The ramp up of the new Hail Creek mine continued with initial output benefiting from the strong coking coal market.
Rio Tinto said design capacity rates of 5.5 million tonnes per annum had already been achieved at Hail Creek but not yet on a consistent basis.
The study of a capacity expansion to eight million tonnes is also near completion.
The proportion of coking coal from Kestrel longwall had increased since mining commenced in the new 300 series area.
The company said the market for thermal coal strengthened during the first half of the year and the benefits of rising prices would flow though progressively in the second half of the year.
Demurrage costs fell during the quarter due to the impact of the Newcastle port-rationing agreement.
Rio Tinto’s share in Kennecott Energy in the US paid off with volume increases from Jacob’s Ranch mine and strong demand for higher Btu coals of Colowyo and Spring Creek.
