Rio less grand as output dips

ANGLO-Australian mining giant Rio Tinto has revealed that its iron ore production fell by 3% in the last three months to 21.6m tonnes from 22.2m tonnes a year ago. The company was updating the market on its quarterly mining production ahead of half-year results next week.

The iron-ore tally for the half year, at 44.1m tonnes, is still up on last year despite the drop in the last three months. The company reported record shipments from its western Australian operations in Hamersley 'due to a strengthening demand form most Asian markets'.

US coal production was down by 3% as mild weather dampened demand. Copper production slowed by 4%. However, refined copper production was up by 35% at Kennecott as a result of higher smelter activity.

Gold output was also down but diamond mining revenues jumped by 68% due to higher grades. Rio Tinto shares rose 14p to 1149p.