3Qtr Production Report-Pt 1
Rio Tinto PLC
25 October 2000
Part 1
Rio Tinto Quarterly Production Report
For the Quarter ending 30 September 2000
Rio Tinto's production of most commodities in the third quarter of 2000
was up substantially on the previous quarter helped by the full ownership
of Comalco Limited and the acquisition of North Limited midway through the
quarter.
*Iron ore production for the quarter was up 39% on the previous
quarter. Much of this increase came from the first contribution from the
iron ore assets of North but Hamersley Iron's production at 17.4 million
tonnes was up 13% compared with the previous quarter. Hamersley Iron
shipped a record 17.3 million tonnes during the quarter.
*Aluminium production was up 20% on the previous quarter and was also
up 20% for the year to date compared with the same period in 1999
reflecting full ownership of Comalco and continuing strong performance at
all the smelters.
*Copper mined production was 9% higher than the previous quarter,
helped by higher production at Escondida, Chile and Grasberg, Indonesia.
*Coal production was 11% higher than the previous quarter, mainly due
to higher production in the US. However, coal production for the first
nine months of 2000 was 7% lower than the same period in 1999.
*Gold production increased by 13% compared with the previous quarter
due to higher grades at Kennecott Utah Copper, US and higher production at
Kelian, Indonesia.
*Borate production increased by 19% in the quarter, primarily
reflecting the timing of maintenance and resulting in a 3% increase year
to date compared with 1999. Titanium dioxide feedstock production
increased by 10% during the quarter after the reinstatement of full
production capability following completion of repairs to the furnace at
QIT, Canada which was damaged in 1999, although the year to date
production is 7% lower than the same period in 1999.
For further information contact:
Media Relations Investor Relations
Lisa Cullimore Peter Jarvis
+44 (0) 20 7753 2305 +44 (0) 20 7753 2401
Website: www.riotinto.com
RIO TINTO PRODUCTION SUMMARY
RIO TINTO share of production
% Change
Quarter 9 Months Q300 Q300 9 Mths00
1999 2000 2000 1999 2000 vs vs vs
Q3 Q2 Q3 Q200 Q399 9 Mths99
Principal Commodities
Copper - mined
('000 t) 213.2 204.1 223.0 648.0 631.6 9% 5% -3%
Copper - refined
('000 t) 99.7 88.2 99.1 283.9 285.6 12% -1% 1%
Gold - mined
('000
ozs) 770 589 664 2,202 1,893 13% -14% -14%
Gold - refined
('000
ozs) 86 110 102 251 293 -7% 20% 17%
Iron ore
('000 t) 13,785 14,630 20,343 38,241 49,294 39% 48% 29%
Coal
('000 t) 36,073 30,769 34,296 103,273 96,309 11% -5% -7%
Aluminium
('000 t) 141.6 161.4 193.5 414.2 497.4 20% 37% 20%
Borates
('000 t) 141 135 161 428 441 19% 14% 3%
Titanium dioxide
feedstock
('000 t) 347 310 341 1,078 1,000 10% -2% -7%
Other Metals & Minerals
Bauxite
('000 t) 2,055 2,657 3,101 6,208 7,894 17% 51% 27%
Alumina
('000 t) 303 363 430 881 1,093 19% 42% 24%
Diamonds
('000 cts) 4,720 4,494 4,034 13,300 12,510 -10% -15% -6%
Lead - mined
('000 t) 5.4 3.6 7.6 16.1 14.7 111% 40% -9%
Molybdenum
('000 t) 1.3 3.0 2.5 4.8 7.8 -19% 97% 65%
Nickel in matte
(tonnes) 2,620 2,170 1,333 6,517 6,064 -39% -49% -7%
Nickel - refined
(tonnes) 1,010 939 1,047 2,970 2,960 12% 4% 0%
Salt
('000 t) 835 869 742 2,490 2,275 -15% -11% -9%
Silver - mined
('000 ozs) 4,099 3,450 3,550 11,880 10,444 3% -13% -12%
Silver - refined
('000 ozs) 1,160 709 912 3,516 2,397 29% -21% -32%
Talc
('000 t) 321 315 323 955 959 3% 1% 0%
Tin
(tonnes) 448 275 187 908 572 -32% -58% -37%
Uranium
(tonnes) 567 507 954 1,712 2,028 88% 68% 18%
Zinc - mined
('000 t) 19.2 11.2 24.2 57.4 45.3 115% 26% -21%
Zinc - refined
('000 t) 21.6 16.5 17.6 63.7 51.9 7% -19% -19%
NB Throughout this report, figures in italics indicate adjustments made
since the figure was previously quoted on the equivalent page.
The figures shown for production are sometimes more precise than the
rounded numbers shown, hence small differences may result between the
total of the quarter figures and the nine months figures.
