TIDMRIO
RNS Number : 4399G
Rio Tinto PLC
19 July 2023
Rio Tinto releases second quarter production results
19 July 2023
Rio Tinto Chief Executive Jakob Stausholm said: "We built
further momentum in our Pilbara iron ore business for the quarter,
and now expect to deliver shipments in the upper half of our
guidance range for the year. The ramp-up of the Oyu Tolgoi
underground mine progressed ahead of plan, and we remain on track
to more than triple its copper production by the end of the decade.
Production downgrades during the quarter highlight that we still
have much more to do elsewhere, as we roll out the Safe Production
System to create stability and achieve excellence across our global
portfolio.
"We continued to take disciplined measures to grow in the
materials the world needs for the energy transition, also with
investments to expand our low carbon aluminium production and
underground copper production at Kennecott.
"We are taking practical steps and making investments to
decarbonise, being the first to convert an open pit mine to
renewable diesel at our Boron operations, signing a memorandum of
understanding with Baowu to explore decarbonisation of the steel
value chain and delivering first production from our
ground-breaking BlueSmelting demonstration plant at Sorel-Tracy in
Quebec in July."
Q2 vs Q2 vs Q1 H1 vs H1
Production* 2023 2022 2023 2023 2022
---------------------------- --- ------ --------- ------- ------ ------
Pilbara iron ore shipments
(100% basis) Mt 79.1 -1 % -4 % 161.7 +7 %
Pilbara iron ore production
(100% basis) Mt 81.3 +3 % +2 % 160.5 +7 %
Bauxite Mt 13.5 -5 % +12 % 25.6 -8 %
Aluminium kt 814 +11 % +4 % 1,598 +9 %
Mined copper (consolidated
basis) kt 145 -1 % 0 % 290 -1 %
Titanium dioxide slag kt 303 +4 % +6 % 589 +4 %
IOC** iron ore pellets
and concentrate Mt 2.1 -21 % -18 % 4.6 -8 %
---------------------------- --- ------ --------- ------- ------ ------
*Rio Tinto share unless otherwise stated
**Iron Ore Company of Canada
Q2 2023 operational highlights and other key announcements
-- Our all-injury frequency rate of 0.36 was a small increase
from the second quarter of 2022 (0.35), and from the prior quarter
(0.35). Investigations are underway following significant process
safety incidents. There were two incidents at our Rio Tinto Iron
and Titanium (RTIT) Sorel-Tracy complex which did not result in
injuries. The Kennecott operation experienced an escape of furnace
gas during the maintenance shut, where all treated people have been
cleared. We are heightening our focus on managing these risks and
continue to prioritise the safety, health and wellbeing of our
workforce, and communities where we operate.
-- Pilbara operations produced 81.3 million tonnes (100% basis)
in the second quarter, 3% higher than the second quarter of 2022 as
Gudai-Darri achieved sustained nameplate capacity during the
period. Shipments were 79.1 million tonnes (100% basis), 1% lower
than the corresponding period of 2022, reflecting the impact of
planned major maintenance at the Dampier port and a train
derailment. With continued operational improvements across the
Pilbara system, and the implementation of the Safe Production
System, full year shipments are now expected to be in the upper
half of the original 320 to 335 million tonne range.
-- Bauxite production of 13.5 million tonnes was 5% lower than
the second quarter of 2022 as our Weipa operations were impacted by
the higher-than-average first quarter rainfall, which continued to
reduce pit access and led to longer haul distances. Production was
further affected by equipment downtime at both Weipa and Gove. As a
result, our bauxite full year production is expected to be at the
lower end of our 54 to 57 million tonne range, as we implement
plans to recover lost production at both operations through the
remainder of the year.
-- Aluminium production of 0.8 million tonnes was 11% higher
than the second quarter of 2022 as we benefited from the continued
ramp-up of the Kitimat smelter. Recovery at the Boyne and Kitimat
smelters is progressing to plan with full ramp-up expected to be
completed later in the year. All our other smelters continued to
demonstrate stable performance during the quarter.
-- On 12 June, we announced an investment of $1.1 billion to
expand our AP60 aluminium smelter equipped with low-carbon
technology at Complexe Jonquière in Canada. The total investment
includes up to $113 million of financial support from the Quebec
government. This expansion will coincide with the gradual closure
of potrooms at the Arvida smelter on the same site. While at our
Alma smelter in Lac-Saint-Jean, Quebec, we commenced construction
to increase our capacity to cast low-carbon, high-value aluminium
billets.
