Quarterly Producton Report - Part 3

RIO TINTO PLC 27 October 1999 Part 3 COPPER & GOLD 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 Kennecott Utah Copper Total production at Kennecott's Bingham Canyon mine, smelter and refinery (Rio Tinto 100%) and Barneys Canyon mine (Rio Tinto 100%) in Utah, US. Bingham Canyon Mine Ore treated ('000 tonnes) 13,801 14,326 14,316 14,563 14,523 37,971 43,403 Average ore grade: Copper (%) 0.65 0.65 0.61 0.53 0.53 0.61 0.56 Gold (g/t) 0.35 0.32 0.31 0.28 0.30 0.33 0.30 Silver (g/t) 3.22 3.29 3.15 2.71 2.85 3.26 2.91 Molybdenum (%) 0.033 0.034 0.035 0.033 0.031 0.034 0.034 Copper concen- trates produced ('000 tonnes) 316 297 284 263 257 804 803 Average concentrate grade (% Cu) 25.8 28.0 27.5 25.6 25.7 26.0 26.3 Production of metals in copper concentrates: Copper ('000 tonnes) (a) 83.2 84.4 79.4 68.9 67.2 213.8 215.6 Gold ('000 ounces) 100 100 96 87 95 266 278 Silver ('000 ounces) 1,156 1,140 1,109 905 959 3,107 2,972 Molybdenum concentrates produced ('000 tonnes): 2.5 3.6 3.8 2.7 2.4 8.3 8.9 Molybdenum in concentrates ('000 tonnes) 1.3 1.9 2.1 1.4 1.3 4.4 4.8 Kennecott Smelter & Refinery Copper concentrates smelted ('000 tonnes) 292 245 236 264 300 833 800 Copper anodes produced ('000 tonnes) (b) 65.0 66.0 52.8 73.1 72.5 188.0 198.4 Production of refined metal: Copper ('000 tonnes) 61.2 70.8 53.9 71.9 69.2 168.0 195.1 Gold ('000 ounces) (c) 73 70 82 83 86 220 251 Silver ('000 ounces) (c) 742 718 1,202 1,154 1,160 1,892 3,516 (a) Includes a small amount of copper in precipitates. (b) New metal excluding recycled material. (c) Includes gold and silver in intermediate products. Lower ore grade for all metals in the third quarter of 1999, compared with the third quarter of 1998, resulted in lower production of metal in concentrate for all products. As previously indicated, the lower than life- of-mine average copper grades are expected to continue, before recovering in mid 2000. Compared with the second quarter of 1999, molybdenum concentrate production was down due to lower ore grade and recovery. Improved smelter performance resulted in higher anode production in the third quarter of 1999 compared with the third quarter 1998. Higher refined copper output in the third quarter of 1999 compared with third quarter of 1998 was mainly due to increased availability of anodes. Refined gold and silver production also increased in the third quarter of 1999 compared with the third quarter of 1998 and the second quarter of 1999 largely due to increased availability of anodes and treatment of in- process inventories. As shown above, no sales of copper were previously priced at 30 September 1999. Barneys Canyon Mine Ore treated ('000 tonnes) 698 515 490 623 676 1,431 1,789 Average ore grade: Gold (g/t) 2.11 1.50 1.98 1.63 2.31 1.65 1.98 Gold produced in dore and concentrates ('000 ounces) 25 29 18 26 25 54 69 Gold production in the third quarter of 1999 was the same as the third quarter of 1998 as higher ore grade was offset by lower throughput. Compared with the second quarter 1999, gold production was slightly lower principally due to timing of flows from the heap leach pads. Freeport-McMoRan Copper & Gold Total production and sales at the Grasberg mine (Rio Tinto 12.6% (a)) in Irian Jaya, Indonesia, and the Atlantic Copper smelter (Rio Tinto 14.6%) in