Rio Tinto's Coking Coal Production Falls in Q1 2017 on Hindrances
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The mining major, Rio Tinto, has recorded a 28% lower Hard Coking Coal production in Q1 2017 against that in Q4 2016.
During the first quarter of the current year, the mining conglomerate had produced 1,583 '000MT of Hard Coking Coal. The production during the quarter of the current year also trailed behind that in the same quarter of the last year by 20%.
Exhibiting a similar trend, the Semi Soft Coking Coal production of the company at 959 '000MT in Q1 2017 had fallen by 18% against that in Q1 2016. On a quarter-on-quarter comparison, the Semi Soft Coking Coal production in the first quarter of the current year had dipped marginally by 1%.
Rio Tinto had produced 4,222 '000MT of Thermal Coal in Q1 2017, and that, however, surpassed the productions in: Q1 2016 by 11% and Q4 2016 by 1%.
| Quantity in '000MT | |||
| Q1 2017 | vs Q1 2016 | vs Q4 2016 | |
| Hard Coking Coal | 1,583 | -20% | -28% |
| Semi Soft Coking Coal | 959 | -18% | -1% |
| Thermal Coal | 4,222 | 11% | -1% |
Source: Rio Tinto
The shrinkages in Coking Coal production were due to temporary suspension of operations at the Kestral mine due to longwall change-over; and lower production rates at the Hail Creek mine. Both the mines are located in Queensland of Australia.
The company also has reached a binding agreement to sale its coal business to Yancoal Australia for USD 2.45 billion. The deal is expected to be completed in the second half of 2017.
