Rio Tinto releases second quarter production results
16 July 2024 - 8:31AM
Business Wire
Rio Tinto Chief Executive Jakob Stausholm said: “Our operational
performance continues to progress. While there are still
significant improvements ahead, we are beginning to see a
step-change in production, including from our Queensland bauxite
business following the roll-out of the Safe Production System.
"We are growing with discipline in the materials the world needs
for the energy transition. Construction of the Simandou high grade
iron ore project in Guinea is advancing at pace, the ramp up of the
Oyu Tolgoi underground is on track and we are set to achieve first
production from the Rincon starter plant by the end of the
year.
“We continue to prioritise the decarbonisation of our business,
announcing the installation of carbon free aluminium smelting cells
using ELYSIS technology at our Arvida smelter in Quebec and an
investment in a R&D facility to test our low-carbon ironmaking
process, BioIron, in Western Australia. We also signed 20-year
electricity arrangements backed by renewable electricity to secure
the future of the Tiwai Point aluminium smelter in New Zealand.
"As we progress against our four objectives and strategy, we
have a clear long-term pathway to profitable growth and continued
attractive shareholder returns.”
Production*
Quarter 2 2024
vs Q2 2023
vs Q1 2024
H1 2024
vs H1 2023
Pilbara iron ore shipments (100% basis)
(Mt)
80.3
+2%
+3%
158.3
-2%
Pilbara iron ore production (100%
basis) (Mt)
79.5
-2%
+2%
157.4
-2%
Bauxite (Mt)
14.7
+9%
+10%
28.1
+10%
Aluminium** (kt)
824
+1%
0%
1,650
+3%
Mined Copper (consolidated basis)
(kt)
171
+18%
+10%
327
+13%
Titanium dioxide slag (kt)
238
-22%
-6%
492
-16%
IOC*** iron ore pellets &
concentrate (Mt)
2.2
+6%
-16%
4.8
+5%
* Rio Tinto share unless otherwise stated
** Includes primary aluminium only *** Iron Ore Company of
Canada
Q2 2024 operational highlights and other key
announcements
- Our all injury frequency rate for the second quarter was 0.32,
a decrease from both the first quarter of this year (0.37) and the
same period in 2023 (0.38). We continue to prioritise the health,
safety and well-being of our people and the communities where we
operate. During the quarter, this included undertaking mid-year
safety maturity assessments at our assets, helping us to
continuously evaluate and evolve our safety approach across the
organisation. The investigation by the authorities into the tragic
plane crash at Diavik in January 2024 is ongoing.
- In the Pilbara, we produced 79.5 million tonnes (Rio Tinto
share 67.5 million tonnes) in the second quarter, 2% lower than the
corresponding period of 2023. Productivity gains offset ore
depletion, however production and shipping in the quarter were
impacted by a train collision in mid-May, which resulted in around
six days of lost rail capacity and full stockpiles at some mines.
Shipments of 80.3 million tonnes (Rio Tinto share 66.2 million
tonnes) were 2% higher than the second quarter of 2023, with the
draw down of port stocks.
- Bauxite production of 14.7 million tonnes was 9% higher than
the second quarter of 2023. The increase reflects implementation of
the Safe Production System (SPS), especially at Weipa where we
achieved higher plant utilisation and feed rates. As a consequence,
our Group full year bauxite production guidance is expected to be
around the top end of our 53 to 56 million tonne range.
- Alumina production of 1.7 million tonnes was 10% lower than the
second quarter of 2023 due to the continuing impacts to our
Gladstone operations from the breakage of the third-party operated
Queensland Gas Pipeline in March. As a result, we have reduced our
Group full year alumina production guidance to 7.0 to 7.3 million
tonnes (previously 7.6 to 7.9 million tonnes). We expect gas
supplies from the pipeline to return to normal levels by the end of
2024.
