Rio Tinto beats iron ore production targets in 2012

Diversified mining giant Rio Tinto managed to surpass its own iron ore production targets in 2012, while its other commodity classes also delivered large increases year-on-year.

Diversified mining giant Rio Tinto managed to surpass its own iron ore production targets in 2012, while its other commodity classes also delivered large increases year-on-year.

Iron ore output hit a record 253m tonnes last year, up from 199m tonnes in 2011, and ahead of the 250m-tonne guidance given in October.

Fourth-quarter production reached 66m tonnes, up 2% year-on-year, the group said on Tuesday.

The company also made record global iron ore shipments of 247m tonnes despite severe weather disruptions and a significant maintenance shut-down during the year, the group said.

Market strategist Ishaq Siddiqi from ETX Capital said in an e-mail: "The increase in output is driven by resurging Chinese demand which has propped up commodity prices in recent months.

"Iron ore prices have soared more than 80% since September as Chinese steel mills (the biggest buyers of seaborne-traded ore) re-entered the market on signs of a recovery in the Chinese economy."

He said that 2013 looks to be an "impressive year" for Rio.

The company's Chief Executive, Tom Albanese, said: "This was another year of strong operational performance across the group. We achieved record annual iron ore production and shipments as our expansion programme continues on schedule, delivering industry leading returns for our shareholders. Our copper, bauxite, alumina, thermal coal and titanium dioxide businesses all delivered substantial production increases on 2011 levels.

"Markets remain volatile, but our business continues to perform well. Across the group we are taking action to roll back unsustainable cost increases. This further enhances our resilience and competitive edge as we enter 2013."

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021