Rio Tinto announces increased coal reserves at Kestrel

Rio Tinto announced increased coal reserve estimates to the Australian Securities Exchange overnight on Thursday, relating to Rio Tinto Coal Australia’s Kestrel underground longwall mine in Queensland, as compared to the previous estimate in the 2016 annual report.

The FTSE 100 company said Kestrel Ore Reserves increased by 62 Mt, to 185 Mt from 123 Mt.

As a result, Kestrel mineral resources exclusive of ore reserves had decreased by 65 Mt, to 241 Mt from 306 Mt.

It said the updated ore reserves and mineral resources were reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and the ASX Listing Rules.

“This increase in ore reserves reflects a continuation of work on Rio Tinto Coal Australia deposits previously announced on 3 March 2016,” Rio Tinto’s board said in its statement.

“The updates are based on a rigorous examination of leases that included an updated geological model, updated mine layout, revised coal product classifications and revised loss and dilution and productivity assumptions.”

Rio Tinto confirmed that ore reserves and minerals resources were quoted on a 100% basis, while Rio Tinto's interest was 80%.