-- Mined copper production of 145 thousand tonnes (on a
consolidated basis), was 1% lower than the second quarter of 2022.
We benefited from the continued ramp-up of the high grade
underground mine at Oyu Tolgoi. However, this benefit was more than
offset by the continued operation of Kennecott's concentrator at
reduced rates, as we recovered from a conveyor failure in March
2023, and unplanned maintenance, and lower crusher and conveyor
availability, at Escondida.
-- Refined copper guidance has been reduced to 160 to 190
thousand tonnes (previously 180 to 210 thousand tonnes) and our
copper C1 unit cost guidance has been raised to 180 to 200 US
cents/lb (from 160 to 180 US cents/lb) as completion of the rebuild
of the Kennecott smelter is now expected in September 2023
(previously August 2023). The extension of the rebuild is due to
the addition of a full rebuild of the flash converting furnace to
the scope, which is expected to further improve asset stability and
process safety management.
-- On 20 June, we announced $498 million of funding to deliver
underground development and infrastructure for an area known as the
North Rim Skarn(1) (NRS) at Kennecott. Production from the NRS will
commence in 2024 and is expected to ramp up over two years, to
deliver 250 thousand tonnes of additional mined copper over the
next 10 years(2) alongside open cut operations.
-- Titanium dioxide slag production of 303 thousand tonnes was
4% higher than the second quarter of 2022, due to improved
operational performance at our smelters. Notwithstanding, our RTIT
Quebec Operations experienced two incidents in separate furnaces in
June and July which we are investigating. Given these
investigations and weaker market conditions, our full year
production is expected to be at the lower end of the 1.1 to 1.4
million tonne range.
-- IOC production was 21% lower than the second quarter of 2022
as we lost 3.5 weeks of production in June, primarily due to
wildfires in Northern Quebec, together with a slightly extended
shutdown. Operations have resumed, however our full year production
guidance has been reduced to 10.0 to 11.0 million tonnes
(previously 10.5 to 11.5 million tonnes), and remains subject to
further disruption from fire conditions.
-- At our Rincon lithium project in Argentina, our $140 million
estimate and schedule to develop the starter plant remains under
review in response to cost escalation.
-- In the second quarter, we commenced deployment of the Safe
Production System at a further two sites, taking the total to 20
sites. The Safe Production System focuses on continuously improving
safety, strengthening employee engagement and sustainably lifting
operational performance across our global portfolio. While we still
have a lot to do to see sustainable improvement, site deployments
are rolling out according to plan and we expect to be at the upper
end of our range of four to eight new sites in 2023.
-- On 13 June, we an nounced that Ivan Vella, Chief Executive,
Aluminium, has accepted a new position outside of Rio Tinto and
will leave in December 2023. He will continue to lead Aluminium
while a robust process to identify his successor is undertaken but
has stepped down from the Group's executive committee.
-- We saw a cash outflow from an increase in working capital of
circa $0.9 billion in the first half of 2023, reflecting a build in
blasted and mine stocks in the Pilbara to support overall system
health, and higher spares and stores (including seasonality due to
the Diavik winter road). Payables were also lower due to the timing
of spend, and normal volatility in amounts due to JV partners and
employees. Operating cash flow was also impacted by lower dividends
from Escondida during the first half ($0.3 billion in H1 2023; $0.6
billion in H1 2022).
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.
(1) The NRS Mineral Resources and Ore Reserves, together with
the Lower Commercial Skarn (LCS) Mineral Resources and Ore
Reserves, form the Underground Skarns Mineral Resources and Ore
Reserves.
(2) This production target for 2023 to 2033 is underpinned 25%
by Probable Ore Reserves, 9% by Indicated Resources, and 66% by
Inferred Resources. Mined copper is reported as total recoverable
metal. These estimates of Mineral Resources and Ore Reserves were
reported in a release dated 20 June 2023 titled "Rio Tinto
Kennecott Mineral Resources and Ore Reserves" (Table 1 Release)
which is available on Rio Tinto's website at resources &
reserves (riotinto.com), and have been prepared by Competent
Persons in accordance with the requirements of the Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves, 2012 (JORC Code) and the ASX Listing Rules.
