MARKETS

Rio Tinto drops coal production by 4%

Staff Reporter

Major mining company Rio Tinto Coal has announced a 4% drop in coal output for the March 2000 quarter compared with the same period in 1999 and was 13% lower than the December 1999 quarter, This was "due in part to seasonal demand patterns in the US," the company said.

 

Total production for the quarter amounted to 31.24 Mt. US subsidiary Kennecott Energy and Coal Company produced 25.6 Mt thermal coal for the quarter. The Antelope mine complex contributed over 5 Mt for the quarter. Australian production totalled 7.39 Mt.

 

Total production from Kaltim Prima Coal (Rio Tinto 50%) in Indonesia totalled 2.3 Mt thermal coal. The company said KPC has been implementing a major shift in mining sequence in the last six months. Heavy rainfall combined with efforts to clear access to new areas affected productivity in the first quarter.

 

Australian production from the Queensland Pacific Coal operations amounted to 4.3 Mt.

 

Blair Athol (71.2% owned) produced 2.4 Mt thermal coal. Kestrel (formerly Gordonstone and 80% owned) restarted production in June last year and has produced 220,000t thermal coal and 435,000t coking coal for the quarter. The wholly owned Tarong mine produced 1.256 Mt thermal coal.

 

Total Coal & Allied production totalled 3 Mt from Hunter Valley operations and Mount Thorley. Thermal production for Hunter Valley Operations in the first quarter was affected by a dispute with a domestic customer who suspended deliveries in the third quarter of 1999.

 

"Deliveries under the long-term contract remain suspended, but deliveries to this customer as part of an unrelated contract commenced on 31 March 2000. Wet weather affected production at both operations during the quarter."

 

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