Rio Tinto 3QPR 2002- Part 2
Rio Tinto PLC
23 October 2002
Part 2
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 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) 34.0 34.2 35.7 33.7 34.4 105.1 103.8
Comalco
Total production at 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 59.4% (b)) in Australia and Tiwai Point
(Rio Tinto 79.4%) in New Zealand.
(100% basis)
Weipa mine, Queensland
Beneficiated bauxite
production
('000 tonnes) 2,680 2,913 2,759 2,738 2,863 8,413 8,359
Metal grade bauxite
shipments
('000 tonnes) 2,678 2,831 2,730 2,783 2,737 8,177 8,250
Calcined bauxite
production
('000 tonnes) 49 23 49 41 22 123 112
Boke mine
Bauxite production
('000 tonnes) 3,046 2,790 2,857 2,884 3,084 9,197 8,825
Eurallumina,
Sardinia
Alumina production
('000 tonnes) 226 269 251 248 259 724 757
Queensland Alumina,
Queensland
Alumina production
('000 tonnes) 930 953 911 906 884 2,671 2,701
Bell Bay, Tasmania
Primary aluminium production
('000 tonnes) 41.3 40.4 40.3 39.9 41.6 120.4 121.8
Boyne Island, Queensland (b)
Primary aluminium production
('000 tonnes) 129.7 131.5 125.1 130.2 133.1 377.4 388.4
Tiwai Point
Primary aluminium production
('000 tonnes) 78.7 81.2 82.4 82.5 84.3 241.1 249.2
Sales of aluminium
attributable to Comalco
('000 tonnes) 185.8 165.4 177.4 178.9 174.4 524.5 530.7
(a) Comalco increased its shareholding in Queensland Alumina Limited from
30.3% to 38.6% with effect from September 2001.
(b) Comalco acquired an approximately 5% additional interest in
production from the Boyne Island smelter with effect from August 2002.
Weipa production in the third quarter of 2002 increased compared with the
third quarter of 2001 due to improved equipment availability and
utilisation. Total production for the first nine months of 2002, however,
reflects reduced traded market demand.
Total alumina production in the first nine months of 2002 is slightly
above the equivalent period of 2001 with both refineries returning to more
normal levels of production. Queensland Alumina experienced some
production and maintenance problems, mainly due to an unexpected boiler
outage in the third quarter of 2002, which are not ongoing.
Boyne Island production in the third quarter of 2002 continued to improve
compared with the previous two quarters due to improved current efficiency
and cell availability. Production at the Tiwai Point and Bell Bay smelters
also increased slightly in the third quarter of 2002. Tiwai Point,
however, remains power constrained.
Third quarter 2002 aluminium sales which include an additional 5,000
tonnes resulting from the acquisition of an additional interest in the
Boyne Island smelter in the third quarter of 2002, were lower compared
with the previous quarters due to an increase in consignment stock in the
US to cover shipping schedule delays and higher stock in transit, due to
changed contractual arrangements for some sales into Asia.
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) 142 134 130 130 132 430 393
(a) Production is expressed as B2O3 content.
Production for the first nine months of 2002 has returned to normal levels
following inventory management during the equivalent period of 2001.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 2002 2002 2001 2002
COAL
Coal & Allied Industries Limited (a)
Total production and sales from the Bengalla mine (Rio Tinto 30%); Hunter
Valley Operations (Rio Tinto 76%); the Mount Thorley Operations (Rio Tinto
61%); the Narama mine (Rio Tinto 0%); the Ravensworth East mine (Rio Tinto
0%) and the Warkworth mine (Rio Tinto 42%), all in New South Wales, and
the Moura mine (Rio Tinto 0%) in Queensland, Australia.
