Quarterly Production Report - Part 1
Rio Tinto PLC
28 April 2000
Part 1
Rio Tinto Quarterly Production Report
For the Quarter ending 31 March 2000
- Iron ore production in the first quarter of 2000 was 24% higher than the
same quarter in 1999 and 5% higher than the last quarter of 1999. Shipments
were 41% higher than in the comparable quarter of 1999 reflecting the
upturn in the steel industry.
- Aluminium production was down 1% on the last quarter of 1999 but 7%
higher than the comparable quarter in 1999 reflecting continuing good
performance at the smelters and Rio Tinto's increased stake in Comalco.
- Copper production fell by 3% compared with the previous quarter and 7%
compared with the comparable quarter in 1999 generally due to lower grades
at most mines.
- Coal production was 4% lower compared with the comparable quarter in
1999 and 13% lower than in the last quarter of 1999, due in part to the
seasonal demand patterns in the US.
- Gold production fell 10% compared with the comparable quarter of 1999
and 18% compared with the last quarter of 1999 due primarily to a
significantly lower contribution from Grasberg.
- Borate production was in line with production in the first quarter of
1999. Titanium dioxide feedstock production was unchanged.
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RIO TINTO PRODUCTION SUMMARY
QUARTER FULL % CHANGE
YEAR
Principal 1999 1999 2000 1999 Q1 00 Q1 00
Commodities Q1 Q4 Q1 vs vs
Q4 99 Q1 99
Copper -
mined ('000 t) 220.1 211.8 204.5 859.8 -3% -7%
Copper -
refined ('000 t) 83.8 104.3 98.3 388.2 -6% 17%
Gold -
mined ('000 ozs) 712 785 640 2,987 -18% -10%
Gold -
refined ('000 ozs) 82 96 80 346 -16% -2%
Iron ore ('000 t) 11,535 13,579 14,321 51,830 5% 24%
Coal ('000 t) 32,616 35,904 31,243 139,177 -13% -4%
Aluminium ('000 t) 133.4 143.6 142.5 557.8 -1% 7%
Borates ('000 t) 146 132 145 561 10% 0%
Titanium
dioxide
feedstock ('000 t) 377 350 349 1,428 0% -7%
Other Metals & Minerals
Bauxite ('000 t) 2,143 2,298 2,137 8,506 -7% 0%
Alumina ('000 t) 283 304 301 1,185 -1% 6%
Diamonds ('000 cts) 4,244 4,430 3,983 17,730 -10% -6%
Lead -
mined ('000 t) 5.3 4.7 3.5 20.9 -26% -34%
Molybdenum ('000 t) 2.1 1.6 2.3 6.3 48% 11%
Nickel in
matte (tonnes) 2,171 2,928 2,561 9,445 -13% 18%
Nickel -
refined (tonnes) 926 969 973 3,942 0% 5%
Salt ('000 t) 714 920 665 3,409 -28% -7%
Silver -
mined ('000 ozs) 3,787 4,093 3,443 15,973 -16% -9%
Silver -
refined ('000 ozs) 1,202 775 776 4,291 0% -35%
Talc ('000 t) 310 313 321 1,268 3% 4%
Tin (tonnes) 219 150 109 1,057 -27% -50%
Uranium (tonnes) 587 504 567 2,217 13% -3%
Zinc -
mined ('000 t) 19.4 17.1 9.9 74.5 -42% -49%
Zinc -
refined ('000 t) 21.4 21.2 17.8 84.9 -16% -17%
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 full year figures.
