Rio Tinto PLC (LON:RIO) said it reached its targets in 2017 as it reported a record fourth quarter of iron ore shipments from its Pilbara operations in Western Australia.
Iron ore shipments in the final quarter reached 90 million tonnes (mt), up 3% on the same period a year ago. In the full year, shipments climbed 1% to 330.1mt, in line with guidance.
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Production of iron ore rose 3% to 87.9mt in the fourth quarter but was flat for the year at 329.8mt.
Rio Tinto expects Pilbara shipments in 2018 to be between 330 and 340mln tonnes.
Mined copper production grew 11% to 148,600 tonnes in the last quarter but fell 9% to 478,100 tonnes in the full year, reflecting the impact a 43-day strike at the Escondida mine in the first quarter.
Hard coking coal production increased 6% in the final quarter to 2.3mt on the back of strong performances at Kestrel and Hail Creek. For the year production dropped 5% to 7.7mt due to disruption from Cyclone Debbie in the first three months of the fiscal year.
Bauxite production rose 14% to 13.7mt in the fourth quarter and was up 6% to 50.7mt in the full year while aluminium production dipped 3% to 887,000 tonnes in the quarter and fell 1% to 3.5mt in the year.
"The business performed well in the fourth quarter, and we finished the year in line with guidance across all major products,” said chief executive Jean-Sebastien Jacques.
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Looking ahead, the group expects production from the Silvergrass iron ore mine to ramp up in 2018 after completing commissioning of the conveyor system last year.
Its Amrun project is also on track for its first bauxite shipment in the first half of 2019 and construction of the first drawbell at Oyu Tolgoi Underground is expected in mid-2020.
Rio Tinto said the sale of the aluminium Dunkerque smelter in France for US$500mln is expected to be complete in the second quarter of 2018.
A US$1.92bn share buyback started on 27 December 2017 and the company sees it being completed before the end of 2018.
"Our focus on value over volume and mine-to-market productivity, along with disciplined allocation of cash, will ensure that we continue to deliver superior shareholder returns in the short, medium and the long term," said Jacques.