COMPANY ACTIVITY

Kestrel saves the day for Rio coking coal

INCREASED production from Rio Tinto's Kestrel longwall mine in Queensland has offset significant ...

Lou Caruana
Kestrel saves the day for Rio coking coal

Kestrel, which is undergoing a $2 billion extension, is ramping up production after longwall panel changeovers in 2011 impaired production from the mine.

Kestrel produced 790,000 tonnes in this year’s June quarter compared to the 318,000t it produced in the previous corresponding quarter.

The mine extension plan will extend the life of Kestrel mine by 20 years and increase capacity to up to 5.7 million tonnes per annum, with first coal expected in 2013.

Rio’s share of hard coking coal production for the June quarter came to 2Mt, while its semi-soft coking coal production stood at 1Mt and its thermal coal production came in at 4.7Mt.

In 2012, Rio Tinto’s share of Australian hard coking, semi soft coking and thermal coal production is expected to be 8.5Mt, 3.5Mt and 19.5Mt, respectively.

Thermal coal production was consistent with the second quarter of 2011 and 15% higher than the first quarter of 2012, primarily due to increased production at Clermont which offset the negative impacts of wet weather events affecting a number of Queensland mines.

Rio is also beginning to benefit from its Mozambique investment, which came from its 2011 acquisition of Riversdale Mining.

On June 25, 2012, Rio Tinto announced it had exported its first shipment of premium hard coking coal from its Benga mine in the Moatize Basin in Mozambique.

During the second quarter, Rio Tinto Coal Mozambique produced 123,000t of thermal coal (80,000t attributable) and 130,000t of hard coking coal (85,000t attributable) at Benga.

Benga is expected to move to commercial production during the third quarter of 2012.

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