PRINCIPAL COMMODITIES
Rio Tinto
Share of Production
Full
1Q 2Q 3Q 4Q 1Q Year
Interest 1999 1999 1999 1999 2000 1999
COPPER
Mine production
('000 tonnes)
Kennecott
Utah Copper 100% 79.4 68.9 67.2 63.7 69.7 279.3
Escondida 30% 74.6 77.8 75.8 71.4 67.0 299.7
Grasberg - FCX (a)
13% 20.9 21.2 21.7 20.5 18.5 84.3
Grasberg -
Joint Venture (a)
40% 19.9 24.8 23.1 27.4 24.5 95.2
Neves Corvo 49% 13.0 12.2 12.3 11.8 11.9 49.3
Palabora (c) 46% 12.3 9.8 12.9 17.0 13.0 52.0
Rio Tinto total
mine production 220.1 214.7 213.2 211.8 204.5 859.8
Refined production ('000 tonnes)
Kennecott
Utah Copper 100% 53.9 71.9 69.2 70.3 69.9 265.4
Palabora 46% 11.8 9.6 11.3 13.9 8.3 46.5
Atlantic Copper (a)
15% 9.2 9.2 8.8 9.5 9.7 36.8
Escondida 30% 8.9 9.7 10.4 10.5 10.5 39.5
Rio Tinto total
refined production 83.8 100.4 99.7 104.3 98.3 388.2
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% 14 0 0 0 0 0
Escondida 30% 126 105 96 104 115 104
Grasberg (a) 13% 39 59 40 56 58 56
Neves Corvo 49% 9 9 9 9 11 9
Rio Tinto total 188 173 145 169 184 169
Priced at US
c/lb average 63 75 81 84 78 84
GOLD
Mine production ('000 ounces)
Kennecott
Utah Copper 100% 96 87 95 88 111 367
Grasberg - FCX (a)
13% 76 77 83 72 59 308
Grasberg - Joint Venture (a)
40% 148 150 140 196 113 633
Kelian 90% 93 91 111 102 68 396
Ridgeway 100% 20 23 26 12 - 81
Barneys Canyon 100% 18 26 25 43 33 112
Morro do Ouro
51% 21 22 26 28 30 96
Rawhide 51% 13 15 16 14 14 58
Peak 100% 37 32 33 38 32 140
Cortez/Pipeline 40% 126 135 143 127 125 532
Escondida 30% 11 12 12 10 10 45
Rio Tinto Zimbabwe 56% 10 10 10 10 9 40
Lihir (b) 16% 22 25 32 28 20 107
Greens Creek 70% 16 14 14 12 15 56
Others:(c) 3 3 5 6 2 16
Rio Tinto total
mine production 712 720 770 785 640 2,987
Refined production
('000 ounces)
Kennecott
Utah Copper 100% 82 83 86 96 80 346
IRON ORE
Production ('000 tonnes)
Hamersley 100% 82 83 86 96 80 346
Channar 60% 1,322 1,268 1,772 1,705 1,556 6,066
Corumba (d) 100% 211 227 235 94 147 767
Rio Tinto
total mine production 11,535 12,932 13,785 13,579 14,321 51,830
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 onsite, except for the data for iron ore which
represent production of saleable quantities of ore.
See footnotes below
PRINCIPAL COMMODITIES (continued)
Rio Tinto
Share of Production
Full
Coal 1Q 2Q 3Q 4Q 1Q Year
Interest Type 1999 1999 1999 1999 2000 1999
COAL
US coal operations
('000 tonnes)
Kennecott Energy
Cordero Rojo
100% S 9,586 10,369 10,352 11,129 8,899 41,436
Antelope
100% S 4,590 5,183 5,548 5,258 5,076 20,579
Spring Creek
100% S 2,500 2,490 2,490 2,495 2,650 9,975
Decker
50% S 1,162 988 1,253 1,574 1,056 4,977
Colowyo (e)
100% S 1,155 1,284 1,197 1,417 1,168 5,053
Jacobs Ranch
100% S 6,189 6,750 6,416 7,016 5,726 26,371
Total US coal
25,182 27,064 27,256 28,889 24,575 108,391
Australian coal operations ('000 tonnes)
Pacific Coal:
Blair Athol (f)
71% S 1,999 2,011 2,088 1,817 1,733 7,915
Kestrel Coal (g)
80% S - 70 183 171 176 424
80% M - 96 503 284 348 883
Tarong Coal
100% S 1,155 1,461 1,325 1,176 1,256 5,116
Coal & Allied Industries:
Hunter Valley
Operations (h)
71% S 1,121 1,076 1,257 829 869 4,284
71% M 556 458 661 443 546 2,118
Mount Thorley
57% S 382 281 336 253 246 1,252
57% M 352 391 348 294 348 1,385
Total Australian coal
5,565 5,844 6,701 5,267 5,522 23,377
Indonesian coal operations ('000 tonnes)
Kaltim Prima
Coal (i)
50% S 1,776 1,582 2,018 1,631 1,146 7,007
South American coal operations ('000 tonnes)
Carbones del Cerrejon (j)
33% S 93 93 98 118 0 402
Rio Tinto total
coal production
32,616 34,583 36,073 35,904 31,243 139,177
BAUXITE/ALUMINA/ALUMINIUM
Bauxite ('000 tonnes)
Weipa (k)
72% 2,068 1,934 2,016 2,170 2,011 8,188
Boke (k)
3% 76 75 38 128 125 317
Rio Tinto total
