Rio Tinto impresses as copper and iron output climbs
Bumper copper production as its new mine in Mongolia came on stream underpinned a much better than expected third quarter for mining giant Rio Tinto (LON:RIO) (NYSE:RIO).
Copper output jumped by 23% in the three months to September, as Oyu Tolgoi in Mongolia continued its ramp-up, while Kennecott in the US recovered from its wall slide earlier this year.
Rio also notched up a record quarter for iron ore production, with first shipments through Cape Lambert’s wharf B in Western Australia four months ahead of schedule and US$400mln under budget.
Sam Walsh, Rio’s chief executive, added that productivity improvements in the Australian operations also led to record quarterly thermal coal production of 7 mln tonnes, 14% higher than the previous three months, though coking coal output dropped 6%.
He added the miner was on track to excced its $750 mln cut in exploration and evaluation spending, having cut it by $729 mln already so far this year.
Broker SP Angel said that Rio is continuing to deliver on its iron ore targets with the Pilbara expansion coming in under budget. Copper has also been a strong performer although cash is being tied at bonded warehouses for copper from Oyu Tolgoi while issues are resolved with Chinese custom officials.
Shares rose 101p to 3,187p in London.
Copper output jumped by 23% in the three months to September, as Oyu Tolgoi in Mongolia continued its ramp-up, while Kennecott in the US recovered from its wall slide earlier this year.
Rio also notched up a record quarter for iron ore production, with first shipments through Cape Lambert’s wharf B in Western Australia four months ahead of schedule and US$400mln under budget.
Sam Walsh, Rio’s chief executive, added that productivity improvements in the Australian operations also led to record quarterly thermal coal production of 7 mln tonnes, 14% higher than the previous three months, though coking coal output dropped 6%.
He added the miner was on track to excced its $750 mln cut in exploration and evaluation spending, having cut it by $729 mln already so far this year.
Broker SP Angel said that Rio is continuing to deliver on its iron ore targets with the Pilbara expansion coming in under budget. Copper has also been a strong performer although cash is being tied at bonded warehouses for copper from Oyu Tolgoi while issues are resolved with Chinese custom officials.
Shares rose 101p to 3,187p in London.
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