3Q Production Report 2003
Rio Tinto PLC
22 October 2003
Third Quarter 2003 Production Report
• Iron ore - Hamersley's shipments in the third quarter of 2003 were marginally
below the record shipments made in the same period of 2002. The market
remains strong. Production was up four per cent in advance of scheduled
maintenance in the fourth quarter. Robe River shipments continued to benefit
from the ramp up of West Angelas.
• Aluminium - Production was one per cent higher than the third quarter of
2002. Anode quality issues that have affected Boyne Island production in the
second and third quarters have been resolved and production at Tiwai Point
improved as cells were returned to operation following resumption of spot
power purchases.
• Australian & Indonesian Coal - Production was four per cent lower than the
third quarter of 2002. Attributable Coal & Allied production was seven per
cent lower than the third quarter of 2002 and four per cent lower than the
second quarter of this year reflecting alignment of production with market
demand. Pacific Coal production was 17 per cent higher than the
corresponding period of last year as a result of the first production from
the new Hail Creek coking coal mine and increased domestic sales from Tarong.
• US Coal - Production was eight per cent above the third quarter of 2002 which
was affected by heavy rain.
• Mined copper - Production was three per cent above the third quarter of 2002.
Increased production from Escondida following commissioning of the Laguna
Seca concentrator and higher grades and throughput at Bingham Canyon were
partially offset by lower grades at Grasberg and the effect of the disposal
of Rio Tinto's 25 per cent interest in the Alumbrera mine which was completed
in March 2003.
• Diamonds - The process plant ramp-up at Diavik continued ahead of schedule
and grades are increasing as mining moves into the ore body proper.
Production at Argyle returned to more normal levels following the extended
maintenance shutdown in June.
• Mined gold - Production was 22 per cent below the third quarter of 2002
principally due to the disposal of Peak and Alumbrera and the processing of
lower grade ore at Kelian.
• Industrial Minerals - Production of titanium dioxide feedstock was 14 per
cent below the third quarter of 2002 owing to softer demand. Borates
production was in line with the previous quarter.
For further information, please contact:
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Office: +44 (0) 20 7753 2401 Office: +61 (0) 3 9283 3628
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Richard Brimelow Daphne Morros
Office: +44 (0) 20 7753 2326 Office: +61 (0) 3 9283 3639
Mobile: +44 (0) 7753 783 825 Mobile: +61 (0) 408 360 764
Website: www.riotinto.com
RIO TINTO PRODUCTION SUMMARY
RIO TINTO SHARE OF PRODUCTION
QUARTER NINE MONTHS % CHANGE
2002 2003 2003 2002 2003 Q3 03 Q3 03 9 Mths 03
Q3 Q2 Q3 vs vs vs
Principal Commodities Q2 03 Q3 02 9 Mths 02
Alumina ('000 t) 487 495 500 1,468 1,488 1% 3% 1%
Aluminium ('000 t) 202.0 198.5 204.9 587.0 606.2 3% 1% 3%
Borates ('000 t) 132 143 142 393 425 0% 8% 8%
Coal - Australian and ('000 t) 10,712 10,450 10,319 32,585 31,243 -1% -4% -4%
Indonesian
Coal - US ('000 t) 25,385 26,944 27,391 77,257 79,759 2% 8% 3%
Copper - mined ('000 t) 214.4 231.6 221.4 643.3 684.1 -4% 3% 6%
Copper - refined ('000 t) 99.0 69.2 93.1 311.8 258.4 35% -6% -17%
Diamonds ('000 cts) 9,046 6,560 10,588 23,656 24,304 61% 17% 3%
Gold - mined ('000 ozs) 890 765 691 2,321 2,221 -10% -22% -4%
Gold - refined ('000 ozs) 123 65 66 383 227 2% -46% -41%
Iron ore ('000 t) 24,087 25,623 25,826 68,194 74,616 1% 7% 9%
Titanium dioxide feedstock ('000 t) 309 319 265 955 873 -17% -14% -9%
Other Metals & Minerals
Bauxite ('000 t) 2,984 3,236 3,018 8,724 9,213 -7% 1% 6%
Lead - mined ('000 t) 12.7 11.5 12.0 30.6 33.4 4% -6% 9%
Molybdenum ('000 t) 1.7 1.1 1.2 4.7 3.5 9% -29% -26%
Nickel in matte (tonnes) 510 523 1,284 3,863 4,426 146% 152% 15%
Nickel - refined (tonnes) 987 830 1,029 2,765 2,463 24% 4% -11%
Salt ('000 t) 1,223 1,124 1,420 3,411 3,513 26% 16% 3%
Silver - mined ('000 ozs) 4,427 4,410 4,983 12,938 13,353 13% 13% 3%
Silver - refined ('000 ozs) 1,178 644 691 3,072 2,310 7% -41% -25%
Talc ('000 t) 341 328 350 1,009 1,036 7% 3% 3%
Tin (tonnes) - 24 16 159 40 -32% - -74%
Uranium (tonnes) 1,353 1,484 1,395 3,644 3,752 -6% 3% 3%
Zinc - mined ('000 t) 24.7 29.0 26.8 69.9 82.6 -8% 9% 18%
Throughout this report, figures in italics indicate adjustments made since the
figure was previously quoted on the equivalent page.
Production figures are sometimes more precise than the rounded numbers shown,
hence small differences may result between the total of the quarter figures and
the nine month figures.
RIO TINTO SHARE OF PRODUCTION
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
Interest 2002 2002 2003 2003 2003 2002 2003
ALUMINA
Production ('000 tonnes)
Eurallumina 56% 145 142 139 136 150 425 426
Queensland Alumina 39% 342 337 354 358 350 1,043 1,062
Rio Tinto total alumina production 487 479 493 495 500 1,468 1,488
ALUMINIUM
Refined production ('000
tonnes)
Anglesey 51% 17.6 18.1 18.3 18.3 18.3 52.9 54.9
Bell Bay 100% 41.6 42.1 40.7 41.8 42.3 121.8 124.8
Boyne Island (a) 59% 77.3 79.4 77.7 75.7 76.9 215.2 230.2
Tiwai Point 79% 65.6 68.8 66.1 62.7 67.5 197.1 196.3
Rio Tinto total aluminium production 202.0 208.4 202.7 198.5 204.9 587.0 606.2
BAUXITE
Production ('000 tonnes)
Boke 4% 121 118 58 179 123 364 360
Weipa 100% 2,863 2,882 2,901 3,057 2,895 8,359 8,853
Rio Tinto total bauxite production 2,984 3,000 2,958 3,236 3,018 8,724 9,213
BORATES
Borates ('000 tonnes B2O3 content)
Rio Tinto total borate production 100% 132 136 139 143 142 393 425
COAL Coal
Australian coal operations ('000 tonnes) type
Coal & Allied Industries (b):
Bengalla 30% S 359 459 393 538 340 1,127 1,271
Hunter Valley Operations 76% S 1,791 1,716 1,789 1,617 1,535 5,040 4,941
76% M 465 640 606 609 663 1,892 1,878
Mount Thorley Operations 61% S 363 386 309 219 252 1,065 780
61% M 229 221 216 200 223 852 639
Moura (c) 0% S - - - - - 407 -
0% M - - - - - 552 -
Narama (c) 0% S - - - - - 135 -
Ravensworth East (c) 0% S - - - - - 281 -
Warkworth 42% S 582 787 688 484 510 1,799 1,682
42% M 66 18 47 71 53 213 171
Pacific Coal:
Blair Athol Coal 71% S 2,407 2,030 2,237 1,857 2,599 6,383 6,693
Hail Creek Coal 92% M - - - - 204 - 204
Kestrel Coal 80% S 274 494 285 320 263 854 867
80% M 383 536 366 459 332 1,389 1,157
Tarong Coal 100% S 1,254 1,695 1,451 1,738 1,635 3,990 4,825
Total Australian coal 8,172 8,981 8,386 8,112 8,608 25,979 25,107
Indonesian coal operations ('000 tonnes)
Kaltim Prima Coal (d) 50% S 2,540 2,264 2,088 2,338 1,711 6,606 6,137
US coal operations ('000 tonnes)
Kennecott Energy
Antelope 100% S 6,452 6,457 6,233 6,648 7,130 17,862 20,011
Colowyo (e) 100% S 1,229 1,174 1,110 1,194 1,093 3,715 3,396
Cordero Rojo 100% S 7,474 9,160 8,187 8,535 7,448 25,564 24,170
Decker 50% S 1,196 1,198 679 730 1,068 3,313 2,476
Jacobs Ranch 100% S 7,315 8,007 7,402 7,544 8,767 20,777 23,712
Spring Creek 100% S 1,719 2,067 1,814 2,293 1,887 6,026 5,995
Total US coal 25,385 28,063 25,424 26,944 27,391 77,257 79,759
Rio Tinto total coal production 36,097 39,307 35,899 37,394 37,710 109,842 111,003
Mine production figures for metals refer to the total quantity of metal produced
in concentrates or dore bullion irrespective of whether these products are then
refined on-site.
