16 January 2008
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PR596g
Fourth quarter 2007 operations review
Commenting on the quarter and full
year production results, chief executive Tom Albanese said: "Rio
Tinto has pulled out all the stops to boost production in 2007 while
our safety record has continued to improve. Investment to expand
capacity in recent years is paying off with record volume growth in
many commodities. We are driving the business at record pace, as
these strong numbers clearly show.
“In 2007, we set annual production
records for iron ore, bauxite, alumina, aluminium, refined gold, and
refined copper on a like for like basis. With significant expansions
in iron ore and aluminium and the contribution of the Alcan
acquisition, which created the world's leading aluminium producer,
we are set to see an acceleration of this growth in 2008.
“Against a background of record
prices for many of our commodities and with a strong outlook for the
demand for our products in the developing markets, we look forward
with confidence."
• Rio Tinto’s iron ore
production set a new annual record at 179 million tonnes in 2007. On
an attributable basis 2007 iron ore production was 145 million
tonnes, a nine per cent increase on the 2006 total.
• Fourth quarter attributable
iron ore production was also a record, 11 per cent ahead of the
fourth quarter of 2006 and seven per cent up on the previous quarter
of 2007.
• The Pilbara operations
continued their rapid expansion with the Hamersley mines raising
production by 17 per cent compared with the fourth quarter of 2006.
At the end of December 2007 the Pilbara ports were operating at a
rate of 190 million tonnes per annum (164 million tonnes on an
attributable basis).
• Rio Tinto’s newest iron ore
mine, Hope Downs, commenced production in November 2007, three
months ahead of schedule. With the first expansion already approved,
it is expected to reach 30 million tonnes annual capacity in 2009 –
a rapid and sizeable increment to production in the Pilbara.
• Fourth quarter bauxite,
alumina and aluminium production were at record levels, increasing
by 74 per cent, 133 per cent and 287 per cent respectively compared
with the same quarter of 2006. This followed the Alcan acquisition
and its subsequent integration with effect from 24 October 2007. On
a proforma basis, excluding the Alcan acquisition, quarterly and
annual production records were set for bauxite and aluminium.
• Mined copper production was
five per cent higher than the third quarter of 2007 primarily
reflecting increased throughput at Kennecott Utah Copper but decreased by 14 per cent compared with the same quarter of 2006,
mainly due to lower grades at Kennecott Utah Copper and
Northparkes.
• Rio Tinto’s position as a
significant gold producer was confirmed by its 2007 share of mined
gold production of 1.2 million ounces, a 23 per cent increase over
2006.
• Fourth quarter production
of refined copper and refined gold rose 65 per cent and 98 per cent
respectively above the 2006 fourth quarter level, reflecting a full
quarter of production at the Kennecott Utah Copper smelter after the
scheduled maintenance in the fourth quarter of 2006.
• Fourth quarter uranium
production was 13 per cent higher than the prior quarter but 14 per
cent lower than the 2006 comparative period. The Ranger operation
processed higher grade ore following the implementation of
dewatering strategies and optimisation of the mine plan, offsetting
reduced R�ssing production due primarily to lower grades.
All currency figures in this
report are US dollars unless otherwise stated
A full copy of the press release is also available on
the Rio Tinto website: www.riotinto.com/media
High resolution photographs available at Newscast www.newscast.co.uk
Rohini
Meisuria Adviser -
Digital Communications Communications and External
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