PRINCIPAL COMMODITIES
Rio Tinto Share of Production
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
Interest 1999 1999 2000 2000 2000 1999 2000
COPPER
Mine production
('000 tonnes)
Kennecott
Utah Copper
100% 67.2 63.7 69.7 74.1 70.5 215.6 214.2
Grasberg -
FCX (a)
14% 21.7 20.5 18.5 17.5 23.3 63.8 59.3
Grasberg -
Joint Venture (a)
40% 23.1 27.4 24.5 23.1 24.8 67.9 72.5
Escondida
30% 75.8 71.4 67.0 63.7 70.9 228.3 201.6
Neves Corvo
49% 12.3 11.8 11.9 11.7 8.1 37.5 31.7
Palabora
46% 12.9 17.0 13.0 13.9 15.1 35.0 42.0
Alumbrera (b)
25% - - - - 5.0 - 5.0
Northparkes (b)
80% - - - - 5.2 - 5.2
Rio Tinto total
mine production 213.2 211.8 204.5 204.1 223.0 648.0 631.6
Refined production ('000 tonnes)
Kennecott
Utah Copper
100% 69.2 70.3 69.9 61.1 65.8 195.1 196.8
Atlantic Copper (a)
16% 8.8 9.5 9.7 9.9 10.6 27.2 30.2
Escondida
30% 10.4 10.5 10.5 10.5 10.4 29.0 31.4
Palabora
46% 11.3 13.9 8.3 6.7 12.2 32.6 27.2
Rio Tinto total
refined production 99.7 104.3 98.3 88.2 99.1 283.9 285.6
At the end of the quarter, the Group had provisionally priced sales of
copper in concentrates and intermediate product as follows:
Million lbs of payable copper:
Kennecott
100% - - - 11 5 - 5
Grasberg (a)
14% 40 56 58 45 54 40 54
Escondida
30% 96 104 115 100 99 96 99
Neves Corvo
49% 9 9 11 9 9 9 9
Northparkes (b)
80% - - - - 6 - 6
Rio Tinto total 145 169 184 165 173 145 173
Priced at US
c/lb average 81 84 78 81 88 81 88
GOLD
Mine production ('000 ounces)
Kennecott
Utah Copper
100% 95 88 111 142 154 278 407
Barneys Canyon
100% 25 43 33 35 37 69 105
Grasberg -
FCX (a)
14% 83 72 59 48 54 236 161
Grasberg -
Joint Venture (a)
40% 140 196 113 87 88 437 288
Escondida
30% 12 10 10 8 11 35 29
Alumbrera (b)
25% - - - - 19 - 19
Rawhide
51% 16 14 14 14 14 44 41
Ridgeway
100% 26 12 - - - 69 -
Cortez/Pipeline
40% 143 127 125 86 76 404 286
Greens Creek
70% 14 12 15 15 13 44 44
Peak
100% 33 38 32 35 37 102 104
Northparkes (b)
80% - - - - 2 - 2
Morro do Ouro
51% 26 28 30 30 28 69 88
Kelian
90% 111 102 68 55 93 294 216
Lihir (c)
16% 32 28 20 23 25 79 68
Rio Tinto Zimbabwe
56% 10 10 9 10 11 30 30
Others (d) 5 6 2 1 2 10 5
Rio Tinto total
mine production 770 785 640 589 664 2,202 1,893
Refined production
('000 ounces)
Kennecott
Utah Copper
100% 86 96 80 110 102 251 293
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.
See footnotes on page 6.
IRON ORE
Production ('000 tonnes)
Hamersley
100% 11,778 11,780 12,618 12,978 14,642 33,207 40,238
Channar
60% 1,772 1,705 1,556 1,479 1,639 4,361 4,675
Robe River (b)
53% - - - - 2,560 - 2,560
Iron Ore Company
Of Canada (b)
56% - - - - 1,221 - 1,221
Corumba
100% 235 94 147 173 281 673 600
Rio Tinto
total mine production 13,785 13,579 14,321 14,630 20,343 38,241 49,294
PRINCIPAL COMMODITIES (continued)
Rio Tinto Share of Production
Coal 3Q 4Q 1Q 2Q 3Q 9 MTHS 9MTHS
Interest Type 1999 1999 2000 2000 2000 1999 2000
COAL
US coal operations
('000 tonnes)
Kennecott Energy:
Antelope
100% S 5,548 5,258 5,076 5,035 5,486 15,321 15,597
Colowyo (e)
100% S 1,197 1,417 1,168 1,225 1,268 3,636 3,661
Cordero Rojo
100% S 10,352 11,129 8,899 7,204 9,018 30,307 25,121
Decker 50% S 1,253 1,574 1,056 1,148 1,220 3,403 3,424
Jacobs Ranch
100% S 6,416 7,016 5,726 5,965 7,352 19,355 19,043
Spring Creek
100% S 2,490 2,495 2,650 2,668 2,397 7,480 7,715
Total US coal 27,256 28,889 24,575 23,245 26,741 79,502 74,561
Australian coal operations ('000 tonnes)
Pacific Coal:
Blair Athol (f)
71% S 2,088 1,817 1,733 1,848 1,877 6,098 5,458
Kestrel Coal (g)
80% S 183 171 176 246 256 253 678
80% M 503 284 348 472 532 599 1,352
Tarong Coal
100% S 1,325 1,176 1,256 1,049 1,268 3,941 3,573
Coal & Allied Industries:
Hunter Valley
Operations (h)
71% S 1,257 829 869 1,101 1,011 3,454 2,982
71% M 661 443 546 637 424 1,675 1,607
Mount Thorley
57% S 336 253 246 239 368 999 853
57% M 348 294 348 273 306 1,091 926
Total Australian coal 6,701 5,267 5,522 5,865 6,042 18,110 17,429
Indonesian coal operations ('000 tonnes)
Kaltim Prima
Coal (i)
50% S 2,018 1,631 1,146 1,660 1,514 5,376 4,319
South American coal operations ('000 tonnes)
Carbones
del Cerrejon (j)
0% S 98 118 - - - 285 -
Rio Tinto total
coal production 36,073 35,904 31,243 30,769 34,296 103,273 96,309
BAUXITE/ALUMINA/ALUMINIUM
Bauxite ('000 tonnes)
Weipa (k)
100% 2,016 2,170 2,011 2,513 2,990 6,018 7,515
Boke (k)
4% 38 128 125 144 111 189 380
Rio Tinto total
bauxite production 2,055 2,298 2,137 2,657 3,101 6,208 7,894
Alumina ('000 tonnes)
Queensland
Alumina (k)
30% 201 202 198 246 284 590 727
Eurallumina (k)
56% 103 102 103 117 146 291 366
Rio Tinto total
Alumina production 303 304 301 363 430 881 1,093
Aluminium ('000 tonnes)
Comalco (k)
100% 124.3 125.9 124.7 143.4 175.5 362.0 443.6
Anglesey
51% 17.3 17.7 17.8 18.0 18.0 52.2 53.8
Rio Tinto total
aluminium production 141.6 143.6 142.5 161.4 193.5 414.2 497.4
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 selable quantities of ore plus pellets.