Spain. (100% basis) Grasberg Mine Ore treated ('000 tonnes) 19,077 19,377 19,953 19,730 20,410 52,325 60,093 Average mill head grades: Copper (%) 1.33 1.45 1.14 1.16 1.11 1.24 1.14 Gold (g/t) 1.29 2.05 1.31 1.39 1.40 1.28 1.37 Silver (g/t) 3.11 4.02 2.77 2.91 2.74 2.86 2.81 Production of metals in concentrates: Copper in concentrates ('000 tonnes) 226.0 241.8 186.4 193.9 196.0 567.2 576.4 Gold in concentrates ('000 ounces) 683 1,105 754 762 804 1,822 2,320 Silver in concentrates ('000 ounces) 1,304 1,984 1,016 1,235 1,365 3,267 3,616 Sales of payable metals in concentrates: (b) Copper in concentrates ('000 tonnes) 212.2 231.9 177.4 184.8 187.1 542.3 549.3 Gold in concentrates ('000 ounces) 639 1,023 723 741 788 1,752 2,252 Silver in concentrates ('000 ounces) 1,068 1,285 774 951 1,043 2,723 2,768 (a) See note (b) in the summary section above for details of Rio Tinto's 12.6% interest in Grasberg and 40% interest in the expansion. (b) Net of smelter deductions. In the third quarter of 1999,production of copper and gold marginally increased over the second quarter of 1999 due largely to an increase in throughput. Copper production in the third quarter was below that achieved in the corresponding period last year due to lower feed grade, partly offset by higher throughput. Gold production in the third quarter was above that achieved in the corresponding period last year due to both higher throughput and feed grade. Atlantic Copper Concentrate smelted ('000 tonnes) 235.2 233.0 238.6 225.1 230.9 740.9 694.6 Copper anodes produced ('000 tonnes) (c) 71.2 69.1 74.4 69.7 70.0 222.2 214.1 Copper cathodes produced ('000 tonnes) 64.1 63.5 63.1 63.3 60.6 183.6 187.0 Copper cathode sales ('000 tonnes) (d) 63.9 63.0 62.8 62.7 62.1 183.9 187.6 (c) New metal excluding recycled material. (d) Refers to copper cathode and wire rod sales. Minera Escondida Limitada Total production at the Escondida mine (Rio Tinto 30%) in Chile. (100% basis) Escondida Mine Sulphide ore treated ('000 tonnes) 10,308 9,821 11,400 11,435 11,510 29,093 34,345 Average copper grade (%) 2.34 2.23 2.15 2.15 2.06 2.54 2.12 Mill production (metals in concentrates): Contained copper ('000 tonnes) 215.8 190.0 215.6 217.4 206.7 660.2 639.7 Contained gold ('000 ounces) 37 37 38 40 39 113 117 Contained silver ('000 ounces) 873 743 915 1,038 854 2,325 2,807 Oxide ore treated ('000 tonnes) 1,049 3,346 3,595 3,777 - 10,718 Average copper grade (%) 1.08 0.99 1.16 1.22 - 1.13 Contained copper in leachate/mined material ('000 tonnes) 11 33 42 46 - 121 Refined production: Oxide plant production ('000 tonnes) - 5.4 29.7 32.4 34.6 - 96.7 Coloso leach plant production ('000 tonnes) 0.4 - - - - 23.6 - Sulphide ore treated in the first three quarters of 1999 was 18% higher than the corresponding period in 1998 due to the increased milling rate arising from the completion of the Phase 3.5 expansion. Contained copper in concentrate was slightly lower than the first three quarters of 1998 despite the increase in ore treated; this reflects the decrease in copper head grade. The Coloso leach plant was closed in 1998. Somincor Total production at the Neves Corvo mine (Rio Tinto 49%) in Portugal. (100% basis) Neves Corvo Mine Total ore treated ('000 tonnes)(a) 549 615 558 543 592 1,674 1,693 Of which, treated to extract tin ('000 tonnes) 112 114 113 