(100% basis)
Bengalla mine (b)
Thermal coal production
('000 tonnes) 1,073 1,454 944 1,696 1,228 3,440 3,868
Hunter Valley Operations
Thermal coal
production
('000 tonnes) 2,632 2,659 1,951 2,518 2,448 5,550 6,917
Semi-soft coking
coal production
('000 tonnes) 945 871 1,055 907 636 3,163 2,598
Mount Thorley Operations
Thermal coal
production
('000 tonnes) 643 648 623 584 621 1,728 1,828
Semi-soft coking
coal production
('000 tonnes) 694 540 562 508 392 1,631 1,462
Moura mine (b)(c)
Thermal coal
production
('000 tonnes) 521 459 670 348 - 1,716 1,018
Semi-soft coking
coal production
('000 tonnes) 472 438 577 377 - 1,837 954
Coking coal
production
('000 tonnes) 234 179 230 197 - 259 427
Narama mine (b)(c)
Thermal coal
production
('000 tonnes) 564 445 370 - - 1,732 370
Ravensworth East mine (b)(c)
Thermal coal
production
('000 tonnes) 386 457 387 - - 1,054 387
Warkworth mine (b)
Thermal coal
production
('000 tonnes) 1,446 1,145 1,602 1,411 1,430 3,996 4,443
Semi-soft coking
coal production
('000 tonnes) 51 140 178 186 162 410 526
Total Coal & Allied
Total coal
production
('000 tonnes) 9,661 9,435 9,149 8,732 6,915 26,516 24,796
Total sales
('000 tonnes) (d) 9,009 9,503 8,786 8,425 6,851 26,210 24,062
(a) Rio Tinto increased its stake in Coal & Allied from 70.9% to 72.7% during
March 2001 and to 75.7% on 17 September 2002.
(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 third quarter of 2002 was down from the previous
quarter and the third quarter of 2001 due to the sale of the Ravensworth
East, Narama and Moura mines. Production at the remaining mines decreased
in the third quarter of 2002, when compared with the second quarter of
2002, due to the reduction of production at Hunter Valley Operations to
bring output into line with expected market demand. Bengalla production
was affected by the mining sequence.
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) 4,526 4,110 3,877 4,256 5,080 11,501 13,213
Shipments
('000 tonnes) 4,205 4,505 3,859 3,546 4,871 11,136 12,276
Production at Kaltim Prima Coal in the third quarter of 2002 was strong
with the truck fleet achieving productivity improvements, assisted by dry
weather. Contract miners also contributed to the improved production.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 2002 2002 2001 2002
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; 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) 5,525 6,038 5,335 6,075 6,452 16,306 17,862
Colowyo mine
Thermal coal production
('000 tonnes) 1,350 1,271 1,177 1,309 1,229 3,960 3,715
Cordero Rojo mine
Thermal coal production
('000 tonnes) 9,676 10,453 9,100 8,990 7,474 28,999 25,564
Decker mine
Thermal coal production
('000 tonnes) 1,985 2,266 2,143 2,092 2,391 6,244 6,626
Jacobs Ranch mine
Thermal coal production
('000 tonnes) 5,404 7,067 6,869 6,593 7,315 19,545 20,777
Spring Creek mine
Thermal coal production
('000 tonnes) 2,185 2,375 2,300 2,007 1,719 6,392 6,026
Total Kennecott Energy
Total coal
production
('000 tonnes) 26,125 29,470 26,924 27,066 26,580 81,446 80,570
Production for the first nine months of 2002, which was 1% 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. Cordero Rojo's third quarter 2002
production due to unusually heavy rainfall that flooded the pits being
mined and combined with highwall instability issues.
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) 2,808 1,865 2,990 2,591 3,379 8,727 8,960
Sales
('000 tonnes) 2,419 1,814 3,549 2,429 3,413 8,496 9,391
Kestrel Coal mine
Thermal coal:
Production
('000 tonnes) 435 231 323 403 342 971 1,068
Sales
('000 tonnes) 104 225 100 169 101 421 370
Coking coal:
Production
('000 tonnes) 715 359 631 626 479 1,709 1,736
Sales
('000 tonnes) 483 312 298 456 330 1,332 1,084
Semi-hard coking
coal: (a)
Sales
('000 tonnes) 378 457 196 485 567 778 1,248
Tarong Coal mine
Thermal coal:
Production
('000 tonnes) 1,253 1,333 1,314 1,422 1,254 3,942 3,990
Sales
('000 tonnes) 1,236 1,474 1,242 1,273 1,404 3,846 3,919
Total Pacific Coal
Total coal
production
('000 tonnes) 5,211 3,788 5,258 5,042 5,453 15,349 15,753
(a) Semi-hard coking coal is a mixture of thermal coal and coking coal.
The product mix is customer dependent.
Sales at Blair Athol were higher for the first nine months of 2002, when
compared with the first nine months of 2001, due to the third quarter of
2001 being affected by port and rail capacity restrictions.
Kestrel production for the first nine months of 2002 compared favourably
with the first nine months of 2001, with longwall equipment reliability
issues resolved and improved mining conditions in the second quarter.
