Rio Tinto Q2 iron ore production update
2011-07-22 09:16:15 [Print]
Pilbara marketing
Second quarter sales of 55 million tonnes were 2% lower than the corresponding quarter of 2010. Rail infrastructure recovered from the inclement weather in the first quarter but some speed restrictions remained following the train derailment in the first quarter.
(In '000 tonne)
Pilbara operations
The Pilbara mines recovered strongly from the first quarter and produced 59 million tonnes only 3% lower than the record fourth quarter of 2010. This was despite unseasonably wet weather throughout the second quarter. The strong performance was marred by the death in June of a scaffolding contractor at the East Intercourse Island terminal at Dampier port, the first such tragedy for the Pilbara operations since August 2003.
The capacity of the Pilbara system increased by five million tonnes to 225 million tonne per annum at the end of the first quarter of 2011, following the completion of the first debottlenecking project at the Dampier port on time and on budget.
In May, the full bench of the Federal Court in Australia found in Rio Tinto’s favor in ruling that neither of Rio Tinto’s two major Pilbara rail lines should be declared open to mandated third party access.
In June, Rio Tinto announced that it will double its fleet of driverless haul trucks to ten at its iron ore operations in Western Australia and deploy them at Yandicoogina, the largest mine in the Pilbara.
The move follows a two-year trial of Autonomous Haulage System technology on trucks at the West Angelas mine, which has performed well above expectations.
Pilbara expansion
The expansion of capacity of the Pilbara to 283 million tonne per annum by the second half of 2013 remains on track. The feasibility study to expand the Pilbara to 333 million tonne per annum is well advanced and on track for a full decision in early 2012.
On June 15th Rio Tinto announced that it is accelerating its iron ore expansion program in the Pilbara with USD 676 million of funding for early works and procurement. As a result, it is expected that the capacity expansion to 333 million tonne per annum will now be reached in the first half of 2015, six months earlier than previously planned.
Rio Tinto's integrated operations will be progressively upgraded as follows:
1. 225 million tonne per annum - current operating capacity
2. 230 million tonne per annum by end of Q1 2012 - Dampier port incremental (in implementation)
3. 283 million tonne per annum by end of H2 2013 - Cape Lambert first 53 million tonne per annum increment (in implementation)
4. 333 million tonne per annum by end of H1 2015 - Cape Lambert second 50 million tonne per annum increment (in feasibility study)
Iron Ore Company of Canada
Second quarter saleable iron ore production was 14% lower than the same quarter of 2010 as a result of truck and labour availability issues, but 31% higher than the first quarter of 2011 as progress was made to stabilize and improve production capability. Concentrate for sinter production was maximized in the quarter to respond to market demand, and this resulted in lower pellet production relative to the first quarter. While the overall pellet capacity was temporarily reduced, it enabled significant plant maintenance work to be undertaken.
The Concentrator Expansion Project Phase 1, lifting capacity to 22 million tonne per annum is on track for completion in late 2011 and Phase 2, improving the magnetite recovery circuit, is progressing as planned, with first production is expected in late 2012.
Second quarter sales of 55 million tonnes were 2% lower than the corresponding quarter of 2010. Rail infrastructure recovered from the inclement weather in the first quarter but some speed restrictions remained following the train derailment in the first quarter.
(In '000 tonne)
Pilbara operations
The Pilbara mines recovered strongly from the first quarter and produced 59 million tonnes only 3% lower than the record fourth quarter of 2010. This was despite unseasonably wet weather throughout the second quarter. The strong performance was marred by the death in June of a scaffolding contractor at the East Intercourse Island terminal at Dampier port, the first such tragedy for the Pilbara operations since August 2003.
The capacity of the Pilbara system increased by five million tonnes to 225 million tonne per annum at the end of the first quarter of 2011, following the completion of the first debottlenecking project at the Dampier port on time and on budget.
In May, the full bench of the Federal Court in Australia found in Rio Tinto’s favor in ruling that neither of Rio Tinto’s two major Pilbara rail lines should be declared open to mandated third party access.
In June, Rio Tinto announced that it will double its fleet of driverless haul trucks to ten at its iron ore operations in Western Australia and deploy them at Yandicoogina, the largest mine in the Pilbara.
The move follows a two-year trial of Autonomous Haulage System technology on trucks at the West Angelas mine, which has performed well above expectations.
Pilbara expansion
The expansion of capacity of the Pilbara to 283 million tonne per annum by the second half of 2013 remains on track. The feasibility study to expand the Pilbara to 333 million tonne per annum is well advanced and on track for a full decision in early 2012.
On June 15th Rio Tinto announced that it is accelerating its iron ore expansion program in the Pilbara with USD 676 million of funding for early works and procurement. As a result, it is expected that the capacity expansion to 333 million tonne per annum will now be reached in the first half of 2015, six months earlier than previously planned.
Rio Tinto's integrated operations will be progressively upgraded as follows:
1. 225 million tonne per annum - current operating capacity
2. 230 million tonne per annum by end of Q1 2012 - Dampier port incremental (in implementation)
3. 283 million tonne per annum by end of H2 2013 - Cape Lambert first 53 million tonne per annum increment (in implementation)
4. 333 million tonne per annum by end of H1 2015 - Cape Lambert second 50 million tonne per annum increment (in feasibility study)
Iron Ore Company of Canada
Second quarter saleable iron ore production was 14% lower than the same quarter of 2010 as a result of truck and labour availability issues, but 31% higher than the first quarter of 2011 as progress was made to stabilize and improve production capability. Concentrate for sinter production was maximized in the quarter to respond to market demand, and this resulted in lower pellet production relative to the first quarter. While the overall pellet capacity was temporarily reduced, it enabled significant plant maintenance work to be undertaken.
The Concentrator Expansion Project Phase 1, lifting capacity to 22 million tonne per annum is on track for completion in late 2011 and Phase 2, improving the magnetite recovery circuit, is progressing as planned, with first production is expected in late 2012.
