Rio Tinto Q3 Iron Ore Shipments Down; Cuts 2016 Iron Ore Shipments View

(RTTNews) - Anglo-Australian mining giant Rio Tinto Plc (RTNTF, RIO, RIO.L, RTPPF) reported that Pilbara iron ore production for the third-quarter increased 2 percent, while iron ore shipments declined 5 percent. It cut its 2016 expectations for Pilbara iron ore shipments.

Rio Tinto chief executive J-S Jacques said "We have delivered strong quarterly production, underpinned by improving operational performance across our Tier 1 portfolio. Output from our iron ore and bauxite assets reflects the drive for productivity and operational excellence. With a continued focus on value, we will seek further productivity improvements across the business."

Rio Tinto, the world's second-largest iron-ore producer, said its Pilbara iron ore production for the third-quarter increased 2 percent to 83.2 million tons reflecting productivity improvements and continued ramp-up of expanded mines across its Pilbara operations.

Pilbara iron ore shipments for the quarter decreased 5 percent to 80.9 million tons, due primarily to maintenance at rail and the Cape Lambert ship loader.

Year to date bauxite production was ten per cent higher than for the same period in 2015. Weipa (up five per cent) benefited from increased plant throughput,while Gove(up 25 per cent)continued to deliver system improvements resulting in a tenmillion tonne a year run-rate in the third quarter.

Year to date aluminium production was 11 per cent higher than the same period of 2015 due to Kitimat, which delivered a new quarterly production record, with a run-rate at nameplate capacity for the second consecutive quarter.

Refined copper production in the first nine months of 2016 was three per cent lower than in the same period of 2015, which benefited from inventory drawdown.

Rio Tinto's expectations for Pilbara iron ore shipments in 2016 have been revised to between 325 and 330 million tonnes (100 per cent basis) compared to prior estimation of around 330 million tonnes. 2017 production guidance remains at between 330 and 340 million tonnes, subject to final productivity and capital expenditure plans.

Rio Tinto's expected share of production is increased to 47 million tonnes for bauxite(previously 45 million tonnes), and remains otherwise unchanged at 7.8 million tonnes of alumina and 3.6 million tonnes of aluminium.

Mined copper production guidance for 2016 is between 535 and 565 thousand tonne s (previously 545 to 595 thousand tonnes). Refined copper production guidance remains unchanged at 220 to 250 thousand tonnes.

Diamond production guidance for 2016 is 18 to 20 million carats (previously 1 8 to 21 million carats).