REG - Rio Tinto - Rio Tinto first quarter production results <Origin Href="QuoteRef">RIO.L</Origin> - Part 1
RNS Number : 5734VRio Tinto PLC18 April 2016Rio Tinto releases robust first quarter production results
19 April 2016
Rio Tinto chief executive Sam Walsh said "These results demonstrate our commitment to operational excellence in 2016, with notable improvements in several important areas, including a strong performance in Aluminium. However, we continue to experience volatility in commodity prices across all markets. In the face of a testing external environment, our focus remains on delivering further cost and productivity improvements, disciplined capital management and maximising free cash flow, to ensure that Rio Tinto remains strong."
Q1 2016
vs Q1 2015
vs Q4 2015
Global iron ore shipments (100% basis)
Mt
80.8
+11%
-12%
Global iron ore production (100% basis)
Mt
84.0
+13%
-4%
Bauxite
kt
11,088
+6%
-1%
Aluminium
kt
887
+10%
+3%
Mined copper
kt
141.2
-2%
+27%
Hard coking coal
kt
1,982
-1%
+4%
Semi-soft and thermal coal
kt
5,506
-3%
-8%
Titanium dioxide slag
kt
246
-24%
+10%
Highlights
Global iron ore shipments of 80.8 million tonnes (Rio Tinto share 64.9 million tonnes) were 11 per cent higher than in the first quarter of 2015 due to the completion of some brownfield developments and expanded infrastructure capacity in the Pilbara in 2015, but were lower than the prior quarter due to normal seasonal factors.
Improvements throughout the Aluminium product group:
o Bauxite production of 11.1 million tonnes, improved by six per cent compared with the first quarter of 2015.
o Alumina production increased by seven per cent compared with the first quarter of 2015.
o Aluminium production increased by ten per cent compared with the first quarter of 2015 following the successful completion of the ramp-up at the Kitimat smelter.
Mined copper production was 27 per cent higher than the previous quarter, with higher grades at Kennecott, improved throughput and water availability at Escondida and a share of production from Grasberg.
During the quarter, the Group completed the divestment of the Bengalla coal mine and the restructure of the Coal & Allied group and announced the sale of the Mount Pleasant coal project.
All currency figures in this report are US dollars, and comments refer to Rio Tinto's share of production, unless otherwise stated.To allow production numbers to be compared on a like-for-like basis, production from asset divestments completed in 2015 have been excluded from Rio Tinto share of production data but assets sold in 2016 remain in comparisons.
IRON ORE
Rio Tinto share of production (million tonnes)
Q1 2016
vs Q1 2015
vs Q4 2015
Pilbara Blend Lump
18.7
+17%
-4%
Pilbara Blend Fines
28.4
+15%
-6%
Robe Valley Lump
1.6
+6%
+12%
Robe Valley Fines
2.9
+13%
+0%
Yandicoogina Fines (HIY)
13.4
+6%
-2%
IOC (pellets and concentrate)
2.4
+15%
-16%
Pilbara operations
Pilbara operations produced 79.9 million tonnes (Rio Tinto share 65.0 million tonnes) in the first quarter of 2016, 12 per cent higher than the same quarter of 2015. Higher year-on-year production reflects the stronger performance following completion of the brownfield developments and infrastructure expansions in 2015. First quarter production was three per cent lower than the previous quarter.
Pilbara sales
Sales of 76.7 million tonnes (Rio Tinto share 62.5 million tonnes) in 2015 were 11 per cent higher than in the first quarter of 2015.
Sales were around three million tonnes below production in the first quarter of 2016 due to seasonal re-stocking and weather disruptions from Tropical Cyclone Stan. Inventory at port returned to optimum levels in the first quarter.
On 15 April 2016, Rio Tinto announced the extension of the Channar Mining Joint Venture with Sinosteel Corporation. This extension, together with a separate agreement for Rio Tinto to supply iron ore from the Pilbara, will enable sales of up to 70 million tonnes of iron ore to Sinosteel Corporation over the next five years.
Pilbara projects
Work continued on the Nammuldi Incremental Tonnes (NIT) project which delivers high grade, low phosphorous ore into the Pilbara Blend. The initial phase, with a five million tonne per annum capacity, commenced production in the fourth quarter of 2015 and the second phase, which will take annual mine capacity from five to ten million tonnes per annum, is due to come into production in the fourth quarter of 2016. A further investment decision on the Silvergrass project is expected in the second half of the year.
The Cape Lambert Power Station project is progressing on schedule with civil contractors mobilised. The station will provide the power required for additional infrastructure in the Pilbara. Testing and verification of AutoHaul is continuing, with over 75,000 kilometres of mainline trials completed: however, some delays are being experienced.
Iron Ore Company of Canada (IOC)
Operational performance continued to improve at IOC. A new first quarter record for concentrate production of 2.1 million tonnes was achieved, which was an increase of 54 per cent compared with the first quarter of 2015, although 26 per cent lower than the fourth quarter of 2015 due to seasonal impacts.
IOC continues to optimise production of pellets and concentrate for sale based on prevailing market conditions and demand. However, pellet production declined by ten per cent to 2.0 million tonnes when compared with the first quarter of 2015, mainly due to equipment reliability.
2016/17 guidance
Rio Tinto's expected global shipments in 2016 are unchanged at around 350 million tonnes (100 per cent basis), from its operations in Australia and Canada, subject to weather conditions.
With the delay in AutoHaul, production from the Pilbara is now expected to be between 330 and 340 million tonnes in 2017 (previously 350 million tonnes), subject to final productivity and capital expenditure plans.
ALUMINIUM
Rio Tinto share of production ('000 tonnes)
Q1 2016
vs Q1 2015
vs Q4 2015
Rio Tinto Aluminium
Bauxite
11,088
+6%
-1%
Alumina
2,019
+7%
+0%
Aluminium
887
+10%
+3%
Bauxite
Bauxite production of 11.1 million tonnes during the first quarter of 2016 was a six per cent increase on the first quarter of 2015 and was in line with the previous quarter. Strong performance in ramping up the Gove mine increased production by 30 per cent to 2.2 million tonnes and record production at Sangaredi (CBG), at 1.9 million tonnes, was 16 per cent higher compared with the first quarter of 2015.
