Q1 Production Report-Part 2
Rio Tinto PLC
24 April 2001
PART 2
OPERATIONAL DATA
FULL
1Q 2Q 3Q 4Q 1Q YEAR
2000 2000 2000 2000 2001 2000
ALUMINIUM
Anglesey Aluminium
Total production at Anglesey Aluminium (Rio Tinto 51%) in the UK.
(100% basis)
Aluminium hot metal production
('000 tonnes) 35.0 35.3 35.3 38.2 35.3 143.8
Comalco
Total production at Comalco (a) operations; Weipa (Rio Tinto 100%) in
Australia; Boke (Rio Tinto 4%) in Guinea; Eurallumina (Rio Tinto 56.2%) in
Italy; Queensland Alumina (Rio Tinto 30.3%) in Australia; Bell Bay (Rio
Tinto 100%) in Australia; Boyne Island (Rio Tinto 54.2%) in Australia and
Tiwai Point (Rio Tinto 79.4%) in New Zealand.
(100% basis)
Weipa mine, Queensland
Beneficiated bauxite
Production
('000 tonnes) 2,777 3,008 2,990 2,992 2,913 11,767
Metal grade bauxite
shipments
('000 tonnes) 2,729 2,766 3,058 2,965 2,841 11,518
Calcined bauxite
Production
('000 tonnes) 33 36 31 29 33 129
Boke mine
Bauxite production
('000 tonnes) 3,814 3,792 2,447 2,624 3,136 12,677
Eurallumina SpA,
Sardinia
Alumina production
('000 tonnes) 253 249 260 260 244 1,022
Queensland Alumina Limited,
Queensland
Alumina production
('000 tonnes) 900 969 937 956 847 3,762
Bell Bay, Tasmania
Primary aluminium production
('000 tonnes) 37.1 38.8 40.6 40.9 39.3 157.4
Boyne Island, Queensland
Primary aluminium production
('000 tonnes) 127.7 125.0 126.1 126.3 122.5 505.1
Tiwai Point
Primary aluminium production
('000 tonnes) 82.2 81.4 82.7 82.2 81.0 328.4
Sales of aluminium
attributable to Comalco
('000 tonnes) 169.6 182.5 157.7 191.2 155.1 701.0
(a) During the first half of 2000, Rio Tinto offered to acquire all the
shares in Comalco and now owns 100%.
In the first quarter of 2001, bauxite production was impacted by high
rainfall. Alumina production decreased due to scheduled maintenance at
both refineries, including a major maintenance shutdown at Queensland Alumina
in March.
First quarter 2001 aluminium production at the Boyne Island smelter was
adversely affected by a high rate of cell reconstructions on lines 1 and 2.
Aluminium sales for the quarter were reduced, largely due to the timing of
the recognition of sales to the US. Comalco products have been marketed in
the US through Metal Exchange Corporation since the start of 2001. There
is approximately a two month delay between shipment of metal from
Australasia and invoicing to customers.
BORATES
Rio Tinto Borax
Total production at the Boron mine (Rio Tinto 100%) in California, US and
at the Tincalayu, Sijes and Porvenir mines (Rio Tinto 100%) in Argentina.
(100% basis)
Borates
('000 tonnes) (a) 145 135 161 149 148 590
(a) Production is expressed as B2O3 content.
COAL
Coal & Allied Industries Limited (a)
Total production and sales from the Bengalla mine (Rio Tinto 29% (a));
Hunter Valley Operations (Rio Tinto 73% (a)); the Mount Thorley Operations
(Rio Tinto 58% (a)); the Narama mine (Rio Tinto 36% (a)); the Ravensworth
East mine (Rio Tinto 73% (a)) and the Warkworth mine (Rio Tinto 32% (a)),
all in New South Wales, and the Moura mine (Rio Tinto 40% (a)) in
Queensland, Australia.
