Rio Tinto reports that markets for most of its products are strong and the overall long term demand outlook is positive although fears of a possible double-dip recession in OECD countries and a slight slowdown in Chinese growth have led to some weakening in sentiment.
Following the removal of uncertainty over the Australian mineral resource tax, the Group is to fund $200m expansion of its Pilbara operations to 330 million tonnes a year.
The Group reports that global iron ore production was two per cent lower than the second quarter of 2009. First half production was 15 per cent higher than the first half of 2009 when markets were recovering from the global financial crisis.
Mined copper and gold production were down 19 per cent and 34 per cent, respectively, on the second quarter of 2009 primarily due to lower grades at Kennecott Utah Copper and Grasberg.
Molybdenum production was 14 per cent higher than the second quarter of 2009, attributable to higher grades at Kennecott Utah Copper.
Bauxite production increased 10 per cent on the second quarter of 2009 and production levels were sustained for alumina and aluminium, in line with improving market demand.
Australian hard coking coal production was up 26 per cent on the second quarter of 2009 following increased investment at the Queensland operations. Australian thermal coal production was down four per cent on the same period.
Uranium production was down 28 per cent on the second quarter of 2009 due to lower grades at ERA.
Share This Article With Planet Earth