Third party shipments of 6.8 million tonnes were six per cent higher than the first quarter of 2015.
Alumina
Alumina production in the first quarter improved by seven per cent compared with the first quarter of 2015 and was consistent with the fourth quarter of 2015. This solid performance was mainly driven by Yarwun, where first quarter production of 785 thousand tonnes was 15 per cent higher than the first quarter of 2015, setting a new quarterly record. It also reflected the ongoing focus on productivity improvements across all refineries, which continues to be the strategy for the division.
Aluminium
Aluminium production of 887 thousand tonnes represents a ten per cent increase compared with the first quarter of 2015.
Kitimat completed its ramp-up to an annualised rate of 420 thousand tonnes in March 2016.
Production across the Saguenay smelter system increased by four per cent compared with the first quarter of 2015 as a result of ongoing productivity improvements.
2016 guidance
Rio Tinto's expected share of production of bauxite, alumina and aluminium remains unchanged at 45 million tonnes, 7.8 million tonnes and 3.6 million tonnes, respectively.
COPPER & COAL
Rio Tinto share of production ('000 tonnes)
Q1 2016
vs Q1 2015
vs Q4 2015
Mined copper
Rio Tinto Kennecott
34.2
+29%
+33%
Escondida
79.4
-25%
+20%
Grasberg
8.3
n/a*
n/a*
Oyu Tolgoi
19.3
+71%
+0%
Refined copper
Rio Tinto Kennecott
25.8
-43%
+14%
Escondida
25.4
+10%
-4%
Coal
Hard coking coal
1,982
-1%
+4%
Semi-soft coking coal
1,175
+31%
+47%
Thermal coal
4,331
-9%
-16%
* Production from Grasberg in 2015 did not exceed the metal attributable to Freeport and, accordingly, Rio Tinto's share of joint venture production was zero.
Rio Tinto Kennecott
Mined copper production increased by 33 per cent compared with the previous quarter and 29 per cent compared with the first quarter of 2015, primarily due to higher copper grades.
The focus continues on the de-weighting and de-watering of the east wall of Bingham Canyon and the development of the south wall pushback.
Refined copper production was 14 per cent higher than the fourth quarter of 2015 again reflecting the higher grades. The 43 per cent decrease compared with the first quarter of 2015 was primarily a result of a drawdown of inventory in 2015, which more than offset lower mine production.
Kennecott continues to toll third party concentrate to optimise smelter utilisation, with 90 thousand tonnes received for processing in the first quarter of 2016. Tolled copper concentrate, which is smelted and returned to customers, is excluded from reported production figures.
Escondida
At Escondida, mined copper production was 20 per cent higher compared to the previous quarter as a result of higher throughput from the continued ramp-up of the new 152ktpd concentrator and improved water availability. The 25 per cent reduction from the same quarter in 2015 is due to lower grades.
Refined copper production for the first quarter of 2016 was ten per cent higher than the corresponding quarter of 2015 as a result of an increase in material stacked for leaching. This was supported by the drawdown of low grade ore-stocks and an increased area under irrigation.
Oyu Tolgoi
In the first quarter of 2016, Oyu Tolgoi achieved record levels of ore processed due to mill throughput improvements. With the mine also continuing to access higher grades, this resulted in mined copper production during the period being 71 per cent higher than the first quarter of 2015 and comparable with the previous quarter.
Work continues on gaining the required permits and licenses for the development of the underground mine. It is expected that the Rio Tinto board will consider this project for approval during the second quarter of 2016.
Grasberg
Through a joint venture agreement with Freeport-McMoRan Inc. (Freeport), Rio Tinto is entitled to 40 per cent of copper and gold produced above an agreed threshold that is referred to as the metal strip.
Grasberg's first quarter production in 2016 exceeded the metal strip and as a result, Rio Tinto's share for the quarter was 8.3 thousand tonnes of mined copper and 12.7 thousand ounces of gold.
Coal
Hard coking coal production was in line with the first quarter of 2015 and four per cent higher than the previous quarter.
Semi-soft coking coal production was 47 per cent higher than the fourth quarter of 2015 and was 31 per cent higher than the same quarter of 2015, reflecting mine production sequencing at Hunter Valley Operations and Mount Thorley Warkworth.
Thermal coal production was 16 per cent lower than the previous quarter and nine per cent lower than the same quarter of 2015, due to the impact of wet weather at Hunter Valley Operations in January 2016. It also reflects the change in ownership following completion of the Coal & Allied restructure and the divestment of Bengalla.
The restructure of the Coal & Allied group came into effect on 3 February 2016. Under the restructure, Rio Tinto obtained 100 per cent ownership of Coal & Allied and Mitsubishi obtained a direct interest of 32.4 per cent in the Hunter Valley Operations. Rio Tinto's interest in Hunter Valley Operations, Mount Thorley and Warkworth mines is now 67.6 per cent, 80 per cent and 55.57 per cent respectively. Historical production data prior to the date of the restructure reflects the previous ownership.
Rio Tinto completed the sale of its 40 per cent interest in the Bengalla Joint Venture for $616.7 million with an effective date of 1 March 2016.
On 27 January 2016, Rio Tinto announced that it had reached a binding agreement for the sale of its Mount Pleasant thermal coal assets to MACH Energy Australia Pty Ltd for $224 million plus royalties. The sale is subject to certain conditions precedent being met and is expected to close in 2016.
2016 guidance
In 2016, Rio Tinto expects its share of mined copper production to remain unchanged at between 575 and 625 thousand tonnes. Refined copper production guidance is also unchanged and is expected to be between 220 and 250 thousand tonnes.