(100% basis)
Bengalla mine (b)
Thermal coal production
('000 tonnes) - - - - 944 -
Hunter Valley Operations (c)
Thermal coal
production
('000 tonnes) 1,226 1,554 1,437 1,545 1,500 5,762
Semi-soft coking
coal Production
('000 tonnes) 771 898 598 556 1,248 2,823
Mount Thorley Operations
Thermal coal:
production
('000 tonnes) 435 423 650 656 497 2,164
Semi-soft coking
coal Production
('000 tonnes) 615 482 540 588 397 2,225
Moura mine (b)
Thermal coal
production
('000 tonnes) - - - - 370 -
Semi-soft coking
coal production
('000 tonnes) - - - - 492 -
Coking coal
production
('000 tonnes) - - - - 174 -
Narama mine (b)
Thermal coal
production
('000 tonnes) - - - - 399 -
Ravensworth East Mine (b)
Thermal coal
production
('000 tonnes) - - - - 177 -
Wankworth mine (b)
Thermal coal
production
('000 tonnes) - - - - 979 -
Semi-soft coking
coal production
('000 tonnes) - - - - 172 -
Total Coal & Allied
Total coal
production
('000 tonnes) 3,047 3,357 3,225 3,345 7,349 12,974
Total sales
('000 tonnes) (d) 2,893 3,616 3,654 2,989 7,694 13,152
(a) During March 2001, Rio Tinto increased its stake in Coal & Allied from
70.88% to 72.71%. Rio Tinto mine ownership figures stated above are as at
31 March 2001.
(b) Coal & Allied purchased the Australian subsidiaries of the Peabody
Group effective 30 January 2001.
(c) Hunter Valley Operations consist of the merged Howick and Hunter
Valley mines, plus the Lemington mine acquired with effect from 20
December 2000.
(d) Sales relate only to coal mined by the operations and exclude traded
coal.
Total coal production for Hunter Valley Operations increased in the first
quarter of 2001 compared with the fourth quarter of 2000 due to the
Lemington mine being included for the entire quarter. Coal production at
Mount Thorley Operations in the first quarter of 2001 decreased compared
with the fourth quarter of 2000 due to increasing strip ratios as the
mining area moves west and to decreased plant availability during March
2001.
All mining operations in the Hunter Valley were significantly affected by
wet weather during the first quarter of 2001.
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) 2,292 3,319 3,027 4,497 3,238 13,135
Shipments
('000 tonnes) 2,562 3,287 2,178 5,227 3,309 13,254
Production was hampered in the first quarter of 2001 by significantly
above average rainfall, by a strike at a major shovel contract maintenance
company, which involved an illegal blockade of its workshop facilities,
and by a blockade of several key mining areas by local land claimants.
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) 5,076 5,035 5,486 5,240 5,426 20,837
Colowyo mine
Thermal coal production
('000 tonnes) 1,168 1,225 1,268 1,030 1,276 4,691
Cordero Rojo mine
Thermal coal production
('000 tonnes) 8,899 7,204 9,018 9,917 9,702 35,038
Decker mine
Thermal coal production
('000 tonnes) 2,112 2,296 2,439 2,210 2,310 9,057
Jacobs Ranch mine
Thermal coal production
('000 tonnes) 5,726 5,965 7,352 6,635 7,003 25,678
Spring Creek mine
Thermal coal production
('000 tonnes) 2,650 2,668 2,397 2,538 1,845 10,253
Total Kennecott Energy
Total coal
production
('000 tonnes) 25,631 24,393 27,960 27,570 27,562 105,554
First quarter 2001 production was 7.5% higher than for the same period in
2000. High demand for 2001 coal deliveries is the catalyst that has
caused spot market prices to reach record levels for the relatively short
supply of
available Powder River Basin coal.
COAL (Continued)
Full
1Q 2Q 3Q 4Q 1Q Year
2000 2000 2000 2000 2001 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 Coal mine
Thermal coal:
Production
('000 tonnes) 2,432 2,594 2,635 3,378 3,032 11,040
Sales
('000 tonnes) 2,324 2,957 2,639 3,045 2,926 10,964
Kestrel Coal mine
Thermal coal:
Production
('000 tonnes) 220 307 320 283 224 1,130
Sales
('000 tonnes) 127 158 253 146 212 685
Coking coal:
Production
('000 tonnes) 435 590 665 476 409 2,167
Sales
('000 tonnes) 506 418 733 494 314 2,151
Semi-hard coking
coal: (a)
Sales
('000 tonnes) 265 152 232 192 162 840
Tarong Coal mine
Thermal coal:
Production
('000 tonnes) 1,256 1,049 1,268 1,470 1,316 5,043
Sales
('000 tonnes) 1,256 1,049 1,268 1,470 1,362 5,043
Total Pacific Coal
Total coal
production
('000 tonnes) 4,343 4,540 4,888 5,607 4,981 19,379
(a) Semi-hard coking coal is a mixture of thermal coal and coking coal.
The product mix is customer dependent.
Blair Athol production remained strong in the first quarter of 2001.
Mining progressed through old underground workings with minimal disruption
to production. This same area of the mine restricted production in 2000.
