Quarterly Producton Report - Part 2
RIO TINTO PLC
27 October 1999
Part 2
Rio Tinto
Share of Production
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
Interest 1998 1998 1999 1999 1999 1998 1999
COPPER
Mine production
('000 tonnes)
Kennecott
Utah Copper
100% 83.2 84.4 79.4 68.9 67.2 213.8 215.6
Escondida (a)
30% 64.7 60.4 74.6 77.8 75.8 198.0 228.3
Grasberg -
FCX (b)
13% 21.9 24.8 20.9 21.2 21.7 54.1 63.8
Grasberg -
Joint Venture (b)
40% 39.3 40.5 19.9 24.8 23.2 95.7 67.9
Neves Corvo
49% 13.9 14.3 13.0 12.2 12.9 41.8 38.0
Palabora (c)
46% 16.2 17.1 12.3 9.8 12.9 43.6 35.0
Rio Tinto total
mine production 239.2 241.5 220.1 214.7 213.7 647.0 648.5
Refined production ('000 tonnes)
Kennecott
Utah Copper
100% 61.2 70.8 53.9 71.9 69.2 168.0 195.1
Palabora (c)
46% 13.6 12.8 11.8 9.6 11.3 32.3 32.6
Atlantic Copper (b)
15% 8.7 9.2 9.2 9.2 8.8 24.5 27.2
Escondida
30% 0.1 1.6 8.9 9.7 10.4 7.1 29.0
Rio Tinto total
refined production 83.7 94.4 83.8 100.4 99.7 231.9 283.9
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% 3 3 14 0 0 3 0
Escondida
30% 121 123 126 105 96 121 96
Grasberg (b)
13% 43 60 39 59 40 43 40
Neves Corvo
49% 13 13 9 9 9 13 9
Rio Tinto total 180 199 188 173 145 180 145
Priced at US
c/lb average 75 67 63 75 81 75 81
GOLD
Mine production ('000 ounces)
Kennecott
Utah Copper
100% 100 100 96 87 95 266 278
Grasberg -
FCX (b)
13% 64 103 76 77 83 166 236
Grasberg -
Joint Venture (b)
40% 135 254 148 150 140 371 437
Kelian
90% 114 107 93 91 111 307 294
Ridgeway
100% 23 22 20 23 26 77 69
Barneys Canyon
100% 25 29 18 26 25 54 69
Morro do Ouro
51% 22 22 21 22 26 70 69
Rawhide
51% 16 16 13 15 16 47 44
Peak
100% 27 22 37 32 30 90 100
Cortez/Pipeline
40% 162 150 126 135 143 305 404
Escondida
30% 11 11 11 12 12 34 35
Rio Tinto Zimbabwe
56% 11 11 10 10 10 31 30
Lihir
17% 22 22 22 25 32 67 79
Others:
- 17 17 19 17 19 46 55
Rio Tinto total
mine production 750 886 712 720 767 1,932 2,199
Refined production
('000 ounces)
Kennecott
Utah Copper
100% 73 70 82 83 86 220 251
IRON ORE
Production ('000 tonnes)
Hamersley
100% 10,644 11,134 10,002 11,437 11,778 34,446 33,217
Channar
60% 1,371 1,818 1,322 1,268 1,772 4,235 4,361
Corumba (d)
100% 247 213 211 227 235 743 673
Rio Tinto total
mine production 12,262 13,165 11,535 12,932 13,785 39,424 38,251
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
Coal 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
Interest Type 1998 1998 1999 1999 1999 1998
COAL
US coal operations
('000 tonnes)
Kennecott Energy
Cordero Rojo
100% S 8,677 9,240 9,586 10,369 10,352 24,336 30,307
Antelope
100% S 4,625 4,993 4,590 5,183 5,548 12,624 15,321
Spring Creek
100% S 2,329 3,072 2,500 2,490 2,490 7,191 7,480
Decker 50% S 1,220 1,129 1,162 988 1,253 3,650 3,403
Colowyo (e)
100% S 1,434 1,344 1,155 1,284 1,197 3,939 3,636
Jacobs Ranch (f)
100% S 5,361 7,265 6,189 6,750 6,416 5,361 19,355
Total US coal 23,646 27,043 25,182 27,064 27,256 57,100 79,502
Australian coal operations ('000 tonnes)
Pacific Coal:
Blair Athol (g)
71% S 1,591 1,426 1,999 2,011 2,088 4,620 6,098
Kestrel Coal (h)
80% S - - - 70 183 - 253
80% M - - - 96 503 - 599
Tarong Coal
100% S 1,316 1,219 1,155 1,543 1,371 3,811 4,069
Coal & Allied Industries:
Hunter Valley
Operations (i)
71% S 1,411 1,262 1,121 1,076 1,257 4,060 3,454
71% M 478 673 556 458 661 1,498 1,675
Mount Thorley
57% S&M 679 756 734 672 684 1,460 2,090
Vickery (j)
71% S - - - - - 286 -
Total Australian coal
5,474 5,337 5,565 5,926 6,747 15,735 18,238
Indonesian coal operations ('000 tonnes)
Kaltim Prima
Coal (k)
50% S 1,936 1,952 1,776 1,582 2,018 5,412 5,376
South American coal operations ('000 tonnes)
Carbones
del Cerrejon
33% S 302 205 93 102 97 842 292
Copelmi (l)
0% S - - - - - 105 -
Total South American
coal operations
302 205 93 102 97 947 292
Rio Tinto total
coal production 31,357 34,537 32,616 34,674 36,118 79,194 103,408
ALUMINIUM / BAUXITE
Bauxite ('000 tonnes)
Weipa (m)
72% 1,680 1,868 2,068 1,934 2,013 4,448 6,015
Boke (m)
3% 75 109 76 75 38 182 189
Rio Tinto total
bauxite production
1,755 1,977 2,143 2,010 2,051 4,630 6,205
Aluminium ('000 tonnes)
Comalco (m)
72% 112.4 114.3 115.9 121.8 124.1 327.0 361.8
Anglesey
51% 17.1 17.4 17.5 17.4 17.3 51.6 52.2
Rio Tinto total
aluminium production
129.6 131.7 133.4 139.3 141.4 378.6 414.0
BORATES
Borates ('000 tonnes B2O3 content)
Rio Tinto total
borate production