For coal, Rio Tinto's forecast share of production is unchanged and is expected to be 7 to 8 million tonnes of hard coking coal, 3.3 to 3.9 million tonnes of semi-soft coking coal and 16 to 17 million tonnes of thermal coal. Thermal coal guidance includes a contribution from Bengalla up to 1 March 2016 and the share of production attributable to Rio Tinto prior to and following the restructure of the Coal & Allied group.
DIAMONDS & MINERALS
Rio Tinto share of production
Q1 2016
vs Q1 2015
vs Q4 2015
Diamonds('000 carats)
Argyle
3,391
+5%
+1%
Diavik
1,131
+26%
+26%
Minerals ('000 tonnes)
Borates - B2O3 content
127
-2%
+19%
Titanium dioxide slag
246
-24%
+10%
Salt ('000 tonnes)
1,438
+1%
-13%
Uranium ('000 lbs)
Energy Resources of Australia
894
+21%
-11%
Rssing
687
+152%
-1%
Diamonds
At Argyle, production was five per cent higher than the first quarter of 2015 due to increased underground volumes.
At Diavik, carats recovered were 26 per cent higher in the first quarter of 2016 compared with the first quarter of 2015 due to higher mining rates, availability of stockpiled ore and higher grades recovered. Production was also 26 per cent higher than the fourth quarter of 2015 following the processing pause late in 2015.
Minerals
Borates production in the first quarter was 19 per cent greater than the previous quarter due to alignment of production to stronger demand in the US and China. Chinese demand was driven by improvements in residential construction and in overall business sentiment.
Rio Tinto Iron and Titanium (RTIT)
Titanium dioxide slag production was 24 per cent lower than the first quarter of 2015 but 10 per cent higher than the fourth quarter of 2015 as RTIT continues to optimise production in line with demand. Two of nine furnaces at Rio Tinto Fer et Titane and one of four furnaces at Richards Bay Minerals are currently idled, reflecting lower demand for high grade feedstocks.
Salt
Salt production in the first quarter was 13 per cent lower than the previous quarter, due to weaker demand.
Uranium
Energy Resources of Australia (ERA) continues to process existing stockpiles. First quarter 2016 saw a 21 per cent increase in production over the same quarter of 2015. Production was 11 per cent lower than the previous quarter as grade was lower, although in line with the Group's expectations.
Production at Rssing was 152 per cent higher than the same quarter of 2015 following recovery from a fire in February 2015.
2016 guidance
Rio Tinto's expected share of titanium dioxide slag, boric oxide equivalent production, uranium and diamond production in 2016 is unchanged at one million tonnes, 0.5 million tonnes, five to six million pounds and 21 million carats, respectively.
EXPLORATION AND EVALUATION
Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in the first quarter of 2016 was $128 million compared with $126 million in the same quarter of 2015. Approximately five per cent of this expenditure was incurred by Iron Ore, three per cent by Aluminium, 24 per cent by Copper & Coal, 40 per cent by Diamonds & Minerals and the remainder by central exploration.
There were no significant divestments of central exploration properties in the first quarter of 2016.
Exploration highlights
Rio Tinto has a strong portfolio of projects with activity in 18countries across some eight commodities. The bulk of the exploration spend in this quarter was focused on copper targets in Australia, Botswana, Chile, Kazakhstan, Mexico, Namibia, Peru, Russia, the United States and Zambia. Mine-lease exploration continued at a number of Rio Tinto managed businesses including Pilbara Iron, Rio Tinto Coal Australia, Richards Bay Minerals, Oyu Tolgoi, Kennecott and Weipa.
A summary of activity for the quarter is as follows:
Product Group
Evaluation
projects
Advanced
projects
Greenfield
programmes
Aluminium
Cape York, Australia
Amargosa orbit, Brazil
Australia, Brazil, Laos
Copper & Coal
Copper/molybdenum: Resolution, US
Copper: La Granja, Peru
Copper/gold: Oyu Tolgoi, Mongolia
Coal: Mt Pleasant and Hail Creek, Australia
Nickel: Tamarack, US
Coal: Bowen Basin, Hunter Valley, Australia
Copper: Australia, Botswana, Chile, China, Kazakhstan, Mexico, Mongolia, Namibia, Peru, Russia, US, Zambia
Nickel: Canada
Diamonds & Minerals
Diamonds: Bunder, India
Lithium borates: Jadar, Serbia
Heavy mineral sands: Mutamba, Mozambique and Zulti South, South Africa
Iron Ore: Simandou, Guinea
Uranium: Roughrider, Canada
Potash: KP405, Canada
Diamonds: Canada, India
Heavy mineral sands: Gabon
Uranium: Australia, Canada, US
Iron Ore
Pilbara, Australia
Pilbara, Australia
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Media Relations, Australia/Asia
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Rio Tinto production summary
Rio Tinto share of production
Quarter
Full Year
% Change
2015
Q12015
Q42016
Q1
2015
Q1 16
vs
Q1 15Q1 16
vs
Q4 15Principal Commodities
Alumina
('000 t)
1,896
2,011
2,019
7,788
7%
0%
Aluminium
('000 t)
809
864
887
3,322
10%
3%
Bauxite
('000 t)
10,484
11,211
11,088
43,677
6%
-1%
Borates
('000 t)
129
107
127
476
-2%
19%
Coal - hard coking
('000 t)
2,002
1,900
1,982
7,859
-1%
4%
Coal - semi-soft coking
('000 t)
898
797
1,175
3,647
31%
47%
Coal - thermal
('000 t)
4,762
5,182
4,331
18,638
-9%
-16%
Copper - mined
('000 t)
144.1
111.1
141.2
504.4
-2%
27%
Copper - refined
('000 t)
68.2
49.2
51.3
213.0
-25%
4%
Diamonds
('000 cts)
4,115
4,266
4,522
17,316
10%
6%
Iron ore
('000 t)
59,412
70,427
67,371
263,048
13%
-4%
Titanium dioxide slag
('000 t)
322
223
246
1,089
-24%
10%
Uranium
('000 lbs)
1,010
1,699
1,581
4,907
57%
-7%
Other Metals & Minerals
Gold - mined
('000 oz)
79.8
100.3
96.4
376.4
21%
-4%
Gold - refined
('000 oz)
62.2
31.0
29.8
179.0
-52%
-4%
Molybdenum
('000 t)
2.7
0.6
0.1
7.6
-96%
-79%
Salt
('000 t)
1,418
1,647
1,438
5,539
1%
-13%
Silver - mined
('000 oz)
954
707
938
3,311
-2%
33%
Silver - refined
('000 oz)
698
348
348
1,843
-50%
0%
Throughout this report, figures in italics indicate adjustments made since the figure was previously quoted on the equivalent page. Production figures are sometimes more precise than the rounded numbers shown, hence small differences may result between the total of the quarter figures and the year to date figures.
