accelerated ramp-up in the second half of 2003. Shipments
continued to firm reflecting widespread market acceptance and an increasing
customer base for West Angelas Marra Mamba ore.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
NICKEL
Rio Tinto Brasil
Total nickel in matte production at the Fortaleza (Rio Tinto
100%) in Brazil.
Fortaleza mine
Production (tonnes) 1,290 510 2,410 2,619 523 3,353 3,142
Nickel production in the first half of 2003 was below the first half of 2002 due
to a halt in production following a fatal accident in April 2003. Mining resumed
in July 2003 following modifications to mining methods.
Rio Tinto Zimbabwe
Toll refined metal production at the Empress Nickel (Rio Tinto 56%) in
Zimbabwe.
(100% basis)
Empress Nickel refinery
Production (tonnes) 1,489 1,761 1,479 1,078 1,481 3,172 2,559
SALT
Dampier Salt
Total production of salt from Dampier, Lake MacLeod and Port Hedland (Rio Tinto 64.9%) in
Western Australia.
(100% basis)
Salt production ('000 tonnes) 1,671 1,883 1,933 1,493 1,731 3,370 3,224
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) 347 341 318 358 329 669 687
TITANIUM DIOXIDE FEEDSTOCK
Rio Tinto Iron & Titanium
Rio Tinto share of titanium dioxide feedstock production in Canada and
South Africa.
(Rio Tinto share)
Titanium dioxide feedstock production ('000 318 309 319 290 319 646 608
tonnes)
Titanium dioxide feedstock production in the second quarters of 2003 and 2002
was virtually the same. However, due to reduced production output in the first
quarter of 2003, titanium dioxide feedstock produced in the first half of 2003
was 6% lower than during the same period of 2002.
OPERATIONAL DATA
2Q 3Q 4Q 1Q 2Q 1H 1H
2002 2002 2002 2003 2003 2002 2003
URANIUM
Energy Resources of Australia Ltd
Total uranium production at Ranger (Rio Tinto 68.4%) in the Northern Territory,
Australia.
(100% basis)
Ranger mine
Production (tonnes U3O8) 977 1,130 1,428 1,256 1,490 1,928 2,746
Production of U3O8 in the second quarter of 2003 was nearly 19% higher than in
the first quarter of 2003 and 52.5% higher than in the second quarter of 2002 to
meet ongoing sales commitments.
Rossing Uranium Ltd
Total uranium production at the Rossing Uranium mine (Rio Tinto 68.58%) in Namibia.
(100% basis)
Production (tonnes U3O8) 675 846 488 20 678 1,418 698
The Rossing plant did not operate during the first quarter of 2003, while a new
coarse tailings conveyor was installed. During the first quarter, shipments and
sales were made from stock as planned.
ZINC
Zinkgruvan Mining AB
Total production at the Zinkgruvan mine (Rio Tinto 100%)
in Sweden.
Ore treated ('000 tonnes) 188 188 163 167 189 385 356
Average ore grades:
Zinc (%) 6.1 8.0 8.6 9.5 9.1 6.2 9.3
Lead (%) 3.0 5.3 4.2 4.3 4.4 2.9 4.4
Silver (g/t) 69 119 104 99 101 70 101
Production of zinc concentrate ('000 tonnes) 18.9 24.6 23.3 26.3 28.2 38.9 54.5
Production of lead concentrate ('000 tonnes) 7.2 13.1 8.5 9.1 11.0 14.4 20.1
Production of metal in concentrates:
Zinc ('000 tonnes) 10.4 13.6 12.9 14.7 15.6 21.5 30.3
Lead ('000 tonnes) 4.9 9.2 6.0 6.2 7.5 9.5 13.7
Silver ('000 ounces) 302 545 383 363 447 626 810
Zinc production in the first two quarters of 2003 was higher than in all quarters of 2002, reflecting
the higher grades in all metals.
EXPLORATION
Expenditure
Total pre-tax exploration expenditure charged to the profit and loss account for
the first half of 2003 was US$64 million compared with US$58 million for the
first half of 2002.
Ongoing Programmes
Country Commodity Programme Summary
Peru Copper Exploration drilling concluded during the quarter at the
Marcona copper project in Peru.
USA Copper Evaluation of the Resolution project continues
Iran Gold Exploration and metallurgical test work continued at the
Dashkasan gold project.
Turkey Gold Drilling and metallurgical studies continued at the Copler
gold project in Turkey.
Africa Diamonds Further drilling was completed on targets in Botswana.
Drilling was completed at the Aredor project in Guinea with no
further work planned.
Canada Diamonds Exploration continued on kimberlite targets in Ontario,
Nunavut and on Brodeur Peninsula.
India Diamonds Exploration continued on granted reconnaissance permits in
Andhra Pradesh, Karnataka and Chhattisgarh.
Australia Iron Ore Drilling on targets in the Hamersley Basin commenced during
the quarter.
Guinea Iron Ore Evaluation work continued at the Simandou project as a
preliminary to initiation of an Order of Magnitude study.
This information is provided by RNS
The company news service from the London Stock Exchange