Key to coal type: S = Steaming/ thermal coal, M = Metallurgical/ coking coal.
See footnotes on page 7.
RIO TINTO SHARE OF PRODUCTION (continued)
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
Interest 2002 2002 2003 2003 2003 2002 2003
COPPER
Mine production ('000 tonnes)
Alumbrera (f) 0% 11.5 13.9 8.7 - - 37.0 8.7
Bingham Canyon 100% 64.4 69.0 64.8 67.8 77.6 191.2 210.2
Escondida 30% 47.9 68.7 74.4 79.8 73.4 157.6 227.7
Grasberg - FCX (g) 13% 30.0 30.1 27.3 28.0 21.5 77.4 76.8
Grasberg - Joint Venture (g) 40% 39.6 40.9 33.7 34.5 28.9 107.1 97.2
Neves Corvo 49% 8.5 9.5 11.0 9.9 7.5 28.3 28.4
Northparkes 80% 6.7 6.1 5.7 5.4 5.4 24.6 16.5
Palabora 49% 6.0 5.6 5.5 6.1 7.0 20.1 18.7
Rio Tinto total mine production 214.4 243.8 231.1 231.6 221.4 643.3 684.1
Refined production ('000 tonnes)
Atlantic Copper (g) 14% 10.2 10.5 10.1 10.3 8.6 31.0 29.0
Escondida 30% 9.3 10.0 10.7 11.0 11.2 31.6 32.9
Kennecott Utah Copper 100% 68.1 74.6 67.4 38.5 64.8 219.1 170.7
Palabora 49% 11.3 10.0 7.8 9.4 8.5 30.1 25.8
Rio Tinto total refined production 99.0 105.1 96.0 69.2 93.1 311.8 258.4
DIAMONDS
Production ('000 carats)
Argyle (h) 100% 9,013 9,936 6,909 6,004 9,690 23,567 22,603
Diavik 60% - - 247 512 880 - 1,639
Merlin 100% 33 28 - 44 18 90 62
Rio Tinto total diamond production 9,046 9,964 7,156 6,560 10,588 23,656 24,304
GOLD
Mine production ('000 ounces)
Alumbrera (f) 0% 40 48 31 - - 140 31
Barneys Canyon 100% 16 10 9 10 10 65 29
Bingham Canyon 100% 103 89 67 67 79 323 213
Cortez/Pipeline 40% 101 102 127 102 100 330 329
Escondida 30% 7 11 11 13 16 27 40
Grasberg - FCX (g) 13% 131 103 89 132 107 252 327
Grasberg - Joint Venture (g) 40% 208 227 163 241 223 435 626
Greens Creek 70% 18 18 16 19 17 55 53
Kelian 90% 158 109 166 112 71 376 349
Lihir 16% 22 27 21 21 21 71 64
Morro do Ouro 51% 30 27 25 27 24 88 77
Northparkes 80% 9 7 8 7 9 26 24
Peak (f) 0% 30 20 20 - - 77 20
Rawhide 51% 9 10 7 9 9 32 25
Rio Tinto Zimbabwe 56% 5 4 3 4 3 17 11
Others - 2 2 1 2 2 6 5
Rio Tinto total mine production 890 814 765 765 691 2,321 2,221
Refined production ('000 ounces)
Kennecott Utah Copper 100% 123 105 96 65 66 383 227
IRON ORE
Production ('000 tonnes)
Channar 60% 1,454 1,940 1,699 1,465 1,628 4,417 4,792
Corumba 100% 282 271 221 282 292 587 795
Hamersley 100% 15,711 13,121 13,616 15,900 16,079 44,442 45,595
Iron Ore Company of Canada (i) (j) 59% 1,296 1,868 1,816 2,126 2,220 5,300 6,161
Robe River 53% 5,345 5,558 5,815 5,851 5,607 13,448 17,273
Rio Tinto total mine production 24,087 22,757 23,167 25,623 25,826 68,194 74,616
Mine production figures for metals refer to the total quantity of metal produced
in concentrates or dore bullion irrespective of whether these products are then
refined on-site, except for the data for iron ore which represent production of
saleable quantities of ore plus pellets.
See footnotes on page 7.
RIO TINTO SHARE OF PRODUCTION (continued)
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
Interest 2002 2002 2003 2003 2003 2002 2003
LEAD
Mine production ('000 tonnes)
Greens Creek 70% 3.5 3.8 3.8 4.0 4.0 11.9 11.7
Zinkgruvan 100% 9.2 6.0 6.2 7.5 8.0 18.7 21.7
Rio Tinto total mine production 12.7 9.8 10.0 11.5 12.0 30.6 33.4
MOLYBDENUM
Mine production ('000 tonnes)
Bingham Canyon 100% 1.7 1.4 1.2 1.1 1.2 4.7 3.5
NICKEL
Nickel in matte (tonnes)
Fortaleza 100% 510 2,410 2,619 523 1,284 3,863 4,426
Toll refined metal production (tonnes)
Rio Tinto Zimbabwe - Empress 56% 987 829 604 830 1,029 2,765 2,463
SALT
Production ('000 tonnes)
Dampier Salt 65% 1,223 1,255 970 1,124 1,420 3,411 3,513
SILVER
Mine production ('000 ounces)
Bingham Canyon 100% 866 841 762 808 873 2,822 2,443
Escondida 30% 182 259 315 360 375 635 1,050
Grasberg - FCX (g) 13% 233 219 236 255 207 585 698
Grasberg - Joint Venture (g) 40% 264 470 111 229 320 572 660
Greens Creek 70% 1,955 1,724 1,750 1,968 2,472 5,943 6,191
Zinkgruvan 100% 545 383 363 447 460 1,171 1,270
Others - 383 372 422 343 275 1,209 1,041
Rio Tinto total mine production 4,427 4,269 3,960 4,410 4,983 12,938 13,353
Refined production ('000 ounces)
Kennecott Utah Copper 100% 1,178 965 975 644 691 3,072 2,310
TALC
Production ('000 tonnes)
Luzenac Group 99.9% 341 318 358 328 350 1,009 1,036
TIN
Mine production (tonnes)
Neves Corvo 49% - 11 - 24 16 159 40
TITANIUM DIOXIDE FEEDSTOCK
Production ('000 tonnes)
Rio Tinto Iron & Titanium 100% 309 319 290 319 265 955 873
URANIUM
Production (tonnes U3O8)
Energy Resources of Australia 68% 773 977 859 1,019 775 2,092 2,653
Rossing 69% 580 335 14 465 620 1,552 1,099
Rio Tinto total uranium 1,353 1,311 873 1,484 1,395 3,644 3,752
production
Mine production figures for metals refer to the total quantity of metal produced
in concentrates or dore bullion irrespective of whether these products are then
refined on-site. The nickel in matte production reflects the contained tonnage
of nickel.