2023 guidance
Rio Tinto production share, unless 2022 H1 2023 2023 2023
otherwise stated Actuals Actuals Previous Current
---------------------------------------- -------- -------- --------- ---------
Pilbara iron ore (shipments, 100% 320 to 320 to
basis) (Mt) 322 161.7 335 335(1)
54 to 54 to
Bauxite (Mt) 55 25.6 57 57(2)
7.7 to 7.4 to
Alumina (Mt) 7.5 3.7 8.0 7.7
3.1 to
Aluminium (Mt) 3.0 1.6 3.3 Unchanged
590 to
Mined copper (kt)(3) 521 290 640 Unchanged
180 to 160 to
Refined copper (kt) 209 95 210 190
3.0 to
Diamonds (M carats) 4.7 1.9 3.8 Unchanged
1.1 to 1.1 to
Titanium dioxide slag (Mt) 1.2 0.6 1.4 1.4(2)
IOC(4) iron ore pellets and concentrate 10.5 to 10.0 to
(Mt) 10.3 4.6 11.5 11.0
Boric oxide equivalent (Mt) 0.5 0.3 0.5 Unchanged
---------------------------------------- -------- -------- --------- ---------
(1) In the upper half of the range.
(2) In the lower end of the range .
(3) Mined copper for 2023 guidance and actuals includes Oyu
Tolgoi on a 100% consolidated basis following Rio Tinto's
acquisition of Turquoise Hill Resources Ltd, which completed on 16
December 2022. Mined copper for 2022 includes Oyu Tolgoi on a
33.52% Rio Tinto share basis.
(4) Iron Ore Company of Canada continues to be reported at Rio
Tinto share.
-- Guidance for 2023 alumina production has been reduced to 7.4
to 7.7 million tonnes (previously 7.7 to 8.0 million tonnes), as
Queensland Alumina Limited (QAL) implements initiatives to improve
plant stability and production rates.
-- Guidance for 2023 refined copper has been reduced to 160 to
190 thousand tonnes (previously 180 to 210 thousand tonnes) due to
the extension of the Kennecott smelter rebuild.
-- Guidance for 2023 IOC production has been reduced to 10.0 to
11.0 million tonnes (previously 10.5 to 11.5 million tonnes) due to
the impact of wildfires in Northern Quebec, and remains subject to
further disruption from fire conditions.
-- Iron ore shipments and bauxite production guidance remain subject to weather impacts.
Operating costs
-- Guidance for 2023 Pilbara iron ore unit cash costs is
unchanged at $21.0 to $22.5 per tonne, based on A$:US$ exchange
rate of 0.70.
-- Guidance for 2023 Copper C1 unit costs has been increased to
180 to 200 US cents/lb (from 160 to 180 US cents/lb) due to lower
refined copper production following extension of the Kennecott
smelter rebuild.
Aluminium modelling
As reported in 2022, to assist with the modelling of aluminium
operating costs during a volatile price environment for raw
materials, we provide the following breakdown and sensitivities for
the alumina and aluminium metal segments (Primary Metal and Pacific
Aluminium). This excludes the effect of intra and inter segment
eliminations on group profit.
We have observed a reduction in index prices for many of the raw
material prices for our alumina and aluminium metal segments during
the first half of 2023, when compared to the second half of 2022.
Despite this, there has been limited impact to our operating costs
in the current half given the lag effect associated with the
utilisation of higher cost inventory, with the benefit to costs
expected in the second half of 2023.
Alumina refining
Production cash FY H1
cost (%) 22 23
---------------- --- ---
Bauxite 31 31
Conversion 32 32
Caustic 23 24
Energy 14 13
---------------- --- ---
Total 100 100
FY 23
Annual cost
sensitivity
Input costs H1 22 H2 22 H1 23 impact on underlying
(nominal) Index price Index price Index price EBITDA
------------------ ------------ ------------ ------------ ---------------------
Caustic soda(1)
($/t) 675 595 432 $10m per $10/t
Natural gas(2)
($/mmbtu) 6.02 7.01 2.61 $4m per $0.10/GJ
Brent oil ($/bbl) 105.9 93.8 79.2 $2m per $10/bbl
------------------ ------------ ------------ ------------ ---------------------
(1) North East Asia FOB | (2) Henry Hub
Aluminum smelting
Production cash FY H1
cost (%) 22 23
---------------- --- ---
Alumina 41 37
Power 19 18
Conversion 17 20
Carbon 21 23
Materials 2 2
---------------- --- ---
Total 100 100
FY 23
Annual cost
sensitivity
impact on
Input costs H1 22 H2 22 H1 23 underlying
(nominal) Index price Index price Index price EBITDA
----------------- -------------------------- -------------------------- -------------------------- ---------------
Alumina(1)
($/t) 395 328 349 $64m per $10/t
Petroleum
coke(2) ($/t) 695 719 636 $11m per $10/t
Coal tar pitch(3)
($/t) 1,103 1,476 1,399 $2m per $10/t
----------------- -------------------------- -------------------------- -------------------------- ---------------
(1) LME Australia | (2) US Gulf FOB | (3) North America FOB
Investments, growth and development projects
-- Exploration and evaluation expense in the first half of 2023
was $710 million, $343 million (94%) higher than the first half of
2022, with continued ramp-up of early works at Simandou (included
on a 100% basis(1) ) and in Argentina.
