Diversified major Rio Tinto has reported increased production in most of its commodities in the second quarter ended June, compared with the previous corresponding period.

“Operational performance was solid across most commodities, rounding out a strong first- half performance for the group,” said Rio CEO Jean-Sebastian Jacques.

“Our increasingly flexible Pilbara iron-ore system continued to perform well. Our bauxite and copper businesses also delivered strong operating results, demonstrating the success of our ongoing mine-to-market productivity programme, which is increasingly important in an environment of rising cost inflation.”

Iron-ore shipments from the Pilbara increased to 88.4-million in the June quarter, with production reaching 85.5-million tonnes, equating to 14% and 7% respective increases on the previous corresponding period.

Rio said last week the increased iron-ore production from the Pilbara reflected favourable weather conditions, compared with last year, the ramp-up of the Silvergrass mine, and the ongoing implementation of productivity improvements across the integrated system.

Bauxite production for the three months to June reached 13.2-million tonnes, up 3% on the previous corresponding period, while aluminium production was down 3% to 858 000 t.

The increased bauxite production reflected the continued implementation of operational improvements, while aluminium production was impacted on by an ongoing lock-out at the nonmanaged Becancour smelter, in Canada, which began in January, as well as power disruptions at the Dunkerque smelter, in France, which occurred in February.

Meanwhile, mined copper production for the quarter was up 26% on the previous corresponding period, to 156 800 t, which Rio said reflected strong production at the Escondida operation, in Chile, following a labour union strike in the first half of last year.

The current labour agreement at Escondida expires on August 1, and negotiations for a new agreement are currently under way.

Hard coking coal production for the three months to June reached 2.1-million tonnes, up 40% on the previous corresponding period, owing to the impact of Cyclone Debbie last year.

Second-quarter production was also up 97% on first-quarter production, owing to the mine resequencing at the Hail Creek operation, and the longwall changeover and maintenance work at Kestrel in the previous quarter.

Thermal coal production in the quarter under review was 1% lower than in the previous corresponding period.

In June, Rio completed the sale of its 75% interest in the Winchester South coal development project, in Queensland, to ASX-listed Whitehaven Coal for $200-million, of which $150-million in cash was received on the date of completion and a further cash payment was due 12 months later.

Rio’s sale of its interest in the Kestrel and Hail Creek coal mines, as well as the Valeria coal development project, would be completed in the second half of the year for gross proceeds of $3.95-billion, and subject to meeting conditions precedent.

Divestments announced in the first half of 2018 totalled some $5-billion pretax, and would be settled by the end of 2018, including the divestment of the Dunkerque and ISAL smelters, as well as the coking coal assets.

In addition, Rio last week announced that it had signed a nonbinding heads of agreement to divest of its interest in the Grasberg mine, in Indonesia, for $3.5-billion, although there was no certainty that the transaction would be completed.

“Our sustained focus on cash generation, combined with disciplined capital allocation, will ensure we continue to deliver superior returns to our shareholders across the short, medium and long term,” Jacques said.