Second quarter 2006 operations review

Wednesday, 19 July 2006

The Group’s share of iron ore production was a record for the quarter, increasing by four per cent compared with the second quarter of 2005, and by 16 per cent compared with the previous quarter, as the expansion programme delivered additional capacity. The operations in Western Australia recovered from the severe weather conditions experienced during the first quarter, although the impact on iron ore production continued into the second quarter.
HIsmelt made its first shipment to customers in the US.

Mined copper production rose by two per cent compared with the previous quarter, and by nine per cent compared with the second quarter of 2005, in line with increased grades at Kennecott Utah Copper and higher production at Escondida from the Norte pit.
Production from the Comalco Alumina Refinery increased by 25 per cent in the second quarter compared with the first quarter, with operating levels showing increasing stability and at times exceeding 90 per cent of original design capacity.

Titanium dioxide feedstock production was three per cent higher than the previous quarter, and eight per cent above the same quarter of 2005, reflecting the strength of current customer demand and the further expansion of the Upgraded Slag (UGS) plant.

US coal production reached record levels for the quarter, increasing by seven per cent compared with the first quarter, and by ten per cent compared with the second quarter of 2005. This was in line with the recovery of rail capacity and the expansions of the Spring Creek and Antelope mines.

Australian thermal coal production rose by six per cent compared with the previous quarter consistent with the availability of port and rail capacity. Australian hard coking coal production recovered from the first quarter but was below the second quarter of 2005, reflecting lower customer demand.

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

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