Rio Tinto share of production
RioTinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016FullYear
2015
ALUMINA
Production ('000 tonnes)
Jonquire (Vaudreuil)
100%
360
359
369
361
377
1,449
Jonquire (Vaudreuil) specialty alumina plant
100%
27
30
27
26
25
110
Queensland Alumina
80%
739
741
765
752
742
2,997
So Luis (Alumar)
10%
86
94
93
94
90
367
Yarwun
100%
683
700
703
778
785
2,864
Rio Tinto total alumina production
1,896
1,925
1,957
2,011
2,019
7,788
ALUMINIUM
Production ('000 tonnes)
Australia - Bell Bay
100%
46
47
48
49
45
191
Australia - Boyne Island
59%
84
86
87
86
86
344
Australia - Tomago
52%
73
75
76
75
75
299
Canada - six wholly owned
100%
306
305
316
346
375
1,273
Canada - Alouette (Sept-les)
40%
59
61
61
61
61
242
Canada - Bcancour
25%
26
28
27
28
28
109
France - Dunkerque
100%
67
68
69
70
69
275
Iceland - ISAL (Reykjavik)
100%
51
51
48
50
50
201
New Zealand - Tiwai Point
79%
65
66
67
67
67
265
Oman - Sohar
20%
19
19
19
19
19
75
UK - Lochaber
100%
12
12
12
12
12
47
Rio Tinto total aluminium production
809
818
830
864
887
3,322
BAUXITE
Production ('000 tonnes) (a)
Gove
100%
1,710
1,863
1,966
1,959
2,214
7,497
Porto Trombetas
12%
438
447
522
532
457
1,939
Sangaredi
(b)
1,632
1,444
1,681
1,820
1,892
6,577
Weipa
100%
6,704
6,941
7,119
6,899
6,524
27,663
Rio Tinto total bauxite production
10,484
10,695
11,287
11,211
11,088
43,677
Rio Tinto share of production
RioTinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016FullYear
2015
BORATES
Production ('000 tonnes B2O3 content)
Rio Tinto Minerals - borates
100%
129
124
115
107
127
476
COAL - hard coking
Rio Tinto Coal Australia ('000 tonnes)
Hail Creek Coal
82%
1,189
1,349
1,427
1,134
1,224
5,099
Kestrel Coal
80%
813
752
429
766
758
2,760
Rio Tinto total hard coking coal production
2,002
2,101
1,856
1,900
1,982
7,859
COAL - semi-soft coking
Rio Tinto Coal Australia ('000 tonnes)
Hunter Valley (c)
68%
460
780
585
548
677
2,373
Mount Thorley (c)
80%
311
168
254
163
363
895
Warkworth (c)
56%
128
76
90
87
135
380
Rio Tinto total semi-soft coking coal production
898
1,024
928
797
1,175
3,647
COAL - thermal
Rio Tinto Coal Australia ('000 tonnes)
Bengalla (d)
0%
749
568
652
693
527
2,662
Hail Creek Coal
82%
725
601
634
702
895
2,661
Hunter Valley (c)
68%
2,184
1,579
1,925
2,351
1,364
8,039
Kestrel Coal
80%
94
143
87
185
139
509
Mount Thorley (c)
80%
353
517
547
385
549
1,802
Warkworth (c)
56%
658
667
774
866
859
2,965
Rio Tinto total thermal coal production
4,762
4,075
4,618
5,182
4,331
18,638
Rio Tinto share of production
RioTinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016FullYear
2015
COPPER
Mine production ('000 tonnes) (a)
Bingham Canyon
100%
26.6
17.4
22.2
25.7
34.2
92.0
Escondida
30%
106.2
98.4
73.8
66.2
79.4
344.7
Grasberg - Joint Venture (e)
40%
0.0
0.0
0.0
0.0
8.3
0.0
Oyu Tolgoi (f)
34%
11.3
18.5
18.8
19.2
19.3
67.8
Rio Tinto total mine production
144.1
134.3
114.9
111.1
141.2
504.4
Refined production ('000 tonnes)
Escondida
30%
23.2
26.6
21.5
26.6
25.4
97.9
Rio Tinto Kennecott
100%
45.0
33.2
14.3
22.6
25.8
115.2
Rio Tinto total refined production
68.2
59.9
35.8
49.2
51.3
213.0
DIAMONDS
Production ('000 carats)
Argyle
100%
3,217
3,374
3,514
3,368
3,391
13,472
Diavik
60%
899
1,285
761
899
1,131
3,843
Rio Tinto total diamond production
4,115
4,659
4,275
4,266
4,522
17,316
GOLD
Mine production ('000 ounces) (a)
Barneys Canyon
100%
0.0
0.0
0.0
0.0
0.0
0.0
Bingham Canyon
100%
44.7
29.5
31.0
25.6
26.2
130.8
Escondida
30%
6.4
7.7
7.1
5.4
9.4
26.6
Grasberg - Joint Venture (e)
40%
0.0
0.0
0.0
0.0
12.7
0.0
Oyu Tolgoi (f)
34%
28.7
79.8
41.1
69.4
48.1
219.0
Rio Tinto total mine production
79.8
116.9
79.3
100.3
96.4
376.4
Refined production ('000 ounces)
Rio Tinto Kennecott
100%
62.2
51.6
34.1
31.0
29.8
179.0
Rio Tinto share of production
RioTinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016FullYear
2015
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines
(g)
42,177
45,807
50,113
51,324
48,468
189,421
Hamersley - Channar
60%
1,287
1,675
1,811
1,564
1,523
6,337
Hope Downs
50%
5,679
5,259
5,589
5,845
5,900
22,373
Iron Ore Company of Canada
59%
2,109
2,616
2,784
2,878
2,419
10,388
Robe River - Pannawonica (Mesas J and A)
53%
4,020
4,402
4,520
4,273
4,450
17,216
Robe River - West Angelas
53%
4,139
4,133
4,497
4,544
4,611
17,313
Rio Tinto iron ore production ('000 tonnes)