Key to coal type: S = Steaming/thermal coal, M = Metallurgical/coking
coal
BORATES
Borates ('000 tonnes B2O3 content)
Rio Tinto total
borate production
100% 141 132 145 135 161 428 441
TITANIUM DIOXIDE FEEDSTOCK
Production ('000 tonnes)
Rio Tinto Iron
& Titanium
100% 347 350 349 310 341 1,078 1,000
OTHER METALS & MINERALS
Rio Tinto Share of Production
3Q 4Q 1Q 2Q 3Q 9 MTHS 9MTHS
Interest 1999 1999 2000 2000 2000 1999 2000
DIAMONDS
Production ('000 carats)
Argyle
60% 4,720 4,430 3,983 4,494 4,034 13,300 12,510
LEAD
Mine production ('000 tonnes)
Greens Creek
70% 3.9 3.1 3.5 3.6 3.7 11.4 10.8
Zinkgruvan (b)
100% - - - - 3.9 - 3.9
Others (d) - 1.5 1.6 - - - 4.8 -
Rio Tinto
Total mine
Production 5.4 4.7 3.5 3.6 7.6 16.1 14.7
MOLYBDENUM
Mine production ('000 tonnes)
Kennecott Utah
Copper
100% 1.3 1.6 2.3 3.0 2.5 4.8 7.8
NICKEL
Nickel in matte (tonnes)
Fortaleza
100% 2,620 2,928 2,561 2,170 1,333 6,517 6,064
Toll refined metal production (tonnes)
Rio Tinto
Zimbabwe - Empress
56% 1,010 968 973 939 1,047 2,970 2,960
SALT
Production ('000 tonnes)
Dampier
65% 835 920 665 869 742 2,490 2,275
SILVER
Mine production ('000 ounces)
Kennecott
Utah Copper
100% 959 886 916 952 1,066 2,972 2,934
Grasberg - FCX (a)
14% 147 147 128 122 159 416 410
Grasberg -
Joint Venture (a)
40% 194 133 75 48 47 304 171
Escondida
30% 256 215 231 265 258 842 754
Greens Creek
70% 1,810 1,902 1,758 1,779 1,390 5,312 4,927
Zinkgruvan (b)
100% - - - - 271 - 271
Others (d)
- 733 810 335 283 359 2,033 977
Rio Tinto total
mine production 4,099 4,093 3,443 3,450 3,550 11,880 10,444
Refined production ('000 ounces)
Kennecott
Utah Copper
100% 1,160 775 776 709 912 3,516 2,397
Mine production figures for metals refer to the total quantity of metal
produced in concentrates or dore bullion irrespective of whether these
products are then refined on-site. The nickel in matte production reflects
the contained tonnage of nickel. See footnotes on page 6.
TALC
Production ('000 tonnes)
Luzenac Group
99.9% 321 313 321 315 323 955 959
TIN
Mine production (tonnes)
Neves Corvo
49% 448 150 109 275 187 908 572
OTHER METALS & MINERALS (continued)
Rio Tinto Share of Production
3Q 4Q 1Q 2Q 3Q 9 MTHS 9MTHS
Interest 1999 1999 2000 2000 2000 1999 2000
URANIUM
Production (tonnes U3O8)
Rossing 69% 557 493 561 498 563 1,682 1,622
Palabora 46% 10 11 7 9 16 31 31
Energy Resources
Of Australia (b)
68% - - - - 375 - 375
Rio Tinto total
uranium production 567 504 567 507 954 1,712 2,028
ZINC
Mine production ('000 tonnes)
Greens Creek
70% 10.5 8.6 9.9 11.2 11.4 31.5 32.5
Zinkgruvan (b)
100% - - - - 12.8 - 12.8
Others(d) - 8.6 8.5 - - - 25.9 -
Rio Tinto total
Mine production 19.2 17.1 9.9 11.2 24.2 57.4 45.3
Refined production ('000 tonnes)
Norzink 50% 18.2 17.9 17.8 16.5 17.6 54.2 51.9
Others (d) - 3.5 3.4 - - - 9.5 -
Rio Tinto total
refined zinc production 21.6 21.2 17.8 16.5 17.6 63.7 51.9
Wood Fibre
Production ('000 tonnes)
North Forest
Products (b) 100% - - - - 509 - 509
(a) Rio Tinto's initial interests in the Grasberg mine and in the
Atlantic Copper smelter were acquired in 1995 by virtue of an acquisition
of shares in Freeport-McMoRan Copper & Gold (FCX). As a result of FCX
share buy-backs, Rio Tinto's interest in FCX has changed and, as of 30
September 2000, Rio Tinto had, by virtue of its FCX shareholding, a 13.8%
share in Grasberg and a 16.1% share in Atlantic Copper. Under the Joint
Venture agreement with FCX, Rio Tinto is entitled to 40% of additional
material mined as a consequence of the expansion of the Grasberg
facilities. The additional entitlement is shown separately in the above
tables.
(b) Rio Tinto's share of production from the assets owned by North
Limited is shown with effect from 11 August 2000, the effective date of
the acquisition.
(c) Effective 14 February 2000, Rio Tinto's interest in Lihir decreased
from 17.15% to 16.3% following a placement of shares by Lihir Gold.
(d) Up until 31 December 1999, the above table included Rio Tinto's share
of production from its one third interest in Minera S.A. This was sold at
the end of 1999.
(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) On 10 January 1999, Rio Tinto increased its beneficial interest in
the Blair Athol mine from 57.2% to 71.2%.
(g) Rio Tinto acquired Kestrel Coal, formerly Gordonstone, in February
1999 and production commenced in June 1999.
(h) With effect from 1 July 1999, Coal & Allied purchased the Rio Tinto
coal interests in New South Wales that were previously held under the
Novacoal name. Coal & Allied also purchased Mitsubishi Development Pty
Ltd's 40% interest in the Howick mine. The restructuring of Coal &
Allied's shareholdings left Rio Tinto with a 70.9% interest. Rio Tinto's
share of production for quarters prior to 1 July 1999 is reported in line
with the pre-merger shareholdings.
(i) 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.
