Rio Tinto has reported a 54 per cent quarter-on-quarter increase in Pilbara iron ore production for the December quarter while global iron ore sales reached a new record.
Rio Tinto has reported a 54 per cent quarter-on-quarter increase in Pilbara iron ore production for the December quarter while global iron ore sales reached a new record.
The mining giant today released its December quarter operations review, where it said that iron ore production in the Pilbara reached a total of 56 million tonnes, with 45mt attributable to Rio.
"The Pilbara system consistently operated above its nameplate capacity in order to supply continuing strong growth in demand," Rio said in the statement.
Globally, quarterly iron ore production was up 49 per cent, compared to the December quarter of 2008, to a new record of 47.2mt while iron ore sales hit a new record of 61mt.
"This was another very strong quarter for iron ore production, driven by continuing high demand from China," Rio Tinto chief executive Tom Albanese said.
"In the Pilbara we achieved record sales for the both the quarter and the full year and both global and Pilbara production set new records in 2009."
Pilbara sales volumes for the December quarter reached 56mt, a surge of 68 per cent on the previous corresponding quarter.
Over calendar 2009, iron ore production hit 217mt.
UBS this week flagged that the mining giant could beat its full year iron ore production forecast.
UBS said there was scope for Rio Tinto to do better than its guidance provided in October, noting a recent announcement that its Yandicoogina mine had hit a run rate of more than 50mt a year.
IG Markets analyst Ben Potter this week said that if Rio Tinto met its full year total iron ore output forecast, it would boost its 2009 net profit estimate by about 0.8 per cent to $US5.8 billion ($A6.24 billion).
Rio Tinto in October said it had upgraded its long-term iron ore expansion plans to 330 million tonnes per annum, from 320 million tonnes previously.
It said full-year mined gold production exceeded 1.1 million ounces, up 141 per cent from 2008, due to higher grades at its Kennecott Utah Copper operations in the US and the massive Grasberg mine in Indonesia, which is the largest gold mine in the world.
Production cutbacks across the aluminium group in response to market conditions saw Rio Tinto Alcan's annual run rate fall nine per cent from the start of the year.
Rio Tinto's share of mined copper production for the full year fell by 15 per cent to 804,700 tonnes while refined copper output slid by 28 per cent to 412,400 tonnes.
Rio Tinto chief executive Tom Albanese said good progress was made with assets sales, which were needed to reduce the miner's sizeable debt, incurred through the purchase of Alcan.
Mr Albanese said $1.85 billion in divestments was achieved in the fourth quarter "... and we have now agreed sales of $10.3 billion since we began the divestment programme in 2008".
The miner maintained its expectation that its iron ore joint venture with BHP Billiton in the Pilbara would be complete in the second half of this calendar year.
Shares in Rio Tinto were up $2.19, or 2.84 per cent, at $79.31 at 1541 AEDT.