59,412
63,892
69,316
70,427
67,371
263,048
Breakdown of Production:
Pilbara Blend Lump
16,057
17,490
19,697
19,571
18,732
72,815
Pilbara Blend Fines
24,607
25,466
28,497
30,036
28,351
108,606
Robe Valley Lump
1,482
1,541
1,505
1,410
1,573
5,937
Robe Valley Fines
2,538
2,861
3,015
2,863
2,876
11,278
Yandicoogina Fines (HIY)
12,618
13,918
13,818
13,669
13,420
54,022
IOC Concentrate
804
1,245
1,197
1,683
1,242
4,929
IOC Pellets
1,305
1,372
1,587
1,196
1,178
5,459
Breakdown of Sales:
Pilbara Blend Lump
13,231
14,620
17,178
18,001
15,291
63,030
Pilbara Blend Fines
26,004
30,200
34,922
34,098
30,522
125,224
Robe Valley Lump
1,257
1,320
1,405
1,334
1,272
5,317
Robe Valley Fines
2,568
2,797
3,246
3,256
2,893
11,867
Yandicoogina Fines (HIY)
12,336
14,004
13,934
14,569
12,533
54,843
IOC Concentrate
417
1,112
1,850
1,560
1,210
4,939
IOC Pellets
1,462
1,344
1,553
1,280
1,168
5,639
Rio Tinto iron ore sales ('000 tonnes)
57,276
65,397
74,088
74,097
64,889
270,858
Rio Tinto share of production
RioTinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016FullYear
2015
MOLYBDENUM
Mine production ('000 tonnes) (a)
Bingham Canyon
100%
2.7
2.6
1.8
0.6
0.1
7.6
SALT
Production ('000 tonnes)
Dampier Salt
68%
1,418
1,193
1,281
1,647
1,438
5,539
SILVER
Mine production ('000 ounces) (a)
Bingham Canyon
100%
486
310
362
300
342
1,458
Escondida
30%
407
394
354
289
463
1,443
Grasberg - Joint Venture (e)
40%
0
0
0
0
0
0
Oyu Tolgoi (f)
34%
62
100
130
119
132
410
Rio Tinto total mine production
954
804
846
707
938
3,311
Refined production ('000 ounces)
Rio Tinto Kennecott
100%
698
501
296
348
348
1,843
TITANIUM DIOXIDE SLAG
Production ('000 tonnes)
Rio Tinto Iron & Titanium (h)
100%
322
301
243
223
246
1,089
URANIUM
Production ('000 lbs U3O8) (i)
Energy Resources of Australia
68%
737
589
689
1,008
894
3,023
Rssing
69%
272
543
379
691
687
1,884
Rio Tinto total uranium production
1,010
1,131
1,068
1,699
1,581
4,907
Production data notes:
Production figures are sometimes more precise than the rounded numbers shown, hence small differences may result between the total of the quarter figures and the year to date figures.
(a) Mine production figures for metals refer to the total quantity of metal produced in concentrates, leach liquor or dor bullion irrespective of whether these products are then refined onsite, except for the data for bauxite and iron ore which represent production of marketable quantities of ore plus concentrates and pellets.
(b) Rio Tinto has a 22.95% shareholding in the Sangaredi mine but benefits from 45.0% of production.
(c) As a result of a restructure of the Coal & Allied group, which completed on 3 February 2016, Rio Tinto obtained 100% ownership of Coal & Allied and Mitsubishi obtained a direct interest of 32.4% in the newly created Hunter Valley Operations joint venture, which owns the Hunter Valley Operations mine. Updated ownership reflects these changes. Rio Tinto's updated interest in Hunter Valley Operations, Mt Thorley and Warkworth mines are 67.6%, 80% and 55.57% respectively. Historical production data prior to the date of the restructure reflects the previous ownership in the Hunter Valley Operations, Mt Thorley and Warkworth mines of 80%, 64% and 44.46%, respectively.
(d) Rio Tinto sold its interest in the Bengalla Joint Venture with an effective date of 1 March 2016.
(e) Through a joint venture agreement with Freeport-McMoRan (FCX), Rio Tinto is entitled to 40% of additional material mined as a consequence of expansions and developments of the Grasberg facilities since 1998.
(f) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in Turquoise Hill Resources Ltd.
(g) Includes 100% of production from Paraburdoo, Mt Tom Price, Marandoo, Yandicoogina, Brockman, Nammuldi and the Eastern Range mines. Whilst Rio Tinto owns 54% of the Eastern Range mine, under the terms of the joint venture agreement, Hamersley Iron manages the operation and is obliged to purchase all mine production from the joint venture and therefore all of the production is included in Rio Tinto's share of production.
(h) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio Tinto's 74% interest in Richards Bay Minerals (RBM).
(i) ERA and Rssing production reported are drummed U3O8.
The Rio Tinto percentage shown above is at 31 March 2016.
