Rio Tinto Q3 Iron Ore Output Rises, Backs Full-year Shipment Outlook

(RTTNews) - Anglo-Australian mining giant Rio Tinto Plc (RTNTF, RIO, RIO.L, RTPPF) said its production of iron ore for the third quarter increased 12 percent from last year, while shipments of the steel making material rose 17 percent.

Looking ahead, the company said it is on track to meet its outlook for full-year iron ore shipments.

Rio Tinto, the world's second-largest iron-ore producer, said its global iron ore production for the third quarter increased 12 percent on a 100 percent basis to 86.1 million tons. The increase was aided by productivity gains and the ramp-up of operations in addition to favorable weather conditions.

The company's third-quarter iron-ore production rose 8 percent sequentially. Sales of iron ore, which is used for making steel, accounts for roughly 90 percent of Rio Tinto's profit.

Rio Tinto's global iron ore shipments for the quarter grew 17 percent on a 100 percent basis from the year-ago quarter to 91.3 million tons. Sequentially, iron-ore shipments were up 12 percent.

Over the past few years, Rio Tinto and rivals like BHP Billiton Ltd. (BHP, BLT.L, BHP.AX, BBL, BHPBF) and Brazil's Vale have been increasing production of iron ore despite the fall in iron ore prices on weak demand from China. Iron ore prices are currently trading at about $53 a ton.

At Pilbara, iron ore production grew 12 percent from last year to 81.3 million tons and sales rose 16 percent to 85.6 million tons.

Rio Tinto said it has completed the key elements of the Pilbara infrastructure expansion during the first half of the year, with the ramp-up of iron ore mined capacity continuing to generate maximum value.

Meanwhile, quarterly total mined copper production decreased 24 percent from last year to 115 million tons, primarily due to lower output at Kennecott Utah and Escondida mines.

Bauxite production for the quarter rose 4 percent, while aluminum production edged up 1 percent from last year.

Hard coking coal's production increased 5 percent, while semi-soft and thermal coal production declined 8 percent from last year.

Looking ahead to fiscal 2015, Rio Tinto Rio Tinto maintained its outlook for global iron ore shipments of around 340 million tonnes from its operations in Australia and Canada.

In Friday's regular trading session, RIO.AX is trading on the ASX at A$54.19, down A$0.06 or 0.11 percent on a volume of 552,336 shares.

RIO closed Thursday's trading on the NYSE at $39.21, down $0.03 or 0.08 percent on a volume of 2.7 million shares.