85 97 365 295 Average ore grades: Copper (%) 5.74 5.37 5.35 5.00 4.95 5.70 5.10 Tin (%) 1.53 1.33 1.12 1.29 1.43 1.47 1.27 Copper production: Copper concentrates produced ('000 tonnes) 115.2 120.7 109.2 103.0 104.4 348.2 316.7 Copper concentrate grade (% copper) 24.6 24.2 24.2 24.1 24.1 24.5 24.2 Copper in concentrates produced ('000 tonnes) 28.4 29.2 26.5 24.9 26.3 85.2 77.6 Tin production: Tin concentrates produced ('000 tonnes) 1.3 1.1 0.9 0.9 1.8 4.5 3.7 Tin concentrate grade (% tin) 51.8 53.1 50.0 51.9 49.9 52.7 50.4 Tin in concentrates produced ('000 tonnes) 0.7 0.6 0.4 0.5 0.9 2.4 1.9 (a) Total ore treated for both copper and tin production. In the third quarter of 1999, tin concentrate production improved compared with the previous quarter due to improved ore grade and tin recovery. COPPER & GOLD (continued) 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 Palabora Mine Total production at the Palabora mine, smelter and refinery (Rio Tinto 46.5% (a)) in South Africa. (100% basis) Palabora Mine Ore treated ('000 tonnes) 7,129 7,361 6,791 7,080 7,419 21,398 21,290 Average ore grade (copper %) 0.57 0.60 0.46 0.35 0.46 0.58 0.42 Copper concentrates produced ('000 tonnes) 106.1 110.4 80.8 61.5 82.4 307.9 224.7 Average concentrate grade (copper %) 32.9 33.3 32.7 34.2 33.8 33.7 33.5 Copper in concentrates ('000 tonnes) 34.9 36.8 26.4 21.0 27.9 103.8 75.3 Palabora Smelter/Refinery New concentrate smelted on site ('000 tonnes) 87.3 77.6 73.8 51.5 79.6 213.1 204.9 New copper anodes produced ('000 tonnes)(b) 30.5 27.8 24.1 20.9 24.7 77.9 69.7 Refined new copper produced ('000 tonnes) 29.3 27.5 25.4 20.6 24.3 76.6 70.2 By-products: Magnetite concentrate ('000 tonnes) 54 57 31 49 41 157 120 Uranium oxide (tonnes) 17 17 23 23 21 57 67 Baddeleyite (several grades) ('000 tonnes) 2.5 1.8 2.4 3.0 2.6 8.2 8.0 Refined nickel sulphate (tonnes) 118 105 30 52 57 183 140 Vermiculite Plant Vermiculite produced ('000 tonnes) 52.5 53.4 53.0 54.1 49.4 152.9 156.5 (a) Rio Tinto increased its interest in Palabora Mining Company from 38.9% to 46.5% on 10 June 1998. Rio Tinto's share of production has been calculated from a weighted average of Rio Tinto's interest over the appropriate periods. (b) Contained copper in anodes; anode production includes a small amount produced from purchased material. The decrease in copper concentrate production in the first nine months of 1999, compared with 1998, was due to lower head grades. The expected reduction in head grade results from loading of low grade stockpiles from 1999 until the end of open pit life in 2003. Concentrate smelted in the third quarter of 1999 was below 1998 levels as a result of availability problems in the converter and anode sections. This led to reduced anode and refined copper production. The decrease in magnetite production resulted from the lower magnetite content in the marginal ore processed through the magnetite circuit. Uranium oxide production improved over 1998 due to an increase in uranium in the feed. Rio Tinto Brasil Limitada Total production at the Morro do Ouro gold mine (Rio Tinto 51%) in Minas Gerais, Brazil. (100% basis) Morro do Ouro Mine Ore treated ('000 tonnes) 4,118 3,905 3,959 4,176 4,487 11,709 12,622 Average ore grade: gold (g/t) 0.49 0.46 0.45 0.45 0.45 0.52 0.45 Refined gold produced ('000 ounces) 43 43 42 