Rio Tinto (LON:RIO) expects to increase iron ore production even further in the current year despite the price being crippled by a glut of the metal.
The mining giant produced 327mln tonnes in 2015, an 11% increase, and while the rate of production growth will slow, chief executive Sam Walsh chief executive expects output this year to climb 7% to 350mln tonnes.
Iron ore prices have tumbled more than 70% as a surge in production from Rio and partner BHP Billiton in Western Australia has coincided with lower demand from China as the economy there slows.
Walsh said the market was proving challenging, but “Rio Tinto remains focused on operating and commercial excellence to leverage the low-cost position of our Tier 1 asset base.”
He also highlighted Bauxite, where production in 2015 rose 4% to 43.7mln tonnes, and is expected to rise to 45mln tonnes in 2016.
Copper production fell 16% to 504mln tonnes, though there was a sizeable jump in coking coal output to 7.86mln tonnes.
Rio Tinto shares currently yield 9% and the miner has been tipped by analysts to reduce its dividend due to the general slide in metal prices.