Kestrel production in the first quarter of 2001 was affected by poor
mining conditions in early January and reliability issues with longwall
equipment.
Tarong production was lower in the first quarter of 2001 compared with the
fourth quarter of 2000 due to reduced requirements by Tarong Energy
Corporation.
COPPER & GOLD
Alumbrera
Total production and sales at the Bajo de la Alumbrera mine (25% Rio
Tinto(a)) in Argentina.
(100% basis)
Ore treated
('000 tonnes) - - 3,736 7,102 7,041 10,839
Average ore grades:
Copper (%) - - 0.59 0.64 0.71 0.62
Gold (g/t) - - 0.9 0.7 0.8 0.8
Concentrate produced
('000 tonnes) - - 72.1 148.1 160.4 220.3
Copper in concentrates:
Production
('000 tonnes) - - 20.0 41.1 44.7 61.1
Sales
('000 tonnes) - - 17.5 33.4 37.9 50.9
Production of gold
in concentrates
('000 ounces) - - 71 125 127 196
Production of gold
in dore
('000 ounces) - - 4 8 7 12
Total gold sales
('000 ounces) - - 66 115 134 180
(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.
Escondida
Total production at the Escondida mine (Rio Tinto 30%) in Chile.
(100% basis)
Sulphide ore treated
('000 tonnes) 11,484 11,528 12,358 11,535 11,128 46,905
Average copper
grade (%) 1.99 1.83 1.85 1.94 1.95 1.90
Mill production (metals in concentrates):
Contained copper
('000 tonnes) 203.8 184.6 197.4 190.7 177.1 776.4
Contained gold
('000 ounces) 32 28 38 31 24 129
Contained silver
('000 ounces) 771 883 859 769 849 3,282
Oxide ore treated
('000 tonnes) 1,796 2,813 3,740 4,223 3,360 12,572
Average copper
grade (%) 1.08 0.99 1.04 1.16 1.09 1.08
Contained copper in
leachate/mined material
('000 tonnes) 19 28 39 49 37 135
Refined production:
Oxide plant
production
('000 tonnes) 34.9 35.0 34.7 35.6 36.5 140.3
Sulphide ore tonnage treated in the first quarter was comparable with the
corresponding period of 2000. However, contained copper declined with a slight
decrease in ore grade and lower recovery due to mineralogy and ore
characteristics. Oxide plant production remained consistent at an annualised
rate of 145,000 tonnes.
Freeport-McMoRan Copper & Gold
Total production and sales at the Grasberg mine (Rio Tinto 14.3% (a)) in
Papua, Indonesia, and the Atlantic Copper smelter (Rio Tinto 16.6%) in
Spain.
(100% basis)
Grasberg mine
Ore treated
('000 tonnes) 21,073 19,885 20,377 20,468 20,665 81,803
Average mill head grades:
Copper (%) 0.94 0.94 1.09 1.33 1.13 1.07
Gold (g/t) 0.99 0.86 0.89 1.64 1.68 1.10
Silver (g/t) 2.83 2.72 2.62 3.70 3.45 2.97
Production of metals in concentrates:
Copper in
concentrates
('000 tonnes) 169.6 158.2 195.2 246.3 204.4 769.3
Gold in
concentrates
('000 ounces) 574 457 485 920 975 2,436
Silver in
concentrates
('000 ounces) 1,082 992 1,210 1,701 1,570 4,985
Sales of payable metals
in concentrates: (b)
Copper in
concentrates
('000 tonnes) 162.4 136.2 202.1 244.8 174.6 745.5
Gold in
concentrates
('000 ounces) 551 408 517 911 833 2,387
Silver in concentrates
('000 ounces) 824 684 993 1,347 1,078 3,848
(a) See note (h) on page 6 for details of Rio Tinto's 14.3% interest in
Grasberg and 40% interest in the expansion.
(b) Net of smelter deductions.
In the first quarter of 2001, production and sales of copper in concentrates
decreased compared with the fourth quarter of 2000 because of lower ore
grades. Production and sales of copper and gold in concentrates in the first
quarter of 2001 increased significantly compared with the corresponding period
of 2000 because of higher ore grades.
