Coal news and updates

Rio Tinto reports 9% y-o-y drop in Q1 thermal coal production

Rio Tinto, a global mining giant, has reported a robust first quarter (Q1 2016) production result, but a decline in steam coal output due to impact of wet weather at Hunter Valley operations and restructure in its Coal and Allied business.

According to a statement issued by the company, thermal coal production by the miner stood at 4,331,000 tons in January-March 2016. This was down 16% quarter-on-quarter (q-o-q) and 9% year-on-year (y-o-y).

Hard coking coal production, however, increased by 4% q-o-q and stood at 1,982,000 tons. On an annual basis, HCC production was slightly down by 1% y-o-y.

Semi soft coking coal was up 47% q-o-q and 31% y-o-y and stood at 1,175,000 tons in Q1 2016.

“Thermal coal production was 16% lower than the previous quarter and 9% lower than the same quarter of 2015, due to the impact of wet weather at Hunter Valley Operations in January 2016. It also reflects the change in ownership following completion of the Coal & Allied restructure and the divestment of Bengalla,” the company said.

The restructure of the Coal & Allied group came into effect on 3 February 2016. Under the restructure, Rio Tinto obtained 100% ownership of Coal & Allied and Mitsubishi obtained a direct interest of 32.4% in the Hunter Valley Operations. Rio Tinto's interest in Hunter Valley Operations, Mount Thorley and Warkworth mines is now 67.6%, 80% and 55.57%, respectively. Historical production data prior to the date of the restructure reflects the previous ownership.

Rio Tinto completed the sale of its 40% interest in the Bengalla Joint Venture for $616.7 million with an effective date of March 1, 2016.