Pilbara mine projects
-- The ramp-up of Gudai-Darri continued to plan with the mine
reaching its nameplate capacity on a sustained basis during the
second quarter.
-- Construction of our Western Range mine continued in line with
the schedule during the quarter with site facilities completed and
contractors mobilised, while we progressed bulk earthworks for the
fixed plant and pre-strip earthworks for the mine.
-- We continue to progress our next tranche of Pilbara mine
projects after Western Range, progressing studies for Hope Downs 1
Sustaining (Hope Downs 2 and Bedded Hilltop), Brockman 4 sustaining
(Brockman Syncline 1), Greater Nammuldi Sustaining and West Angelas
Sustaining. We continue to work closely with local communities,
Traditional Owners and governments to progress approvals required
for the new mining projects.
Oyu Tolgoi underground project
-- In early July, we hosted a site tour of the Oyu Tolgoi
operations for investors and analysts. Presentation materials for
this visit are available on our website .
-- We continue to see strong performance from the underground
mine, with a total of 54 drawbells opened from Panel 0, including
18 drawbells during the quarter. To date we are yet to lose a
drawbell or draw point from the underground mine.
-- Shaft sinking rates improved during the quarter and at the
end of June, shafts 3 and 4 reached 627 metres and 740 metres below
ground level, respectively. Final depths required for shafts 3 and
4 are 1,148 and 1,149 metres below ground level, respectively. As
reported in our presentation materials for the Oyu Tolgoi site
tour, we now expect both shafts to be commissioned in the second
half of 2024 (previously first half of 2024) with shaft sinking
rates now meeting those required for completion.
-- Construction of conveyor to surface works continued to plan
and are now approaching 60% completion as at the end of the
quarter. Construction works for the concentrator conversion also
progressed during the period, with the main contractor mobilised
and the commencement of major site works in May.
-- Technical studies for mine design and schedule optimisation
for Panels 1 and 2 were completed during the second quarter(2) .
The operation is expected to ramp up to deliver average mined
copper production of 500ktpa (100% basis) between 2028 and 2036(3)
.
-- During the quarter, Rio Tinto, Oyu Tolgoi and the Government
of Mongolia continued to work together towards the implementation
of Mongolian Parliamentary Resolution 103.
Other key projects and exploration and evaluation
-- At Complexe Jonquière in Canada, we announced an investment
of $1.1 billion to expand our AP60 aluminium smelter equipped with
low-carbon technology. The total investment includes up to $113
million of financial support from the Quebec government. This
expansion will coincide with the gradual closure of potrooms at the
Arvida smelter on the same site. The investment will add 96 new
AP60 pots, increasing capacity by approximately 160,000 metric
tonnes of primary aluminium per year. As a result, there will be a
total of 134 AP60 pots and a capacity of approximately 220,000
tonnes per annum. This new capacity, in addition to 30,000 tonnes
of new recycling capacity at Arvida expected to open in the first
quarter of 2025, will offset the 170,000 tonnes of capacity lost
through the gradual closure of potrooms at the Arvida smelter from
2024.
-- At our Alma smelter in Lac-Saint-Jean, Quebec, we commenced
construction to increase our capacity to cast low-carbon,
high-value aluminium billets by 202,000 metric tonnes. The existing
casting centre will be expanded to include new state-of-the-art
equipment such as furnaces, a casting pit, coolers, handling,
inspection, sawing and packaging systems. Commissioning is
scheduled for the first half of 2025. The $188 million investment
will allow more of Rio Tinto's aluminium production to be used to
make billets from renewable hydroelectric power.
-- At Kennecott, we announced $498 million of funding to deliver
underground development and infrastructure for an area known as the
North Rim Skarn(4) (NRS). Production from the NRS will commence in
2024 and is expected to ramp up over two years, to deliver around
250 thousand tonnes of additional mined copper over the next 10
years(5) alongside open cut operations.
