Rio has drop in output of mining products

Rio Tinto Group, the world's third-largest mining company, reported a drop in production of steelmaking coal, copper, diamonds, zinc and lead as the industry struggles to grow at a time of record-high prices.

First-quarter coking coal output fell 27 percent after weather disrupted supplies from Australian and mined copper dropped 6 percent, the London-based company said yesterday in a statement. Chief Executive Officer Tom Albanese is fighting off a hostile $158 billion bid from BHP Billiton Ltd.

Miners are battling power shortages, bad weather, surging costs and digging out lower quality deposits as they attempt to exploit the global boom in demand for metals. Prices for coking coal and iron ore have surged to a record this year because of supply constraints and rising demand from steelmakers.

"The weather impacts were fairly material in a number of metals, including coal, iron ore and diamonds," Rob Craigie, a senior analyst at FW Holst & Co in Melbourne, said by phone.

Rio rose A$2.49, or 1.8 percent, to A$140.60 at the 4:10 pm Sydney time close on the Australian Stock Exchange. BHP rose 1.9 percent. Declines in coal and copper were forecast by UBS AG in an April 14 report.

Agencies

(China Daily 04/17/2008 page17)