Rio counts cost of weather disruptions

13th Apr 2011 07:49

Mining colossus Rio Tinto said first quarter production in Australia was hit by the severe weather in the region but added that most operations are now getting back to normal.Global iron ore production on an attributable share basis in the first quarter was 3% lower than in the corresponding quarter of 2010 at 42m tonnes, and was 16% lower than the preceding quarter, as operations in the Pilbara were disrupted by three tropical cyclones and widespread flooding.In 2011, Rio Tinto's global iron ore production for its Australian and Canadian operations is expected to be 191m tonnes on an attributable share basis, and 244m tonnes on a 100% basis.Mined copper was down 14% year on year, reflecting lower grades at Escondida and Grasberg, while alumina production was down 4% on a year earlier, largely as a result of heavy rains in Queensland, Australia. Bauxite and aluminium production levels were broadly flat.Rio Tinto share of mined and refined copper production is expected to be 539,000 tonnes and 350,000 tonnes, respectively, in 2011. Its share of bauxite, alumina and aluminium production is expected to be 36.5m tonnes, 9.4m tonnes and 3.9m tonnes, respectively.Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in the first quarter of 2011 was $192m compared with $98m in the same period of 2010. There were no significant divestments of central exploration properties during the quarter, whereas in the first quarter of 2010 Rio realised $26m (pre-tax) from divestments of properties."Our Australian coal, iron ore, uranium and alumina operations were affected by the extreme weather in the first quarter, but most are recovering and are benefiting from continued strong prices," said Tom Albanese, Rio Tinto's chief executive. "We have successfully gained control of Riversdale Mining Limited and plan to accelerate the development of these significant tier one coking coal assets," Albanese added. ---jh