Production in the third quarter of 2002 was affected by a longwall
changeover and associated commissioning.
Tarong sales were higher for the first nine months of 2002, compared with
the first nine months of 2001, due to high winter demand in the third
quarter of 2002.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 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) 7,515 7,142 7,145 7,676 8,033 22,039 22,854
Average ore grades:
Copper (%) 0.71 0.74 0.76 0.75 0.62 0.72 0.70
Gold (g/t) 0.97 1.05 1.11 1.02 0.78 0.92 0.96
Concentrates produced
('000 tonnes) 174.5 178.3 183.4 187.4 168.0 512.2 538.8
Copper in concentrates:
Production
('000 tonnes) 48.1 49.2 51.0 51.2 45.9 142.3 148.1
Sales
('000 tonnes) 39.3 53.6 50.9 49.0 41.1 134.2 141.0
Production of gold
in concentrates
('000 ounces) 166 178 188 183 148 459 518
Production of gold
in dore
('000 ounces) 9 10 15 15 13 25 43
Total gold sales
('000 ounces) 146 200 202 191 148 457 542
Escondida
Total production at the Escondida mine (Rio Tinto 30%) in Chile.
(100% basis)
Sulphide ore treated
('000 tonnes) 11,204 10,060 10,452 11,312 10,141 32,982 31,905
Average copper
grade (%) 1.75 1.72 1.53 1.74 1.45 1.84 1.58
Mill production (metals in concentrates):
Contained copper
('000 tonnes) 161.0 144.4 134.9 170.3 125.6 498.7 430.8
Contained gold
('000 ounces) 25 28 27 41 23 73 91
Contained silver
('000 ounces) 757 705 698 813 606 2,493 2,117
Oxide ore treated
('000 tonnes) 3,162 3,225 3,054 3,240 3,316 9,016 9,610
Average copper
grade (%) 1.15 1.01 0.91 1.02 1.03 1.10 0.99
Contained copper in
leachate/mined material
('000 tonnes) 36 33 28 33 34 99 95
Refined production:
Oxide plant
production
('000 tonnes) 38.1 38.1 36.8 37.5 31.1 112.9 105.4
Escondida mill production (metals in concentrates) for the third quarter
of 2002 reflected lower ore grades and mill throughput. This was in line
with the previously announced plan to reduce copper production by 160,000
tonnes over a fourteen month period ending in December 2002.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 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) 22,500 21,780 21,979 21,806 20,220 65,007 64,005
Average mill head grades:
Copper (%) 0.96 0.89 0.90 1.14 1.31 1.04 1.11
Gold (g/t) 1.36 1.03 0.73 0.98 1.85 1.53 1.17
Silver (g/t) 3.03 2.99 2.76 3.63 4.01 3.26 3.45
Production of metals in concentrates:
Copper in
concentrates
('000 tonnes) 183.3 167.8 167.9 215.1 239.8 581.6 622.8
Gold in
concentrates
('000 ounces) 915 693 432 599 1,086 2,903 2,117
Silver in
concentrates
('000 ounces) 1,313 1,184 1,120 1,532 1,822 4,361 4,474
Sales of payable metals
in concentrates: (b)
Copper in
concentrates
('000 tonnes) 181.8 166.6 161.7 194.2 242.6 559.5 598.5
Gold in
concentrates
('000 ounces) 904 700 420 516 1,096 2,799 2,032
Silver in concentrates
('000 ounces) 1,030 934 863 1,090 1,476 3,346 3,429
(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 third quarter of 2002, the lower level of ore treated was more than
offset by improved average mill head grades when compared with the second
quarter of 2002 and the third quarter of 2001, resulting in higher
production and sales.
Atlantic Copper smelter
Concentrate smelted
('000 tonnes) 240.1 250.2 258.3 242.5 258.2 640.9 759.0
Copper anodes
produced
('000 tonnes) (c) 77.0 76.8 77.2 69.0 74.6 203.2 220.8
Copper cathodes
produced
('000 tonnes) 63.0 64.3 61.8 63.6 61.5 171.0 186.9
Copper cathode
sales
('000 tonnes) (d) 62.6 66.7 61.6 63.7 62.2 182.7 187.5
(c) New metal excluding recycled material.
(d) Refers to copper cathode and wire rod sales.
