Rio Tinto Q3 Iron Ore Production Rises, Ups Annual Copper Output View

(RTTNews) - Mining giant Rio Tinto Plc. (RTPPF.PK, RIO.L, RIO, RTNTF.PK) Tuesday reported a one percent rise in its share of iron ore output for the third quarter, while production advanced 3 percent from the preceding second quarter. The miner also upped its full-year forecast for copper production.

According to the miner, the quarter turned out to be a record for iron ore production, shipments and rail volumes. Further, Rio said the safe and efficient ramp-up schedule is on track to reach a full run-rate production of 290 metric tonnes per annum by the end of the first half of 2014.

Rio Tinto CEO Sam Walsh said, "We achieved strong production results in the third quarter...In iron ore, we achieved record production and shipments in Western Australia following the official opening of our landmark Pilbara 290 port and rail expansion, four months ahead of its original schedule and $400 million under budget.''

Global iron ore production for the quarter rose 2 percent to 68.3 million metric tons while global iron ore shipments rose 4 percent to 68 million tonnes.

Rio Tinto's share of iron ore production advanced to 53.38 million metric tons from 52.63 million tons in the prior year and 51.83 million tons in the preceding second quarter.

In Pilbara, production of 64.3 million tonnes, with Rio Tinto's share at 51.0 million tonnes, set a new quarter record, driven by period on period productivity improvements and commissioning of the Hope Downs 4 mine.

Production guidance for the year is unchanged at approximately 265 million tonnes from global operations in Australia and Canada, depending on weather constraints.

For Rio Tinto, mined copper output increased 23 percent to 162,300 tonnes while Refined copper production slipped 2 percent to 68,300 tonnes. In 2013, Rio Tinto's share of mined and refined copper production is expected to be around 590,000 tonnes and 270,000 tonnes, respectively.

The forecast issued in July expected Rio Tinto's share of mined and refined copper production to be 565,000 tonnes and 230,000 tonnes, respectively.

Mining companies such as Rio Tinto are sensitive to growth expectations from China, the second-largest economy in the world. Last week, People's Bank of China Deputy Governor Yi Gang reportedly said that China's economic growth would likely exceed the government's target of 7.5 percent in 2013.

The miner's share of aluminum production rose 3 percent to 878,000 tonnes while Hard coking coal output dropped 6 percent to 2.25 million tonnes.

RIO.AX closed up 2.5 percent on Tuesday at A$63.20.