The world’s third largest iron ore miner produced 18% more iron ore than in the first half last year, and shipments of 32 million tonnes also broke records, up 21% from a year ago.
Aluminium production received an 11% kick along from Rio’s acquisition of the remainder of Comalco during the second quarter of 2000.
Half yearly mined copper production fell 6% to 435,000 tonnes compared to the first half of 1999 due to lower grades, primarily at Ascondida, Chile and Grasberg, Indonesia.
Mined gold was down 14%, with higher grades at Kennecott Utah Copper, in the United States, more than offset by lower grades at Grasberg, lower production at Kelian, Indonesia, and the cessation of mining at Ridgeway in the US.
Coal production fell 8% and borates production was down marginally.
Rio’s profits could be hurt during the next year by its battle with South African giant Anglo American for control of North.
The major Japanese iron ore buyers have thrown their support behind Anglo’s $3.1 billion counter bid against Rio’s hostile $2.8 billion attempt to win control of North.
The Japanese steel mills, apparently desperate to prevent Australia’s iron ore industry becoming a duopoly, have offered to buy increased tonnage from North’s 53% owned Robe River operation, as well as raised the possibility of taking a 50% stake in the $500 million rail link Robe will need to build between its West Angelas project and the port.
They are also threatening to reduce purchases from Rio’s Australian iron ore outfit, Hamersley Iron.
If Anglo is successful in its bid for North, there will remain three iron ore producers in Australia – Rio, Anglo, and the country’s largest producer, BHP.