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) 1,789 1,893 1,716 1,857 1,787 5,109 5,360
Average ore grades:
Gold (g/t) 2.95 2.71 2.62 2.71 3.83 2.69 3.05
Silver (g/t) 5.80 5.42 4.92 5.09 5.92 5.92 5.31
Production:
Gold
('000 ounces) 130 123 114 128 176 331 417
Silver
('000 ounces) 87 85 88 89 96 253 273
Sales:
Gold
('000 ounces) 121 134 109 125 154 332 388
Silver
('000 ounces) - - - 256 129 190 385
Ore treated in the third quarter of 2002 was lower than in the previous
quarter primarily due to lower plant availability resulting from a delay
of ball mill maintenance, from June to August, to coincide with tailings
line repair and replacement. Gold grade and production was higher due to
an increase in the percentage of higher grade ore direct from the pit and
a reduction of lower grade stockpile ore treated.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 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) 784 829 825 837 873 2,370 2,535
Leached
('000 tonnes) 4,675 3,797 3,804 2,339 1,770 11,757 7,913
Sold for roasting
('000 tonnes) 113 101 102 96 13 289 211
Average ore grade:
Gold
Milled (g/t) 8.41 9.23 8.29 8.19 7.17 8.66 7.87
Leached (g/t) 1.01 1.00 1.10 0.99 0.98 1.13 1.04
Sold for roasting
(g/t) 6.84 7.84 8.50 8.77 7.96 11.21 8.59
Gold produced
('000 ounces) 294 295 278 296 252 893 826
Ore treatment rates and grades varied according to areas being mined and
ore type. Roast ore sales were suspended in July 2002 pending a review of
alternative process options. The new 1.6 million square metre leach pad
and carbon plant began operations during the third quarter.
Greens Creek mine
Ore treated
('000 tonnes) 154 157 160 167 168 440 495
Average ore grades:
Gold (g/t) 6.31 6.36 6.51 7.57 6.93 6.75 7.01
Silver (g/t) 684 673 722 688 701 772 703
Zinc (%) 12.0 11.7 12.5 13.3 11.8 12.3 12.5
Lead (%) 4.7 4.6 4.7 5.3 4.4 4.8 4.8
Metals produced in concentrates:
Gold
('000 ounces) 22 22 24 29 25 66 78
Silver
('000 ounces) 2,582 2,575 2,789 2,887 2,782 8,389 8,458
Zinc
('000 tonnes) 15.1 14.9 16.2 17.6 15.8 43.1 49.6
Lead
('000 tonnes) 5.2 5.2 5.3 6.6 5.0 15.1 16.9
Mill throughput continued to increase through optimization efforts.
Capacity testing of the SAG mill is underway along with recovery
enhancement evaluations at increased mill throughput levels. 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. Zinc grades were
lower early in the quarter, but improved later in the quarter with
additional longhole stoping in the West Ore Zone.
Rawhide mine
Ore treated
('000 tonnes) 1,418 1,433 1,407 1,313 1,330 4,290 4,050
Average ore grades:
Gold (g/t) 0.99 0.86 1.03 1.11 1.01 0.99 1.05
Silver (g/t) 19.0 15.9 14.2 14.8 14.4 16.5 14.5
Metals produced in dore:
Gold
('000 ounces) 25 24 23 22 18 77 63
Silver
('000 ounces) 177 175 193 212 149 555 554
Ore processing rates varied due to ore extraction constraints in the final
benches of the mine, changing ore hardness and maintenance requirements.
