Rio Tinto fourth quarter iron ore production up 11%

19th Jan 2016 07:45

(ShareCast News) - Australian mining colussus Rio Tinto increased iron ore production in the fourth quarter of 2015 by 11% to 87m tonnes.In a production update, the company said global iron ore shipments were in line with 2015 full year guidance of around 340m tonnes (100% basis).The strong second half performance was achieved following completion of the brownfield developments and expanded infrastructure in the Pilbara, enabling a drawdown of inventories, as well as improvements at Iron Ore Company of Canada, Rio added.It said 2016 iron ore production is expected to be around 350m tonnes."Against a challenging backdrop for the industry, Rio Tinto remains focused on operating and commercial excellence to leverage the low-cost position," said chief executive Sam Walsh.The company said a continued strong performance in bauxite exceeded full year guidance of 43m tonnes with record third party shipments of 26.6m tonnes.Aluminium production was in line with 2014, with record annual production at nine smelters offsetting lower production from Kitimat as the modernised and expanded smelter was commissioned.Mined copper production was in line with full year guidance of 510 thousand tonnes as de-weighting and de-watering activities at Kennecott resulted in lower production in 2015, which was partly offset by a 36% cent increase in production at Oyu Tolgoi from higher grades and throughput.Production is expected to increase in 2016, with higher production at Kennecott and an expected share of joint venture production at Grasberg.Rio Tinto's share of hard coking and thermal coal production was in line with 2015 guidance, while semi-soft coking coal production was seven per cent above the top end of the guidance range due to mine sequencing.Diamonds & Minerals continues to optimise production to align with market demand, reflected in a 25 per cent reduction in titanium dioxide slag production compared to 2014, in line with guidance.