Anglo-Australian mining giant Rio Tinto announced this week that its iron ore output in the third quarter ended on September 30 rose 12 percent from a year earlier, setting a new quarterly record, as mines worked at full steam to meet strong global demand.
Rio Tinto, which published the figures in its Third Quarter 2009 Operations Review, stated that output at its iron ore mines in the Pilbara region of Western Australia were up 18 percent during the quarter year on year. Rio said a 12 percent jump in its overall third quarter iron ore output - with production rising to 47.5 million mt versus 42.4 million a year ago - was a reflection of strong iron ore markets, with mines consistently operating at above nameplate capacity rates. In addition, sales volumes from the Pilbara region continued at record levels, reaching 56 million mt during the third quarter, an increase of six percent on the second quarter and 14 percent higher than the corresponding quarter of 2008. Shipments to all major markets, including the largest single market, China, were maintained at a high level and were primarily priced on a benchmark or its equivalent provisional basis. The HIsmelt pig iron plant in Western Australia remains on a care and maintenance program to April 2010, due to depressed global pig iron prices.
Following a strong performance in the second and third quarters, Rio Tinto expects iron ore production from its global operations, incorporating Australia, Canada and Brazil, between 231 million mt (210 million mt on attributable basis) and 237 million mt (215 million mt on attributable) in 2009, up from its previous forecast of 220 million mt, provided there are no major seasonal weather disruptions.
"We are seeing early signs of recovery in some of our key markets, although we remain cautious about the near term outlook," said Rio Tinto Chief Executive Tom Albanese in the report
Mr. Albanese added, "Our businesses continue to operate efficiently: iron ore production set a new quarterly record, with shipments to China maintained at a high level."
Meanwhile, the company's hard coking coal production from the Queensland coal operations decreased by five percent to 2.077 million mt compared with the same quarter of 2008, following a planned longwall changeover at the Kestrel mine. Rio Tinto has primarily attributed higher production of other coal in the third quarter by 12 percent to 6.031 million mt compared with the third quarter of 2008 to an increase in production of semi-soft coal in line with improved demand from the steel industry.
During 2009, Rio Tinto has announced asset sales totaling $4.1 billion. The $14.8 billion net proceeds from the rights issues were received in July and were used to pay down the group's debt. Divestments totalling $1.5 billion (before tax and fees) were completed during the third quarter and in the first week of October. On 21 September 2009, Rio Tinto completed the $750 million sale of its Corumbá iron ore mine in Brazil to Vale. On October 1, 2009 Rio Tinto completed the $764 million sale of its Jacobs Ranch coal mine in the US to Arch Coal, Inc.