Rio Tinto Reduces 2016 Production Guidance After Mixed Q2 Production Results

(IDEX Online News) – Rio Tinto has announced its second quarter results, which showed mixed production results from its Argyle and Diavik mines.

Production at Argyle increased 3 percent to nearly 3.5 million carats compared to the same quarter a year previously. There was also a 4-percent increase in production to 6.88 million carats in the first half of the year, compared to the same period in the prior year. This followed ramp-up of underground production, resulting in higher volumes processed, although partially offset by lower grades.

Results at Diavik, however, showed a 26-percent decrease in production to 948,000 carats compared to the same quarter a year previously. Over the first half of the year, production decreased 5 percent to 2.08 million carats. The lower carats recovered was partially offset by higher ore availability, and the second quarter’s 16-percent lower production over the first quarter was due to a planned maintenance shutdown.

The company said that it was revising its diamond production slightly downward to a range of 18 to 21 million carats, from its previous prediction of 21 million carats.

“Rio Tinto has delivered another robust quarter of operational performance,” said Rio Tinto chief executive J-S Jacques. “We continue to focus on value and maximising cash flow from our assets, through both commercial and operational excellence while maintaining capital discipline.”