SYDNEY, Jan 17 - Rio Tinto Ltd/Plc said prolonged maintenance work at its U.S. copper smelter cut fourth-quarter refined copper output by more than a third amid robust world demand and pricing.
Rio Tinto's fourth-quarter output fell 37 percent on a year earlier due to an extended shutdown at the company's Kennecott Utah smelter, reducing full year output by 5 percent.
"(The shutdown) was extended by a further 18 days beyond the original schedule to 63 days due to an increase in the scope of the work required," the company said on Wednesday in its latest production report.
The output drop came as Rio Tinto and rivals struggled to keep pace with strong global metals demand that pushed copper prices in May to a record $8,800 a tonne -- double the price last January.
Prices have since recoiled to below $5,700 a tonne, although some analysts expect another price surge early in 2007 on the back of strong industrial growth in China.
Rio Tinto's iron ore output rose 8 percent in the fourth quarter, for a 7 percent rise in full-year output.
With mines in Canada and Australia, Rio Tinto is the world's second largest producer of iron ore behind Brazil's CVRD and ahead of close rival BHP Billiton Ltd./Plc. .
Analysts are banking on iron ore sales to counter the fall in copper prices when Rio Tinto releases its 2006 financial results on Feb. 1. Consensus figures point to a 2006 net profit of about $7.76 billion, up from $5.2 billion in 2005, according to Reuters Estimates.
Iron ore and copper each typically account for more than a third of Rio Tinto's earnings.
The company also said quarterly aluminium production was flat in the fourth quarter, but down 1 percent on the year.
Rio Tinto ended 2006 up 7.7 percent on the year at A$74.30. The stock has since recoiled and was down 1.6 percent to A$71.32 in late Australian trading. ($1=A$1.28)
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