-- At the Resolution Copper project in Arizona, the United
States Forest Service (USFS) continued work to progress the Final
Environmental Impact Statement (FEIS) and complete actions
necessary for the land exchange. We continued to advance
partnership discussions with several federally-recognised Native
American Tribes who are part of the formal consultation process. We
are also monitoring the Apache Stronghold versus USFS case held in
the US Ninth Circuit Court of Appeals. While there is significant
local support for the project, we respect the views of groups who
oppose it and will continue our efforts to address and mitigate
these concerns. Costs attributable to the Resolution project in the
first half of 2023 were $68 million(6) .
-- At the Winu copper-gold project in Western Australia, we
continued to strengthen our relationships and advanced agreement
making over the quarter with host Traditional Owners, the Martu and
Nyangumarta groups. Drilling, fieldwork and study activities
continued over the period strengthening the development pathway
ahead of applications for regulatory and other required approvals.
Costs attributable to the Winu project in the first half of 2023
were $32 million(6) .
-- At the Simandou iron ore project in Guinea, negotiations continued to progress to enable the co-development of rail and port infrastructure by Simfer, Winning Consortium Simandou and the Guinean State. The legal framework for the construction and operations phases will establish access rights, fiscal regime and schedule, as well as joint venture arrangements. We also continued to progress early works, including establishing accommodation camps to support continued mobilisation on both our mine and rail scope, earthworks and geotechnical drilling. Costs attributable to the Simandou project in the first half of 2023 were $318 million (100% basis)(6) . Management responsibility for Simandou transferred from the Copper product group to the Chief Technical Officer during the period, with the exploration and evaluation expense now shown separately in Other operations.
-- Nuton(TM) , our proprietary copper heap leaching technology,
made further progress during the quarter, with associated results
reported by Arizona Sonoran Copper Company on 5 June , McEwen
Mining Inc. on 20 June and Regulus Resources Inc. on 6 July .
-- We continue to believe that the Jadar lithium-borate project
in Serbia has the potential to be a world-class asset, that will
support the development of other future industries in Serbia,
acting as a catalyst for tens of thousands of jobs for current and
future generations, and sustainably producing materials critical to
the energy transition. We are focused on consultation with all
stakeholders to explore options related to the project's
future.
-- At the Rincon lithium project in Argentina, development of
the three thousand tonne per annum lithium carbonate starter plant
is ongoing. Construction activities progressed on the camp and
airstrip for the project, while enabling works for the process
plant continued. Our $140 million estimate and schedule to develop
the starter plant remains under review in response to cost
escalation. Studies for the full scale operation are ongoing, and
the exploration campaign progressed to further understand Rincon's
basin, brine and water reservoirs. We continue to engage with
communities, the province of Salta and the Government of Argentina
to ensure an open and transparent dialogue with stakeholders about
the works underway.
-- Costs attributable to Battery Materials in the first half of 2023 were $112 million(6) .
(1) Costs relating to the Simfer joint venture where the
Government of Guinea holds 15% and Simfer Jersey holds 85%. Simfer
Jersey is owned by Rio Tinto (53%) and Chalco Iron Ore Holdings
(CIOH) (47%).
(2) Mine design and plans will be reviewed by regulatory bodies
as part of the OTFS23 process.
(3) The 500kpta copper target (stated as recoverable metal) for
the Oyu Tolgoi underground and open pit mines for the years 2028 to
2036 is underpinned 13% by Proved Ore Reserves and 87% by Probable
Ore Reserves.This production target has been scheduled from mine
designs based on the Oyu Tolgoi Feasibility Study 2020 (OTFS20),
which are not materially different to current mine designs, by
Competent Persons in accordance with the requirements of the
Australasian Code for Reporting of Exploration Results, Minerals
Resources and Ore Reserves, 2012 Edition (the JORC code).
(4) The NRS Mineral Resources and Ore Reserves, together with
the Lower Commercial Skarn (LCS) Mineral Resources and Ore
Reserves, form the Underground Skarns Mineral Resources and Ore
Reserves.
