Rio Quarterly Iron Ore Output Rises 8%, Sees Recovery

 概述：力拓公布了第二季度报告，称铁矿石产量增加了8%。。。。。。

  Rio Tinto Group, the world’s third- largest mining company, reported second-quarter iron ore output rose 8 percent to a record and it expects further recovery in Chinese steel demand for the rest of the year.

Production of the ore, the biggest contributor to earnings, was 45.2 million metric tons in the three months to June 30, up from 41.9 million tons a year earlier, Rio said in a statement today. It reaffirmed full-year output will be 200 million tons.

Chief Executive Officer Tom Albanese has curbed production of aluminum, coal and diamonds as a global economic slump sapped demand in China, the largest metals consumer, and pushed world prices lower. Markets remained difficult in the second quarter, particularly in aluminum, the London-based company said today.

“In this environment the results seem positive,” Tim Dudley, an analyst in London at Arbuthnot Securities Ltd., wrote today in a report. “The issues relating to the aluminum business are beginning to come into focus.”

Rio’s aluminum output fell 5 percent in the quarter, and will drop 6 percent to 3.8 million tons for the year, the company said. Annual production capacity will slide 12 percent. Alumina output slid 6 percent and bauxite dropped 14 percent. Alumina is refined from bauxite ore and used to make aluminum.

Rio rose 85 pence, or 4.2 percent, to close at 2,104.50 pence in London, taking this year’s gain to 71 percent. In Sydney, the shares gained 2 percent to A$50.08 by the close on the Australian stock exchange.

Improved Sales

Production cuts announced in January “have started to take effect,” Albanese said. “We continue to press ahead with actions to reduce cost across the board, align production with demand and bring down levels of net debt.”

Rio reported record iron ore production from mines in Western Australia’s Pilbara of 42 million tons, up 11 percent from a year ago, it said.

Sam Walsh, head of Rio’s iron ore unit, said in April that the company expected sales to improve this quarter as China’s stimulus measures spur demand for the steelmaking raw material. The country’s iron ore imports rose 3.4 percent in June to the second highest this year, according to Chinese customs data.

Albanese last month spurned a $19.5 billion investment from Aluminum Corp. of China in favor of raising $21 billion from a share sale and an iron ore venture with BHP Billiton Ltd. The company is continuing to dispose of assets and last week sold part of its Alcan packaging unit to Bemis Co. for $1.2 billion.

Copper Output

Mined copper production was little changed. While more metal was retrieved from ore at the Kennecott operation in the U.S. and the Grasberg mine in Indonesia, this was countered by lower metal grades and “continued operational issues” at Escondida, the world’s largest mine.

A 45-day concentrator shutdown to fix the mine’s mill is planned for this month and next, Rio said. The company will produce 780,000 tons of mined copper and 425,000 tons of refined metal this year. Rio owns 30 percent of Escondida, which is operated by Melbourne-based BHP, and 40 percent of Grasberg, managed by Freeport-McMoRan Copper & Gold Inc.

Australian coking coal output fell 7 percent while thermal coal, burned at power stations, rose 3 percent, Rio said. (bloomberg)