Rio Tinto PLC said production in the fourth quarter was in line with expectations and said it expects to be well positioned when the economic recovery comes due to the resilience of its low-cost assets.
Quarterly global production of iron ore fell 18 percent from the fourth quarter of 2007 following a 10 percent reduction in the Pilbara annualised production in line with guidance provided in November 2008.
Bauxite production rose 19 percent, alumina was up 26 percent and aluminium up 21 percent year-on-year, reflecting the completion of the Alcan acquisition with effect from October 24 2007. On a proforma basis the respective increases for bauxite and alumina were 6 percent and 3 percent while aluminium declined by 2 percent, primarily due to production cutbacks in France, New Zealand and the UK.
Fourth quarter earnings at Rio Tinto Alcan will be negatively impacted by the sharp decline in the aluminium price. In addition, inventories are expected to be written down to reflect realisable values at the year end, the company said.
Uranium production was up 20 percent on the same quarter of 2007 due to higher grades.
Continued recovery in copper grades at Kennecott Utah Copper were offset by a further grade decline and operational difficulties at Escondida, leading to an overall decrease in mined copper of 18 percent compared with the fourth quarter of 2007 and an associated increase in unit costs.