Cuts FY alumina production guidance (Il Sole 24 Ore Radiocor) - Sydney, 16 Jul - Australian miner Rio Tinto said that in the second quarter Pilbara iron ore production fell 2% to 79.5 million tons while shipments rose 2% to 80.3 million tons as productivity gains offset ore depletion.

Buaxite production increased 9% to 14.7 million tons reflecting implementation of the Safe Production System (SPS), especially at Weipa where the group achieved higher plant utilisation and feed rates. As a consequence, the company expects full year bauxite production guidance is expected to be around the top end of the 53-56 million tonne range.

Alumina production fell 10% to 1.7 million tonnes due to the continuing impacts to the Gladstone operations from the breakage of the third-party operated Queensland Gas Pipeline in March. As a result, the group reduced the full year alumina production guidance to 7.0-7.3 million tonnes from a previous 7.6-7.9 million. Rio Tinto expects gas supplies from the pipeline to return to normal levels by the end of 2024.

Aluminium production inched up 1% to 0.8 million tonnes.

Mined copper production rose 18% to of 171 thousand tonnes with a 30% increase at Kennecott was following a conveyor outage in the prior period. However, production was 1% lower than the previous quarter following changes to the mine plan to manage geotechnical risk. These changes delayed access to pit ore and resulted in additional lower grade stockpiled material being processed.

"We are currently reworking our mine plan and expect to provide a further update in our Third Quarter Operations Review. Our Group full year mined copper production guidance is therefore expected to be around the bottom end of the 660 to 720 thousand tonne range," it said.

At Escondida, production was 12% higher due to a 7% improvement in concentrator feed grade as mining continued into higher grade zones, together with 12% higher concentrator output. At Oyu Tolgoi it was 23% higher as the ramp-up in underground production continued.

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(RADIOCOR) 16-07-24 12:47:37 (0344) 5 NNNN