Atlantic Copper smelter
Concentrate smelted
('000 tonnes) 244.7 238.5 245.2 187.9 205.5 916.3
Copper anodes
produced
('000 tonnes) (c) 80.9 76.1 74.5 58.4 65.3 289.9
Copper cathodes
produced
('000 tonnes) 65.2 65.6 66.8 60.0 60.8 257.6
Copper cathode
sales
('000 tonnes) (d) 62.2 66.7 65.0 61.2 61.5 255.1
(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) 1,435 1,044 1,910 1,823 1,710 6,212
Average ore grades:
Gold (g/t) 2.43 2.53 2.39 2.33 2.60 2.41
Silver (g/t) 7.96 6.74 6.41 6.76 5.93 6.93
Production:
Gold
('000 ounces) 76 61 103 98 105 338
Silver
('000 ounces) 86 55 90 95 86 326
Sales:
Gold
('000 ounces) 77 53 102 84 112 316
Silver
('000 ounces) 80 - 100 99 122 279
Crusher number 1 failed during the quarter and was not available for six
weeks. Impact on gold production was minimised as higher grade ore was
encountered. Sales in this quarter were higher following sales of stock
accumulated during the previous quarter.
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; Rawhide (Rio Tinto 51%) in Nevada and Ridgeway (Rio Tinto 100%) in
South Carolina.
(100% basis)
Cortez/Pipeline mine
Ore treated
Milled
('000 tonnes) 861 772 837 867 744 3,337
Leached
('000 tonnes) 718 1,458 2,625 2,584 2,186 7,385
Sold for roasting
('000 tonnes) 13 - 26 102 77 141
Average ore grade:
Gold
Milled (g/t) 12.19 9.54 6.52 8.58 9.43 9.22
Leached (g/t) 0.72 0.62 0.90 1.43 1.23 1.01
Sold for roasting
(g/t) 15.10 - 19.75 17.14 16.42 17.43
Gold produced
('000 ounces) 312 214 189 295 295 1,010
Ore treatment rates varied according to the areas being mined and the ore
type. Mining grades of milled ore increased in the first quarter of 2001 as
mining progressed into phase 3 of the mine plan. Roast ore sales were lower
during the first quarter of 2001 as tests were undertaken at the plant which
processes this material.
Greens Creek mine
Ore treated
('000 tonnes) 136 143 145 139 147 563
Average ore grades:
Gold (g/t) 7.44 6.97 7.00 7.10 7.23 7.13
Silver (g/t) 747 723 597 687 899 688
Zinc (%) 13.4 13.7 14.1 13.1 12.4 13.6
Lead (%) 5.3 5.2 5.3 5.3 5.1 5.3
Metals produced in concentrates:
Gold
('000 ounces) 22 21 19 21 23 83
Silver
('000 ounces) 2,500 2,531 1,977 2,229 3,252 9,237
Zinc
('000 tonnes) 14.1 16.0 16.2 14.4 14.2 60.7
Lead
('000 tonnes) 5.0 5.1 5.2 4.9 5.1 20.2
Mill throughput continued to increase through optimisation and efficiency
improvements, along with better mine production. Metal grades varied with
the mining sequence.
Rawhide mine
Ore treated
('000 tonnes) 1,488 1,529 1,477 1,435 1,362 5,929
Average ore grades:
Gold (g/t) 0.99 0.93 0.75 0.87 0.93 0.89
Silver (g/t) 13.6 16.0 9.2 11.0 13.8 12.5
Metals produced in dore:
Gold
('000 ounces) 27 27 27 23 25 104
Silver
('000 ounces) 235 206 215 158 177 814
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. Gold and silver production
reflected delays in recovery from the leach pads due to higher stacking
resulting in intermixing of leach solutions which inhibited high grade
solution segregation.
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) 461 599 649 541 380 2,250
Average ore grade:
Gold (g/t) 2.44 2.99 3.44 3.12 2.64 3.03
Gold produced in
dore and concentrates
('000 ounces) 33 35 37 48 37 153
Gold production in the first quarter of 2001 was slightly higher than in the
first quarter of 2000 but lower than in the fourth quarter of 2000,
principally due to timing of flows from the heap leach pads.