(j) Rio Tinto disposed of its interest in Carbones del Cerrejon in early
January 2000.
(k) Rio Tinto progressively increased its interest in Comalco from 70.4%
to 72.4% during the first half of 1999. During the first half of 2000,
Rio Tinto offered to acquire all the shares in Comalco and now holds 100%.
Rio Tinto's share of production has been calculated using the weighted
average of Rio Tinto's interest over the relevant periods.
COPPER & GOLD
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
1999 1999 2000 2000 2000 1999 2000
Kennecott Utah Copper
Total production at Kennecott's Bingham Canyon mine, smelter and refinery
(Rio Tinto 100%) and Barneys Canyon mine (Rio Tinto 100%) in Utah, US.
Bingham Canyon Mine
Ore treated
('000 tonnes) 14,523 13,191 15,440 14,281 13,839 43,303 43,560
Average ore grade:
Copper (%) 0.53 0.53 0.52 0.58 0.58 0.56 0.56
Gold (g/t) 0.30 0.30 0.32 0.47 0.54 0.29 0.44
Silver (g/t) 2.85 2.67 2.54 2.78 3.09 2.91 2.78
Molybdenum
(%) 0.031 0.031 0.035 0.050 0.043 0.034 0.043
Copper concen-
trates produced
('000 tonnes) 257 248 275 262 274 803 811
Average concentrate
grade (% Cu) 25.7 25.5 25.2 28.1 25.6 26.3 26.3
Production of metals in copper concentrates:
Copper
('000 tonnes)
(a) 67.2 63.7 69.7 74.1 70.5 215.6 214.2
Gold
('000 ounces) 95 88 111 142 154 278 407
Silver
('000 ounces) 959 886 916 952 1,066 2,972 2,934
Molybdenum concentrates
produced
('000 tonnes): 2.4 2.9 4.3 5.4 4.5 8.9 14.2
Molybdenum in
concentrates
('000 tonnes) 1.3 1.6 2.3 3.0 2.5 4.8 7.8
Kennecott Smelter & Refinery
Copper concentrates
smelted
('000 tonnes) 300 266 279 246 251 800 776
Copper anodes produced
('000 tonnes)
(b) 72.5 66.8 70.5 58.0 66.3 198.4 194.9
Production of refined metal:
Copper
('000 tonnes) 69.2 70.3 69.9 61.1 65.8 195.1 196.8
Gold
('000 ounces) (c) 86 96 80 110 102 251 293
Silver
('000 ounces) (c) 1,160 775 776 709 912 3,516 2,397
(a) Includes a small amount of copper in precipitates.
(b) New metal excluding recycled material.
(c) Includes gold and silver in intermediate products.
In the third quarter of 2000, production of all metals in concentrate
exceeded the third quarter of 1999, primarily due to higher ore grade.
Compared with the second quarter of 2000, gold and silver production was
greater mainly due to higher ore grade, conversely, copper and molybdenum
output was lower largely as a result of lower ore grade and harder ore.
Smelter copper output was lower in the third quarter of 2000 compared with
the third quarter of 1999 primarily due to acid plant availability.
Compared with the second quarter of 2000, production was slightly higher.
In the third quarter of 2000, refined gold production compared with the
third quarter of 1999, was higher mainly due to higher ore grade. Refined
silver in the third quarter of 2000 was lower than the third quarter of
1999 primarily due to lower smelter anode copper production and timing of
production from intermediate products. Compared with the second quarter
2000, refined silver output was better largely due to timing of production
from intermediate products.
Barneys Canyon Mine
Ore treated
('000 tonnes) 676 542 461 599 649 1,789 1,709
Average ore grade:
Gold (g/t) 2.31 3.69 2.44 2.99 3.44 1.98 3.02
Gold produced in
dore and concentrates
('000 ounces) 25 43 33 35 37 69 105
Gold production in the third quarter of 2000 was higher than the third
quarter of 1999 and second quarter of 2000, principally due to higher ore
grade.
Freeport-McMoRan Copper & Gold
Total production and sales at the Grasberg mine (Rio Tinto 13.8% (a)) in
Papua, Indonesia, and the Atlantic Copper smelter (Rio Tinto 16.1%) in
Spain.
(100% basis)
Grasberg Mine
Ore treated
('000 tonnes) 20,410 20,468 21,073 19,885 20,377 60,093 61,335
Average mill head grades:
Copper (%) 1.11 1.09 0.94 0.94 1.09 1.14 0.99
Gold (g/t) 1.40 1.37 0.99 0.86 0.89 1.37 0.91
Silver (g/t) 2.74 2.69 2.83 2.72 2.62 2.81 2.72
Production of metals in concentrates:
Copper in
concentrates
('000 tonnes) 196.0 190.2 169.6 158.2 195.2 576.3 523.0
Gold in
concentrates
('000 ounces) 804 766 574 457 485 2,320 1,516
Silver in
concentrates
('000 ounces) 1,365 1,301 1,082 992 1,210 3,616 3,284
Sales of payable metals
in concentrates: (b)
Copper in
concentrates
('000 tonnes) 187.1 198.1 162.4 136.2 202.1 549.3 500.7
Gold in
concentrates
('000 ounces) 788 795 551 408 517 2,252 1,476
Silver in concentrates
('000 ounces) 1,043 1,061 824 684 993 2,768 2,501
(a) See note (a) on page 6 for details of Rio Tinto's 13.8% interest in
Grasberg and 40% interest in the expansion.
(b) Net of smelter deductions.
In the third quarter of 2000,production of copper and gold in concentrates
increased compared with the second quarter of 2000 due largely to an
increase in ore throughput and higher ore grades. Gold production in the
third quarter was below that achieved in the corresponding period of 1999
due to significantly lower gold ore grades.
Atlantic Copper
Concentrate smelted
('000 tonnes) 230.9 254.8 244.7 238.5 245.2 694.6 728.4
Copper anodes
produced
('000 tonnes) (c) 70.0 79.4 80.9 76.1 74.5 214.1 231.5
Copper cathodes
produced
('000 tonnes) 60.6 65.5 65.2 65.6 66.8 187.0 197.6
Copper cathode
sales
('000 tonnes) (d) 62.1 65.7 62.2 66.7 65.0 187.6 193.9
(c) New metal excluding recycled material.
