The sales result was slightly above analysts’ expectations.
It produced 50 million tonnes of attributable iron ore during the quarter, up five per cent on the same quarter in 2010.
The company said its iron ore division was operating at full capacity.
“Whilst we are mindful of current market volatility, the fundamentals are holding up well, particularly for bulk-traded commodities,” Rio chief executive Tom Albanese said on Thursday.
“We are operating at full capacity, selling all we produce and our growth programme is on track, supported by the strength of our balance sheet.”
Rio is spending at least $US20 billion ($A19.7 billion) to boost its iron ore production capacity to 333 million tonnes a year by 2015. The company plans to boost production further to 433 million tonnes.
Australia’s other major iron ore producers are also planning multi-billion dollar expansions, with BHP Billiton planning to move to 350 million tonnes a year by 2020 and Fortescue Metals aiming for 255 million tonnes in five years.
UBS said Rio had been accelerating production to meet a 240 million tonne target this year, after first-half production of only 115 million tonnes.
The result came despite mining being suspended for two days in August at two of its mines, following the death of a worker.
Iron ore represents more than 70 per cent of group earnings.
The company’s shares shot up 2.79 per cent, or $1.88, to $69.34, the highest in three weeks.
Among the company’s other commodities, coal production from the Queensland and NSW mines rebounded from the severe rains in the first half of the year, the company said.
Australian hard coking coal production set a new quarterly record at 2.77 million tonnes and was 14 per cent higher than the third quarter of 2010 and 55 per cent higher than the second quarter.
However it is eight per cent lower over the first nine months for this year compared to last year.
Other production from the Australian coal operations favoured semi-soft coal which was 57 per cent higher than the third quarter of 2010 with thermal coal three per cent lower.
The company said mined copper was hit by lower grades at Escondida and Kennecott Utah Copper and was down 32 per cent on the third quarter of 2010.
Bauxite production was up seven per cent on the prior corresponding period, with aluminium up two per cent but alumina down five per cent.
Source: AAP NewsWire