Bingham Canyon Mine
Ore treated
('000 tonnes) 15,440 14,281 13,839 15,102 14,408 58,662
Average ore grade:
Copper (%) 0.52 0.58 0.58 0.63 0.63 0.57
Gold (g/t) 0.32 0.47 0.54 0.36 0.46 0.42
Silver (g/t) 2.54 2.78 3.09 2.71 2.91 2.77
Molybdenum
(%) 0.035 0.050 0.043 0.040 0.049 0.042
Copper concen-
trates produced
('000 tonnes) 275 262 274 326 296 1,137
Average concentrate
grade (% Cu) 25.2 28.1 25.6 24.9 26.9 25.9
Production of metals in copper concentrates:
Copper ('000 tonnes)
(a) 69.7 74.1 70.5 81.4 80.0 295.7
Gold
('000 ounces) 111 143 154 121 151 529
Silver
('000 ounces) 916 952 1,066 1,005 1,029 3,939
Molybdenum concentrates
produced
('000 tonnes): 4.3 5.4 4.5 4.2 5.1 18.4
Molybdenum in
concentrates
('000 tonnes) 2.3 3.0 2.5 2.3 2.8 10.1
Kennecott smelter & refinery
Copper concentrates
smelted
('000 tonnes) 279 246 251 296 212 1,072
Copper anodes produced
('000 tonnes)
(b) 70.5 58.0 66.3 73.9 61.0 268.8
Production of refined metal:
Copper
('000 tonnes) 69.9 61.1 65.8 71.9 67.0 268.7
Gold
('000 ounces) (c) 80 110 102 121 102 413
Silver
('000 ounces) (c) 776 709 912 821 657 3,218
(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 first quarter of 2001, production of all metals in concentrate was
higher than in the first quarter of 2000, primarily due to higher ore
grade. Compared with the fourth quarter of 2000, gold and molybdenum
production was greater mainly due to higher ore grade.
Smelter copper output was lower in the first quarter of 2001 compared with
both the first quarter of 2000 and the fourth quarter of 2000, largely due
to lower plant availability.
In the first quarter of 2001, refined gold production was higher than in
the first quarter of 2000 mainly due to higher ore grade. Compared with
the fourth quarter of 2000, refined gold was lower primarily as a result
of timing of production from intermediate products. Refined silver in the
first quarter of 2001 was lower than in the first quarter of 2000 and
fourth quarter of 2000 primarily due to lower equipment availability and
timing of production from intermediate products.
Lihir Gold
Total production at the Lihir gold mine (Rio Tinto 16.3%(a)) in Papua New
Guinea.
(100% basis)
Ore treated
('000 tonnes) 791 841 838 943 962 3,413
Average ore grade:
gold (g/t) 5.27 5.64 6.37 6.63 6.64 6.01
Gold produced
('000 ounces) (b) 121 142 152 191 187 606
(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.
The strong performance of the fourth quarter of 2000 continued; the
operation still benefiting from the favourable ore from West Minifie and
much improved plant availability and throughput rates.
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 1,297 1,315 1,989
Average ore grade:
Copper (%) - - 1.07 1.10 1.18 1.09
Gold (g/t) - - 0.17 0.16 0.29 0.16
Copper concentrates
produced
('000 tonnes) - - 16.8 32.1 35.5 48.9
Contained copper in
concentrates:
Saleable production
('000 tonnes) - - 6.5 12.5 13.7 19.0
Sales
('000 tonnes)(b) - - 6.6 7.9 9.3 14.5
Contained gold in
concentrates:
Saleable production
('000 tonnes) - - 2.8 4.8 9.3 7.6
Sales
('000 tonnes) (b) - - 2.8 2.7 5.4 5.5
(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.
Production of gold in concentrates was significantly higher due to the
improved ore grade.
Palabora
Total production at the Palabora mine, smelter and refinery (Rio Tinto
48.6%(a)) in South Africa.
(100% basis)
Palabora mine
Ore treated
('000 tonnes) 5,862 6,547 6,814 6,514 4,167 25,737
Average ore grade
copper (%) 0.59 0.58 0.59 0.59 0.60 0.59
Copper concentrates
produced
('000 tonnes) 86.9 89.3 101.6 80.9 51.9 358.7
Average concentrate
grade
copper (%) 32.2 33.6 32.0 32.8 32.6 32.6
Copper in concentrates
('000 tonnes) 27.9 30.0 32.6 26.5 16.9 117.0
Palabora smelter/refinery
New concentrate
smelted on site
('000 tonnes) 58.9 51.3 87.8 83.9 74.0 281.9
New copper anodes
produced
('000 tonnes)(b) 17.6 14.6 27.7 30.3 25.8 90.2
Refined new copper
produced
('000 tonnes) 17.8 14.4 26.3 29.2 25.6 87.7
By-products:
Magnetite concentrate
('000 tonnes) 60 70 60 49 44 239
Uranium oxide
(tonnes) 14 19 34 28 13 95
Baddeleyite (several grades)
('000 tonnes) 1.9 2.2 1.6 2.2 1.7 7.9
Refined nickel sulphate
(tonnes) 103 32 46 82 74 263
Vermiculite Plant
Vermiculite produced
('000 tonnes) 39.4 48.0 56.9 64.1 36.1 208.4
(a) Rio Tinto acquired an additional 2.1% holding during the fourth
quarter of 2000.