(5) This production target for 2023 to 2033 is underpinned 25%
by Probable Ore Reserves, 9% by Indicated Resources, and 66% by
Inferred Resources. Mined copper is reported as total recoverable
metal. These estimates of Mineral Resources and Ore Reserves were
reported in a release dated 20 June 2023 titled "Rio Tinto
Kennecott Mineral Resources and Ore Reserves" (Table 1 Release)
which is available on Rio Tinto's website at resources &
reserves (riotinto.com), and have been prepared by Competent
Persons in accordance with the requirements of the JORC code and
ASX Listing Rules.
(6) Costs are included in the total H1 2023 exploration and
evaluation expense. Excludes amounts capitalised in the period.
Sustainability highlights
We are creating an open and transparent env ironment which will
make positive and lasting change and strengthen our workplace
culture for the long term, as we continue to implement the 26
recommendations of the Everyday Respect report. We continue to
promote respectful transparency by expanding the adoption of purple
banner communications to other parts of the business to highlight
disrespectful, discriminatory and hurtful behaviours occurring in
our organisation, in the same way we highlight safety concerns.
Village councils are being implemented across sites to provide a
safe and constructive way for employees and contractors to raise
concerns and give feedback. In addition, over 950 people responded
to our Pilbara Iron Ore's contractor survey, which was designed to
better understand their experiences.
On 3 April, we pu b lished our 2022 Taxes and Royalties Paid
Report, detailing $10.8 billion of global taxes and royalties paid
during the year. This compares to $13.3 billion in 2021, during
very strong commodity prices, and is the third-highest annual
global taxes and royalties paid by Rio Tinto since it published its
first annual Taxes Paid report, for 2010. In the past ten years,
Rio Tinto has paid $74.9 billion in taxes and royalties globally,
of which more than 78% was paid in Australia.
On 4 April, we announced our support for Energy Resources of
Australia Ltd's (ERA) plans for an Interim Entitlement Offer (IEO),
which sought to raise up to A$369 million to address funding
requirements for the Ranger Rehabilitation Project in Australia's
Northern Territory to the end of the second quarter of 2024. Rio
Tinto, which owns 86.3% of ERA's shares, subscribed for its full
entitlements under the terms of the IEO, at a cost of A$319
million. Rio Tinto notes that ERA has, in the IEO offer material,
recognised the Mirarr People's opposition to further uranium mining
on their land. This was a relevant factor in Rio Tinto's recent
decision to no longer report the Jabiluka deposit as a Mineral
Resource.
On 2 May, together with BHP, we inv ited expressions of interest
from technology providers, equipment manufacturers, reagent
suppliers, startups and research groups across the globe with
innovative ideas and technologies to help improve tailings
dewatering and management performance. Together we aim to jointly
identify a portfolio of tailings management partners with whom they
can work to accelerate the development of technologies that could
increase water recovery and reduce potential safety risks and
environmental footprints associated with tailings storage
facilities.
In May, we published our 2022 Statement on Modern Slavery - our
seventh statement against UK modern slavery reporting legislation,
and our third under Australian legislation. We know that we face a
risk of involvement in modern slavery through our value chain,
including through our suppliers. And although we are not aware of
any recorded modern slavery incidents or complaints in our business
during 2022, we are committed to looking for ways to improve.
Communities & Social Performance (CSP)
On 2 June, we announced plans to invest $395 million in a
seawater desalination plant in the Pilbara, Western Australia, to
support future water supply for the company's coastal operations
and communities in the region. The proposed Dampier Seawater
Desalination Plant, which remains subject to Commonwealth and State
Government approvals, will be located within Rio Tinto's existing
iron ore port operations at Parker Point. It will have an initial
nominal capacity of four gigalitres annually with the potential for
this to increase to eight gigalitres in the future. The project
includes construction of a new supply pipeline to connect to the
existing water network. Subject to relevant approvals, construction
is expected to commence in 2024 with the facility expected to be
operational and producing water in 2026.
On 13 June, we announced a partnership with Gemco Rail to bring
local iron ore rail car manufacturing and bearing maintenance to
the Pilbara region in an industry-first. This partnership will
enable Gemco Rail to expand its existing operations to establish
the first ever rail ore car manufacturing and maintenance facility
in the Pilbara, creating new jobs, increasing spend with local and
Indigenous businesses and supporting local economic growth. Rio
Tinto expects to invest approximately A$150 million to purchase 100
locally built ore rail cars over six years as well as continued
investment in bearing refurbishment over ten years, to support the
company's Pilbara operations.
Key highlights from the quarter are outlined above, with further
information available on our website .
Climate change, product stewardship and our value chain
In the second quarter we continued to focus on innovative
solutions that have the potential to be scalable across Rio Tinto's
global value chains.