See footnotes on page 7.
RIO TINTO SHARE OF PRODUCTION (continued)
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
Interest 2002 2002 2003 2003 2003 2002 2003
ZINC
Mine production ('000 tonnes)
Greens Creek 70% 11.1 11.9 12.1 13.4 11.7 34.9 37.2
Zinkgruvan 100% 13.6 12.9 14.7 15.6 15.1 35.1 45.4
Rio Tinto total mine production 24.7 24.8 26.8 29.0 26.8 69.9 82.6
(a) Rio Tinto acquired an approximately 5% additional interest in production
from the Boyne Island smelter with effect from August 2002.
(b) Rio Tinto increased its stake in Coal & Allied from 72.7% to 75.7% on
17 September 2002.
(c) On 14 March 2002, Coal & Allied completed the sale of its interests in
Narama and Ravensworth. Coal & Allied sold its interest in the Moura coal
mine with effect from 24 May 2002. Production data are shown up to the
dates of sale.
(d) Rio Tinto had a 50% share in Kaltim Prima and, under the terms of its Coal
Agreement, the Indonesian Government is entitled to a 13.5% share of Kaltim
Prima's production. Rio Tinto's share of production shown is before
deduction of the Government share. Rio Tinto completed the sale of its 50%
interest in PT Kaltim Prima Coal on 10 October 2003.
(e) Kennecott Energy has a partnership interest in the Colowyo mine but, as it
is responsible under a management agreement for the operation of the mine,
all of Colowyo's output is included in Rio Tinto's share of production.
(f) Rio Tinto completed the sale of its 25% interest in Minera Alumbrera
together with its wholly owned Peak Gold Mine on 17 March 2003. Production
data are shown up to the date of sale.
(g) Through its interest in Freeport-McMoRan-Copper & Gold (FCX), Rio Tinto
had, as of 30 September 2003, a 12.7% share in the Grasberg mine and a
14.0% share in Atlantic Copper. Rio Tinto's holding in FCX reduced from
16.4% to 14.0% during the third quarter of 2003 due primarily to the
conversion of FCX debentures into equity. Through a joint venture agreement
with FCX, Rio Tinto is entitled, as shown separately in the above tables,
to 40% of additional material mined as a consequence of expansions of the
Grasberg facilities since 1998.
(h) Rio Tinto's interest in the Argyle Diamond mine increased from 99.8% to
100% on 29 April 2002, following the purchase of the outstanding units in
the Western Australian Diamond Trust.
(i) Rio Tinto owns 20.3% of the Labrador Iron Ore Royalty Income Fund. The Fund
has a shareholding in Iron Ore Company of Canada but this has not been
included in the calculation of tonnage attributable to Rio Tinto.
(j) Rio Tinto increased its shareholding in Iron Ore Company of Canada from
56.1% to 58.7% on 20 December 2002.
Where Rio Tinto's beneficial interest in an operation has changed, as indicated
above, the share of production has been calculated using the weighted average
interest over the relevant periods.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
ALUMINIUM
Rio Tinto Aluminium (a)
Total production at Rio Tinto's aluminium operations: Weipa (Rio Tinto 100%) in
Queensland, Australia; Boke (Rio Tinto 4%) in Guinea; Eurallumina (Rio Tinto
56.2%) in Sardinia, Italy; Queensland Alumina (Rio Tinto 38.6%) in Queensland,
Australia; Anglesey Aluminium (Rio Tinto 51%) in the UK; Bell Bay (Rio Tinto
100%) in Tasmania, Australia; Boyne Island (Rio Tinto 59.4% (b)) in Queensland,
Australia and Tiwai Point (Rio Tinto 79.4%) in New Zealand.
(100% basis)
Weipa mine
Beneficiated bauxite production ('000 tonnes) 2,863 2,882 2,901 3,057 2,895 8,359 8,853
Metal grade bauxite shipments ('000 tonnes) 2,737 2,882 2,778 2,768 2,709 8,250 8,255
Calcined bauxite production ('000 tonnes) 22 30 41 49 42 112 132
Boke mine
Bauxite production ('000 tonnes) 3,176 3,124 2,365 3,077 2,970 8,917 8,412
Eurallumina refinery
Alumina production ('000 tonnes) 259 253 248 243 267 757 758
Queensland Alumina refinery
Alumina production ('000 tonnes) 884 873 916 928 906 2,701 2,750
Anglesey Aluminium smelter
Primary aluminium production ('000 tonnes) 34.4 35.6 35.8 35.9 35.9 103.8 107.6
Bell Bay smelter
Primary aluminium production ('000 tonnes) 41.6 42.1 40.7 41.8 42.3 121.8 124.8
Boyne Island smelter (b)
Primary aluminium production ('000 tonnes) 133.1 131.8 129.7 129.0 128.5 388.4 387.1
Tiwai Point smelter
Primary aluminium production ('000 tonnes) 84.3 84.7 83.3 78.2 85.0 249.2 246.6
Sales of primary aluminium ('000 tonnes) (c) 189.4 203.4 191.1 210.6 205.1 581.9 606.9
(a) From 1 June 2003, management of Rio Tinto's 51% interest in Angelsey
Aluminium was transferred to the Aluminium product group from the Copper
product group.
(b) Rio Tinto acquired an approximately 5% additional interest in production
from the Boyne Island smelter with effect from August 2002.
(c) Rio Tinto's share of sales of primary metal from its four smelting
operations.
Bauxite production at the Weipa mine in the third quarter of 2003 was
approximately 5% lower than in the previous quarter due to scheduled plant
maintenance.
Process stability at the Eurallumina refinery in the third quarter of 2003
resulted in higher production than in previous quarters. Production from
Queensland Alumina in the third quarter was affected by an unexpected power
outage in July.
Aluminium production for the third quarter of 2003 from the Boyne Island smelter
was lower than in the second quarter of 2003 due to the effect of the continuing
instability of lines 1 and 2 resulting from anode quality. The anode quality has
been rectified and the potlines are now stable. Cells in circuit at Boyne Island
are expected to return to normal levels by the end of October. Aluminium
production at the Tiwai Point smelter improved in the third quarter as cells
returned to operation after the resumption of spot power purchases in June 2003.
By the end of the third quarter, cells in circuit at Tiwai Point were
Aluminium sales in the third quarter of 2003 were lower than in the second
quarter due to increased in-transit metal and because sales in the second
quarter included some deferred sales from the first quarter.
BORATES
Rio Tinto Borax
Total production at the Boron mine (Rio Tinto 100%) in California, US and at the
Tincalayu, Sijes, Porvenir and Maggie mines (Rio Tinto 100%) in Argentina.
(100% basis)
Borates ('000 tonnes) (a) 132 136 139 143 142 393 425
(a) Production is expressed as B2O3 content.
Production in the third quarter of 2003 was the same as in the previous quarter
and 8% higher than in the equivalent period of 2002.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
COAL
Coal & Allied Industries Limited (a)
Total production and sales from the mines operated by Coal & Allied Industries
in Australia: Bengalla (Rio Tinto 30%); Hunter Valley Operations (Rio Tinto
76%); Mount Thorley Operations (Rio Tinto 61%); and Warkworth (Rio Tinto 42%),
all in New South Wales.
