Rio Tinto Al Output Rebounds 2% in Q3

SINGAPORE, Oct. 15 -- Rio Tinto's aluminum output rebounded 2% in the third quarter on the back of continuing efforts to shut high-cost smelters and lower costs.

    Aluminum output rose 2% from the previous quarter to 956,000 mt but remained 4% lower year-on-year.

    The steady performance at its low-cost smelters in Canada has been offset by production cutbacks elsewhere in Canada and Europe in response to the sharp fall in demand, Rio said.

    42% of Rio Tinto Alcan's smelting capacity in the upper half of the industry cost curve has either been sold or curtailed and it expects to operate at an 11% lower annual run rate at the end of 2009.

    As result, Rio Tinto's aluminum production from January to September has fallen 5% year-on-year to 2.85 million mt and its 2009 total is expected to be 6% lower at 3.8 million mt.

    However, both bauxite and alumina output rose 3% in the third quarter, said Rio Tinto.

    Alumina output rose to 2.2 million mt, 1% higher year-on-year, while bauxite output rose to 7.4 million mt but remained 16% lower year-on-year due to the ongoing production cut at the Weipa mine to 15 million mt this year, from 20 million mt last year.

    Rio Tinto Alcan's global bauxite production in 2009 is expected to be at 31 million mt, a decline of 11% from 2008.

    Meanwhile, Rio Tinto's refined copper output slipped 2% in the third quarter but remained 46% higher year-on-year.

    This was due mainly to improved performance, and higher concentrate grades at Kennecott Utah Copper, and higher cathode production at Escondida.

    Mined copper production from Kennecott Utah, Escondida, and Grasberg joint venture with Freeport in the third quarter totaled 179,200 mt, up 24% year-on-year.

    Total mined copper production from January to September was 544,400 mt, up 9% year-on-year.

    (Source: Metal Bulletin)