(d) Refers to copper cathode and wire rod sales.
Minera Escondida Limitada
Total production at the Escondida mine (Rio Tinto 30%) in Chile.
(100% basis)
Escondida Mine
Sulphide ore treated
('000 tonnes) 11,510 11,678 11,484 11,528 12,358 34,335 35,370
Average copper
grade (%) 2.06 1.84 1.99 1.83 1.85 2.12 1.89
Mill production (metals in concentrates):
Contained copper
('000 tonnes) 206.7 187.1 203.8 184.6 197.4 639.7 585.7
Contained gold
('000 ounces) 39 32 32 28 38 118 98
Contained silver
('000 ounces) 854 718 771 883 859 2,807 2,513
Oxide ore treated
('000 tonnes) 3,777 4,020 1,796 2,813 3,740 10,718 8,349
Average copper
grade (%) 1.22 1.26 1.08 0.99 1.04 1.13 1.03
Contained copper in
leachate/mined material
('000 tonnes) 46 51 19 28 39 121 86
Refined production:
Oxide plant
production
('000 tonnes) 34.6 35.1 34.9 35.0 34.7 96.7 104.7
Ore treated for the nine months to September was comparable with 1999,
however contained copper declines with the planned decrease in ore grade.
Contained gold and silver were also down. The decline in oxide ore
processed in the first nine months of 2000 reflected a slow first quarter
where buffer stocks or crushed ore on the pads exceeded leach
requirements. The oxide plant continued to produce consistently at 140,000
tonnes per annum capacity.
Somincor
Total production at the Neves Corvo mine (Rio Tinto 49%) in Portugal.
(100% basis)
Neves Corvo Mine
Total ore treated
('000
tonnes)(a) 592 517 499 538 402 1,693 1,439
Of which, treated to
extract tin
('000 tonnes) 97 55 64 80 63 1,693 1,439
Average ore grades:
Copper (%) 4.95 5.20 5.47 5.14 4.77 5.10 5.15
Tin (%) 1.43 1.25 1.18 1.83 1.64 1.28 1.55
Copper production:
Copper concentrates
produced
('000 tonnes) 104.4 101.1 102.7 99.7 68.7 316.7 271.2
Copper concentrate
grade
(% copper) 24.1 23.8 23.7 23.9 24.0 24.2 23.9
Copper in concentrates
produced
('000 tonnes) 25.2 24.0 24.3 23.9 16.5 76.5 64.7
Tin production:
Tin concentrates
produced
('000 tonnes) 1.8 0.6 0.4 1.0 0.7 3.7 2.2
Tin concentrate
grade (% tin) 49.9 53.2 50.5 54.2 52.0 50.4 52.7
Tin in concentrates
produced
('000 tonnes) 0.9 0.3 0.2 0.6 0.4 1.9 1.2
(a) Total ore treated for both copper and tin production.
The quarter's production was affected by a planned maintenance shutdown in
July and a shaft motor failure in September.
COPPER & GOLD (continued)
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
1999 1999 2000 2000 2000 1999 2000
Palabora
Total production at the Palabora mine, smelter and refinery (Rio Tinto
46.5%) in South Africa.
(100% basis)
Palabora Mine
Ore treated
('000 tonnes) 7,419 7,053 5,862 6,547 6,814 21,290 19,223
Average ore grade
(copper %) 0.46 0.62 0.59 0.58 0.59 0.42 0.59
Copper concentrates
produced
('000 tonnes) 82.4 108.7 86.9 89.3 101.6 224.7 277.8
Average concentrate
grade
(copper %) 33.8 33.7 32.2 33.6 32.0 33.5 32.6
Copper in concentrates
('000 tonnes) 27.9 36.6 27.9 30.0 32.6 75.3 90.5
Palabora Smelter/Refinery
New concentrate
smelted on site
('000 tonnes) 79.6 80.2 58.9 51.3 87.8 204.9 198.0
New copper anodes
produced
('000 tonnes)(a) 24.7 31.3 17.6 14.6 27.7 69.7 59.9
Refined new copper
produced
('000 tonnes) 24.3 29.9 17.8 14.4 26.3 70.2 58.5
By-products:
Magnetite concentrate
('000 tonnes) 41 70 60 70 60 120 190
Uranium oxide
(tonnes) 21 24 14 19 34 66 67
Baddeleyite (several grades)
('000 tonnes) 2.6 3.1 1.9 2.2 1.6 8.0 5.7
Refined nickel sulphate
(tonnes) 57 106 103 32 46 140 181
Vermiculite Plant
Vermiculite produced
('000 tonnes) 49.4 52.1 39.4 48.0 56.9 156.5 144.3
(a) Contained copper in anodes; anode production includes a small amount
produced from purchased material.
High head-grades associated with the revised mining strategy have improved
concentrate production well above 1999 levels. Operational problems in
the converter and anode sections combined with the smelter shutdown during
June reduced anode output and hence refined copper production.
Nickel sulphate production for the year to date was higher reflecting the
high electrolyte inventory level carried over from December 1999.
Magnetite production was higher for the nine month period in order to meet
market demand.
The drop in baddeleyite feed from the Heavy Minerals Plant due to the
revised copper pit mining strategy and lower feed grades received from
Foskor had a negative effect on gross baddeleyite production during the
third quarter. This flowed through to the other grades of baddeleyite.
This situation is expected to continue for the rest of the year.
Vermiculite production during the third quarter improved substantially,
following the negative effects of excessive rain during the first and
second quarters.
Minera Alumbrera
Production and sales at the Bajo de la Alumbrera mine (25% Rio Tinto (a)
in Argentina.