(100% basis)
Bengalla mine
Thermal coal production ('000 tonnes) 1,228 1,517 1,298 1,776 1,122 3,868 4,196
Hunter Valley Operations
Thermal coal production ('000 tonnes) 2,448 2,266 2,363 2,136 2,028 6,917 6,526
Semi-soft coking coal production ('000 tonnes) 636 845 800 805 875 2,598 2,480
Mount Thorley Operations
Thermal coal production ('000 tonnes) 621 637 510 361 416 1,828 1,287
Semi-soft coking coal production ('000 tonnes) 392 365 356 330 369 1,462 1,055
Moura mine (b)
Thermal coal production ('000 tonnes) - - - - - 1,018 -
Semi-soft coking coal production ('000 tonnes) - - - - - 954 -
Coking coal production ('000 tonnes) - - - - - 427 -
Narama mine (b)
Thermal coal production ('000 tonnes) - - - - - 370 -
Ravensworth East mine (b)
Thermal coal production ('000 tonnes) - - - - - 387 -
Warkworth mine
Thermal coal production ('000 tonnes) 1,430 1,871 1,634 1,152 1,212 4,443 3,997
Semi-soft coking coal production ('000 tonnes) 162 42 112 168 127 526 406
Total Coal & Allied Industries
Total coal production ('000 tonnes) 6,915 7,544 7,074 6,728 6,147 24,796 19,948
Total sales ('000 tonnes) (c) 6,851 7,486 7,174 6,633 6,802 24,062 20,609
(a) Rio Tinto increased its stake in Coal & Allied from 72.7% to 75.7% on 17
September 2002.
(b) The sale of Coal & Allied's share of Narama and Ravensworth was completed on
14 March 2002. Coal & Allied sold its interest in the Moura coal mine with
effect from 24 May 2002.
(c) Sales relate only to coal mined by the operations and exclude traded coal.
Production in the third quarter of 2003 was 9% lower than in the second quarter
of 2003 due primarily to lower production from Bengalla. At Bengalla, production
was affected as mining had progressed through to less productive areas of the
mining sequence. Operational changes were implemented in the third quarter of
2003 to reduce saleable production capacity to align with market demand. Port
and rail congestion remains an issue.
Kaltim Prima Coal
Total production and shipments from the Kaltim Prima Coal mine (Rio Tinto 50%
(a)) in Indonesia, including the share of production attributed to the
Indonesian Government (see footnote (d) on page 7).
(100% basis)
Thermal coal:
Production ('000 tonnes) 5,080 4,527 4,177 4,675 3,422 13,213 12,274
Shipments ('000 tonnes) 4,871 4,911 4,522 3,937 4,042 12,276 12,501
(a) Rio Tinto completed the sale of its 50% interest in PT Kaltim Prima Coal on
10 October 2003.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
COAL (continued)
Kennecott Energy and Coal Company
Total production from the mines operated by Kennecott Energy and Coal Company in
the US: Antelope (Rio Tinto 100%) in Wyoming; Colowyo in Colorado, where
Kennecott Energy has a partnership interest and full management responsibility -
(see footnote (e) on page 7); Cordero Rojo (Rio Tinto 100%) in Wyoming; Decker
(Rio Tinto 50%) in Montana; Jacobs Ranch (Rio Tinto 100%) in Wyoming and Spring
Creek (Rio Tinto 100%) in Montana.
(100% basis)
Antelope mine
Thermal coal production ('000 tonnes) 6,452 6,457 6,233 6,648 7,130 17,862 20,011
Colowyo mine
Thermal coal production ('000 tonnes) 1,229 1,174 1,110 1,194 1,093 3,715 3,396
Cordero Rojo mine
Thermal coal production ('000 tonnes) 7,474 9,160 8,187 8,535 7,448 25,564 24,170
Decker mine
Thermal coal production ('000 tonnes) 2,391 2,395 1,357 1,460 2,135 6,626 4,952
Jacobs Ranch mine
Thermal coal production ('000 tonnes) 7,315 8,007 7,402 7,544 8,767 20,777 23,712
Spring Creek mine
Thermal coal production ('000 tonnes) 1,719 2,067 1,814 2,293 1,887 6,026 5,995
Total Kennecott Energy
Total coal production ('000 tonnes) 26,580 29,260 26,103 27,674 28,459 80,570 82,236
Production in the first nine months of 2003 was 2% higher than in the first nine
months of 2002 due in part to higher market demand for Antelope and Jacobs Ranch
coal. These increases have been partially offset by reduced production at
Cordero Rojo as resources were diverted to ensuring highwall and stock pile
stability.
Pacific Coal
Total production and sales from the mines operated by Pacific Coal in
Queensland, Australia: Blair Athol Coal (Rio Tinto 71.2%), Hail Creek Coal (Rio
Tinto 92%), Kestrel Coal (Rio Tinto 80%) and Tarong Coal (Rio Tinto 100%).
(100% basis)
Blair Athol Coal mine
Thermal coal:
Production ('000 tonnes) 3,379 2,849 3,140 2,607 3,649 8,960 9,396
Sales ('000 tonnes) 3,413 2,913 3,237 2,689 3,179 9,391 9,105
Hail Creek Coal mine
Coking coal:
Production ('000 tonnes) - - - - 221 - 221
Sales ('000 tonnes) - - - - 114 - 114
Kestrel Coal mine
Thermal coal:
Production ('000 tonnes) 342 617 356 400 328 1,068 1,084
Sales ('000 tonnes) 101 135 404 163 145 370 712
Coking coal:
Production ('000 tonnes) 479 670 458 574 415 1,736 1,446
Sales ('000 tonnes) 330 394 122 274 331 1,084 727
Semi-hard coking coal:(a)
Sales ('000 tonnes) 567 380 449 475 353 1,248 1,277
Tarong Coal mine
Thermal coal:
Production ('000 tonnes) 1,254 1,695 1,451 1,738 1,635 3,990 4,825
Sales ('000 tonnes) 1,404 1,503 1,635 1,614 1,623 3,919 4,871
Total Pacific Coal
Total coal production ('000 tonnes) 5,453 5,831 5,405 5,319 6,248 15,753 16,972
(a) Semi-hard coking coal is a mixture of thermal coal and coking coal. The
product mix is customer dependent.
Hail Creek moved from construction to operation with the first production and
sale of coal during the quarter. Kestrel production in the first nine months of
2003 was lower than production in the equivalent period of 2002, due to a
longwall changeover in the third quarter of 2003. Full production has since
resumed. Tarong sales were higher following the commissioning of the Tarong
North Power Station in the first quarter of 2003.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
COPPER & GOLD
Alumbrera
Total production and sales at the Bajo de la Alumbrera mine (Rio Tinto 0% (a))
in Argentina.
(100% basis)
Ore treated ('000 tonnes) 8,033 8,704 7,053 - - 22,854 7,053
Average ore grades:
Copper (%) 0.62 0.69 0.54 - - 0.70 0.54
Gold (g/t) 0.78 0.85 0.69 - - 0.96 0.69
Concentrates produced ('000 tonnes) 168.0 204.7 130.9 - - 538.8 130.9
Copper in concentrates: -
Production ('000 tonnes) 45.9 55.6 34.9 - - 148.1 34.9
Sales ('000 tonnes) 41.1 53.0 37.0 - - 141.0 37.0
Production of gold in concentrates ('000 ounces) 148 176 108 - - 518 108
Production of gold in dore ('000 ounces) 13 17 16 - - 43 16
Total gold sales ('000 ounces) 148 187 132 - - 542 132
(a) Rio Tinto completed the sale of its 25% holding in Minera Alumbrera on 17
March 2003.