43 50 138 135 COPPER & GOLD (continued) 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 Kennecott Minerals Company Total production at the mines of Kennecott Minerals Company in the US; Rawhide (Rio Tinto 51%) in Nevada; Ridgeway (Rio Tinto 100%) in South Carolina, Cortez/Pipeline (Rio Tinto 40%) in Nevada and Greens Creek (Rio Tinto 70%)in Alaska. (100% basis) Rawhide Mine Ore treated ('000 tonnes) 1,507 1,470 1,522 1,611 1,559 3,965 4,692 Average ore grades: Gold (g/t) 0.87 0.86 0.89 0.82 0.75 0.86 0.82 Silver (g/t) 9.6 9.1 8.9 9.7 10.2 11.1 9.6 Metals produced in dore: Gold ('000 ounces) 32 32 26 29 31 93 86 Silver ('000 ounces) 211 165 141 157 169 678 467 Mill throughput rates remain near record levels. Variances in the ore grade were due to the mining sequence. Ridgeway Ore treated ('000 tonnes) 969 1,023 873 981 871 3,232 2,725 Average ore grades: Gold (g/t) 0.72 0.89 0.99 1.12 1.18 0.89 1.10 Silver (g/t) 0.9 1.1 1.2 1.1 1.1 0.9 1.1 Metals produced in dore: Gold ('000 ounces) 23 22 20 23 26 77 69 Silver ('000 ounces) 18 18 20 14 15 54 49 The gold grade continued to improve as mining exhausts the final ore in the pit. Cortez / Pipeline Ore treated ('000 tonnes) 948 969 932 980 1,022 2,842 2,934 Average ore grade: gold (g/t) 12.78 11.44 10.22 11.02 11.58 8.13 10.96 Gold produced in dore ('000 ounces) 404 376 316 337 358 763 1,011 Mill throughput and ore grade increased in the Pipeline pit. Greens Creek Ore treated ('000 tonnes) 124 133 128 131 131 357 390 Average ore grades: Gold (g/t) 5.89 5.83 8.56 7.29 7.31 5.83 7.71 Silver (g/t) 941 683 735 877 809 816 808 Zinc (%) 12.9 12.9 14.7 13.7 14.2 11.6 14.2 Lead (%) 5.1 5.6 5.9 5.9 5.9 5.0 5.9 Metals produced in concentrates: Gold ('000 ounces) 16 17 23 20 20 44 63 Silver ('000 ounces) 2,975 2,221 2,201 2,780 2,575 7,276 7,556 Zinc ('000 tonnes) 13.8 14.4 15.4 14.4 15.0 34.8 44.8 Lead ('000 tonnes) 4.9 5.4 5.3 5.4 5.5 13.6 16.2 The mine and mill continued to implement productivity improvements and consistently exceeded design throughput. Metal grades varied based on the mining sequence. Peak Gold Mine Total production and sales from the Peak Gold mine (Rio Tinto 100%) at Cobar, New South Wales, Australia. Ore treated ('000 tonnes) 124 135 153 145 152 393 449 Average ore grades: Gold (g/t) 7.34 5.22 7.97 7.16 7.11 7.51 7.42 Silver (g/t) 4.34 4.55 7.41 5.46 3.81 4.98 5.62 Copper (%) 0.35 0.21 0.56 0.51 0.56 0.50 0.54 Lead (%) 0.57 0.49 0.66 0.48 0.51 0.71 0.55 Zinc (%) 0.70 0.50 0.77 0.37 0.43 0.81 0.53 Bullion produced ('000 ounces) 30 24 39 33 33 98 104 Containing: Gold ('000 ounces) 25 21 35 29 27 82 91 Silver ('000 ounces) 4 2 3 3 3 10 9 Gold recovered in concentrates ('000 ounces) 2 1 3 3 3 8 9 Total gold production ('000 ounces) 27 22 37 32 30 90 100 Bullion sales (fine gold) ('000 ounces) 25 21 35 29 27 81 91 Copper in concentrate ('000 tonnes): Production 0.2 0.1 0.5 0.4 0.5 1.3 1.4 Sales 0.9 - - 0.9 - 2.0 0.9 Lead/zinc in concentrate ('000 tonnes): Production 0.4 0.2 0.4 0.5 0.2 1.5 1.1 Sales 1.1 0.4 0.4 - 0.8 3.0 1.2 While ore treated increased in the third quarter of 1999, total gold production was lower than in the second quarter of 1999 due to lower ore grade. Kelian Equatorial Mining Total production and sales from the Kelian gold mine (Rio Tinto 90%) in East Kalimantan, Indonesia. (100% basis) Ore treated ('000 