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 The company news service from the London Stock Exchange

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