-- On 3 April, Rio Tinto Iron and Titanium (RTIT) started its
BlueSmelting(TM) demonstration plant at its metallurgical complex
in Sorel-Tracy as part of the process to validate the
ground-breaking BlueSmelting(TM) technology, which aims to
decarbonise RTIT's Quebec Operations. We achieved a further
milestone subsequent to the end of the quarter in July, delivering
first production from the demonstration plant. The BlueSmelting(TM)
project involves an ilmenite reduction technology that could
generate 95% less greenhouse gas emissions than the current
reduction process, enabling the production of titanium dioxide,
steel and metal powders with a significantly lower carbon
footprint. This innovative technology was developed by scientists
at Rio Tinto's Critical Minerals and Technology Centre in
Sorel-Tracy.
-- On 2 June, our Boron, California operation successfully
completed the full transition of its heavy machinery from fossil
diesel to renewable diesel, making it the first open pit mine in
the world to achieve this milestone. The change to renewable diesel
brings an anticipated CO (2) equivalent reduction of up to 45,000
tonnes per year, comparable to eliminating the annual emissions of
approximately 9,600 cars.
-- On 12 June, we signed a Memorandum of Understanding (MoU)
with China Baowu, the world's biggest steelmaker, to explore a
range of industry-leading new projects in China and Australia to
help decarbonise the steel value chain. Under the MoU, China Baowu
and Rio Tinto plan to jointly advance specific decarbonisation
projects, demonstrating their commitment to play a leading role in
the industry's low-carbon transformation. The projects include:
Research, build and demonstrate a pilot-scale electric melter at
one of Baowu's steel mills in China. This will enable low-carbon
steel making utilising Direct Reduced Iron (DRI) that has been
produced from low and medium grade ores.
Optimise pelletisation technology for Australian ores as a
feedstock for low-carbon shaft furnace-based direct reduction.
Expand the development of China Baowu's HyCROF technology which
can largely mitigate CO (2) emissions from the blast furnace
process.
Jointly study opportunities for producing low-carbon iron in
Western Australia.
Activity across our global decarbonisation portfolio continues
to accelerate, however physical delivery of renewables, diesel
replacement and process heat abatement has not progressed as fast
as we would like. Delays have arisen due to a range of factors
including engineering and construction timelines, securing
approvals and the need to carefully integrate our ambitions with
the needs of our local communities and stakeholder groups. This
particularly challenges our near term objective in 2025 where we
have limited time to make adjustments to physical projects.
Our markets
Although commodity prices remain at elevated levels, they
declined during the second quarter as global demand slowed. China's
economic recovery has fallen short of initial market expectations,
as the property market downturn continues to weigh on the economy
and consumers remain cautious despite monetary policy easing.
Manufacturing data in advanced economies showed a further slowdown
and recessionary risks remain.
-- China's reopening recovery started strongly but slowed in the
second quarter. Consumption is still improving, while weakness in
the export and property sectors is providing a drag to growth.
Factory activity has slowed down, as manufacturing PMI contracted.
The Chinese government has stepped up monetary easing measures.
-- The US economy is still growing and the labour market remains
resilient, but a recession is still likely later this year. Past
tightening of monetary policy and tighter lending standards are
expected to constrain consumer spending, hiring and business
investment. Inflation remains a challenge for the Federal Reserve,
given pressure in the services sector.
-- The eurozone economy continues to be challenged by weak
manufacturing activity and high core inflation, as manufacturing
output and new orders fell, while services showed an expansion.
Core inflation has been pushed up by services, whilst manufactured
goods inflation has tapered down.
-- Iron ore prices declined by 12% over the quarter as China's
steel demand recovery encountered persistent headwinds, and steel
prices and mill profitability remained compressed. As a result,
Chinese steel exports trended up sharply towards 100 million tonne
annualised, run-rates last observed in 2016. China's seaborne iron
ore imports were also supported by the delayed rebound in scrap
availability and challenges to domestic iron ore production.
Imports over the quarter declined marginally below their 1.25
billion tonne per annum rate in the first quarter, but trended
close to record seasonal levels. Seaborne iron ore supply performed
strongly over the quarter, with June shipments from Australia and
Brazil estimated at or close to all-time highs.
-- The LME cash aluminium price declined by 10% over the
quarter, with the average price of $2,258/t 6% lower than the first
quarter of 2023. The price has followed industry operating costs
lower, with average smelter costs falling 12% quarter on quarter.