(b) Contained copper in anodes; anode production includes a small amount
produced from purchased material.
Heavy rains experienced during the first quarter of 2001 severely impacted
ex-pit ore production. The open pit was out of operation for a month as a
result of the rains. This shortage of high-grade pit ores reduced the
tonnage of ore treated in the mill and resulted in the fall in concentrate
production.
Refined copper was above that achieved during the first quarter 2000, a
result of improved converter availability and matte grades.
Uranium production fell in line with the reduced mill throughput.
Magnetite production was also affected by the low mill throughput with
high moisture levels also hampering dispatches. Nickel sulphate production
during the first quarter of 2000 was inflated by high electrolyte
inventory levels. Precious metal production improved as a result of the
improved refinery throughput. Vermiculite production was hampered by the
heavy rains.
Peak Gold Mine
Total production and sales from the Peak Gold mine (Rio Tinto 100%) in New
South Wales, Australia.
Ore treated
('000 tonnes) 148 147 150 144 148 589
Average ore grades:
Gold (g/t) 6.82 8.04 8.06 5.98 4.55 7.23
Silver (g/t) 5.22 6.15 5.23 4.92 5.30 5.38
Copper (%) 0.41 0.36 0.37 0.46 0.38 0.40
Lead (%) 0.84 0.74 0.79 0.89 0.96 0.82
Zinc (%) 0.76 0.78 0.99 1.09 1.75 0.90
Bullion produced
('000 ounces) 31 41 39 28 22 139
Containing:
Gold
('000 ounces) 28 34 35 24 19 121
Silver
('000 ounces) 3 6 4 3 3 16
Gold recovered in
concentrates
('000 ounces) 4 1 2 2 1 9
Total gold production
('000 ounces) 32 35 37 26 20 130
Bullion sales
(fine gold)
('000 ounces) 32 34 30 25 22 120
Copper in concentrate ('000 tonnes):
Production 1.6 0.6 0.2 - 0.7 2.5
Sales - 5.0 - 0.2 - 5.2
Lead/zinc in concentrate ('000 tonnes):
Production 1.7 2.2 1.1 1.6 3.2 6.6
Sales - 1.4 1.0 1.8 4.1 4.2
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) 4,976 4,933 5,051 4,785 3,938 19,745
Average ore grade:
gold (g/t) 0.47 0.49 0.48 0.48 0.47 0.48
Refined gold
produced
('000 ounces) 59 58 55 57 48 229
Production was lower in the first quarter of 2001 due to structural rewelding
required on two mills which resulted in lower ore throughput.
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) 200 219 249 262 238 930
Average ore grade:
gold (g/t) 1.08 1.08 1.18 1.19 1.29 1.14
Total gold produced
('000 ounces) 2 2 2 3 3 8
Patchway mine (a)
Ore treated
('000 tonnes) 26 25 26 27 24 104
Average ore grade:
gold (g/t) 4.70 4.79 5.67 4.99 4.09 5.05
Total gold produced
('000 ounces) 4 3 4 4 3 15
Renco mine
Ore treated
('000 tonnes) 70 77 77 63 64 287
Average ore grade:
gold (g/t) 5.30 5.74 6.40 6.01 7.45 5.91
Total gold produced
('000 ounces) 10 13 13 11 14 47
Total Rio Tinto Zimbabwe
Total gold produced
('000 ounces) 16 17 19 17 19 70
(a) Includes low grade material.
Somincor
Total production at the Neves Corvo mine (Rio Tinto 49%) in Portugal.
(100% basis)
Neves Corvo mine
Total ore treated
('000
tonnes)(a) 499 538 402 250 581 1,689
Of which, treated to
extract tin
('000 tonnes) 64 80 63 40 57 248
Average ore grades:
Copper (%) 5.47 5.14 4.77 5.42 4.68 5.19
Tin (%) 1.18 1.83 1.64 0.81 1.48 1.45
Copper production:
Copper concentrates
produced
('000 tonnes) 102.7 99.7 68.7 48.0 94.5 319.2
Copper concentrate
grade
copper (%) 23.7 23.9 24.0 24.1 24.1 23.9
Copper in concentrates
produced
('000 tonnes) 24.3 23.9 16.5 11.6 22.8 76.3
Tin production:
Tin concentrates
produced
('000 tonnes) 0.4 1.0 0.7 0.1 0.4 2.3
Tin concentrate
Grade: tin (%) 50.5 54.2 52.0 51.1 49.9 52.7
Tin in concentrates
produced
('000 tonnes) 0.2 0.6 0.4 0.1 0.2 1.2
(a) Total ore treated for both copper and tin production.