(100% basis)
Ore treated
('000 tonnes) - - - - 3,835 - 3,835
Average ore grade:
Copper (%) - - - - 0.60 - 0.60
Gold (%) - - - - 0.9 - 0.9
Concentrate produced
('000 tonnes) - - - - 72.1 - 72.1
Copper in concentrates:
Production
('000 tonnes) - - - - 20.0 - 20.0
Sales
('000 tonnes) - - - - 17.7 - 17.7
Production of gold
In concentrates
('000 ounces) - - - - 71.3 - 71.3
Production of gold
In dore
('000 ounces) - - - - 4.4 - 4.4
Total gold sales
('000 ounces) - - - - 65.6 - 65.6
(a) Rio Tinto acquired its interest in Alumbrera as part of the purchase
of North Limited. Production data are shown from 11 August 2000, the
effective date of the acquisition.
COPPER & GOLD (continued)
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
1999 1999 2000 2000 2000 1999 2000
Kennecott Minerals Company
Total production at the mines of Kennecott Minerals Company in the US;
Rawhide (Rio Tinto 51%) in Nevada; Ridgeway (Rio Tinto 100%) in South
Carolina, Cortez/Pipeline (Rio Tinto 40%) in Nevada and Greens Creek (Rio
Tinto 70%)in Alaska.
(100% basis)
Rawhide Mine
Ore treated
('000 tonnes) 1,559 1,427 1,488 1,529 1,477 4,692 4,494
Average ore grades:
Gold (g/t) 0.75 0.99 0.99 0.93 0.75 0.82 0.89
Silver (g/t) 10.2 18.7 13.6 16.0 9.2 9.6 13.0
Metals produced in dore:
Gold
('000 ounces) 31 27 27 27 27 86 81
Silver
('000 ounces) 169 184 235 206 215 467 656
Mill throughput rates varied due to changing ore hardness, maintenance
requirements and haulage distance. Ore grades for both gold and silver
fluctuated as a result of mining sequence. The gold and silver production
reflects delays in recovery from the leach pads due to higher stacking
resulting in intermixing of leach solutions which inhibits high grade
solution segregation.
Ridgeway
Ore treated
('000 tonnes) 871 435 - - - 2,725 -
Average ore grades:
Gold (g/t) 1.18 1.10 - - - 1.10 -
Silver (g/t) 1.1 1.1 - - - 1.1 -
Metals produced in dore:
Gold
('000 ounces) 26 12 - - - 69 -
Silver
('000 ounces) 15 9 - - - 49 -
Gold production ceased in November 1999.
Cortez / Pipeline
Ore treated
Milled
('000 tonnes) 1,022 901 861 772 837 2,934 2,470
Leached
('000 tonnes) 554 725 718 1,458 2,625 2,708 4,801
Sold for roasting
('000 tonnes) - - 13 - 26 - 39
Average ore grade:
gold
Milled(g/t) 11.58 11.94 12.19 9.54 6.52 10.96 9.44
Leached (g/t) 0.86 0.83 0.72 0.62 0.90 0.99 0.79
Sold for
(g/t) roasting - - 15.10 - 19.75 - 18.18
Gold produced
('000 ounces) 358 318 312 214 189 1,011 715
Mill throughput was lower in 2000 as the Cortez Mill (No. 1) was shut down
during the fourth quarter of 1999 with ore being shifted from milling to
leaching. Higher leach recoveries and reduced leaching costs accounted
for the shift. Mining grades temporarily declined, as expected, as mining
moved into a new area. Roast ore sales began in September under an
agreement with AngloGold for processing at their Jerrit Canyon roaster. A
test parcel of roast ore was also sold in the first quarter of 2000.
Greens Creek
Ore treated
('000 tonnes) 131 135 136 142 145 390 423
Average ore grades:
Gold (g/t) 7.31 6.00 7.44 6.97 7.00 7.71 7.13
Silver (g/t) 809 820 747 723 597 808 688
Zinc (%) 14.2 11.4 13.4 13.7 14.1 14.2 13.7
Lead (%) 5.9 4.8 5.3 5.2 5.3 5.9 5.3
Metals produced in concentrates:
Gold
('000 ounces) 20 17 22 21 19 63 62
Silver
('000 ounces) 2,575 2,705 2,500 2,531 1,977 7,556 7,008
Zinc
('000 tonnes) 15.0 12.2 14.1 16.0 16.2 44.8 46.3
Lead
('000 tonnes) 5.5 4.4 5.0 5.1 5.2 16.2 15.3
The mine and mill continued to implement productivity improvements and
consistently exceeded previous throughput rates. Metal grades varied with
the mining sequence. Production was also affected in the third quarter of
2000 as a result of mining in areas with high iron content which had an
adverse affect on recoveries.
Peak Gold Mine
Total production and sales from the Peak Gold mine (Rio Tinto 100%) in New
South Wales, Australia.
Ore treated
('000 tonnes) 152 148 148 147 150 450 445
Average ore grades:
Gold (g/t) 7.11 8.10 6.82 8.04 8.06 7.42 7.64
Silver (g/t) 3.81 4.63 5.22 6.15 5.23 5.62 5.53
Copper (%) 0.56 0.40 0.41 0.36 0.37 0.54 0.38
Lead (%) 0.51 0.85 0.84 0.74 0.79 0.55 0.79
Zinc (%) 0.43 0.87 0.76 0.78 0.99 0.53 0.84
Bullion produced
('000 ounces) 33 38 31 41 39 104 111
Containing:
Gold
('000 ounces) 28 35 28 34 35 92 97
Silver
('000 ounces) 3 3 3 6 4 9 13
Gold recovered in
concentrates
('000 ounces) 4 3 4 1 2 10 7
Total gold production
('000 ounces) 33 38 32 35 37 102 104
Bullion sales
(fine gold)
('000 ounces) 27 31 32 34 30 91 95
Copper in concentrate ('000 tonnes):
Production 0.5 0.3 1.6 0.6 0.2 1.4 2.5
Sales - - - 5.0 - 0.9 5.0
Lead/zinc in concentrate ('000 tonnes):
Production 0.2 1.0 1.7 2.2 1.1 1.1 5.0
Sales 0.8 0.5 - 1.4 1.0 1.2 2.4
Northparkes Joint Venture
Total production and sales at the Northparkes mine (Rio Tinto 80% (a) in
New South Wales, Australia.
