Rio Tinto hails strong 2016 as iron ore production hits target

Mining giant Rio Tinto hailed a strong operational performance in 2016 with an on-target increase in iron ore production.

Pilbara iron ore production gained 6% to 329.5m tonnes in the year ended 31 December 2016, with iron ore shipments up 3% to 327.6m tonnes.

In 2017, Rio Tinto's share of production from its mining projects is expected to be between 48m to 50m tonnes of bauxite, 8m to 8.2m tonnes of alumina and 3.5 to 3.7m tonnes of aluminium.

Last year, aluminium production surged 10% to 3.64 kilotonnes, with record annual production at ten smelters, while it sold its aluminium assets at Lochaber, Scotland in December 2016 for $410m.

Bauxite production rose 9% to 47.7m tonnes, and exceeded its full year guidance of 47m tonnes, while third party shipments increased to 29.3m tonnes.

Chief executive Jean-Sébastien Jacques, said: "We have delivered a strong operational performance in 2016, underpinned by our drive for efficiency and maximising cash flow. Our disciplined approach remains in place in 2017, with the continued focus on productivity, cost reduction and commercial excellence. This will ensure that we continue to deliver value for our shareholders."

Mined copper production was 4% higher than 2015 at 523.3 kilo tonnes, which was below full year guidance, with no metal share delivered from the Grasberg in Indonesia and lower than expected production at the Kennecott mine in the US.

The company’s share of hard coking coal production was slightly above the top end of the guidance due to a “strong operational performance”, while semi-soft coking and thermal coal production of 21.4m tonnes was in line.

Titanium dioxide slag production was in line with market demand with a 4% reduction to 1.04 kilo tonnes.