tonnes) 2,036 2,095 1,841 1,918 1,900 5,678 5,659 Average ore grades: Gold (g/t) 2.84 2.54 2.26 2.13 2.62 2.85 2.34 Silver (g/t) 5.38 4.51 4.24 4.00 4.25 6.30 4.16 Production: Gold ('000 ounces) 127 119 103 101 123 341 327 Silver ('000 ounces) 123 84 89 84 87 336 260 Sales: Gold ('000 ounces) 122 125 108 103 115 344 326 Silver ('000 ounces) 145 93 112 97 90 272 299 Gold production and grade increased in the third quarter of 1999. This was caused by drier weather conditions leading to greater access to high grade ore. COPPER & GOLD (Continued) 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 Lihir Gold Total production at the Lihir gold mine (Rio Tinto 17.15%) in Papua New Guinea. (100% basis) Ore treated ('000 tonnes) 639 553 603 655 841 1,801 2,099 Average ore grade: gold (g/t) 6.40 7.32 7.24 6.95 7.38 6.82 7.20 Gold produced ('000 ounces) (a) 130 127 128 143 188 392 459 a) Gold production represents quantity of gold poured. Output in the third quarter was high due to improved autoclave availability and throughput. Rio Tinto Zimbabwe Total production at Rio Tinto Zimbabwe's gold operations (Rio Tinto 56.0%) in Zimbabwe. (100% basis) Renco Mine Ore treated ('000 tonnes) 80 76 79 75 81 229 235 Average ore grade: gold (g/t) 5.69 5.56 5.42 5.23 5.33 5.58 5.32 Total gold produced ('000 ounces) 13 12 12 11 12 37 35 Patchway Mine (a) Ore treated ('000 tonnes) 22 21 23 24 25 69 72 Average ore grade: gold (g/t) 7.22 7.31 5.81 5.51 5.58 5.46 5.63 Total gold produced ('000 ounces) 5 5 4 4 4 11 12 Cam Dump Reprocessing Ore treated ('000 tonnes) 279 259 251 248 237 717 736 Average ore grade: gold (g/t) 1.39 1.20 1.15 1.11 1.21 1.51 1.16 Total gold produced ('000 ounces) 3 2 2 2 2 7 6 Total Rio Tinto Zimbabwe Total gold produced ('000 ounces) 20 19 18 17 18 54 53 (a) Includes low grade material. IRON ORE 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 Hamersley Iron Total production and shipments are 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, Brockman and Yandicoogina 10,644 11,134 10,002 11,437 11,778 34,446 33,217 Channar 2,285 3,030 2,203 2,113 2,953 7,058 7,269 Total production 12,929 14,164 12,205 13,550 14,731 41,504 40,486 Total shipments ('000 tonnes) 12,936 14,279 10,710 15,666 16,485 38,810 42,861 Production and shipments in the third quarter of 1999 were higher than in the second quarter of 1999 reflecting higher demand. Shipments in the first three quarters of 1999 were higher than in the corresponding period of 1998. Rio Tinto Brasil Limitada Total production at the Corumba mine (Rio Tinto 100% (a)) in Corumba, Mato Grosso do Sul, Brazil. (100% basis) Total iron ore production ('000 tonnes) (b) 309 266 211 227 235 929 673 (a) Rio Tinto increased its interest in the Corumba mine, Brazil, from 80% to 100% during June 1999. (b) Production includes by-product fines. COAL 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 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; Cordero Rojo (Rio Tinto 100%) in Wyoming; Jacobs Ranch (Rio Tinto 100%) in Wyoming; Spring Creek (Rio Tinto 100%) in Montana; Decker (Rio Tinto 50%) in Montana and Colowyo in Colorado, where Kennecott Energy has a partnership interest and full management responsibility - (see footnote (e) above). (100% basis) Thermal coal production ('000 tonnes) Antelope 4,625 4,993 4,590 5,183 5,548 