Anglo-Australian resources giant Rio Tinto said Tuesday it targets hiking mined copper output to 510,000-610,000 mt in 2018, up to 28% higher than its realized output of 478,1000 mt in 2017.
In its December 2017 quarter production report released Tuesday, it said it also targeted raising 2018 refined copper output to 225,000-265,000 mt in 2018, up to 34.4% higher than the 197,200 mt it produced in 2017.
The bullish outlook comes after both its mined and refined copper output declined on a year-on-year basis in 2017; mined copper output was down 8.6% from 523,300 mt in 2016 and refined output down 21% from 250,100 mt.
Rio Tinto attributed the decline in mined copper output to a 43-day strike at its 30%-owned Escondida joint venture in Chile in the first half of 2017.
Mined copper output from Escondida, which contributes almost 60% of Rio Tinto's total, fell 10.7% year on year to 270,800 mt in 2017.
That decline was stemmed by a 26.6% year-on-year rebound in the October-December quarter to 92,900 mt due to the commissioning of an extension project at Escondida's Los Colorados concentrator.
Rio Tinto posted a 2.5% year-on-year fall in mined copper output at its wholly owned US operation Kennecott to 148,900 mt as higher mill throughput was partially offset by lower grades.
It expects to access an area of higher grade material in 2018.
Refined copper output at Kennecott, which contributes 64% of Rio Tinto's total, fell 19.6% year on year to 125,800 mt in 2017, with output in the October-December quarter down 67% year on year at 22,100 mt due to the unplanned shutdown of its smelter over October-November after a fatal accident.
The company attributed its 21% year-on-year decline in refined copper output to the shutdown at Kennecott and the strike at Escondida.
Rio Tinto said the Kennecott smelter "is expected to draw down the increase in concentrate inventory during the first half of 2018."
