Rio Tinto has announced production and financial results for the first half of 2017 and its alumina operations have recorded significant increase in net earnings as well as revenue.
Alumina production was slightly lower in H1 2017 than H1 2016. Total alumina production stood at 4,070 thousand tonnes in comparison to 4,107 thousand tonnes in H1 2016. A strong operating performance at Vaudreuil was offset by reduced production at the Yarwun and Queensland alumina refineries attributed to weather inconsistencies and major maintenance works.
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Continued focus on reducing cash costs and productivity enhancements throughout the operations also was implemented in the alumina business. These actions, together with higher realised alumina prices resulted in positive free cash flow, EBITDA and underlying earnings for alumina segment. Underlying earnings of $111 million in H12017 marked a strong turnaround from a loss of $83 million in H1 2016. Total revenue also increased to US$1303 million from US$964 million in H1 2016.
Rio Tinto projects a production share of 8.0 to 8.2 million tonnes of alumina for the full year 2017.
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