Rio Tinto Q2 Iron Ore Output Up 9%, Lowers 2015 Shipment Outlook

(RTTNews) - Anglo-Australian mining giant Rio Tinto Plc (RTNTF, RIO, RIO.L, RTPPF) on Thursday reported that its global iron ore production for the second quarter grew 9 percent from last year, while shipments increased 8 percent.

However, the company lowered its forecast for full-year iron ore shipments, citing weather disruption in the first half of the year at its Pilbara operations.

Rio Tinto, the world's second-largest iron-ore producer, said its global iron ore production for the second quarter increased 9 percent on a 100 percent basis to 79.7 million tons.

The company's second quarter iron-ore production also rose 7 percent sequentially. Iron ore sales accounts for roughly 90 percent of the profit of Rio Tinto.

Iron ore prices slumped to a ten-year low of $44 a ton recently, but have since risen to $50 per ton.

At Pilbara, iron ore production grew 9 percent from last year to 75.2 million tons and sales rose 8 percent to 77.2 million tons. The mines in the Pilbara region are among those having the lowest cost of operations in the world.

The company's global iron ore shipments for the quarter grew 8 percent on a 100 percent basis from the year-ago quarter to 81.4 million tons. Sequentially, iron-ore shipments were up 12 percent.

During the first half of the year, Rio Tinto completed the key elements of its Pilbara expansion, which will lift production to 360 million tons a year. The expansion at Pilbara was despite the fall in iron ore prices over the past eighteen months.

"The focus is now to ramp up the new equipment to full capacity and generate maximum value from the integrated system," Rio Tinto said.

Quarterly total mined copper production decreased 19 percent from last year to 134 million tons, primarily due to lower output at Kennecott Utah.

Bauxite production for the quarter rose 5 percent, while aluminum production was flat with last year.

Hard coking coal's production increased 15 percent, while semi-soft and thermal coal production declined 5 percent from last year.

Looking ahead to fiscal 2015, Rio Tinto Rio Tinto now expects 2015 global shipments of 340 million tonnes from its operations in Australia and Canada. Earlier, the company forecast global shipments "approaching" 350 million tonnes.

In Thursday's regular trading session, RIO.AX is trading on the ASX at A$53.14, up A$0.02 or 0.04 percent on a volume of 727,182 shares.

RIO closed Wednesday's trading on the NYSE at $40.47, down $0.04 or 0.10 percent on a volume of 3.61 million shares.