Rio Tinto Q3 Iron Ore Shipments, Production Up

(RTTNews) - Mining giant Rio Tinto (RTPPF.PK, RIO.L, RIO, RTNTF.PK) reported an increase in iron ore shipments and production for the third quarter.

The group's global iron ore shipment's rose 15 percent to 78.0 million tonnes from last year. Global iron ore production rose 12 percent to 76.8 million tonnes from a year ago.

The company also reported a 3% on-year decline in the production of bauxite, used to make aluminum, to 10.9 million tonnes in the third quarter. Hard coking coal output was down 14% on-year at 1.9 million tonnes.

Rio Tinto reiterated full year global iron ore production of 295 million tonnes in line with guidance. Rio Tinto has increased its copper guidance for the year, to 615,000 tonnes of mined copper from prior view of 585,000 tonnes, and refined copper production of 300,000 tonnes, up from previous view of 260,000 tonnes.

The miner's share of bauxite and aluminium production for 2014 is unchanged and is expected to be 41 million tonnes and 3.4 million tonnes, respectively. Alumina production guidance is reduced to 7.4 million tonnes, from prior view of 7.6 million tonnes, excluding alumina production in the year from the Gove alumina refinery. Semi-soft production guidance remains unchanged at 3.0 million tonnes.

Rio is increasing its expected share of thermal coal production to 18.0 million tonnesfrom previous outlook of 17.5 million tonnes, excluding 2.5 million tonnes of production from the Clermont mine prior to divestment.

The company stated that the change is largely as a result of prioritising thermal coal production at Hail Creek and therefore the corresponding guidance for Australian hard coking coal production is now expected to be 7.0 million tonnes (previously 7.4 million tonnes).