Escondida
Total production at the Escondida mine (Rio Tinto 30%) in Chile.
(100% basis)
Sulphide ore treated ('000 tonnes) 10,141 14,631 16,744 16,416 18,888 31,905 52,048
Average copper grade (%) 1.45 1.59 1.49 1.62 1.33 1.58 1.47
Mill production (metals in concentrates):
Contained copper ('000 tonnes) 125.6 191.8 210.8 230.9 208.2 430.8 649.9
Contained gold ('000 ounces) 23 35 37 43 52 91 132
Contained silver ('000 ounces) 606 864 1,050 1,200 1,251 2,117 3,501
Oxide ore treated ('000 tonnes) 3,316 3,164 3,408 3,188 3,569 9,610 10,165
Average copper grade (%) 1.03 1.18 1.10 1.11 1.02 0.99 1.07
Contained copper in leachate/mined material ('000 34 37 37 35 37 95 109
tonnes)
Refined production:
Oxide plant production ('000 tonnes) 31.1 33.3 36 37 37.3 105.4 109.6
Escondida mill production for the first nine months of 2003 reflected the start
of the new Laguna Seca concentrator in the fourth quarter of 2002. Lower ore
grades during the nine months of 2003 compared with 2002 were in line with the
previously announced plan to constrain copper production at Escondida.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
COPPER & GOLD (continued)
Freeport-McMoRan Copper & Gold
Total production and sales at Grasberg (Rio Tinto 12.7% (a)) in Papua,
Indonesia, and Atlantic Copper (Rio Tinto 14.0%) in Spain.
(100% basis)
Grasberg mine
Ore treated ('000 tonnes) 20,220 21,996 21,438 20,141 19,453 64,005 61,032
Average mill head grades:
Copper (%) 1.31 1.23 1.15 1.24 1.08 1.11 1.16
Gold (g/t) 1.85 1.44 1.26 1.95 1.79 1.17 1.66
Silver (g/t) 4.01 4.05 3.88 4.18 3.90 3.45 3.98
Production of metals in concentrates:
Copper in concentrates ('000 tonnes) 239.8 241.6 216.5 223.1 189.3 622.8 628.9
Gold in concentrates ('000 ounces) 1,086 913 760 1,126 1,007 2,117 2,893
Silver in concentrates ('000 ounces) 1,822 1,928 1,692 1,944 1,857 4,474 5,493
Sales of payable metals in concentrates: (b)
Copper in concentrates ('000 tonnes) 242.6 234.6 210.7 212.1 184.7 598.5 607.5
Gold in concentrates ('000 ounces) 1,096 902 742 1,080 980 2,032 2,803
Silver in concentrates ('000 ounces) 1,476 1,487 1,315 1,485 1,431 3,429 4,231
(a) See note (g) on page 7 for details of Rio Tinto's 12.7% interest in Grasberg
and 40% interest in the expansion.
(b) Net of smelter deductions.
In the third quarter of 2003, copper and gold production and sales decreased
compared with the second quarter of 2003 and the third quarter of 2002 due to a
decrease in ore treated and lower average mill head grades. Preliminary
assessments of the impact of a material slippage that occurred on 9 October 2003
indicate the potential deferral into future periods of a portion of the metal
previously forecast to be produced in the fourth quarter of 2003.
Atlantic Copper smelter
Concentrates and scrap smelted ('000 tonnes) 258.2 257.7 242.1 244.6 253.0 759.0 739.7
Copper anodes produced ('000 tonnes) (c) 74.6 77.2 72.4 74.3 78.6 220.8 225.3
Copper cathodes produced ('000 tonnes) 61.5 63.5 61.2 62.5 61.4 186.9 185.1
Copper cathode sales ('000 tonnes) (d) 62.2 65.0 62.9 63.6 57.7 187.5 184.2
(c) New metal excluding recycled material.
(d) Refers to copper cathode and wire rod sales.
Kelian Equatorial Mining
Total production and sales at the Kelian gold mine (Rio Tinto 90%) in East
Kalimantan, Indonesia.
(100% basis)
Ore treated ('000 tonnes) 1,787 1,953 1,844 1,833 1,995 5,360 5,673
Average ore grades:
Gold (g/t) 3.83 2.66 3.71 2.53 1.76 3.05 2.64
Silver (g/t) 5.92 4.55 5.83 5.11 4.39 5.31 5.09
Production:
Gold ('000 ounces) 176 121 184 124 79 417 387
Silver ('000 ounces) 96 75 112 96 66 273 274
Sales:
Gold ('000 ounces) 154 154 150 147 93 388 390
Silver ('000 ounces) 129 115 154 - 145 385 299
Ore treated during the third quarter of 2003 was higher than in the previous
quarter due to tailings disposal direct to the closed pit which is nearer to the
process plant and so allows higher throughput. Low grade stockpiled ore was
processed following exhaustion of higher grade ex-pit ore. Accumulated silver
stocks were sold during the quarter.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
COPPER & GOLD (continued)
Kennecott Minerals Company
Total production at the mines of Kennecott Minerals Company in the US; Cortez/
Pipeline (Rio Tinto 40%) in Nevada; Greens Creek (Rio Tinto 70%) in Alaska and
Rawhide (Rio Tinto 51%) in Nevada.
(100% basis)
Cortez/Pipeline mine
Ore treated
Milled ('000 tonnes) 873 868 919 791 865 2,535 2,575
Leached ('000 tonnes) 1,770 2,924 2,538 3,261 5,507 7,913 11,306
Sold for roasting ('000 tonnes) 13 82 140 151 111 211 402
Average ore grade: gold
Milled (g/t) 7.17 6.14 8.92 5.83 5.55 7.87 6.84
Leached (g/t) 0.98 1.00 1.09 1.06 0.85 1.04 0.96
Sold for roasting (g/t) 7.96 8.66 7.83 6.63 5.87 8.59 6.84
Gold produced ('000 ounces) 252 256 317 254 249 826 821
Mill, roast and leach throughput increased in the first nine months of 2003.
Total gold production in the first nine months of 2003 was slightly lower than
in the same period of 2002 due to lower grade.
Greens Creek mine
Ore treated ('000 tonnes) 168 170 171 176 185 495 532
Average ore grades:
Gold (g/t) 6.93 6.81 6.31 6.97 6.20 7.01 6.49
Silver (g/t) 701 595 604 655 764 703 677
Zinc (%) 11.8 12.4 12.9 13.4 11.1 12.5 12.5
Lead (%) 4.4 4.4 4.6 4.7 4.3 4.8 4.5
Metals produced in concentrates:
Gold ('000 ounces) 25 25 23 27 25 78 75
Silver ('000 ounces) 2,782 2,454 2,491 2,801 3,518 8,458 8,810
Zinc ('000 tonnes) 15.8 16.9 17.3 19.0 16.6 49.6 52.9
Lead ('000 tonnes) 5.0 5.4 5.3 5.7 5.6 16.9 16.7
Mill throughput increased during 2003 as part of a five year plan to increase
mill capacity. Silver grade continued to improve in the third quarter of 2003
compared with the first half of the year, as a result of mine sequencing and
mining higher silver grade ore zones.