Gold and silver grades fluctuated with the area mined and blending of more
lean ore stockpile material as the end of mine life nears. Lower gold and
silver production was principally the result of pipeline breaks which
disrupted solution flows on the leach pile. Additionally, gold recovery
from the leach pads was delayed due to higher stacking and lower pad
permeability.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 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) 639 432 102 - - 1,568 102
Average ore grade:
Gold (g/t) 3.71 3.15 1.17 - - 3.38 1.17
Gold produced in
dore and concentrates
('000 ounces) 32 41 27 22 16 99 65
Gold production in the third quarter of 2002 was lower than in the second
quarter of 2002 and the third 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) 11,163 10,203 9,999 9,840 10,256 38,363 30,095
Average ore grade:
Copper (%) 0.74 0.73 0.69 0.70 0.67 0.72 0.69
Gold (g/t) 0.58 0.55 0.57 0.41 0.43 0.54 0.47
Silver (g/t) 3.91 3.99 3.93 3.50 3.22 3.59 3.55
Molybdenum
(%) 0.037 0.035 0.039 0.034 0.037 0.044 0.036
Copper concen-
trates produced
('000 tonnes) 261 239 219 251 243 869 713
Average concentrate
grade (% Cu) 28.0 28.0 28.5 25.5 26.5 28.2 26.8
Production of metals in copper concentrates:
Copper ('000 tonnes)
(a) 73.1 67.2 62.5 64.3 64.4 245.5 191.2
Gold
('000 ounces) 142 120 125 95 103 472 323
Silver
('000 ounces) 1,076 1,042 1,032 924 866 3,433 2,822
Molybdenum concentrates
produced:
('000 tonnes) 2.8 2.8 3.0 2.5 3.1 11.7 8.6
Molybdenum in
concentrates
('000 tonnes) 1.5 1.6 1.7 1.3 1.7 6.5 4.7
Kennecott smelter & refinery
Copper concentrates
smelted
('000 tonnes) 256 271 258 279 259 705 796
Copper anodes produced
('000 tonnes) (b) 42.1 76.0 76.7 74.6 63.4 168.2 214.7
Production of refined metal:
Copper
('000 tonnes) 43.7 67.3 74.9 76.1 68.1 167.0 219.1
Gold
('000 ounces) (c) 88 112 127 133 123 277 383
Silver
('000 ounces) (c) 626 765 790 1,104 1,178 2,117 3,072
(a) Includes a small amount of copper in precipitates.
(b) New metal excluding recycled material.
(c) Includes gold and silver in intermediate products.
Third quarter 2002 mine production of all products (except molybdenum) was
lower than in the third quarter of 2001, mainly due to lower ore grades
and reduced throughput caused by the processing of hard ore. Molybdenum
output was higher principally due to higher recovery. Compared with the
second quarter of 2002, gold and molybdenum output was higher due to
better grades and higher throughput; silver production was slightly lower
due to lower ore grade. Mine production of all products for the first nine
months of 2002 was less than for the first nine months of 2001 principally
due to the June 2001 closure of the North Concentrator and lower ore
grades in 2002.
Smelter and refinery performance improved in the third quarter and first
nine months of 2002 compared with the same periods in 2001 largely due to
higher plant availability. Compared with the second quarter of 2002,
output was lower largely due to a short maintenance shutdown in August.
Lihir Gold
Total production at the Lihir gold mine (Rio Tinto 16.3%) in Papua New
Guinea.
(100% basis)
Ore treated
('000 tonnes) 966 827 905 968 891 2,792 2,765
Average ore grade:
gold (g/t) 6.00 5.43 5.50 5.64 5.25 6.40 5.47
Gold produced
('000 ounces)(a) 178 123 148 154 138 525 439
(a) Gold production represents quantity of gold poured.
Production for the third quarter of 2002 was affected by a planned
shutdown and commissioning of the pebble crusher.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 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) 1,371 1,444 1,397 1,399 1,237 3,981 4,033
Average ore grade:
Copper (%) 1.18 1.12 1.00 0.91 0.81 1.18 0.91
Gold (g/t) 0.28 0.32 0.34 0.34 0.41 0.32 0.36
Copper concentrates
produced
('000 tonnes) 37.3 36.2 30.2 29.9 23.0 108.0 83.1
Contained copper in
concentrates:
Saleable production
('000 tonnes) 14.3 13.8 11.9 10.5 8.4 41.4 30.7
Sales
('000 tonnes)(a) 10.4 10.5 10.4 8.9 5.9 34.2 25.2
Contained gold in
concentrates:
Saleable production
('000 ounces) 8.7 10.8 11.3 10.1 11.0 30.7 32.4
Sales
('000 ounces) (a) 6.1 8.2 10.4 7.7 6.6 23.5 24.7
(a) Rio Tinto's 80% share of material from the Joint Venture.
Production for the third quarter of 2002 was affected when a skip door
failed to close and latch as it left the head frame causing material to be
discharged into the shaft. A 16-day delay to underground production was
incurred as a result, though mill feed was supplemented from lower grade
open cut stockpiles. Further drawpoints in the block cave were closed as
the overall grade profile continues to decline. Production from the
current cave is expected to be completed in early 2003.