Rio Tinto's interest in the Murowa mine was sold in 2015. No data for this operation are included in the Share of Production table.
Rio Tinto operational data
RioTinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016FullYear
2015
ALUMINA
Smelter Grade Alumina - Aluminium Group
Alumina production ('000 tonnes)
Australia
Queensland Alumina Refinery - Queensland
80.0%
924
927
956
940
927
3,747
Yarwun refinery - Queensland
100.0%
683
700
703
778
785
2,864
Brazil
So Luis (Alumar) refinery
10.0%
862
940
928
937
903
3,667
Canada
Jonquire (Vaudreuil) refinery - Quebec (a)
100.0%
360
359
369
361
377
1,449
(a) Jonquire's (Vaudreuil's) production shows smelter grade alumina only and excludes hydrate produced and used for specialty alumina.Specialty Alumina - Aluminium Group
Specialty alumina production ('000 tonnes)
Canada
Jonquire (Vaudreuil) plant - Quebec
100.0%
27
30
27
26
25
110
Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
ALUMINIUM
Primary Aluminium
Primary aluminium production ('000 tonnes)
Australia
Bell Bay smelter - Tasmania
100.0%
46
47
48
49
45
191
Boyne Island smelter - Queensland
59.4%
142
145
146
146
145
579
Tomago smelter - New South Wales
51.6%
141
145
147
146
145
579
Canada
Alma smelter - Quebec
100.0%
115
116
117
118
117
466
Alouette (Sept-les) smelter - Quebec
40.0%
147
152
153
153
152
606
Arvida smelter - Quebec
100.0%
43
43
43
44
43
173
Arvida AP60 smelter - Quebec
100.0%
14
15
15
15
15
59
Bcancour smelter - Quebec
25.1%
105
113
108
111
113
437
Grande-Baie smelter - Quebec
100.0%
54
55
56
57
56
221
Kitimat smelter - British Columbia
100.0%
20
15
23
51
83
110
Laterrire smelter - Quebec
100.0%
60
61
61
62
61
244
France
Dunkerque smelter
100.0%
67
68
69
70
69
275
Iceland
ISAL (Reykjavik) smelter
100.0%
51
51
48
50
50
201
New Zealand
Tiwai Point smelter
79.4%
82
83
84
85
84
333
Oman
Sohar smelter
20.0%
93
94
94
96
97
377
United Kingdom
Lochaber smelter
100.0%
12
12
12
12
12
47
Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
BAUXITE
Bauxite production ('000 tonnes)
Australia
Gove mine - Northern Territory
100.0%
1,710
1,863
1,966
1,959
2,214
7,497
Weipa mine - Queensland
100.0%
6,704
6,941
7,119
6,899
6,524
27,663
Brazil
Porto Trombetas (MRN) mine
12.0%
3,651
3,723
4,351
4,437
3,805
16,162
Guinea
Sangaredi mine (a)
23.0%
3,627
3,209
3,735
4,044
4,205
14,615
Rio Tinto share of bauxite shipments
Share of total bauxite shipments ('000 tonnes)
10,487
10,926
11,159
10,890
11,153
43,462
Share of third party bauxite shipments ('000 tonnes)
6,372
6,848
6,773
6,576
6,768
26,569
(a) Rio Tinto has a 22.95% shareholding in the Sangaredi mine but benefits from 45.0% of production.Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
BORATES
Rio Tinto Minerals - borates
100.0%
US
Borates ('000 tonnes) (a)
129
124
115
107
127
476
(a) Production is expressed as B2O3 content.
COAL
Rio Tinto Coal Australia
Bengalla mine (a)
0.0%
New South Wales
Thermal coal ('000 tonnes)
2,341
1,776
2,036
2,166
1,476
8,319
Hail Creek Coal mine
82.0%
Queensland
Hard coking coal ('000 tonnes)
1,450
1,645
1,740
1,383
1,492
6,218
Thermal coal ('000 tonnes)
884
733
773
856
1,091
3,245
Hunter Valley Operations (b)
67.6%
New South Wales
Semi-soft coking coal ('000 tonnes)
574
976
731
685
964
2,966
Thermal coal ('000 tonnes)
2,730
1,974
2,406
2,939
1,911
10,048
Kestrel Coal mine
80.0%
Queensland
Hard coking coal ('000 tonnes)
1,017
940
536
957
948
3,450
Thermal coal ('000 tonnes)
118
178
109
231
173
637
Mount Thorley Operations (b)
80.0%
New South Wales
Semi-soft coking coal ('000 tonnes)
485
263
396
254
466
1,398
Thermal coal ('000 tonnes)
551
809
854
602
742
2,815
Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
COAL (continued)
Warkworth mine (b)
55.6%
New South Wales
Semi-soft coking coal ('000 tonnes)
287
170
201
194
267
853
Thermal coal ('000 tonnes)
1,478
1,499
1,740
1,945
1,672
6,663
Total hard coking coal production ('000 tonnes)
2,467
2,585
2,277
2,340
2,440
9,668
Total semi-soft coking coal production ('000 tonnes)
1,347
1,408
1,329
1,133
1,697
5,217
Total thermal coal production ('000 tonnes)
8,101
6,968
7,918
8,739
7,065
31,727
Total coal production ('000 tonnes)
11,915
10,961
11,524
12,212
11,202
46,612
Total coal sales ('000 tonnes)
11,926
11,016
11,455
12,261
11,047
46,658
Rio Tinto Coal Australia share (c)
Share of hard coking coal sales ('000 tonnes)
1,925
2,405
1,722
2,018
2,099
8,070
Share of semi-soft coal sales ('000 tonnes) (d)
929
963
932
784
1,122
3,609
Share of thermal coal sales ('000 tonnes) (d)
4,781
3,913
4,689
5,037
4,287
18,420
(a) Rio Tinto sold its interest in the Bengalla Joint Venture with an effective date of 1 March 2016.
