RIO Rio Tinto Plc

   By Rhiannon Hoyle 
 

SYDNEY--​Rio Tinto PLC (RIO.LN) shipped more iron ore to steelmakers around the world last quarter, recovering from a weak start to the year when a tropical cyclone hindered its vast mining operations in northwest Australia.

The Anglo-Australian minerals producer on Tuesday reported iron-ore shipments of 82.2 million metric tons from its Australian mines in the three months through June, up 7% on the quarter immediately prior and 6% higher than the same period a year earlier.

One of the world's biggest exporters of the key steel ingredient, Rio Tinto has in recent years ratcheted up production from a vast network of mines in a remote part of Australia, betting on strong demand from expanding Asian economies such as China. The company said it expects to ship roughly 330 million tons of iron ore from those Australian mines in 2016.

Rio Tinto reiterated expectations that output will remain at similar levels next year--between 330 million and 340 million tons--because of delays to an autonomous railway project.

Earlier this year, the company downgraded its expectations for Australian iron ore output in 2017 from 350 million tons, citing delays to the railway system designed to increase the capacity and efficiency of its train network.

Rio Tinto also has an iron-ore operation in Canada, where its share of output increased 6% on-quarter--although dipped 2% on-year--to 2.6 million tons.

Prices for the commodity have steadied around US$50 a ton after tumbling from as high as US$190 a ton in early 2011, weighed by rising mine supplies. Other major global miners such as BHP Billiton Ltd. (BHP.AU) and Brazil's Vale SA (VALE) have also expanded their operations.

Rio Tinto Chief Executive Jean-Sébastien Jacques, who succeeded Sam Walsh earlier this month, said the miner remains focused on maximizing cash from its operations. "This will ensure that Rio Tinto is well-positioned to generate compelling and consistent returns for our shareholders," he said in a statement.

The miner said production of other commodities including copper and coal, two other important commodities for company earnings, were mixed.

Production of hard coking coal was down 9% on-quarter, at 1.8 million tons, while aluminum output was 3% higher at 911,000 tons.

Quarterly copper output was flat, at 141,000 tons, with higher production at some mines weighed by weaker output from the huge Escondida mine in Chile, which is managed by BHP and in which Rio Tinto holds a 30% stake.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

July 18, 2016 19:13 ET (23:13 GMT)

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