Rio Tinto Driverless Trains Advance, Projects on Track -- Commodity Comment
April 17 2018 - 10:06PM
Dow Jones News
By Rhiannon Hoyle
Rio Tinto PLC, the world's second-biggest listed mining company,
released its first-quarter operational report on Wednesday. The
mining company reported a 5% on-year rise in quarterly shipments
from its Australian iron ore mines, but weaker output of
commodities including coal and aluminum. Here are some remarks from
the company's report:
On Australian iron ore production:
"Production benefited from fewer weather disruptions than the
first quarter of 2017, along with the ramp up of Silvergrass and
the ongoing implementation of productivity improvements across the
integrated system. Rail productivity continues to improve, with
85.0 million [metric tons] railed in the first quarter. Sales were
2.8 million tons below production due to disruptions at the ports
resulting from tropical cyclone Marcus in March."
On its driverless trains:
"The automation of the Pilbara train system (AutoHaul) continues
to advance, with approximately 65% of trains at the end of the
quarter in autonomous mode with a driver on board for supervision
and more than three million kilometres now completed in this mode
of operation. The project continues to progress with the regulator
approval process and is on schedule to be completed by the end of
2018."
On aluminum:
"Following the announcement by the U.S. Treasury Department on
April 6, 2018, that it was implementing sanctions on various
Russian individuals and companies, Rio Tinto announced on April 13
2018 that it has reviewed arrangements it has with impacted
entities. The arrangements include Rusal's 20% interest in
Queensland Alumina Ltd. in Australia, including Rusal's associated
supply and offtake arrangements, bauxite sales to Rusal's refinery
in Ireland and offtake contracts for alumina that are used at Rio
Tinto's smelters, mainly in France and Iceland. As a result of the
imposition of these sanctions, Rio Tinto is in the process of
declaring force majeure on certain contracts and is working with
its customers to minimize any disruption in supplies."
On new projects:
"The major growth projects remain on track. The Silvergrass iron
ore mine continues to ramp up, Amrun is on schedule for first
bauxite shipment in the first half of 2019 and construction of the
first drawbell at Oyu Tolgoi underground is expected in
mid-2020."
On titanium dioxide operations:
"Slag production at RBM for the second quarter of 2018 will be
impacted by a labor dispute between contractors and their
employees, which halted both mine and smelter operations. As a
result, RBM has declared a separate force majeure on deliveries to
its titanium dioxide feedstock customers, which will be lifted once
the operation returns to normal operating capacity. Operations at
RBM were restarted on April 11 2018, and the mine is expected to
return to previous operating capacity later this year."
-Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
April 17, 2018 22:51 ET (02:51 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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