[miningmx.com] — Global resources giant Rio Tinto said on Wednesday that during the quarter ended March 2011 its global iron ore production amounted to 42 million tonnes attributable (53 million tonnes on a 100% basis) – down 3% on the first quarter of 2010 and down 16% on the fourth quarter of 2010.
The company said operations in the Pilbara were disrupted by three tropical cyclones and widespread flooding.
Releasing the company’s first quarter 2011 operations review, chief executive Tom Albanese said the group’s Australian coal, iron ore, uranium and alumina operations were affected by the extreme weather in the first quarter, but most are recovering and are benefiting from continued strong prices.
“We have successfully gained control of Riversdale Mining Limited and plan to accelerate the development of these significant tier one coking coal assets,” he noted.
Capacity of the group’s Pilbara iron ore operations increased to 225 million tonnes per annum (Mt/a) at the end of the first quarter, following completion of the first debottlenecking project at the Dampier port.
Mined copper was down 14% on the first quarter of 2010, reflecting lower grades at Escondida and Grasberg.
Alumina production was down 4% on the first quarter of 2010, primarily due to heavy rains in Queensland. Bauxite and aluminium production were broadly flat.
Severe monsoonal rains led to the declaration of force majeure at the four Queensland mines at the end of 2010 and remains in place at Hail Creek.
Australian hard coking coal production was down 12% on the first quarter of 2010 and down 29% per cent on the fourth quarter of 2010.
Australian thermal coal production was consistent with the first quarter of 2010. Higher New South Wales production mitigated the Queensland interruptions.
On 8 February, Rio Tinto approved a $933m investment to extend the life of the Marandoo iron ore mine by 16 years to 2030 and on 10 February, it announced a $5bn capital management programme.
By 12 April, 15.6 million Rio Tinto plc shares had been bought back at a total cost of $1.1bn, the company noted.
On 7 April, Rio Tinto approved $238m to advance a feasibility study for extending the life of Kennecott Utah Copper’s Bingham Canyon Mine in Salt Lake City, and for the purchase of related long-lead time equipment.
By 12 April, Rio Tinto had assumed control of Riversdale Mining, following the acquisition of a 52.6% interest in the company, delivering control of significant tier one coking coal projects.
