Rio Tinto posts record iron ore output, trims forecast
18 Jul 2012
Rio Tinto, the world's second largest mining company, yesterday reported record production of iron ore and coking coal in the first half of the year, but scaled down 2012 production forecasts for several commodities.
The London-based company produced 94.3 million tonnes of iron ore in the six months to June, up 4 per cent from the same period in 2011, while output of coking coal rose 9 per cent to 3.7 million tonnes.
Its iron ore production was 48.6 million tonnes in the June quarter, compared with 48.9 million tonnes a year earlier and 45.6 million tonnes in the first quarter.
It reaffirmed production guidance of 250 million metric tons of iron ore this year, and the company that generates 80 per cent of its revenue from iron ore, said that despite the global economic slowdown, it will continue with expansion projects, including its multi-billion dollar expansion of its Western Australia operations.
The Anglo-Australian miner had in June said that it would spend a further $3.7 billion over the coming years on its iron ore operations in the Pilbara region in Australia.
"We are keeping a close eye on the pace of the US recovery, the continuing eurozone crisis and the impact of efforts to stimulate the Chinese economy on the markets that we serve," said Tom Albanese, chief executive of Rio Tinto.