100% 162 132 146 142 140 455 428
TITANIUM DIOXIDE FEEDSTOCK
Production ('000 tonnes)
Rio Tinto Iron
& Titanium
100% 399 394 377 354 347 1,147 1,077
Key to coal type: S = Steam/ thermal coal, M = Metallurgical/coking coal
See footnotes below
OTHER METALS & MINERALS
Rio Tinto
Share of Production
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
Interest 1998 1998 1999 1999 1999 1998 1999
DIAMONDS
Production ('000 carats)
Argyle
60% 7,451 5,406 4,244 4,337 4,720 18,977 13,300
LEAD
Mine production ('000 tonnes)
Various
- 5.2 5.6 5.3 5.4 5.4 15.4 16.1
MOLYBDENUM
Mine production ('000 tonnes)
Kennecott Utah
Copper
100% 1.3 1.9 2.1 1.4 1.3 4.4 4.8
NICKEL
Nickel in matte (tonnes)
Fortaleza
100% 1,806 1,923 2,171 1,726 2,620 2,747 6,517
Toll refined metal production (tonnes)
Rio Tinto
Zimbabwe - Empress
56% 957 999 926 1,036 1,011 2,609 2,973
SALT
Production ('000 tonnes)
Dampier
65% 809 697 714 941 835 2,283 2,490
SILVER
Mine production ('000 ounces)
Kennecott
Utah Copper
100% 1,156 1,140 1,109 905 959 3,107 2,972
Greens Creek
70% 2,091 1,561 1,547 1,954 1,810 5,115 5,312
Grasberg - FCX (b)
13% 132 196 121 148 147 327 416
Grasberg -
Joint Venture (b)
40% 176 370 50 61 194 421 304
Others:
- 1,037 945 960 927 989 3,051 2,876
Rio Tinto total
4,592 4,212 3,787 3,994 4,099 12,021 11,880
Refined production ('000 ounces)
Kennecott
Utah Copper
100% 742 718 1,202 1,154 1,160 1,892 3,516
TALC
Production ('000 tonnes)
Luzenac Group
99.9% 298 289 310 325 321 905 955
TIN
Mine production (tonnes)
Neves Corvo
49% 335 283 219 241 448 1,157 908
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
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
Interest 1998 1998 1999 1999 1999 1998 1999
URANIUM
Production (tonnes U3O8)
Rossing
69% 592 470 576 549 558 1,764 1,682
Palabora (c)
46% 8 8 10 11 10 24 31
Rio Tinto total
uranium production
600 478 587 559 567 1,787 1,713
ZINC
Mine production ('000 tonnes)
Various - 19.3 19.1 19.4 18.9 19.2 51.7 57.4
Refined production ('000 tonnes)
Norzink 50% 17.5 17.2 18.5 17.5 18.2 51.8 54.2
Others: - 3.5 3.3 2.9 3.1 3.5 10.0 9.5
Rio Tinto total
refined zinc production
21.0 20.5 21.4 20.6 21.6 61.8 63.7
(a) Copper contained in oxide and sulphide ores has been included since the
fourth quarter of 1998 when the new oxide plant was commissioned.
(b) 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 1999, Rio
Tinto had, by virtue of its FCX shareholding, a 12.6% share in Grasberg and
a 14.6% 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.
(c) Rio Tinto increased its interest in Palabora Mining Company from 38.9%
to 46.5% on 10 June 1998. Rio Tinto's share of production has been
calculated using the weighted average of Rio Tinto's interest over the
relevant periods.
(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) Rio Tinto acquired the Jacobs Ranch mine in Wyoming, US, with effect from
23 July 1998.
(g) On 10 January 1999, Rio Tinto increased its beneficial interest in the
Blair Athol mine from 57.2% to 71.2%.
(h) Rio Tinto acquired Kestrel Coal, formerly Gordonstone, in February 1999 and
production commenced in June 1999.
(i) Coal & Allied has purchased the Rio Tinto Group's coal interests in New
South Wales which included its 60% interest in the Howick mine. Coal & Allied
has 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 and Allied's shareholding leaves Rio Tinto with a
70.88% interest. Rio Tinto's share of production for quarters prior to 1 July
1999 is reported in line with the pre-merger shareholdings.
(j) The Vickery mine was closed on 31 May 1998. The last stockpiled coal was
sold in the first quarter of 1999.
(k) 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.
(l) As a consequence of a restructuring, with effect from 1 April 1998, Rio
Tinto ceased to have any direct interest in the production from Copelmi's
Recreio mine.
(m) Production figures derived for Comalco reflect Comalco's share of primary
aluminium production from its wholly owned or managed smelters. Rio Tinto
increased its interest in Comalco from 67.0% to 70.4% during 1998. During
the first half of 1999, Rio Tinto increased its interest in Comalco from
70.4% to 72.4%. Rio Tinto's share of production has been calculated using the
weighted average of Rio Tinto's interest over the relevant periods.
More to follow
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