Rawhide mine
Ore treated ('000 tonnes) 1,330 1,335 1,230 384 0 4,050 1,614
Average ore grades:
Gold (g/t) 1.01 0.69 0.51 0.51 0.00 1.05 0.51
Silver (g/t) 14.4 13.3 9.4 9.1 0.0 14.5 9.4
Metals produced in dore:
Gold ('000 ounces) 18 19 14 17 17 63 49
Silver ('000 ounces) 149 134 127 158 131 554 416
Mining operations were completed in October 2002. Processing of stockpiled ores
was completed in May 2003. Gold production will continue from the leach pads
while site reclamation activities are underway.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
COPPER & GOLD (continued)
Kennecott Utah Copper
Total production at Barneys Canyon, Bingham Canyon, and the Kennecott smelter
and refinery (all Rio Tinto 100%) in Utah, US.
Barneys Canyon mine
Ore treated ('000 tonnes) - - - - - 102 -
Average ore grade: gold (g/t) - - - - - 1.17 -
Gold produced in dore and concentrates ('000 ounces) 16 10 9 10 10 65 29
Mining operations ceased in the first quarter of 2002. Gold continues to be
recovered from leach pads.
Bingham Canyon mine
Ore treated ('000 tonnes) 10,256 10,625 10,929 11,284 11,904 30,095 34,117
Average ore grade:
Copper (%) 0.67 0.71 0.68 0.67 0.72 0.69 0.69
Gold (g/t) 0.43 0.36 0.28 0.25 0.31 0.47 0.28
Silver (g/t) 3.22 3.02 2.99 2.67 2.88 3.55 2.84
Molybdenum (%) 0.037 0.026 0.022 0.020 0.028 0.036 0.024
Copper concentrates produced ('000 tonnes) 243 279 282 287 298 713 867
Average concentrate grade (% Cu) 26.5 24.6 22.9 23.6 25.9 26.8 24.2
Production of metals in copper concentrates:
Copper ('000 tonnes) (a) 64.4 69.0 64.8 67.8 77.6 191.2 210.2
Gold ('000 ounces) 103 89 67 67 79 323 213
Silver ('000 ounces) 866 841 762 808 873 2,822 2,443
Molybdenum concentrates produced ('000 tonnes): 3.1 2.6 2.2 2.3 2.1 8.6 6.6
Molybdenum in concentrates ('000 tonnes) 1.7 1.4 1.2 1.1 1.2 4.7 3.5
Kennecott smelter & refinery
Copper concentrates smelted ('000 tonnes) 259 300 231 261 282 796 774
Copper anodes produced ('000 tonnes) (b) 63.4 79.0 53.7 53.2 69.9 214.7 176.8
Production of refined metal:
Copper ('000 tonnes) 68.1 74.6 67.4 38.5 64.8 219.1 170.7
Gold ('000 ounces) (c) 123 105 96 65 66 383 227
Silver ('000 ounces) (c) 1,178 965 975 644 691 3,072 2,310
(a) Includes a small amount of copper in precipitates.
(b) New metal excluding recycled material.
(c) Includes gold and silver in intermediate products.
By-product grades improved slightly in the third quarter of 2003 but are still
significantly lower than last year. As previously announced, lower by-product
grades are expected to continue until 2005. Copper grade increased due to mining
sequence in the third quarter of 2003.
Anode production in both the first and second quarters of 2003 was affected by
the failure of the final absorption tower of the acid plant in March 2003, which
interrupted smelter production for three weeks.
Lihir Gold
Total production at the Lihir mine (Rio Tinto 16.3%) in Papua New Guinea.
(100% basis)
Ore treated ('000 tonnes) 891 1,063 933 924 987 2,765 2,844
Average ore grade: gold (g/t) 5.25 5.44 4.92 4.65 4.88 5.47 4.82
Gold produced ('000 ounces) (a) 138 168 131 128 132 439 391
(a) Gold production represents quantity of gold poured.
Increased throughput and improved grades was partly offset by lower recoveries
and an increase in inventory in the third quarter of 2003.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
COPPER & GOLD (continued)
Northparkes Joint Venture
Total production and sales at the Northparkes mine (Rio Tinto 80%) in New South
Wales, Australia.
(100% basis)
Ore treated ('000 tonnes) 1,237 1,331 1,306 1,315 1,284 4,033 3,905
Average ore grades:
Copper (%) 0.81 0.69 0.67 0.62 0.70 0.91 0.66
Gold (g/t) 0.41 0.31 0.31 0.32 0.45 0.36 0.36
Copper concentrates produced ('000 tonnes) 23.0 20.1 20.1 18.7 18.3 83.1 57.2
Contained copper in concentrates:
Saleable production ('000 tonnes) 8.4 7.6 7.1 6.8 6.7 30.7 20.6
Sales ('000 tonnes) (a) 5.9 4.7 8.0 3.8 4.5 25.2 16.3
Contained gold in concentrates:
Saleable production ('000 ounces) 11.0 8.4 9.5 9.0 11.4 32.4 29.9
Sales ('000 ounces) (a) 6.6 6.0 13.4 6.0 6.4 24.7 25.8
(a) Rio Tinto's 80% share of material from the Joint Venture.
Copper production continued to reflect lower realised head grade as transition
ore is sourced from lower grade open cut material. This trend will continue
until Lift 2 commences production in 2004 and reaches full potential in 2005.
Palabora
Total production at Palabora (Rio Tinto 49.2%) in South Africa.
(100% basis)
Palabora mine
Ore treated ('000 tonnes) 2,722 2,648 2,453 2,726 3,398 7,285 8,577
Average ore grade: copper (%) 0.54 0.56 0.59 0.60 0.53 0.65 0.57
Copper concentrates produced ('000 tonnes) 40.5 35.7 35.3 38.2 43.5 132.3 117.0
Average concentrate grade: copper (%) 29.9 31.9 31.5 32.7 32.9 30.9 32.4
Copper in concentrates ('000 tonnes) 12.1 11.4 11.1 12.5 14.3 40.9 37.9
Palabora smelter/refinery
New concentrate smelted on site ('000 tonnes) 68.7 59.7 57.5 73.7 64.0 198.8 195.2
New copper anodes produced ('000 tonnes) (a) 22.5 18.9 15.8 20.1 19.4 63.4 55.3
Refined new copper produced ('000 tonnes) 23.0 20.4 15.9 19.2 17.4 61.2 52.5
By-products:
Magnetite concentrate ('000 tonnes) 31 40 44 51 53 132 148
Refined nickel sulphate (tonnes) 67 85 61 27 26 228 114
Vermiculite plant
Vermiculite produced ('000 tonnes) 62.5 59.8 51.2 53.9 32.5 163.6 137.6
(a) Contained copper in anodes; anode production includes a small amount
produced from purchased material.
Production from the underground mine improved by 22% to an average rate of
18,355 tonnes of ore per day during the third quarter compared to an average of
15 000 tonnes of ore per day in the preceding quarter. During this period
record production rates of 30,038 tonnes in one day and 20,900 tonnes of ore per
day on average in one week were achieved.
The tonnage of ore treated rose during the third quarter of 2003 in line with
increased underground and pit ore production. New copper in concentrate
production was in line with ore supply and recoveries increased following the
introduction of a finer grind. Total concentrate smelted comprised run-of-mine
production, smelter secondaries and imported concentrate. Smelter throughput was
reduced in the third quarter as a consequence of the annual acid plant and
statutory waste heat boiler shutdown.
Vermiculite production was stable and the reconfigured plant continues to meet
market demand. Production during the third quarter of 2003 was reduced in order
to lower
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
COPPER & GOLD (continued)
Peak Gold Mine
Total production and sales from the Peak Gold Mine (Rio Tinto 0% (a)) in New
South Wales, Australia.