bauxite production
2,143 2,010 2,055 2,298 2,137 8,506
Alumina ('000 tonnes)
Queensland
Alumina (k)
22% 192 198 201 202 198 792
Eurallumina (k)
41% 92 96 103 102 104 393
Rio Tinto total
Alumina production 283 294 303 304 301 1,185
Aluminium ('000 tonnes)
Comalco (k)
72% 115.9 121.8 124.3 125.9 124.7 487.9
Anglesey
51% 17.5 17.4 17.3 17.7 17.8 69.9
Rio Tinto total
aluminium production
133.4 139.3 141.6 143.6 142.5 557.8
BORATES
Borates ('000 tonnes B2O3 content)
Rio Tinto total
borate production
100% 146 146 137 132 145 561
TITANIUM DIOXIDE FEEDSTOCK
Production ('000 tonnes)
Rio Tinto Iron
& Titanium
100% 377 354 347 350 349 1,428
Key to coal type: S = Steaming/thermal coal, M = Metallurgical/coking coal
See footnotes below
OTHER METALS & MINERALS
Rio Tinto
Share of Production
Full
1Q 2Q 3Q 4Q 1Q Year
Interest 1999 1999 1999 1999 2000 1999
DIAMONDS
Production ('000 carats)
Argyle 60% 4,244 4,337 4,720 4,430 3,983 17,730
LEAD
Mine production ('000 tonnes)
Various (c) 5.3 5.4 5.4 4.7 3.5 20.9
MOLYBDENUM
Mine production ('000 tonnes)
Kennecott Utah
Copper 100% 2.1 1.4 1.3 1.6 2.3 6.3
NICKEL
Nickel in matte (tonnes)
Fortaleza 100% 2,171 1,726 2,620 2,928 2,561 9,445
Toll refined metal production (tonnes)
Rio Tinto Zimbabwe - Empress
56% 926 1,036 1,011 969 973 3,942
SALT
Production ('000 tonnes)
Dampier 65% 714 941 835 920 665 3,409
SILVER
Mine production ('000 ounces)
Kennecott
Utah Copper
100% 1,109 905 959 886 916 3,859
Greens Creek
70% 1,547 1,954 1,810 1,902 1,758 7,213
Grasberg - FCX (a)
13% 121 148 147 147 128 563
Grasberg -
Joint Venture (a)
40% 50 61 194 133 75 438
Others: (c)
- 960 927 989 1,025 566 3,900
Rio Tinto total
mine production 3,787 3,994 4,099 4,093 3,443 15,973
Refined production ('000 ounces)
Kennecott
Utah Copper
100% 1,202 1,154 1,160 775 776 4,291
TALC
Production ('000 tonnes)
Luzenac Group
99.9% 310 325 321 313 321 1,268
TIN
Mine production (tonnes)
Neves Corvo
49% 219 241 448 150 109 1,057
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 below.
OTHER METALS & MINERALS
(continued)
Rio Tinto Share of Production
Full
1Q 2Q 3Q 4Q 1Q Year
Interest 1999 1999 1999 1999 2000 1999
URANIUM
Production (tonnes U3O8)
Rossing 69% 576 549 557 493 561 2,175
Palabora 46% 10 11 10 11 7 42
Rio Tinto total
uranium production
587 559 567 504 567 2,217
ZINC
Mine production ('000 tonnes)
Various(c) - 19.4 18.9 19.2 17.1 9.9 74.5
Refined production ('000 tonnes)
Norzink 50% 18.5 17.5 18.2 17.9 17.8 72.0
Others:(c) - 2.9 3.1 3.5 3.4 - 12.9
Rio Tinto total
refined zinc production
21.4 20.6 21.6 21.2 17.8 84.9
(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 31 March 2000, Rio Tinto
had,by virtue of its FCX shareholding, a 12.8% share in Grasberg and a 15.0%
share in Atlantic Copper. From 1 January 1998, 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)Effective 14th February 2000, Rio Tinto's interest in Lihir decreased
from 17.15% to 16.3% following a placement of shares by Lihir Gold.
(c)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.
(d)Rio Tinto increased its interest in the Corumba mine, Brazil, from 80%
to 100% during June 1999. Rio Tinto's share of production has been increased
to 100% from 1 January 1999, in accordance with the purchase agreement.
(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)Coal & Allied has 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.
These transactions took effect from 1 July 1999. The restructuring of Coal &
Allied's shareholding leaves 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. Rio Tinto's share of production has been
calculated using the weighted average of Rio Tinto's interest over the
relevant periods.
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