(100% basis)
Sulphide ore treated
('000 tonnes) - - - - 692 - 692
Average ore grade:
Copper (%) - - - - 1.07 - 1.07
Gold (g/t) - - - - 0.17 - 0.17
Copper concentrates
Produced
('000 tonnes) - - - - 16.8 - 16.8
Contained copper in
concentrates:
Saleable production
('000 tonnes) - - - - 6.5 - 6.5
Sales
('000 tonnes)(b) - - - - 6.6 - 6.6
Contained gold in
concentrates:
Saleable production
('000 tonnes) - - - - 2.8 - 2.8
Sales
('000 tonnes) (b) - - - - 2.8 - 2.8
(a) Rio Tinto acquired its interest in Northparkes as part of the
purchase of North Limited. Production data are shown from 11 August
2000, the effective date of the acquisition.
(b) Rio Tinto's 80% share of material from the Joint Venture.
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) 4,487 4,853 4,976 4,933 5,051 12,622 14,960
Average ore grade:
gold (g/t) 0.45 0.46 0.47 0.49 0.48 0.45 0.48
Refined gold
produced
('000 ounces) 50 54 59 58 55 135 172
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) 1,900 2,014 1,425 1,044 1,910 5,659 4,379
Average ore grades:
Gold (g/t) 2.62 2.30 2.43 2.53 2.39 2.34 2.44
Silver (g/t) 4.25 4.22 7.96 6.74 6.41 4.16 6.99
Production:
Gold
('000 ounces) 123 113 76 61 103 327 240
Silver
('000 ounces) 87 85 86 55 90 260 231
Sales:
Gold
('000 ounces) 115 122 77 53 102 326 232
Silver
('000 ounces) 90 80 80 - 100 299 180
Gold production was higher this quarter due to the absence of any major
production interruptions. Previous quarters this year were adversely
affected by industrial action (first quarter) and community actions
through roadblocks halting critical supplies to the minesite (second
quarter).
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
1999 1999 2000 2000 2000 1999 2000
Lihir Gold
Total production at the Lihir gold mine (Rio Tinto 16.3%(a)) in Papua New
Guinea.
(100% basis)
Ore treated
('000 tonnes) 841 812 791 841 838 2,099 2,470
Average ore grade:
gold (g/t) 7.38 6.62 5.27 5.64 6.37 7.20 5.77
Gold produced
('000 ounces) (b) 188 166 121 142 152 458 415
(a) Effective 14 February 2000, Rio Tinto's interest in Lihir decreased
from 17.15% to 16.3% following a placement of shares by Lihir Gold.
(b) Gold production represents quantity of gold poured.
Gold production during the first nine months was lower than in the
equivalent period last year due to lower ore grades and scheduled
maintenance.
Rio Tinto Zimbabwe
Total production at Rio Tinto Zimbabwe's gold operations (Rio Tinto 56.0%)
in Zimbabwe.
(100% basis)
Renco Mine
Ore treated
('000 tonnes) 81 74 70 77 77 235 224
Average ore grade:
gold (g/t) 5.33 5.21 5.30 5.74 6.90 5.32 5.83
Total gold produced
('000 ounces) 12 11 10 13 13 35 36
Patchway Mine (a)
Ore treated
('000 tonnes) 25 26 26 25 26 72 77
Average ore grade:
gold (g/t) 5.58 5.34 4.70 4.79 5.67 5.63 5.06
Total gold produced
('000 ounces) 4 4 4 3 5 12 12
Cam Dump Reprocessing
Ore treated
('000 tonnes) 237 226 200 219 249 736 668
Average ore grade:
gold (g/t) 1.21 1.21 1.08 1.08 1.18 1.16 1.12
Total gold produced
('000 ounces) 2 3 2 2 2 6 6
Total Rio Tinto Zimbabwe
Total gold produced
('000 ounces) 18 18 16 17 20 53 53
(a) Includes low grade material.
IRON ORE
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
1999 1999 2000 2000 2000 1999 2000
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 11,778 11,780 12,618 12,978 14,642 33,207 40,238
Channar 2,953 2,841 2,594 2,465 2,732 7,269 7,791
Total
production 14,731 14,621 15,212 15,443 17,374 40,486 48,029
Total shipments
('000 tonnes) 16,485 16,732 15,162 16,870 17,301 42,861 49,333
Hamersley is running at record production and shipment rates; this
reflects the upturn in the Asian steel industry. Iron ore production in
the nine months to September 2000 was 19% higher than for the same period
last year. Shipments over the nine months increased by 15% compared with
the corresponding period of 1999.
Robe River Iron Associates
Total production from the Pannawonica mine (Rio Tinto 53% (a)) in Western
Australia.
(100% basis)
Saleable production
('000 tonnes) - - - - 4,831 - 4,831
Shipments
('000 tonnes) - - - - 5,600 - 5,600
(a) Rio Tinto acquired its interest in Robe River as part of the purchase
of North Limited. Production data are shown from 11 August 2000, the
effective date of the acquisition.
The figures are only given for the period since Rio Tinto took control,
but for reference the third quarter sales increased by 25% compared with
the previous quarter reflecting bouyant market conditions. Production
increased by 5% compared with the corresponding quarter of 1999 due to
increased sales.
Iron Ore Company of Canada
Total production from the Carol Lake operations (Rio Tinto 56.1% (a) in
Labrador, Canada.
(100% basis)
Saleable production:
Concentrates
('000 tonnes) - - - - 567 - 567
Pellets
('000 tonnes) - - - - 1,609 - 1,609
Shipments:
Concentrate
('000 tonnes) - - - - 718 - 718
Pellets
('000 tonnes) - - - - 1,781 - 1,781
(a) Rio Tinto acquired its interest in Iron Ore Company of Canada as part
of the purchase of North Limited. Production data are shown from 11
August 2000, the effective date of the acquisition.