12,624 15,321 Cordero Rojo 8,677 9,240 9,586 10,369 10,352 24,336 30,307 Spring Creek 2,329 3,072 2,500 2,490 2,490 7,191 7,480 Decker 2,440 2,258 2,324 1,976 2,506 7,299 6,806 Colowyo 1,434 1,344 1,155 1,284 1,197 3,939 3,636 Jacobs Ranch (a) 5,361 7,265 6,189 6,750 6,416 5,361 19,355 Total Kennecott Energy Total coal production ('000 tonnes) 24,866 28,172 26,344 28,052 28,509 60,750 82,905 (a) Rio Tinto acquired the Jacobs Ranch mine in Wyoming, with effect from 23 July 1998. Production in the third quarter of 1999 was 15% higher than the same period of 1998 due to expanded facilities at Antelope and Cordero Rojo. Production was 36% higher in the first three quarters of 1999 than the corresponding period of 1998 due to the above and also the acquisition of Jacobs Ranch in July 1998. COAL (Continued) 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 Pacific Coal Total production and sales from the Blair Athol mine (Rio Tinto 71.2% (a)), the Kestrel Coal mine (Rio Tinto 80% (b)) and the Tarong Coal mine (Rio Tinto 100%) in Queensland, Australia. (100% basis) Blair Athol Thermal coal: Production ('000 tonnes) 2,781 2,493 2,806 2,823 2,931 8,078 8,560 Sales ('000 tonnes) 3,535 2,490 2,569 3,334 2,636 8,403 8,540 Kestrel Coal Thermal coal: Production ('000 tonnes) - - - 87 229 - 316 Sales ('000 tonnes) - - - - 64 - 64 Coking coal: Production ('000 tonnes) - - - 120 629 - 749 Sales ('000 tonnes) - - - - 338 - 338 Semi-hard coking coal: (c) Sales ('000 tonnes) - - - - 146 - 146 Coal Thermal coal: Production and sales ('000 tonnes) 1,316 1,219 1,155 1,543 1,371 3,811 4,069 Total Pacific Coal Total coal Production ('000 tonnes) 4,097 3,712 3,960 4,573 5,160 11,888 13,694 (a) On 10 January 1999, Rio Tinto acquired an additional 14% beneficial interest in Blair Athol. (b) Rio Tinto acquired Kestrel Coal, formerly Gordonstone, in February 1999 and production commenced in June 1999. (c) Semi-hard coking coal is a mixture of Thermal Coal and Coking Coal. The product mix is customer dependent. Tarong sales have increased over the same period in 1998 as the Tarong power station has increased its electricity sale in the deregulated Queensland electricity market. Blair Athol production has increased over the 1998 level as stocks were run down in 1998 and have been rebuilt to meet 1999 sales. Coal & Allied Industries Limited (a) Total production and sales from the Hunter Valley Operations (Rio Tinto 71%) Mount Thorley mine (Rio Tinto 57%) and the Vickery mine (Rio Tinto 71%) all in New South Wales, Australia. (100% basis) Hunter Valley Operations (b) Coking coal 694 995 793 654 933 2,169 2,380 Thermal coal 2,158 1,954 1,726 1,649 1,773 6,229 5,148 Mount Thorley Thermal coal: Production ('000 tonnes) 607 757 676 497 593 1,100 1,766 Coking coal: Production ('000 tonnes) 593 580 622 691 615 1,480 1,928 Vickery Thermal coal: Production ('000 tonnes) - - - - - 286 - Total Coal & Allied Total coal Production ('000 tonnes) 4,052 4,286 3,816 3,492 3,914 11,264 11,222 Total sales ('000 tonnes) (c) 4,161 4,793 3,887 3,326 3,722 11,573 10,934 (a) Coal & Allied has purchased the Rio Tinto Group's coal interests in New South Wales which included the Howick mine. The restructuring of Coal and Allied's shareholding leaves Rio Tinto with a 70.88% interest; these transactions were effective from 1 July 