- Aluminium production of 0.8 million tonnes was 1% higher than
the second quarter of 2023 with our smelters continuing to
demonstrate stable performance during the period.
- On 31 May, we announced that New Zealand Aluminium Smelters
(NZAS) has signed 20-year electricity arrangements that secure the
future of the Tiwai Point aluminium smelter to continue
competitively producing high-purity, low carbon metal, backed by
renewable electricity. In a separate transaction, we entered into
an agreement to acquire Sumitomo Chemical Company Limited’s (SCC’s)
20.64% interest in NZAS for an undisclosed price. On completion of
the transaction, NZAS will be 100% owned by Rio Tinto.
- Mined copper production of 171 thousand tonnes (consolidated
basis) was 18% higher than the second quarter of 2023.
- Kennecott was 30% higher than the second quarter of 2023
following a conveyor outage in the prior period. However,
production was 1% lower than the previous quarter following changes
to the mine plan to manage geotechnical risk in our mining area.
These changes delayed access to pit ore and resulted in additional
lower grade stockpiled material being processed. We are currently
reworking our mine plan and expect to provide a further update in
our Third Quarter Operations Review. Our Group full year mined
copper production guidance is therefore expected to be around the
bottom end of the 660 to 720 thousand tonne range.
- Escondida was 12% higher than the second quarter of 2023 due to
a 7% improvement in concentrator feed grade as mining continued
into higher grade zones, together with 12% higher concentrator
output.
- Oyu Tolgoi was 23% higher than the second quarter of 2023 as
the ramp-up in underground production continued in line with our
long term plan, delivering a copper head grade of 2.02% (vs 1.56%
in the second quarter of 2023) for the underground and an overall
copper head grade of 0.61% (vs 0.52%).
- Titanium dioxide slag production was 22% lower than the second
quarter of 2023, primarily driven by weak market conditions. Whilst
a furnace reconstruction is underway at our RTIT Quebec Operations,
we continue to operate six out of nine furnaces in Quebec and three
out of four at Richards Bay Minerals (RBM).
- IOC production was 6% higher than the second quarter of 2023 as
production rates in the prior period were impacted by wildfires.
However, production was 16% down quarter-on-quarter given lower
output from the mine and an annual maintenance shut in June.
Shipments were 7% lower than the second quarter of 2023 due to low
portside inventories.
- In the second quarter, we continued the deployment of SPS, now
reaching 26 sites. We deepened the maturity of SPS at existing
sites during the quarter, with three additional sites setting new
best demonstrated throughput rates (over a 90 day period). We are
on track to deliver our targeted 5 million tonne production uplift
at Pilbara Iron Ore in 2024.
- Subsequent to the end of the quarter, all conditions were
satisfied for Rio Tinto’s investment to develop the Simandou
high-grade iron ore deposit in Guinea. The transaction to enable
co-development of the infrastructure is now unconditional and
expected to close during the week of 15 July. Chalco Iron Ore
Holdings Ltd (CIOH) has now paid its share of capital expenditures
incurred or required by Simfer to progress critical works up to
completion. A first payment of approximately $410 million, for
expenditures until the end of 2023, was made on 28 June 2024, and a
second payment of approximately $575 million, for 2024
expenditures, was made on 11 July 2024. These amounts settle all
expenditures incurred to date.
- We saw a cash outflow of circa $0.7 billion from an increase in
working capital in the first half of 2024. This reflected the draw
down of royalties and taxes payable in the period as prices fell
from late 2023, along with seasonal movements in amounts due to JV
partners and employees.
All figures in this report are unaudited. All currency figures
in this report are US dollars, and comments refer to Rio Tinto’s
share of production, unless otherwise stated.
The full second quarter production results are available
here
This announcement is authorised for release to the market by
Andy Hodges, Rio Tinto’s Group Company Secretary.
LEI: 213800YOEO5OQ72G2R82 Classification: 3.1 Additional
regulated information required to be disclosed under the laws of a
Member State
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