Production in the first quarter of 2001 returned to normal levels following
the repair to the main shaft motor.
COPPER & GOLD (continued)
Full
1Q 2Q 3Q 4Q 1Q Year
2000 2000 2000 2000 2001 2000
DIAMONDS
Argyle Diamonds
Total production from mining operations at Argyle Diamonds (Rio Tinto
99.8%(a)) in Western Australia.
(100% basis)
Ore processed
('000 tonnes):
AK1 ore 2,575 2,780 2,597 2,466 2,697 10,419
Alluvial ore 1,260 1,108 1,492 1,048 1,007 4,908
Total ore
processed 3,835 3,888 4,089 3,514 3,704 15,326
Diamonds recovered ('000 carats):
AK1 6,384 7,247 6,439 5,354 4,918 25,423
Alluvial 287 281 318 166 164 1,052
Total
recovered 6,671 7,527 6,757 5,520 5,082 26,475
(a) During the second half of 2000, Rio Tinto increased its interest in
Argyle from 59.7% to 99.8% by virtue of its acquisition of Ashton Mining.
AK1 ore processed for the first quarter of 2001 was slightly improved on the
corresponding period last year whereas alluvials processing was below that of
the corresponding quarter in 2000 due to reduced screen capacity, exacerbated
by wet weather.
Lower AK1 diamond production for the first quarter, relative to the
corresponding period last year, reflected the continuation of lower grade of
ore processed, and the effect of rescheduling ore blocks to facilitate pit
development work.
Ashton Mining
Total Rio Tinto share of production from the Ashton Mining (Rio Tinto 100%
(a)) diamond interests apart from Argyle.
(Rio Tinto share)
Ore processed
('000 tonnes) - - - 95 95 95
Diamonds recovered
('000 carats) - - - 37 15 37
(a) Production data are shown from 10 November 2000, the effective date
of acquisition of Ashton Mining.
Diamond production at Merlin in the first quarter of 2001 was below that of
the forth quarter of 2000 due to the suspension of operations because wet
weather has prevented delivery of fuel to the site. Operations are expected to
resume in mid May.
IRON ORE
Full
1Q 2Q 3Q 4Q 1Q Year
2000 2000 2000 2000 2001 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 12,618 12,978 14,642 14,857 13,579 55,095
Channar 2,594 2,465 2,732 2,811 2,453 10,602
Total
production 15,212 15,443 17,374 17,668 16,032 65,697
Total shipments
('000 tonnes) 15,162 16,870 17,301 17,722 15,312 67,055
In the first quarter of 2001, Hamersley achieved record production and
shipments for a first quarter. Production was 5% higher than in the
corresponding quarter of 2000, however lower than the previous quarter,
primarily due to constraints caused by wet weather. Shipments exceeded the
previous first quarter record, achieved in 2000, by 150,000 tonnes.
Iron Ore Company of Canada
Total production from the Carol Lake operations (Rio Tinto 56.1% (a)) in
Labrador, Canada.
(100% basis)
Carol Lake operations
Saleable production:
Concentrates
('000 tonnes) - - 567 868 638 1,435
Pellets
('000 tonnes) - - 1,609 3,092 2,702 4,701
Shipments:
Concentrate
('000 tonnes) - - 718 1,124 652 1,842
Pellets
('000 tonnes) - - 1,781 2,517 1,987 4,298
(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.
Several operational difficulties were experienced early in the first quarter
of 2001, in addition to the usual impact of winter conditions on shipments
and production.
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) 147 173 281 178 156 778
(a) Production includes by-product fines.
Robe River Iron Associates
Total production from the Pannawonica mine (Rio Tinto 53% (a)) in Western
Australia.
(100% basis)
Pannawonica mine
Saleable production
('000 tonnes) - - 4,831 7,954 6,781 12,785
Shipments
('000 tonnes) - - 5,600 7,295 7,305 12,895
(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.
Production for the first quarter of 2001 was 15% lower compared with the
previous quarter and 3% lower compared with the corresponding quarter in
2000. Production was adversely impacted in the first quarter of 2001 by
localised wet weather and low staffing levels at Pannawonica, which has
been rectified in April.