1999. (b) Hunter Valley Operations consist of the now merged Howick and Hunter Valley mines. (c) Sales relate only to coal mined by the operation and exclude traded coal. Production for Hunter Valley Operations in 1999 was down on the corresponding period in 1998 mainly due to higher production rates in the first half of 1998 in order to complete contracts disrupted by industrial action in the previous six months. Sales to a significant domestic customer were lower due to lower contracted tonnage and a contractual dispute. Deliveries were suspended by the customer during the third quarter 1999 and are yet to resume. Mount Thorley mine production for the first nine months of 1999 was higher than for 1998, which was affected by an industrial dispute. The Vickery mine closed on 31 May 1998. The last of the stockpiled coal was sold in the first quarter of 1999. COAL (Continued) 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 Kaltim Prima Coal Total production and shipments from Kaltim Prima Coal (Rio Tinto 50%) in Indonesia, including the share of production attributed to the Indonesian Government (see footnote (k) above). (100% basis) Thermal coal: Production ('000 tonnes) 3,871 3,904 3,552 3,164 4,036 10,824 10,752 Shipments ('000 tonnes) 3,564 3,988 3,831 3,165 3,717 10,585 10,713 Carbones del Cerrejon SA Total production at the Central Cerrejon mine (Rio Tinto 33.3%). (100% basis) Central Cerrejon Mine Thermal coal: Production ('000 tonnes) 905 616 280 305 290 2,527 875 Rio Tinto Brasil Limitada Total production from Copelmi's Recreio mine in the Rio Grande do Sul, Brazil. As a consequence of a restructuring, with effect from 1 April 1998, Rio Tinto ceased to have any direct interest in the production from this mine; prior to that date, Rio Tinto had a 40% interest in the mine's production. (100% basis) Recreio Mine Thermal coal: Production ('000 tonnes) - - - - - 262 - ALUMINIUM 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 Comalco Production and sales from operations owned by Comalco (Rio Tinto 72.4% (a)) including Comalco's share of primary aluminium production from partly owned smelters. (100% of Comalco's share) ('000 tonnes) Weipa mine, Queensland (Comalco 100%): Beneficiated bauxite production 2,464 2,716 2,931 2,675 2,784 6,592 8,390 Metal grade bauxite Shipments 2,319 2,612 2,513 2,665 3,019 7,177 8,197 Calcined bauxite production 30 47 20 32 27 86 78 Boke mine, Guinea (Comalco 4%): Bauxite production 110 159 107 104 53 270 265 Primary aluminium production: Bell Bay, Tasmania (Comalco 100%) 36.4 36.4 37.0 37.2 37.9 105.5 112.1 Boyne Island, Queensland (Comalco 54.2%) 64.8 65.7 64.2 66.8 68.0 191.7 199.0 Tiwai Point, New Zealand (Comalco 79.4%) 63.8 64.2 63.1 64.5 65.6 187.9 193.3 Total Comalco share 164.9 166.2 164.3 168.5 171.6 485.0 504.4 Total sales of Comalco produced aluminium 161.9 174.1 167.3 166.6 169.3 485.7 503.1 (a) During the first half of 1999 Rio Tinto increased its interest in Comalco from 70.4% to 72.4%. Rio Tinto's share of production has been calculated using the weighted average of Rio Tinto's interest over the relevant periods. Weipa production and shipments remain strong due to the upgrade in 1998 and requirements at Queensland Alumina Limited, Eurallumina SpA and in international markets. The Bell Bay, Boyne Island and Tiwai Point smelters