Stronger production of iron ore in the December quarter enabled Rio Tinto to recoup some of the lost momentum in the division which had led it to trim full year production estimates in October.

The group's December quarter production report, released Tuesday morning, disclosed December quarter production of 85.5 million tonnes of iron ore, up 3 per cent from the prior quarter.

This enabled the group to post 2016 production of 329.5 million tonnes of iron ore, a rise of 6 per cent.

Shipments of iron ore reached 327.6 million tonnes for the calender year, which was a rise of 3 per cent and in line with analyst forecasts.

In October, Rio revised downwards to 325-330 million tonnes anticipated shipments for 2016. That reduction took place as annualised production in the September quarter ran at 330 million tonnes.

Sales of iron ore in the quarter exceeded production by 2.2 million tonnes, as it drew down stocks accumulated at port in the October quarter as maintenance programs were completed.

The average price for iron ore in 2016 was $US53.60 a tonne, it said, with around a fifth of sales priced at the previous quarter's average price with the remainder sold at the current quarter's average price or at the spot market price, it said.

Bauxite output for 2016 ran at 47.7 million tonnes, up 9 per cent, which it expects will reach 48-50 million tonnes in 2017.

Copper production for the full year rose 4 per cent to 525,300 tonnes, with output for 2017 forecast in a wide range of 525,000-665,000 tonnes.

In November, Rio outlined a range of productivity initiatives as it seeks to lift cashflow by $5 billion.

The group's chief executive, Jean-Sebastien Jacques said the "strong operational performance in 2016 [was] underpinned by our drive for efficiency and maximising cashflow".

"Our disciplined approach remains in place in 2017, with our continued focus on productivity, cost reduction and commercial excellence."

In the iron ore division, for example, it is prioritising profits over production, with the 2017 production target put at 330-340 million tonnes of ore.

Copper production in 2016 benefited from a 66 per cent boost to copper mined at Kennecott as it accessed higher grade ore but the rise fell back to a 25 per cent year on year increase in the December quarter due to lower throughput.

Output at the Oyu Tolgoi mine in Mongolia was steady but lower grades will see output here decline by a forecast 130,000-160,000 tonnes of copper in concentrate, down from 201,300 achieved in 2016, with gold output to drop to 100,000-140,000 ounces from 300,000 ounces.