TORONTO (miningweekly.com) – Rio Tinto, the world's third-biggest miner, expects to report an impact of some $100-million on second-half earnings before interest, depreciation and amortisation for its Alcan aluminium unit, thanks to dry weather at its Quebec operations in the first six months of the year.
Low snow and rain levels affected the company's ability to generate its own hydroelectric power, which will mean it must buy additional power or curtail production over the next 12 months.
The approach taken will depend on market conditions, Rio Tinto said on Wednesday.
The Laterrie?re smelter in Quebec also suffered a significant power outage in July after two electrical transformers failed, leaving the plant without enough energy required to continue operating at full capacity.
The smelter is currently operating at half of its total capacity of 235 000 t, the company said.
Rio Tinto published its second quarter operations review on Wednesday.
The group produced 952 000 t of aluminium during the quarter, an increase of 1% compared with the same period a year earlier.
Full-year production is forecast at 3,7-million tons of aluminium in 2010.
Rio Tinto bought Canada's Alcan for $38-billion in October 2007.
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