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) 4,056 3,555 2,558 2,005 2,722 10,967 7,285
Average ore grade:
copper (%) 0.70 0.72 0.77 0.66 0.54 0.63 0.65
Copper concentrates
produced
('000 tonnes) 72.8 66.3 55.8 35.9 40.5 167.2 132.3
Average concentrate
grade:
copper (%) 35.0 34.3 31.4 31.2 29.9 33.2 30.9
Copper in
concentrates
('000 tonnes) 25.5 22.8 17.5 11.2 12.1 55.6 40.9
Palabora smelter/refinery
New concentrate
smelted on site
('000 tonnes) 86.9 70.7 65.7 64.5 68.7 239.7 198.8
New copper anodes
produced
('000 tonnes)(b) 22.9 16.7 17.8 23.1 22.5 68.3 63.4
Refined new copper
produced
('000 tonnes) 20.1 22.2 16.2 22.0 23.0 64.7 61.2
By-products:
Magnetite concentrate
('000 tonnes) 55 59 51 49 31 142 132
Uranium oxide
(tonnes) 8 - - - - 31 -
Baddeleyite (several grades)
('000 tonnes) 1.0 - - - - 4.0 -
Refined nickel sulphate
(tonnes) 38 74 73 88 67 171 228
Vermiculite Plant
Vermiculite produced
('000 tonnes) 47.2 42.1 44.0 57.1 62.5 118.1 163.6
(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 production rose during the quarter on account of
increased ore production from the underground mine and higher processing
rates of slag, reverts and low grade stockpiled copper concentrate. This
was partially offset by reduced availability of ore from the open pit
following its closure at the end of April although a ramp scavenging
exercise in the Open Pit is progressing well. Anode copper production
remained steady despite a further reduction in concentrate grade caused by
increased reliance upon low grade stockpiles, slag and marginal ore dumps.
Magnetite production met customer demand. Vermiculite production was
higher than in the equivalent quarter of 2001, due to higher availability
of plant and heavy equipment. Uranium and baddeleyite production ceased
with the closure of the heavy minerals plant in August 2001.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 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) 144 153 157 151 159 440 466
Average ore grades:
Gold (g/t) 6.82 5.57 5.81 4.74 6.33 5.98 5.64
Silver (g/t) 24.63 5.94 3.16 3.16 2.79 11.29 3.03
Copper (%) 0.38 0.47 0.44 0.28 0.21 0.42 0.31
Lead (%) 1.01 0.50 0.29 0.21 0.22 0.91 0.24
Zinc (%) 2.08 0.77 0.42 0.19 0.35 1.66 0.32
Bullion produced
('000 ounces) 41 25 27 23 32 95 82
Containing:
Gold
('000 ounces) 25 23 25 18 29 69 72
Silver
('000 ounces) 14 1 2 3 5 23 9
Gold recovered in
concentrates
('000 ounces) 3 2 2 2 1 7 5
Total gold production
('000 ounces) 28 25 27 20 30 76 77
Bullion sales
(fine gold)
('000 ounces) 25 23 27 18 26 68 71
Copper in concentrate ('000 tonnes):
Production 0.1 0.2 0.2 0.1 0.0 0.7 0.4
Sales - 1.1 - - 0.8 - 0.8
Lead/zinc in concentrate ('000 tonnes):
Production 1.1 0.2 - - - 4.4 -
Sales 0.6 1.4 0.9 - - 4.7 0.9
A ramp up in production from the New Occidental development improved gold
grades and allowed additional mill throughput with an improved feed
consistency.
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) 4,115 4,567 4,692 4,722 4,406 11,921 13,820
Average ore grade:
gold (g/t) 0.43 0.42 0.48 0.49 0.55 0.46 0.51
Refined gold
produced
('000 ounces) 46 47 55 59 59 140 173
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) - - - - - 499 -
Average ore grade:
gold (g/t) - - - - - 1.39 -
Total gold produced
('000 ounces) - - - - - 5 -
Patchway mine (a)
Ore treated
('000 tonnes) 25 24 23 21 24 73 68
Average ore grade:
gold (g/t) 4.88 4.62 4.41 3.47 2.53 4.45 3.46
Total gold produced
('000 ounces) 4 3 3 2 2 9 7
Renco mine
Ore treated
('000 tonnes) 67 69 61 65 63 194 189
Average ore grade:
gold (g/t) 6.84 5.95 5.03 4.68 3.95 7.10 4.55
Total gold produced
('000 ounces) 13 11 8 9 7 39 24
Total Rio Tinto Zimbabwe
Total gold produced
('000 ounces) 17 14 11 11 9 53 31
(a) Includes low grade material.
