Rio Tinto Plc. (RTPPF.PK,RIO.L,RIO,RTNTF.PK) Tuesday reported increase in iron ore output for the second quarter as well as the first half of the year, and upped its full-year forecast for copper production.
Rio Tinto's share of iron ore production advanced 7 percent to 51.83 million metric tons from 48.63 million tons, and grew 7 percent from the preceding first quarter. For the first half of the year, the company's share of iron ore production climbed 6 percent to 100.08 million tons from 94.27 million tons.
According to the miner, first-half iron ore production, shipments and rail volumes were a record even as one of five ship loaders was side-lined for almost three weeks due to a conveyor belt breakage. Further, unseasonal wet weather led to flooding in the Pilbara.
Rio Tinto's iron ore production guidance for 2013 is unchanged at 265 million tonnes, on a 100 percent basis, from global operations in Australia and Canada, subject to weather.
Rio Tinto chief executive Sam Walsh said, "Our iron ore operations continue their impressive performance, with period on period productivity improvements...Despite some challenging weather conditions, our Pilbara 290 iron ore expansion remains on track to deliver first tonnes by the end of this quarter."
Mining companies such as Rio Tinto are sensitive to growth expectations from China, the second-largest economy in the world. Earlier this week, the National Bureau of Statistics revealed that China's economic growth slowed in the second quarter amid weaker industrial production and investment growth.
Last week, China's Finance Minister Lou Jiwei was reported to have said that the economy may grow at a rate of 7 percent this year, which was lower than the government target of 7.5 percent. The statement sparked concerns, leading to panic selling by investors. The report was later corrected to state: ''there is no doubt that China can achieve this year's growth target of 7.5 percent.''
Global iron ore production for the quarter increased 7 percent to 66.0 million tons and improved 8 percent from the prior quarter. Global iron ore shipments edged up 1 percent to 61.3 million tons, but grew 7 percent sequentially.
For Rio Tinto, mined copper output jumped 10 percent to 146,200 tons in the quarter, benefiting from a sustained recovery in grades at Kennecott Utah Copper and Escondida since the first half of 2012. However, this was a 3 percent drop from the first quarter. Refined copper production climbed 43 percent to 70,400 tons.
In 2013, Rio Tinto's share of mined and refined copper production is expected to be 565,000 tonnes and 230,000 tonnes, respectively.
In April, the company's forecast was for Rio Tinto share of mined and refined copper production in 2013 to be 540,000 tons and 205,000 tons, respectively. This reflected less than previously anticipated production at Kennecott Utah Copper, following the slide at Bingham Canyon.
The miner's share of aluminum production rose 7 percent, even as it slid 1 percent from last quarter. Rio Tinto Alcan's quarterly aluminum production increased 15 percent, reflecting the resolution of the lockout at Alma and the restarting of production after the power outage at Shawinigan.
Pacific Aluminium and Other aluminium production fell 6 percent due to the impacts of the Lynemouth smelter closure in March 2012 and the divestment of the Sebree smelter effective June 1.
Hard coking coal output dropped 5 percent, but increased 15 percent from the first quarter. Production in Australia declined 12 percent, largely due to the planned shutdown of the Kestrel Mine coal handling preparation plant for upgrade works.
RIO.AX closed up 1.4 percent on Tuesday at A$55.52.
The stock is gaining 2 percent in early trade in London at 2,862.50 pence.
For comments and feedback contact: editorial@rttnews.com
Business News
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.