Rio Tinto unveils record iron ore production, overhaul on track

16th Jan 2014 08:01

Global miner Rio Tinto unveiled record iron ore and coal production and said its cost-cutting and disposal programme was on track.Rio, which has been undergoing an overhaul under new Chief Executive Sam Walsh, said it had achieved its highest quarterly and annual iron ore production and shipments to date.It also racked up record annual production and shipments for bauxite while production of semi-soft and thermal coal improved significantly for the full year due to productivity improvement initiatives and the completion of brownfield mine developments.In line with rivals, Rio has been selling off businesses and cutting costs as part of a consolidation of the industry in response to the downturn in economies including China.It said it had cut operating cash costs by more than $2bn in 2013 against a year earlier and reduced exploration and evaluation spending by more than $1bn, topping a $750m target.Non-core asset divestments announced in 2013 totalled $3.5bn, of which $2.5bn were completed during the year.Rio Tinto Chief Executive Sam Walsh described the record production, cost cuts and asset sales as "excellent" fourth quarter operational results."These actions, together with lower capital expenditure in 2013 and beyond, will ensure Rio Tinto is well positioned to provide greater value to shareholders," he said.PW