Production ceased at Cam Dump in June 2001.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 2002 2002 2001 2002
Somincor
Total production at the Neves Corvo mine (Rio Tinto 49%) in Portugal.
(100% basis)
Neves Corvo mine
Total ore treated
('000 tonnes)
(a) 406 484 453 475 406 1,537 1,333
Of which, treated to
extract tin
('000 tonnes) 49 25 8 7 - 165 14
Average ore grades:
Copper (%) 4.95 5.07 4.85 5.26 4.87 4.73 5.00
Tin (%) 1.80 1.21 4.52 2.09 - 1.63 3.38
Copper production:
Copper concentrates
produced
('000 tonnes) 72.1 88.1 74.6 90.8 72.3 256.2 237.7
Copper concentrate
grade:
copper (%) 23.9 24.2 24.8 24.3 23.9 24.0 24.3
Copper in concentrates
produced
('000 tonnes) 17.2 21.3 18.5 22.1 17.3 61.6 57.8
Tin production:
Tin concentrates
produced
('000 tonnes) 0.7 0.2 0.4 0.1 - 1.9 0.5
Tin concentrate
grade: tin (%) 58.7 61.0 62.2 60.5 - 56.9 61.8
Tin in concentrates
produced
('000 tonnes) 0.4 0.1 0.3 0.1 - 1.1 0.3
(a) Total ore treated for both copper and tin production. Tin production
was discontinued in the third quarter of 2002 due to the low availability
of economically recoverable ore.
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 2,669 2,524 2,501 2,519 2,558 7,789 7,578
Alluvial ore 999 980 882 780 851 3,210 2,514
Total ore
processed 3,668 3,504 3,383 3,299 3,409 10,999 10,092
Diamonds recovered
('000 carats):
AK1 7,808 7,739 5,878 8,241 8,599 17,485 22,718
Alluvial 239 206 277 174 414 667 865
Total
recovered 8,048 7,945 6,155 8,415 9,013 18,152 23,583
(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 and carats produced from the AK1 pit was in line with
previous quarters. 2002 alluvial carat production reflected the
processing of high grade ore blocks compared with 2001.
Merlin
Rio Tinto share of production from the Merlin mine (Rio Tinto 100%) in
the Northern Territory, Australia.
Ore processed
('000 tonnes) 141 135 191 195 184 296 570
Diamonds
Recovered
('000 carats) 13 20 34 22 33 35 90
Ore processed was in line with previous quarters. Carats recovered were
higher than in the previous quarter, reflecting a return to higher grade
ore in accordance with planned mining sequence.
IRON ORE
3Q 4Q 1Q 2Q 3Q 9 MTHS 9MTHS
2001 2001 2002 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 15,748 15,149 14,653 14,078 15,711 43,679 44,442
Channar 2,704 3,215 2,528 2,409 2,423 7,873 7,361
Total
production 18,452 18,364 17,181 16,487 18,134 51,552 51,803
Total shipments
('000 tonnes) 16,710 16,831 13,179 16,984 19,284 48,526 49,446
Although third quarter production levels were 1.7% lower year-on-year (Rio
Tinto's share was 1.2% lower year-on-year), nine month production lifted
0.5% to set a new January to September record. Strong demand, particularly
from China, helped establish new shipment levels - the third quarter and
nine month totals were up 11.5% and 2.3% respectively on the previous
record figures set in 2000.
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) 630 717 589 1,568 532 2,287 2,689
Pellets
('000 tonnes) 2,986 2,564 2,647 2,334 1,778 8,994 6,759
Shipments:
Concentrate
('000 tonnes) 727 938 704 869 973 2,477 2,546
Pellets
('000 tonnes) 2,207 2,704 1,370 3,094 3,612 7,018 8,076
Production in the third quarter of 2002 was adversely affected by a five
week shutdown during August. Excluding the effect of the shutdown,
production performance during the quarter continued the improvement
started in the previous quarter. Shipments during the third quarter were
56% higher than the corresponding period last year as a result of
additional sales to existing customers and new business, mainly in
Germany, China and North America. Shipments for the first nine months of
2002 were 12% higher than in the equivalent period last year reflecting
improving market conditions.
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) 206 164 104 201 282 478 587
(a) Production includes by-product fines.
Production increased from 2001 levels due to renegotiation of a contract
with a major customer and new market developments.