Ore treated ('000 tonnes) 159 144 144 - - 466 144
Average ore grades: -
Gold (g/t) 6.33 5.13 5.23 - - 5.64 5.23
Silver (g/t) 2.79 3.09 3.16 - - 3.03 3.16
Copper (%) 0.21 0.21 0.13 - - 0.31 0.13
Lead (%) 0.22 0.15 0.11 - - 0.24 0.11
Zinc (%) 0.35 0.13 0.00 - - 0.32 0.00
Bullion produced ('000 ounces) 32 23 23 - - 82 23
Containing: -
Gold ('000 ounces) 29 20 20 - - 72 20
Silver ('000 ounces) 5 3 3 - - 9 3
Gold recovered in concentrates ('000 ounces) 1 0 - - - 5 -
Total gold production ('000 ounces) 30 20 20 - - 77 20
Bullion sales (fine gold) ('000 ounces) 26 22 20 - - 71 20
Copper in concentrate ('000 tonnes): -
Production 0.0 0.0 - - - 0.4 -
Sales 0.8 0.2 - - - 0.8 -
(a) Rio Tinto completed the sale of its wholly owned Peak Gold Mine on 17 March
2003.
Rio Tinto Brasil Limitada
Total production at Morro do Ouro (Rio Tinto 51%) in Minas
Gerais, Brazil.
(100% basis)
Morro do Ouro mine
Ore treated ('000 tonnes) 4,406 4,544 4,530 4,586 4,655 13,820 13,771
Average ore grade: gold (g/t) 0.55 0.48 0.44 0.46 0.45 0.51 0.45
Refined gold produced ('000 ounces) 59 52 49 53 48 173 150
Production in the first nine months of 2003 was below the equivalent period of
2002 due to lower grade and harder ores being mined.
Rio Tinto Zimbabwe
Total production at Rio Tinto Zimbabwe's gold operations (Rio Tinto 56%) in
Zimbabwe.
(100% basis)
Patchway mine (a) (b)
Ore treated ('000 tonnes) 24 15 19 19 - 68 38
Average ore grade: gold (g/t) 2.53 2.01 2.17 2.10 - 3.46 2.13
Total gold produced ('000 ounces) 2 1 1 1 - 7 2
Renco mine
Ore treated ('000 tonnes) 63 65 49 60 64 189 173
Average ore grade: gold (g/t) 3.95 3.46 3.80 3.56 3.70 4.55 3.68
Total gold produced ('000 ounces) 7 7 5 6 6 24 17
Total Rio Tinto Zimbabwe
Total gold produced ('000 ounces) 9 8 6 7 6 31 19
(a) Includes low grade material.
(b) Rio Tinto Zimbabwe completed the sale of the Patchway mine in July 2003.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
COPPER & GOLD (continued)
Somincor
Total production at Neves Corvo (Rio Tinto 49%) in Portugal.
(100% basis)
Neves Corvo mine
Total ore treated ('000 tonnes) (a) 406 423 425 474 354 1,333 1,253
of which, treated to extract tin ('000 tonnes) - 2 - - 4 14 12
Average ore grades:
Copper (%) 4.87 5.23 6.00 5.07 5.13 5.00 5.40
Tin (%) - 2.87 - - 2.26 3.38 1.91
Copper production:
Copper concentrates produced ('000 tonnes) 72.3 81.7 93.8 85.5 66.2 237.7 245.6
Copper concentrate grade: copper (%) 23.9 23.7 23.9 23.5 23.2 24.3 23.6
Copper in concentrates produced ('000 tonnes) 17.3 19.4 22.4 20.1 15.4 57.8 57.9
Tin production:
Tin concentrates produced ('000 tonnes) - 0.0 - 0.1 0.1 0.5 0.1
Tin concentrate grade: tin (%) - 72.9 - 57.5 60.7 61.8 58.7
Tin in concentrates produced ('000 tonnes) - 0.0 - 0.0 0.0 0.3 0.1
(a) Total ore treated for both copper and tin production.
The reduction in total ore treated in the third quarter of 2003 was due
primarily to two incidents in the hoisting shaft, in July and September, which
caused a shutdown of hoisting and of the processing plants.
DIAMONDS
Argyle Diamonds
Total production from mining operations at Argyle Diamonds (Rio Tinto 100% (a))
in Western Australia.
(100% basis)
Ore processed ('000 tonnes):
AK1 ore 2,558 2,525 2,509 2,305 2,601 7,578 7,415
Alluvial ore 851 348 - - - 2,514 -
Total ore processed 3,409 2,873 2,509 2,305 2,601 10,092 7,415
Diamonds produced ('000 carats):
AK1 8,599 9,482 6,909 6,004 9,690 22,718 22,603
Alluvial 414 455 - - - 865 -
Total produced 9,013 9,936 6,909 6,004 9,690 23,583 22,603
(a) Rio Tinto's interest in the Argyle Diamond mine increased from 99.8% to 100%
on 29 April 2002, following the purchase of the outstanding units in the Western
Australian Diamond Trust.
Ore processed in the third quarter of 2003 from the AK1 pit was in line with
production levels in previous quarters apart from the second quarter of 2003,
which reflected the effect of an extended maintenance shutdown. Carats produced
reflected a return to processing higher grade ore from the central portion of
the pit, in accordance with mining schedules. Production from the alluvial
mining areas ceased in the fourth quarter of 2002.
Diavik Diamonds
Total production from mining operations at Diavik Diamonds (Rio Tinto 60%) in
the Northwest Territories, Canada.
Ore processed ('000 tonnes) - - 202 304 368 - 874
Diamonds recovered ('000 carats) - - 411 854 1,466 - 2,731
The process plant ramp-up continued ahead of schedule with ore processed during
the third quarter of 2003 representing approximately 74% of design capacity.
Diamond head grade is increasing as mining moves into the ore body proper.
Merlin
Total production from the Merlin mine (Rio Tinto 100%) in the Northern
Territory, Australia.
Ore processed ('000 tonnes) 184 217 204 33 - 570 237
Diamonds recovered ('000 carats) 33 28 - 44 18 90 62
Ore mining and processing ceased during the second quarter of 2003, while carats
recovered reflected the recovery of diamonds from stockpiled process plant
concentrates.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
IRON ORE
Hamersley Iron
Total production and shipments for all the mines operated by Hamersley Iron (Rio
Tinto 100%). These mines are Paraburdoo, Mount Tom Price, Marandoo,
Yandicoogina, Brockman (all Rio Tinto 100%) and Channar (Rio Tinto 60%); all in
Western Australia.
(100% basis)
Saleable iron ore produced ('000 tonnes):
Paraburdoo, Mount Tom Price,
Marandoo, Yandicoogina and Brockman 15,711 13,121 13,616 15,900 16,079 44,442 45,595
Channar 2,423 3,233 2,832 2,442 2,713 7,361 7,986
Total production 18,134 16,354 16,448 18,341 18,792 51,803 53,581
Total shipments ('000 tonnes) 19,284 19,029 17,762 17,948 18,636 49,446 54,346
Production and shipments lifted slightly during the third quarter of 2003
compared with the previous quarter, showing continuing benefit from a strong
market. Production was also up compared with the third quarter of 2002, ahead of
planned maintenance in the fourth quarter of 2003.
Iron Ore Company of Canada
Total production and shipments from the Carol Lake operations (Rio Tinto 58.7%
(a)) in Newfoundland & Labrador and Quebec in Canada.
(100% basis)
Carol Lake operations
Saleable production:
Concentrates ('000 tonnes) 532 494 272 712 958 2,689 1,942
Pellets ('000 tonnes) 1,778 2,816 2,820 2,908 2,823 6,759 8,551
Shipments:
Concentrate ('000 tonnes) 973 605 290 570 664 2,546 1,524
Pellets ('000 tonnes) 3,612 3,461 1,963 3,761 2,820 8,076 8,544
(a) Rio Tinto increased its shareholding in IOC from 56.1% to 58.7% on 20
December 2002.
