Rio’s iron production rises by 16 percent

Source: Energy Digital

Date :16/04/2008 14:56:26

Anglo-American mining giant Rio Tinto said on Wednesday the global production of iron rose by 16 percent during the first quarter.

The company, the third largest mining company in the world, said the record was due to the improvement of transportation of infrastructure that helped to counter-balance losses caused by the cyclone-related disruption.

Aluminum production quintupled, whilst bauxite more than doubled. Full quarter contributions were reflected by strong gains in aluminum due to the recent attainment of Alcan.

Disappointing ore grades came from its Kennecott Utah Copper and Northparkes mine in Australia.

The production of mined copper/pre-processed copper fell by six percent from the previous year. It’s productions of refined copper, suffered a 23 percent fall to 390,000 tons. Rio said that it was because of this that copper prices rose to a record $4 a pound.

Disruption

Rio said the interruption of production and the disruption of thermal and coking coals’ transportation links were due to the heavy rains in Queensland. The company said that its Hail’s Creek operation was especially affected by the flooding.

Gains in Energy Resources of Australia, which endured brutal weather-related interference in the year earlier quarter, contributed to the climb of uranium’s 20 percent production.

There are still ongoing negotiations with its Asian iron ore buyers, says the mining company. They hope to secure prices above the 65 percent to 71 percent levels conferred with Brazil’s Vale.

April 16, 2008