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) 8,692 8,263 8,206 6,275 8,186 22,443 22,667
Shipments
('000 tonnes) 9,087 7,582 8,334 7,179 8,848 23,531 24,361
West Angelas mine
Saleable production
('000 tonnes) - - 129 680 1,898 - 2,707
Shipments
('000 tonnes) - - - 131 1,777 - 1,908
The first commercial deliveries from West Angelas boosted production and
shipment totals this quarter. Production and shipments from Pannawonica
were up 30% and 23% respectively on the preceding quarter, although
results for April to June were adversely affected by a maintenance
shutdown in April 2002.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 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) 2,989 1,984 2,063 1,290 510 8,186 3,863
Production decreased from 2001 levels due to low ore availability from
underground, resulting from poor ground conditions leading to an
unscheduled shutdown of the mine. Production has now resumed.
Rio Tinto Zimbabwe
Toll refined metal production at the Empress Nickel refinery (Rio Tinto
56%) in Zimbabwe.
(100% basis)
Empress Nickel refinery
Production
(tonnes) 1,770 1,591 1,683 1,489 1,761 5,044 4,933
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) 1,550 2,035 1,699 1,671 1,883 4,506 5,253
(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) 312 316 323 347 341 953 1,010
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) 359 341 328 318 309 1,086 955
Titanium dioxide feedstock production in the first nine months of 2002 was
below that of the equivalent period of 2001 as production was curtailed in
line with market demand.
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2001 2001 2002 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) 789 1,155 951 977 1,130 3,056 3,058
Rossing Uranium Ltd
Total uranium production at the Rossing Uranium mine (Rio Tinto 68.58%) in
Namibia.
(100% basis)
Production
(tonnes U3O8) 793 674 743 675 846 1,966 2,264
ZINC
Norzink AS
Total refined zinc production at the Norzink smelter (Rio Tinto 0% (a)) in
Norway.
(100% basis)
Production
('000 tonnes) - - - - 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) 195 208 197 188 188 599 573
Average ore grades:
Zinc (%) 8.5 8.7 6.2 6.1 8.0 8.2 6.8
Lead (%) 3.5 3.7 2.8 3.0 5.3 3.6 3.7
Silver (g/t) 83 91 71 69 119 82 86
Production of zinc
concentrate
('000 tonnes) 27.8 30.2 20.0 18.9 24.6 82.4 63.5
Production of lead
concentrate
('000 tonnes) 8.6 8.9 7.2 7.2 13.1 26.1 27.5
Production of
metal in
concentrates:
Zinc
('000 tonnes) 15.1 16.6 11.1 10.4 13.6 45.2 35.1
Lead
('000 tonnes) 5.8 6.1 4.7 4.9 9.2 18.4 18.7
Silver
('000 ounces) 326 427 324 302 545 1,069 1,171
Metal grades improved in the third quarter of 2002 compared with earlier
quarters in 2002. Lead production was particularly strong.
EXPLORATION
Expenditure
Total pre-tax exploration expenditure charged to the profit and loss
account for the quarter ending 30 September 2002 was US$29 million
compared with US$34 million for the comparable quarter of 2001. Total
expenditure for the first nine months of 2002 was US$87 million compared
with US$88 million in the first nine months of 2001.
Ongoing Programmes
Country Commodity Programme Summary
Peru Copper Exploration continued at the Marcona project to
locate additional copper mineralisation near
the known iron oxide copper resource.
USA Copper Drilling continued at the Resolution deep
porphyry copper project in Arizona.
Iran Gold Encouraging results were obtained from drilling
at the Dashkasan gold project.
Turkey Gold Drilling continued at the Copler project to
locate extensions of the known porphyry gold
resource.
Australia Diamonds Exploration drilling has commenced on the
Southern Tail target at the Argyle diamond
mine.
Botswana Diamonds Airborne geophysical surveying was completed
over diamond tenements in the south of
Botswana. Drilling will commence in the fourth
quarter.
Canada Diamonds Exploration continued on kimberlite targets in
Ontario, Nunavut and on Brodeur Peninsula.
Guinea Diamonds Exploration drilling continued at Aredor
project to test a range of kimberlite targets.
India Diamonds Exploration continued on granted reconnaissance
permits in Andhra Pradesh and Karnataka.
Drilling has commenced on a range of kimberlite
targets.
Guinea Iron Ore Delineation drilling was completed at the
Simandou hematite project. Evaluation work will
continue in the fourth quarter.
Mozambique Titanium Delineation drilling continued on heavy mineral
deposits in the south of Mozambique.
This information is provided by RNS
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