14 January
MELBOURNE,

Rio Tinto on Thursday disclosed its fourth quarter 2009 operations review. Production cutbacks were maintained in the Aluminium group in response to market conditions. Bauxite production was down one per cent, alumina down two per cent and aluminium down three per cent, compared with the fourth quarter of 2008. At the end of 2009 Rio Tinto Alcan’s annual run rate was nine per cent lower than at the start of the year.

Bauxite

Fourth quarter bauxite production was one per cent lower than the same quarter of 2008 and 22 per cent higher than the previous quarter. Production at Weipa increased by 25 per cent compared with the third quarter due to rising third party demand.

Alumina

Fourth quarter alumina production was two per cent lower than the same quarter of 2008 and two per cent lower for the full year, following production cuts at the Vaudreuil (Jonquiere) and Gardanne alumina refineries announced in early 2009. These production cuts offset record annual production at the Queensland Alumina, Yarwun, Gove and Sao Luis (Alumar) refineries.

Gove and Alumar continued to ramp up their expansions and presented annual production
increases of eight per cent and ten per cent, respectively.

In the fourth quarter of 2009, Rio Tinto Alcan restarted idled capacity at the Vaudreuil refinery in Quebec, in response to improving alumina market conditions.

Aluminium

Fourth quarter aluminium production was three per cent lower than the same quarter of 2008.
Annual production was four per cent lower than 2008.

During 2009 Rio Tinto announced the sale of the Ningxia smelter in China, the closure of the Beauharnois smelter in Quebec, the cessation of smelting activities at the Anglesey smelter in Wales and various other curtailments. At the end of 2009 Rio Tinto Alcan’s annual run rate was nine per cent lower than at the start of the year.

Chief executive Tom Albanese said: "We are seeing recovery across most of our key commodities, although we continue to be cautious on the state of the global economy going into 2010 as stimulus packages start to wind down. This was another very strong quarter for iron ore production, driven by continuing high demand from China. In the Pilbara we achieved record sales for both the quarter and the full year and both global and Pilbara production set new records in 2009. We made good progress in divestments with $1.85 billion of sales completed in the fourth quarter and have now agreed sales of $10.3 billion since we began the divestment programme in 2008."