First quarter shipments decreased by 5% compared with the corresponding
quarter of 2000, as sales returned to a more sustainable level.
NICKEL
Rio Tinto Brasil Limitada
Total nickel in matte production at the Fortaleza mine (Rio Tinto 100%) in
Brazil
Fortaleza mine
Production
(tonnes) 2,561 2,170 1,333 2,674 2,710 8,738
Production continued to recover following the third quarter 2000
reduction which was related to preparing the mine for transition from open
pit to underground operation.
Rio Tinto Zimbabwe
Total refined metal production at the Empress Nickel refinery (Rio Tinto
56%) in Zimbabwe.
(100% basis)
Empress Nickel refinery
Production
(tonnes) 1,736 1,676 1,869 1,654 1,623 6,935
SALT
Dampier Salt
Total production of salt from Dampier and Lake MacLeod (Rio Tinto 64.9%)
in Western Australia.
(100% basis)
Salt production
('000 tonnes) 1,024 1,338 1,142 1,095 1,385 4,599
TALC
The Luzenac Group
Total talc production from Luzenac Group operations in Europe (Rio Tinto
99.9%) and North America (Rio Tinto 100%).
(100% basis)
Talc
production
('000 tonnes) 321 315 324 302 323 1,262
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) 349 310 341 368 356 1,368
URANIUM
Energy Resources of Australia Ltd
Production at the Ranger mine (68.4% Rio Tinto (a)) in the Northern
Territory, Australia.
(100% basis)
Ranger mine
Production
(tonnes U3O8) - - 548 1,216 1,320 1,764
(a) Rio Tinto acquired its interest in ERA as part of the purchase of
North Limited. Production data are shown from 11 August 2000, the
effective date of the acquisition.
Rossing Uranium Ltd
Total uranium production at the Rossing Uranium mine (Rio Tinto 68.58%) in
Namibia.
(100% basis)
Production
(tonnes U3O8) 818 726 821 836 724 3,201
ZINC
Norzink AS
Total refined zinc production at the Norzink smelter (Rio Tinto 50% (a))
in Norway.
(100% basis)
Production
('000 tonnes) 35.6 32.9 35.2 34.7 36.3 138.4
(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% (a)) in Sweden.
Ore treated
('000 tonnes) - - 127 179 201 306
Average grades:
Zinc (%) - - 10.1 11.1 8.2 10.7
Lead (%) - - 3.8 4.3 3.3 4.1
Silver (g/t) - - 107 112 75 110
Production of zinc
concentrate
('000 tonnes) - - 22.7 33.9 28.0 56.6
Production of lead
concentrate
('000 tonnes) - - 5.5 9.1 7.9 14.6
Production of
metal in
concentrates:
Zinc
('000 tonnes) - - 12.8 18.7 15.3 31.5
Lead
('000 tonnes) - - 3.9 6.6 5.7 10.5
Silver
('000 tonnes) - - 271 431 347 702
(a) Rio Tinto acquired its interest in Zinkgruvan as part of North
Limited. Production data are shown from 11 August 2000, the effective
date of the acquisition.
Concentrate production in the first quarter of 2000 reflected lower grades
than in the previous quarter; grades are expected to improve for the
remainder of the year but will not reach last year's level.
Expenditure
Total pre-tax exploration expenditure charged to the profit and loss
account for the quarter ending March 31 2001 was US$22 million compared
with US$27 million in the comparable quarter of 2000.
Ongoing Programmes
Country Commodity Programme Summary
Australia Phosphate Beneficiation test work commenced on drill
core from the Wonarah phosphate deposit in
the Northern Territory.
South America Copper and Early encouragement was obtained from
gold reconnaissance drilling of the Tenke option
Vicuna copper-gold property on the Chile-
Argentina border and the IAMGOLD option Las
Mellizas gold property in southern
Argentina.
India Diamonds Fieldwork commenced on recently granted
reconnaissance permits in Karnataka and
Andhra Pradesh
Turkey Copper and Further encouragement was obtained from
gold reconnaissance drilling of Anatolia
alliance porphyry copper-gold prospects in
eastern Turkey.
China Nickel A formal agreement was signed with the
Gansu Qinqi Mineral Company covering a
joint venture exploration programme around
the Jinchuan nickel mine.
Indonesia Copper and In block A, delineation drilling continued on
gold porphyry gold-copper mineralisation within the
Ertsberg intrusion and on extensions to the
Kucing Liar skarn system on the periphery of
the Grasberg intrusion.