(b) As a result of a restructure of the Coal & Allied group, which completed on 3 February 2016, Rio Tinto obtained 100% ownership of Coal & Allied and Mitsubishi obtained a direct interest of 32.4% in the newly created Hunter Valley Operations joint venture, which owns the Hunter Valley Operations mine. Updated ownership reflects these changes. Rio Tinto's updated interest in Hunter Valley Operations, Mt Thorley and Warkworth mines are 67.6%, 80% and 55.57% respectively. Historical production prior to the date of the restructure, reflects previous ownership in the Hunter Valley Operations, Mt Thorley and Warkworth mines of 80%, 64% and 44.46% respectively.
(c) Kestrel and Hail Creek produce hard coking coal and thermal coal through their mining operations. Both mines may blend coal types at ports.
(d) Sales relate only to coal mined by the operations and exclude traded coal.Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
COPPER & GOLD
Escondida
30.0%
Chile
Sulphide ore to concentrator ('000 tonnes)
21,382
22,909
22,820
18,076
21,188
85,186
Average copper grade (%)
1.49
1.32
1.00
0.99
0.99
1.21
Mill production (metals in concentrates):
Contained copper ('000 tonnes)
270.6
249.6
169.7
138.6
175.8
828.5
Contained gold ('000 ounces)
21
26
24
18
31
89
Contained silver ('000 ounces)
1,355
1,314
1,181
962
1,544
4,812
Recoverable copper in ore stacked for leaching ('000 tonnes) (a)
83.5
78.5
76.5
81.8
88.8
320.3
Refined production from leach plants:
Copper cathode production ('000 tonnes)
77.3
88.8
71.5
88.7
84.8
326.3
(a) The calculation of copper in material mined for leaching is based on ore stacked at the leach pad.Freeport-McMoRan Copper & Gold
Grasberg mine (a)
0.0% (b)
Papua, Indonesia
Ore treated ('000 tonnes)
14,123
16,095
14,855
14,248
16,794
59,322
Average mill head grades:
Copper (%)
0.57
0.67
0.68
0.75
0.75
0.67
Gold (g/t)
0.68
0.86
0.71
0.92
0.51
0.79
Silver (g/t)
2.13
2.44
2.50
2.92
1.92
2.50
Production of metals in concentrates:
Copper in concentrates ('000 tonnes)
72.2
96.5
90.1
94.5
109.0
353.3
Gold in concentrates ('000 ounces)
262
371
282
355
214
1,270
Silver in concentrates ('000 ounces)
558
759
723
778
590
2,818
Sales of payable metals in concentrates: (c)
Copper in concentrates ('000 tonnes)
70.4
88.8
89.9
88.7
106.5
337.8
Gold in concentrates ('000 ounces)
260
346
286
332
222
1,224
Silver in concentrates ('000 ounces)
435
558
574
567
484
2,134
(a) Through a joint venture agreement with Freeport-McMoRan (FCX), Rio Tinto is entitled to 40% of additional material mined as a consequence of expansions and developments of the Grasberg facilities since 1998. The 1Q 2016 results show the forecast from FCX's most recent five-year plan, because FCX is not releasing its actual 100% operating data for 1Q 2016 until the release of its 2016 first quarter results on 26 April 2016.
(b) Rio Tinto share of Grasberg production is 40% of the expansion.
(c) Net of smelter deductions.Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
COPPER & GOLD (continued)
Rio Tinto Kennecott
Barneys Canyon mine (a)
100.0%
Utah, US
Gold produced ('000 ounces)
0.0
0.0
0.0
0.0
0.0
0.0
Bingham Canyon mine
100.0%
Utah, US
Ore treated ('000 tonnes)
9,819
8,208
8,581
8,224
7,386
34,831
Average ore grade:
Copper (%)
0.31
0.25
0.30
0.35
0.51
0.30
Gold (g/t)
0.21
0.17
0.17
0.15
0.19
0.18
Silver (g/t)
2.22
1.99
2.07
1.45
1.85
1.95
Molybdenum (%)
0.041
0.046
0.035
0.023
0.015
0.037
Copper concentrates produced ('000 tonnes)
133
84
116
136
153
470
Average concentrate grade (% Cu)
19.9
20.6
18.9
18.8
22.4
19.5
Production of metals in copper concentrates:
Copper ('000 tonnes) (b)
26.6
17.4
22.2
25.7
34.2
92.0
Gold ('000 ounces)
45
29
31
26
26
131
Silver ('000 ounces)
486
310
362
300
342
1,458
Molybdenum concentrates produced ('000 tonnes):
5.2
5.0
3.4
1.2
0.2
14.9
Molybdenum in concentrates ('000 tonnes)
2.7
2.6
1.8
0.6
0.1
7.6
(a) Mining operations ceased in the first quarter of 2002. Gold continues to be recovered from leach pads.
(b) Includes a small amount of copper in precipitates.Kennecott smelter & refinery
100.0%
Copper concentrates smelted ('000 tonnes)
148
99
113
143
158
503
Copper anodes produced ('000 tonnes) (a)
35.1
19.1
17.1
24.7
32.0
96.0
Production of refined metal:
Copper ('000 tonnes)
45.0
33.2
14.3
22.6
25.8
115.2
Gold ('000 ounces) (b)
62.2
51.6
34.1
31.0
29.8
179.0
Silver ('000 ounces) (b)
698
501
296
348
348
1,843
(a) New metal excluding recycled material.
