PERTH (miningweekly.com) – Mining giant Rio Tinto has delivered a strong production quarter in the three months to December, helping the group to achieve its targeted iron-ore shipments for 2016.

Australia’s largest iron-ore miner produced 85.5-million tonnes in the fourth quarter, taking 2016’s production to 329.5-million tonnes. This is in line with the group’s revised guidance of shipping between 325-million and 330-million tonnes in the year.

In October, Rio Tinto lowered its 2016 production target from an earlier estimate of between 330-million and 340-million tonnes.  However, the iron-ore giant expects shipments to be in the 330-million- to 340-million-tonne range in 2017 and Tuesday reaffirmed that guidance.

Iron-ore has had a bullish start to 2017, with prices increasing on the back of expected strong demand from China after a government stimulus in the Asian country.

Rio Tinto’s fourth-quarter and full-year production were 4% and 6% higher respectively than the previous corresponding period, with the strong production performance attributed to the ramp-up of expanded mines, operational productivity improvements and minimal disruption from weather events.

“We have delivered a strong operational performance in 2016, underpinned by our drive for efficiency and maximising cash flow,” said CEO Jean-Sébastien Jacques.

“Our disciplined approach remains in place in 2017, with the continued focus on productivity, cost reduction and commercial excellence. This will ensure that we continue to deliver value for our shareholders.”

Copper production for the fourth quarter increased by 20% year-on-year to 133 800 t, while full-year copper production increased by 4% to 523 300 t.

Despite the increase in production, Rio Tinto reported that copper production failed to meet its full-year guidance, as no metal share was delivered from the Grasberg operation, in Indonesia, and the Kennecott operation, in the US, produced less than expected.

Meanwhile, hard coking coal production for the fourth quarter increased by 15% year-on-year to 2.2-million tonnes and full-year hard coking coal output was up 4% to 8.1-million tonnes.

Rio noted that its share of hard coking coal production was slightly above the top end of the guidance range, owing to strong operational performance, while semi-soft coking and thermal coal production was in line with expectations.

For the three months to December, semi-soft and thermal coal production reached 5.22-million tonnes and full-year production was 21.35-million tonnes.

Furthermore, aluminium production for the quarter increased by 7% year-on-year to 925 000 t and for the full year, it rose by 10% at 3.6-million tonnes. Bauxite production was up 8% in the quarter to 12.1-million tonnes, and up 9% for the full year, to a record of 47.7-million tonnes.