Rio Tinto has released its coal production results for 2Q16. The mining giant’s metallurgical coal production for the first half was 8% lower than the first half of last year and its second quarter production was 14% lower than the same quarter of 2015. The company indicated that this was primarily due to the timing of the longwall changeover at Kestrel.
According to Rio, semi-soft coking coal production reflects the Coal & Allied restructure in early 20161 and mine production sequencing at Hunter Valley Operations and Mount Thorley Warkworth, resulting in 8% higher production for the first half of 2016 than the first half of 2015. 2Q16 production was 13% lower than 2Q15, reflecting mine sequencing at the Hunter Valley Operations favouring thermal coal production in the period.
Thermal coal production for the first half was broadly in line with the same period last year, while second quarter volumes were 6% higher than 2Q15 (23% higher adjusted for the Bengalla divestment). This was reported to be a result of minimal wet weather, current mine sequencing and increased thermal coal tonnage from Hail Creek.
Rio Tinto chief executive J-S Jacques states: “Rio Tinto has delivered another robust quarter of operational performance. We continue to focus on value and maximising cash flow from our assets, through both commercial and operational excellence while maintaining capital discipline. This will ensure that Rio Tinto is well-positioned to generate compelling and consistent returns for our shareholders.”
On 21 June 2016, Rio Tinto announced changes to its organisational structure. The mining group continues to be organised into four product groups: Aluminium, Copper & Diamonds, Energy & Minerals (including Iron Ore Company of Canada) and Iron Ore, complemented by a newly-shaped Growth & Innovation group, which will focus on future assets and technical support.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/19072016/rio-tinto-records-2q16-coal-production-results-2039/
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