Fourth quarter 2006 operations review

17 January 2007

• Fourth quarter iron ore production was two per cent lower compared with the previous quarter, primarily due to the impact of maintenance activities.
• Mined copper production increased by 15 per cent during the quarter compared with the previous quarter following industrial action at Escondida.
• Grasberg benefited from access to higher grades during the quarter.
• Refined copper production for the quarter was 29 per cent lower than the third quarter mainly due to the effects of the extended, scheduled maintenance shutdown at the Kennecott Utah Copper smelter.
• Fourth quarter molybdenum production declined by 11 per cent at Kennecott Utah Copper compared with the third quarter attributable to lower grades and recoveries.
• Yarwun (the renamed Comalco Alumina Refinery) reached design capacity during the fourth quarter and achieved a production record for the quarter and the year.
• Titanium dioxide feedstock production increased by 12 per cent compared with the previous quarter, reflecting strong demand and the successful completion of the expansion of the UGS plant in the fourth quarter.
• US coal production set quarterly and annual production records as the capacity expansions at several mines ramped up.
• Production of hard coking coal declined by 12 per cent compared with the third quarter, attributable to lower volumes at Kestrel from operating in the zone of a known fault line.
• At the end of the quarter the Group had 324 million pounds of copper sales that were provisionally priced at US 287 cents per pound. The final price of these sales will be determined in 2007. This compared with 343 million pounds of open shipments at 30 June 2006 provisionally priced at US 337 cents per pound.

*All currency figures in this report are US dollars unless otherwise stated

Fourth quarter 2006 operations review [PDF: 105 KB]