Third quarter 2007 operations review

17 October 2007

• Near record iron ore production and shipments were achieved in the quarter, and Australian production was 11 per cent ahead of 2006 for the first nine months of the year, despite two derailments which impacted production for the third quarter.
• Yandicoogina's capacity of 52 million tonnes per annum was reached during the third quarter, making it the largest single iron ore mine in Australia. The Hope Downs development of a 22 million tonne per annum mine and related infrastructure neared completion.
• Margins in the Pilbara remain under pressure due to continuing increases in contractor and other mining input costs. Further measures have been put in place to ensure tighter control of manageable costs.
• Mined copper production fell by six per cent compared with the same quarter of 2006, mainly attributable to lower grades, as expected, at Northparkes and Kennecott Utah Copper.
• Production of refined copper was 30 per cent above the level of the third quarter of 2006 when the Kennecott Utah Copper smelter was shut down for scheduled maintenance.
• Higher gold grades at Grasberg contributed to a 35 per cent increase in Rio Tinto's share of mined gold production compared with the third quarter of 2006.
• Infrastructure challenges of congested ports and railways in Queensland and New South Wales continued to impact hard coking and thermal coal production in Australia in the third quarter, resulting in a decline of ten and 24 per cent, respectively, compared with the same quarter of the prior year.
• Third quarter uranium production was five per cent higher than the 2006 comparative period, with the Ranger operation able to process higher grade ore following the successful implementation of dewatering strategies and optimisation of the mine plan. This offset a reduction in Rössing production from lower grades.