New | Rio Tinto says iron ore output jumps as prices in China recover
The world’s No 2 iron ore miner Rio Tinto said a strong third quarter and productivity gains led to a 12 per cent rise in iron ore production as price volatility persists in the global market.
Rio Tinto, which competes with Vale and BHP Billiton in the seaborne-traded iron ore market, confirmed its target of mining 295 million tonnes of the steelmaking material in 2014, up from 266 million last year.
From Europe to Australia, smaller, less efficient miners are in many cases struggling to survive, while the mega miners take a bigger share of the US$130 billion seaborne iron ore market.
Third-quarter iron ore production totalled 76.8 million tonnes, up from 68.3 million in the same period last year, the company said. It also marked a 5 per cent gain over the second quarter.
“Our strategy of focusing on long-life, low-cost assets means we will continue to generate strong cash flows despite a lower-price environment, resulting in materially increased and consistent cash returns to shareholders,” Rio Tinto chief executive Sam Walsh said in releasing the company’s third-quarter production report.
Recent mine production in China has been relatively stable
Iron ore prices dropped to five-year lows this year as seaborne supplies grew amid slowing demand growth from the key Chinese market, though prices have seen a recent rebound.