(b) Includes gold and silver in intermediate products.Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
COPPER & GOLD (continued)
Turquoise Hill Resources
Oyu Tolgoi mine (a)
33.5%
Mongolia
Ore Treated ('000 tonnes)
7,512
9,025
8,632
9,369
9,662
34,537
Average mill head grades:
Copper (%)
0.52
0.69
0.75
0.69
0.70
0.67
Gold (g/t)
0.48
1.09
0.56
0.92
0.63
0.78
Silver (g/t)
1.16
1.46
1.90
1.67
1.92
1.56
Copper concentrates produced ('000 tonnes)
130.9
215.5
210.3
231.8
229.5
788.5
Average concentrate grade (% Cu)
25.7
25.6
26.6
24.7
25.1
25.6
Production of metals in concentrates:
Copper in concentrates ('000 tonnes)
33.6
55.3
56.0
57.3
57.6
202.2
Gold in concentrates ('000 ounces)
85.6
238.1
122.6
207.1
143.5
653.4
Silver in concentrates ('000 ounces)
184
297
388
355
395
1,223
Sales of metals in concentrates:
Copper in concentrates ('000 tonnes)
42.1
46.3
58.2
54.7
51.2
201.3
Gold in concentrates ('000 ounces)
200
177
200
160
175
737
Silver in concentrates ('000 ounces)
219
245
334
360
305
1,158
(a) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in Turquoise Hill Resources.Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
DIAMONDS
Argyle Diamonds
100.0%
Western Australia
AK1 ore processed ('000 tonnes)
1,178
1,199
1,339
1,127
1,151
4,843
AK1 diamonds produced ('000 carats)
3,217
3,374
3,514
3,368
3,391
13,472
Diavik Diamonds
60.0%
Northwest Territories, Canada
Ore processed ('000 tonnes)
476
565
478
465
557
1,984
Diamonds recovered ('000 carats)
1,498
2,141
1,269
1,498
1,885
6,406
Murowa Diamonds (a)
0.0%
Zimbabwe
Ore processed ('000 tonnes)
117
95
-
-
-
212
Diamonds recovered ('000 carats)
51
48
-
-
-
99
(a) Rio Tinto sold its 77.8% interest in Murowa Diamonds with an effective date of 17 June 2015. Production data are shown up to that date.Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production ('000 tonnes)
Hamersley mines
(a)
42,177
45,807
50,113
51,324
48,468
189,421
Hamersley - Channar
60.0%
2,145
2,792
3,019
2,606
2,539
10,561
Hope Downs
50.0%
11,358
10,518
11,179
11,690
11,799
44,745
Robe River - Pannawonica (Mesas J and A)
53.0%
7,585
8,306
8,529
8,062
8,395
32,482
Robe River - West Angelas
53.0%
7,810
7,797
8,485
8,573
8,700
32,665
Total production ('000 tonnes)
71,075
75,221
81,325
82,255
79,902
309,876
Breakdown of total production:
Pilbara Blend Lump
20,231
21,990
24,306
24,116
23,355
90,643
Pilbara Blend Fines
30,641
31,007
34,672
36,408
34,732
132,728
Robe Valley Lump
2,796
2,907
2,840
2,660
2,969
11,202
Robe Valley Fines
4,789
5,399
5,690
5,402
5,427
21,280
Yandicoogina Fines (HIY)
12,618
13,918
13,818
13,669
13,420
54,022
Breakdown of total sales:
Pilbara Blend Lump
16,832
18,635
21,147
21,960
19,149
78,574
Pilbara Blend Fines
32,904
36,841
41,695
41,266
37,199
152,706
Robe Valley Lump
2,373
2,491
2,651
2,516
2,400
10,031
Robe Valley Fines
4,845
5,277
6,124
6,144
5,459
22,390
Yandicoogina Fines (HIY)
12,336
14,004
13,934
14,569
12,533
54,843
Total sales ('000 tonnes) (b)
69,290
77,248
85,552
86,454
76,739
318,544
(a) Includes 100% of production from Paraburdoo, Mt Tom Price, Marandoo, Yandicoogina, Brockman, Nammuldi and the Eastern Range mines. Whilst Rio Tinto owns 54% of the Eastern Range mine, under the terms of the joint venture agreement, Hamersley Iron manages the operation and is obliged to purchase all mine production from the joint venture and therefore all of the production is included in Rio Tinto's share of production.
(b) Sales represent iron ore exported from Western Australian ports.Iron Ore Company of Canada
58.7%
Newfoundland & Labrador and Quebec in Canada
Saleable iron ore production:
Concentrates ('000 tonnes)
1,370
2,120
2,039
2,865
2,114
8,394
Pellets ('000 tonnes)
2,223
2,336
2,703
2,036
2,006
9,297
Sales:
Concentrates ('000 tonnes)
711
1,894
3,150
2,656
2,060
8,411
Pellets ('000 tonnes)
2,490
2,288
2,644
2,180
1,990
9,603
Global Iron Ore Totals
Iron Ore Production ('000 tonnes)
74,667
79,676
86,067
87,157
84,022
327,567
Iron Ore Sales ('000 tonnes)
72,491
81,430
91,346
91,291
80,789
336,558
Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interest1Q
20152Q
20153Q
20154Q
20151Q
2016Full Year
2015
SALT
Dampier Salt
68.4%
Western Australia
Salt production ('000 tonnes)
2,074
1,745
1,874
2,409
2,103
8,103
TITANIUM DIOXIDE SLAG
Rio Tinto Iron & Titanium
100.0%
Canada and South Africa
(Rio Tinto share) (a)
Titanium dioxide slag ('000 tonnes)
322
301
243
223
246
1,089
(a) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio Tinto's 74% interest in Richards Bay Minerals' production. Ilmenite mined in Madagascar is being processed in Canada.
URANIUM
Energy Resources of Australia Ltd
Ranger mine (a)
68.4%
Northern Territory, Australia
U3O8 Production ('000 lbs)
1,078
861
1,008
1,474
1,307
4,421
(a) ERA production reported is 'drummed' U3O8.Rssing Uranium Ltd
68.6%
Namibia
U3O8 Production ('000 lbs)
397
791
552
1,007
1,001
2,747
Rio Tinto percentage interest shown above is at 31 March 2016. The data represent full production and sales on a 100% basis unless otherwise stated.
This information is provided by RNSThe company news service from the London Stock ExchangeENDSTRUWUURNVASAUR
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