The seaborne market for both pellets and concentrates remains tight on the back
of strong growth in Chinese iron ore imports. Pellet shipments for the first
nine months of 2003 were higher than in the equivalent period of 2002, driven by
stronger seaborne demand and higher production.
The new control system on the automatic train operation completed commissioning
in the third quarter and ore delivery to the concentrator improved. As a
result, saleable concentrate production improved over the second quarter of 2003
but remains lower for the first nine months of 2003 in comparison to the
equivalent period of 2002. Part of this loss is attributable to an increase in
pellet production, which has been consistently higher in 2003 than in 2002.
Rio Tinto Brasil
Total production at Corumba (Rio Tinto 100%) in Mato Grosso do Sul, Brazil.
Corumba mine
Total iron ore production ('000 tonnes) (a) 282 271 221 282 292 587 795
(a) Production includes by-product fines.
Production increased in the first nine months of 2003 compared with the first
nine months of 2002 in line with increased sales levels to Argentina and Europe.
Robe River Iron Associates
Total production and shipments from Robe River Iron Associates operations (Rio
Tinto 53%) in Western Australia.
(100% basis)
Pannawonica mine
Saleable iron ore production ('000 tonnes) 8,186 8,639 8,055 8,361 7,583 22,667 23,999
Sales ('000 tonnes) 8,848 7,612 7,054 8,137 8,413 24,361 23,604
West Angelas mine
Saleable iron ore production ('000 tonnes) 1,898 1,847 2,917 2,678 2,996 2,707 8,592
Sales ('000 tonnes) 1,777 1,532 2,908 2,943 2,585 1,908 8,436
Production of Robe River ore from Pannawonica in the third quarter of 2003 was
7% lower than in the third quarter of 2002. Production was affected by unplanned
maintenance at Cape Lambert, and a continuing issue of a lower throughput rate
caused by processing of wet ore. Sales were 3% higher than in the previous
quarter - reflecting seasonally strong demand and strong stock levels.
Production of West Angelas ore was higher than in previous quarters, with the
continuing ramp-up to a 20 million tonnes per year rate by the second quarter of
2004. Demand for West Angelas ore remains strong, however sales were 12% lower
than in the previous quarter due to depleted stock levels at the start of the
quarter, and slippage of vessels to next quarter. Strong sales are expected in
the fourth quarter of 2003 as production capacity increases.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
NICKEL
Rio Tinto Brasil
Total nickel in matte production at the Fortaleza (Rio Tinto 100%) in Brazil.
Fortaleza mine
Production (tonnes) 510 2,410 2,619 523 1,284 3,863 4,426
Production in the third quarter of 2003 was affected by an unscheduled smelter
stoppage after alterations to the mining methods.
Rio Tinto Zimbabwe
Toll refined metal production at the Empress Nickel (Rio Tinto 56%) in Zimbabwe.
(100% basis)
Empress Nickel refinery
Production (tonnes) 1,761 1,479 1,078 1,481 1,836 4,933 4,395
SALT
Dampier Salt
Total production of salt from Dampier, Lake MacLeod and Port Hedland (Rio Tinto
64.9%) in Western Australia.
(100% basis)
Salt production ('000 tonnes) 1,883 1,933 1,493 1,731 2,186 5,253 5,410
Salt production in the third quarter of 2003 reflected favourable weather
conditions.
TALC
The Luzenac Group
Total talc production from Luzenac Group operations in Australia (Rio Tinto
100%), Europe (Rio Tinto 99.9%), and North America (Rio Tinto 100%).
(100% basis)
Talc production ('000 tonnes) 341 318 358 329 350 1,010 1,037
TITANIUM DIOXIDE FEEDSTOCK
Rio Tinto Iron & Titanium
Rio Tinto share of titanium dioxide feedstock production in Canada and South
Africa.
(Rio Tinto share)
Titanium dioxide feedstock production ('000 tonnes) 309 319 290 319 265 955 873
Titanium dioxide feedstock production in the third quarter of 2003 was 14% below
that of 2002. Owing to softer market demand, output in the first nine months of
2003 was curtailed by some 9% compared with the equivalent period of 2002.
OPERATIONAL DATA
3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS
2002 2002 2003 2003 2003 2002 2003
URANIUM
Energy Resources of Australia Ltd
Total uranium production at Ranger (Rio Tinto 68.4%) in the Northern Territory,
Australia.
(100% basis)
Ranger mine
Production (tonnes U3O8) 1,130 1,428 1,256 1,490 1,133 3,058 3,879
Production of U3O8 in the third quarter of 2003 was nearly 23% lower than in the
second quarter of 2003, as a result of the annual mill maintenance shutdown, and
on par with the third quarter of 2002
Rossing Uranium Ltd
Total uranium production at the Rossing Uranium mine (Rio Tinto 68.58%) in
Namibia.
(100% basis)
Production (tonnes U3O8) 846 488 20 678 904 2,264 1,602
The Rossing plant did not operate during the first quarter of 2003, while a new
coarse tailings conveyor was installed. During the first quarter, shipments and
sales were made from stock as planned. The plant has moved to a higher
production rate, since restarting in April, in order to rebuild inventory.
ZINC
Zinkgruvan Mining AB
Total production at the Zinkgruvan mine (Rio Tinto 100%) in Sweden.
Ore treated ('000 tonnes) 188 163 167 189 191 573 547
Average ore grades:
Zinc (%) 8.0 8.6 9.5 9.1 8.8 6.8 9.1
Lead (%) 5.3 4.2 4.3 4.4 4.8 3.7 4.5
Silver (g/t) 119 104 99 101 102 86 101
Production of zinc concentrate ('000 tonnes) 24.6 23.3 26.3 28.2 27.5 63.5 82.0
Production of lead concentrate ('000 tonnes) 13.1 8.5 9.1 11.0 11.3 27.5 31.4
Production of metal in concentrates:
Zinc ('000 tonnes) 13.6 12.9 14.7 15.6 15.1 35.1 45.4
Lead ('000 tonnes) 9.2 6.0 6.2 7.5 8.0 18.7 21.7
Silver ('000 ounces) 545 383 363 447 460 1,171 1,270
Zinc production in the first three quarters of 2003 was higher than in all
quarters of 2002, reflecting the higher grades.
EXPLORATION
Expenditure
Total pre-tax exploration expenditure charged to the profit and loss account for
the quarter ending 30 September 2003 was US$33 million compared with US$29
million for the comparable quarter of 2002. Total expenditure for the first
nine months of 2003 was US$97 million compared with US$87 million in the first
nine months of 2002.
Ongoing Programmes
Country Commodity Programme Summary
Peru Copper Exploration drilling has concluded at the
Marcona copper project in Peru. Metallurgical
and resource evaluation studies are continuing.
USA Copper Evaluation of the Resolution copper project
continues
Iran Gold Exploration drilling, metallurgical test work
and resource evaluation continued at the
Dashkasan gold project.
Turkey Gold Metallurgical and resource evaluation studies
continued at the Copler gold project in Turkey.
Botswana Diamonds Further drilling was completed on targets in
Botswana.
Canada Diamonds Exploration continued on kimberlite targets in
Ontario and Nunavut.
India Diamonds Exploration drilling was carried out on granted
reconnaissance permits in Andhra Pradesh.
Australia Iron Ore Drilling on targets in the Hamersley Basin
continued.
Guinea Iron Ore Evaluation work continued at the Simandou
project as a preliminary to initiation of an
Order of Magnitude study.
This information is provided by RNS
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