PERTH (miningweekly.com) – Mining giant Rio Tinto has reported a decrease in production for most of its commodities compared with the fourth quarter of last year, but CEO Sam Walsh noted that the company was making progress to achieve its cost reduction targets.

“My streamlined executive committee structure is now in place and demanding targets for 2013, including for cash cost savings, are locked into our performance measures.

“We are making good progress in achieving our cost reduction targets and other priorities for 2013 and we are determined in our pursuit of greater value for shareholders,” he said.

Record first-quarter production was reported at the miner’s iron-ore operations in the Pilbara, with Rio producing some 61.2-million tons of ore, down 8% on the previous quarter, but up 4% on the previous corresponding period.

The expansion of the Pilbara infrastructure to 290-million tons a year by the third quarter of 2013, and to 360-million tons a year by the first half of 2015, remained on track.

For the full year, Rio expected to deliver some 265-million tons of iron-ore from its global operations.

Meanwhile, mined copper production was down by 8% compared with the fourth quarter of 2012, reaching 150 000 t. This was, however, up 26% on output for the first quarter of 2012.

Rio said mined copper production benefited from a sustained recovery in grades at the Kennecott Utah copper project and at the Escondida mine since the first quarter of 2013.

Earlier this month, the Kennecott Utah mine experienced a slide along a geotechnical fault line of its north-eastern wall.

“Last week’s pit wall slide will have a significant impact on our copper production this year. A recovery plan is being implemented to minimise the economic impact,” Walsh said on Tuesday.

Waste movement associated with the Cornerstone extension had restarted, but ore production remained suspended and the timing to restart production remains under evaluation, Rio said. The concentrator had been shut down while the smelter and refinery were currently operating at reduced levels.

Based on early assessments, it was estimated that copper production from Kennecott Utah would be around 100 000 t less than previously expected.

Total copper production for 2013 was estimated at around 540 000 t, while refined copper production would reach 205 000 t.

Meanwhile, coking coal production declined by 15% compared with the fourth quarter of last year, and by 3% compared with the previous corresponding period, to reach 1.5-million tons.

Semisoft and thermal coal production were also down by 15% on the previous quarter, but up by 28% on the previous corresponding quarter, to just over six-million tons.

Rio Tinto Alcan’s alumina production was flat compared with the first quarter of 2012, with greater alumina refining capacity at Yarwun offsetting the impact of ex-tropical cyclone Oswald at both refineries in Queensland.

Rio Tinto Alcan produced some 1.5-million tons of alumina, which was an 18% decrease on the fourth-quarter results.

Bauxite production reached 7.6-million tons during the three months under review, a 12% decline on the previous three months, but a 10% increase on the previous corresponding period.