RIO Rio Tinto Plc

   By Rhiannon Hoyle 
 

Rio Tinto PLC (RIO.LN), the world's second biggest mining company by market value, on Tuesday released its third-quarter operational report. The miner said quarterly Australian iron-ore exports were lower, as was production of most other commodities including bauxite and titanium dioxide. Here are some remarks from the report.

On Australian iron-ore production:

"Pilbara iron ore shipments of 81.9 million [metric] tons (100% basis) in the third quarter were 5% lower than the third quarter of 2017, due to planned maintenance cycles and safety pauses across all operations following [a] fatality. Pilbara operations produced 251.2 million tons (Rio Tinto share 209.7 million tons) in the first nine months of 2018, 4% higher than the same period of 2017 due to favorable weather conditions in the first half, a continued improvement in mine and rail capacity as Silvergrass ramps up and ongoing productivity improvements across the integrated system."

On driverless trains:

"The automation of the Pilbara train system (AutoHaul) is in ramp-up, with a steady increase in the number of trains in autonomous mode over the third quarter. Autonomous mode operations have increased to an average of 34 trains per day, equating to 290,000 kilometres (or 45% of daily kilometres) completed in this mode. Full implementation of AutoHaul is expected by the end of 2018."

On its Oyu Tolgoi project:

"Following an annual re-forecast of the Oyu Tolgoi underground development schedule and costs, capital costs remain in line with the overall US$5.3 billion budget and construction of the first draw bell is still expected in mid-2020. The preliminary re-forecast assessment indicates ground conditions and shaft sinking challenges that are ultimately expected to result in a revised ramp-up schedule to sustainable first production."

On bauxite production:

"Bauxite production of 12.7 million tons was 1% lower than the corresponding quarter of 2017, with strong production at Weipa offset by lower production at the non-managed Sangaredi and Porto Trombetas mines. Third-party shipments increased by 2% to 8.4 million tons, reflecting firm demand."

On aluminum production:

"Aluminum production of 0.9 million tons was 1% lower than the third quarter of 2017 due primarily to ongoing labor disruptions at the non-managed Becancour smelter in Canada. Full-year guidance has been revised to between 3.4 and 3.5 million tons (previously 3.5 to 3.7 million tons).

On alumina-price impact:

"Although Rio Tinto is broadly balanced in alumina, it is exposed to long-term legacy alumina sales contracts, which are LME [London Metal Exchange] linked. The negative impact on Ebitda of these legacy contracts, due to the significant escalation in the alumina index price as a result of industry supply disruptions, was US$178 million in the first half of 2018 and a further US$130 million in the third quarter."

On Cadadian iron-ore operations:

"Production at Iron Ore Company of Canada was 9% lower than the third quarter of 2017, however significantly higher than the previous quarter as operations ramped up to normal production rates following a labour dispute in the previous quarter."

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

(END) Dow Jones Newswires

October 15, 2018 20:41 ET (00:41 GMT)

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