Rio Tinto releases third quarter production results
15 October 2021 - 8:24AM
Business Wire
Rio Tinto Chief Executive Jakob Stausholm, said: “The third
quarter has demonstrated the resilience of our people in dealing
with ongoing COVID-19 challenges. It has been another difficult
quarter operationally and despite improving versus the prior
quarter, we recognise the opportunity to raise our performance. We
have consequently modestly adjusted our guidance.
“We are progressing against our four pillars and striving to
make Rio Tinto even stronger, notably to become the best operator.
This will ensure we continue to deliver attractive returns to
shareholders, invest in sustaining and growing our portfolio, and
make a broader contribution to society, particularly in relation to
the drive to net-zero carbon emissions."
Production*
Quarter 3 2021
vs Q3 2020
vs Q2 2021
9 months 2021
vs 9 mths 2020
Pilbara iron ore shipments (100% basis)
(Mt)
83.4
+2%
+9%
237.5
-2%
Pilbara iron ore production (100%
basis) (Mt)
83.3
-4%
+10%
235.6
-5%
Bauxite (Mt)
14.0
-3%
+2%
41.2
-4%
Aluminium (kt)
774
-3%
-5%
2,393
+1%
Mined copper (kt)
125.2
-3%
+8%
361.2
-9%
Titanium dioxide slag (kt)
209
-29%
-30%
787
-7%
IOC iron ore pellets & concentrate
(Mt)
2.2
-8%
-20%
7.2
-6%
*Rio Tinto share unless otherwise
stated
Q3 operational highlights and other key announcements
- We continue to prioritise the safety of our people and
communities as we learn to live with COVID-19. Our all injury
frequency rate (AIFR) of 0.37 has seen an increase versus the third
quarter of 2020 (0.35), but an improvement against the prior
quarter (0.39).
- We now expect Pilbara shipments to be 320 to 325 million tonnes
(previously at the low end of 325 to 340 million tonnes) following
modest delays to completion of the new greenfield mine at
Gudai-Darri and the Robe Valley brownfield mine replacement project
due to the tight labour market in Western Australia. Iron Ore
Company of Canada (IOC) pellets and concentrate full year guidance
has been reduced to 9.5 to 10.5 million tonnes (previously 10.5 to
12.0 million tonnes). Refined copper guidance has been reduced to
190 to 210 thousand tonnes (previously 210 to 250 thousand tonnes)
due to an incident at the Kennecott smelter in September. We made
small adjustments to bauxite and mined copper, and reintroduced
guidance for titanium dioxide following resumption of operations at
Richards Bay Minerals (RBM) in South Africa.
- Pilbara shipments in the third quarter were 83.4 million tonnes
(100% basis), 9% higher than the prior quarter and 2% higher than
the third quarter of 2020. Pilbara iron ore production of 83.3
million tonnes (100% basis) was 4% lower than the third quarter of
2020 due to heritage management, brownfield mine replacement
tie-ins and project completion delays. This also resulted in an
increase of SP10 production in the third quarter that will continue
into the fourth quarter.
- Bauxite production of 14.0 million tonnes was 3% lower than the
third quarter of 2020 due to equipment reliability issues and
overruns on planned shutdowns at our Pacific operations.
- Aluminium production of 0.8 million tonnes was 3% lower than
the third quarter of 2020, due to strike action at the Kitimat
smelter. On 2 October, we reached a new Collective Labour Agreement
for our British Columbia operations, which includes the Kitimat
smelter and the Kemano hydropower facility. The smelter will
steadily ramp up following a period of reduced production due to
industrial activity.
- Mined copper production of 125.2 thousand tonnes was 3% lower
than the third quarter of 2020 due to lower recoveries and
throughput at Escondida as a result of the prolonged impact of
COVID-19, partly offset by higher recovery and grade at Kennecott
in Utah and improved performance and increased mill feed at Oyu
Tolgoi.
- On 22 July, we announced the approval of a $108 million
investment to investigate the feasibility of an underground mine
below the existing open pit at Kennecott. Infrastructure from
previous underground projects will be extended to access the North
Rim Skarn orebody, allowing for the development of crosscuts and
further drilling of the resource. Potential underground mining
would occur concurrently with open pit operations and result in
increased copper output.
- Titanium dioxide slag production of 209 thousand tonnes was 29%
lower than the third quarter of 2020. On 24 August, RBM in South
Africa resumed operations following stabilisation of the security
situation, supported by the national and provincial government, as
well as substantive engagement with host communities and their
traditional authorities.
- Production of pellets and concentrate at IOC was 8% lower than
the third quarter of 2020 due to labour and equipment availability
issues impacting product feed. The annual planned concentrator
shutdown was completed in September.
- At the Oyu Tolgoi underground project in Mongolia, as a result
of COVID-19 impacts and outstanding non-technical undercut
criteria, first sustainable production will be no earlier than
January 2023 (previously October 2022), subject to the timing of
commencement of the undercut. The full impact on the cost of the
integrated project is subject to further analysis once we have
clarity on the timeline around the completion of the undercut
criteria and ongoing COVID-19 restrictions.
- On 27 July, we committed funding of $2.4 billion to the Jadar
lithium-borates project in Serbia, subject to receiving all
relevant approvals, permits and licences and ongoing engagement
with local communities, the Government of Serbia and civil
society.
- On 16 September, we made a statement regarding the Australian
Taxation Office (ATO) issuing Rio Tinto Limited with penalty
assessments in respect of the amended assessments issued on 2 March
2021 related to the denial of interest deductions on an isolated
borrowing used to pay an intragroup dividend in 2015. We are
confident of our position and have disputed the primary tax and
penalty assessments. In accordance with the usual practice, we have
paid 50% of the primary tax up-front as part of the objections
process.
- In the third quarter, we entered into three partnerships to
progress our work to decarbonise our value chain. These include one
with Komatsu to fast-track the development and implementation of
zero-emission mining haulage solutions, one with Sumitomo
Corporation to study the construction of a hydrogen pilot plant at
our Yarwun alumina refinery in Gladstone, Queensland, and one with
Caterpillar for the development of zero-emissions autonomous haul
trucks for use at one of our Western Australian mining
operations.
The full third quarter production results are available here
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211014006120/en/
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This announcement is authorised for release to the market by
Steve Allen, Rio Tinto’s Group Company Secretary.
LEI: 213800YOEO5OQ72G2R82 Classification: 3.1 Additional
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