Rio Tinto Coal Australia’s operations were all cash flow positive in 1H16, according to the company’s half-yearly results, despite a fall in year-on-year coal prices. Thermal coal prices averaged US$51 per tonne, while hard-coking coal prices averaged US$81 per tonne.
For the six months to 30 June, Rio Tinto Coal Australia reported earnings of US$213 million on revenues of US$1.13 billion, the company said, down from US$270 million last year.
Rio Tinto Coal Australia forms part of the Energy & Minerals business at Rio Tinto, which also includes its iron ore, uranium and industrial minerals operations. Overall, the Energy & Minerals reported revenues of US$2.96 billion and earnings of US$531 million.
The company reported hard coking coal production of 3.8 million t, an 8% fall on 1H15, reflecting a longwall changeover at Kestral coal mine. Semi-soft coking coal rose 8% reflecting the restructure of the Coal & Allied business and mine production sequencing at Hunter Valley Operations and Mount Thorley Warkworth.
Edited by Jonathan Rowland.