The figures are only given for the period since Rio Tinto took control,
but for reference the third quarter 2000 sales increased by 18% and
production increased by 29% compared with the corresponding quarter last
year due to improved market conditions.
Rio Tinto Brasil Limitada
Total production at the Corumba mine (Rio Tinto 100% (a)) in Corumba, Mato
Grosso do Sul, Brazil.
(100% basis)
Total iron ore
production
('000 tonnes) (a) 235 94 147 173 281 673 600
(a) Production includes by-product fines.
COAL
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
1999 1999 2000 2000 2000 1999 2000
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 (e) on page 6).
(100% basis)
Thermal coal production
('000 tonnes)
Antelope 5,548 5,258 5,076 5,035 5,486 15,321 15,597
Colowyo 1,197 1,417 1,168 1,225 1,268 3,636 3,661
Cordero Rojo 10,352 11,129 8,899 7,204 9,018 30,307 25,121
Decker 2,506 3,148 2,112 2,296 2,439 6,806 6,847
Jacobs Ranch 6,416 7,016 5,726 5,965 7,352 19,355 19,043
Spring
Creek 2,490 2,495 2,650 2,668 2,397 7,480 7,715
Total Kennecott Energy
Total coal
production
('000 tonnes) 28,509 30,463 25,631 24,393 27,960 82,905 77,984
Third quarter 2000 production was slightly lower than in the same period
in 1999. This was primarily due to reduced sales at the Cordero Rojo mine,
as a consequence of lower spot prices experienced in late 1999 and early
2000, and a related decision to reduce production.
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 (i)on page 6).
(100% basis)
Thermal coal:
Production
('000 tonnes) 4,036 3,261 2,292 3,319 3,027 10,752 8,638
Shipments
('000 tonnes) 3,717 3,302 2,562 3,287 2,178 10,713 8,027
Production in the third quarter 2000 was affected by an industrial dispute
in July and August.
COAL (Continued)
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
1999 1999 2000 2000 2000 2000 2000
Pacific Coal
Total production and sales from the Blair Athol mine (Rio Tinto 71.2%
(a)), the Kestrel Coal mine (Rio Tinto 80% (b)) and the Tarong Coal mine
(Rio Tinto 100%) in Queensland, Australia.
(100% basis)
Blair Athol
Thermal coal:
Production
('000 tonnes) 2,931 2,550 2,432 2,594 2,635 8,560 7,662
Sales
('000 tonnes) 2,636 2,885 2,324 2,957 2,639 8,539 7,919
Kestrel Coal
Thermal coal:
Production
('000 tonnes) 229 214 220 307 320 316 847
Sales
('000 tonnes) 64 223 127 158 253 64 539
Coking coal:
Production
('000 tonnes) 629 355 435 590 665 749 1,690
Sales
('000 tonnes) 338 297 506 418 733 338 1,657
Semi-hard coking
coal: (c)
Sales
('000 tonnes) 146 94 265 152 232 146 648
Tarong Coal
Thermal coal:
Production
and sales
('000 tonnes) 1,325 1,176 1,256 1,049 1,268 3,941 3,573
Total Pacific Coal
Total coal
Production
('000 tonnes) 5,114 4,295 4,343 4,540 4,888 13,566 13,772
(a) On 10 January 1999, Rio Tinto acquired an additional 14% beneficial
interest in Blair Athol.
(b) Rio Tinto acquired Kestrel Coal, formerly Gordonstone, in February
1999 and production commenced in June 1999.
(c) Semi-hard coking coal is a mixture of thermal coal and coking coal.
The product mix is customer dependant.
Year to date 2000 production at Blair Athol is below comparative 1999
levels due to problems associated with mining through areas that contain
old underground workings. This has had a flow-on effect on sales.
Kestrel continued to build up its production rate since recommencing
operation in June 1999.
Coal & Allied Industries Limited (a)
Total production and sales from the Hunter Valley Operations (Rio Tinto
71%)and Mount Thorley mine (Rio Tinto 57%), both in New South Wales,
Australia.
(100% basis)
Hunter Valley Operations (b)
Thermal coal
Production
('000 tonnes) 1,773 1,170 1,226 1,554 1,427 5,148 4,207
Coking coal
Production
('000 tonnes) 933 624 771 898 598 2,380 2,267
Mount Thorley
Thermal coal:
Production
('000 tonnes) 593 447 435 423 650 1,766 1,508
Coking coal:
Production
('000 tonnes) 615 520 615 482 540 1,928 1,637
Total Coal & Allied
Total coal
Production
('000 tonnes) 3,914 2,762 3,047 3,357 3,225 11,222 9,629
Total sales
('000 tonnes) (c) 3,722 2,728 2,893 3,616 3,654 10,934 10,163
(a) Effective from 1 July 1999, Coal & Allied purchased the Rio Tinto
Group's coal interests in New South Wales. The restructuring of Coal &
Allied's shareholding left Rio Tinto with a 70.9% interest.
(b) Hunter Valley Operations consist of the now merged Howick and Hunter
Valley mines.
(c) Sales relate only to coal mined by the operation and exclude traded
coal.
Coal production for Hunter Valley Operations in the third quarter of 2000,
when compared with the second quarter of 2000, was limited by major
maintenance on the coal preparation plant and by industrial action. Coal
production, year to date, was lower than in the comparable period of 1999
due to a dispute with a significant domestic customer.
Coal production at Mount Thorley in the third quarter 2000 was higher
compared than in the second quarter 2000, which was affected by industrial
action, wet weather and a planned shutdown of the dragline for 28 days.
COAL (Continued)
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
1999 1999 2000 2000 2000 1999 2000
Carbones del Cerrejon SA
Total production at the Carbones del Cerrejon SA mine (Rio Tinto 0% (a)).
(100% basis)
Carbones del Cerrejon SA
Thermal coal:
Production
('000 tonnes) 295 352 - - - 855 -
(a) Rio Tinto disposed of its interest in Carbones del Cerrejon in early
January 2000.
MORE TO FOLLOW