all achieved record daily average production. Production gains from higher amperages and process improvements continue. All cells have been online at Boyne Island Line 3 since late April 1999. Anglesey Aluminium Total production at Anglesey Aluminium (Rio Tinto 51%) in the UK. (100% basis) Aluminium hot metal production ('000 tonnes) 33.6 34.1 34.3 34.2 33.9 101.1 102.4 INDUSTRIAL MINERALS 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 BORATES Rio Tinto Borax Total production at the Boron mine (Rio Tinto 100%) in California, US and at the Tincalayu, Sijes and Porvenir mines (Rio Tinto 100%) in Argentina. (100% basis) Borates ('000 tonnes) (a) 162 132 146 142 140 455 428 (a) Production is expressed as B2O3 content. A new mine plan has been adopted at Boron in response to the wall slides which occurred in 1997 and 1998. The mine sustained only minor damage from the California earthquake of October 17, the epicentre of which was in the Mojave desert. TITANIUM DIOXIDE FEEDSTOCK Rio Tinto Iron & Titanium Total Rio Tinto share of titanium dioxide feedstock production in Canada and South Africa. (Rio Tinto share) Titanium dioxide feedstock production ('000 tonnes) 399 394 377 354 347 1,147 1,077 Production in recent periods has been affected by the consequences of a fire at QIT's Canadian smelter in June. 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 DIAMONDS Argyle Diamonds Total production from mining operations at Argyle Diamonds (Rio Tinto 59.7%) in Western Australia. (100% basis) Ore processed ('000 tonnes): AK1 ore 2,944 2,785 2,524 2,435 1,992 8,457 6,951 Alluvial ore 1,588 1,197 1,646 1,282 1,527 5,115 4,455 Total ore processed 4,532 3,983 4,170 3,717 3,519 13,571 11,407 Diamonds recovered ('000 carats): AK1 11,875 8,463 6,565 6,886 7,433 30,496 20,884 Alluvial 605 593 544 378 473 1,292 1,395 Total recovered 12,481 9,056 7,109 7,264 7,906 31,787 22,279 Lower AKI diamond production relative to the corresponding periods last year is in line with lower tonnes processed and lower ore grades. SALT Dampier Salt Total production of salt from Dampier and Lake MacLeod (Rio Tinto 64.9%) in Western Australia. (100% basis) Salt production ('000 tonnes) 1,246 1,074 1,099 1,449 1,286 3,515 3,834 TALC The Luzenac Group Total Talc production from Luzenac Group operations in Europe (Rio Tinto 99.9%) and North America (Rio Tinto 100%). (100% basis) Talc Production ('000 tonnes) 298 289 310 325 321 906 956 OTHER METALS 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS 1998 1998 1999 1999 1999 1998 1999 NICKEL Rio Tinto Brasil Limitada Total nickel in matte production at the Fortaleza mine (Rio Tinto 100%) in Brazil. Production (tonnes) 1,806 1,923 2,171 1,726 2,620 2,747 6,517 Rio Tinto Zimbabwe Toll refined metal production at the Empress nickel refinery (Rio Tinto 56.1%) in Zimbabwe. (100% basis) Production (tonnes) 1,705 1,780 1,650 1,847 1,802 4,650 5,299 URANIUM Rossing Uranium Ltd Total uranium production at the Rossing Uranium mine (Rio Tinto 68.58%) in Namibia. (100% basis) Production (tonnes U3O8) 863 685 840 800 813 2,572 2,453 ZINC Norzink AS Total zinc production at Norzink AS (Rio Tinto 50%) in Norway. (100% basis) Production ('000 tonnes) 35.0 34.3 37.0 35.0 36.3 103.6 108.3 More to follow MSCGLMZGNNZLLMG

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