Smelter restarts are currently under way in Yunnan, adding supply
to a tight global market. Inventories in China are at seven-year
lows, and China has continued to import primary aluminium in the
first half of the year.
-- The copper LME price fell 8% over the quarter, while the
average price was down 5% quarter on quarter to $3.84/lb, as
negative macroeconomic headlines related to the slowdown in China's
recovery and US debt ceiling gridlock dampened sentiment, moving
speculative positions to a net short for the first time since
August 2022. The US dollar strengthened over the period as
inflationary pressures prevailed. Despite these headwinds, prices
were supported by increasing operating costs, exchange inventory
tightness and market expectations on China's stimulus.
-- Lithium carbonate spot prices rebounded during the second
quarter, driven by higher electric vehicle (EV) sales growth and
restocking activities from end-users. Short-term uncertainty
remains as the global economy slows and higher interest rates
dampen consumer spending, although the automotive market sentiment
improved in China on the back of tax incentives for EV's and a
potential end to the aggressive price war between Chinese car
manufacturers. Longer term, market fundamentals for lithium remain
strong, as EV adoption continues to rise on supportive government
policies and supply shortfalls requiring further investment.
Average realised prices achieved for our major commodities
Units H1 2023 Q2 2023 Q1 2023 H1 2022 2022
------------ ----------- ------- ------- ------- ------- -----
Pilbara
iron ore FOB, $/wmt 98.6 93.8 103.3 110.9 97.6
Pilbara
iron ore FOB, $/dmt 107.2 101.9 112.3 120.5 106.1
Aluminium* Metal $/t 2,866 2,786 2,954 3,808 3,330
Copper** US c/lb 396 385 407 447 403
IOC pellets FOB $/wmt 154.7 151.2 158.9 199.0 190.3
------------ ----------- ------- ------- ------- ------- -----
*LME plus all-in premiums (product and market).
**Average realised price for all units sold. Realised price does
not include the impact of the provisional pricing adjustments,
which negatively impacted revenues in the first half by $4 million
(first half 2022 negative impact of $30 million).
Iron Ore
Q2 vs Q2 vs Q1 H1 vs H1
Rio Tinto share of
production (Million
tonnes) 2023 2022 2023 2023 2022
------------------------- ------ ---------- ---------- ------ ----------
Pilbara Blend and SP10
Lump(1) 21.0 +9 % +7 % 40.7 +12 %
Pilbara Blend and SP10
Fines(1) 31.8 +5 % +3 % 62.6 +12 %
Robe Valley Lump 1.5 +26 % +31 % 2.6 +18 %
Robe Valley Fines 2.4 +29 % +21 % 4.4 +22 %
Yandicoogina Fines (HIY) 11.9 -12 % -13 % 25.6 -9 %
------------------------- ------ ---------- ---------- ------ ----------
Total Pilbara production 68.6 +4 % +2 % 135.8 +8 %
------------------------- ------ ---------- ---------- ------ ----------
Total Pilbara production
(100% basis) 81.3 +3 % +2 % 160.5 +7 %
------------------------- ------ ---------- ---------- ------ ----------
Q2 vs Q2 vs Q1 H1 vs H1
Rio Tinto share of
shipments (Million tonnes) 2023 2022 2023 2023 2022
---------------------------- ------ ---------- ---------- ------ ----------
Pilbara Blend Lump 14.7 +16 % -6 % 30.4 +29 %
Pilbara Blend Fines 27.5 +9 % -4 % 56.0 +20 %
Robe Valley Lump 1.2 +19 % +10 % 2.2 +34 %
Robe Valley Fines 2.5 +8 % +10 % 4.8 +18 %
Yandicoogina Fines (HIY) 12.6 -12 % -8 % 26.2 -9 %
SP10 Lump(1) 1.7 -63 % -2 % 3.3 -60 %
SP10 Fines(1) 6.6 -2 % -3 % 13.4 -3 %
Total Pilbara shipments(2) 66.6 0 % -4 % 136.4 +8 %
---------------------------- ------ ---------- ---------- ------ ----------
Total Pilbara shipments
(100% basis)(2) 79.1 -1 % -4 % 161.7 +7 %
---------------------------- ------ ---------- ---------- ------ ----------
Total Pilbara Shipments
(consolidated basis)(2,
3) 68.3 0 % -4 % 139.8 +8 %
---------------------------- ------ ---------- ---------- ------ ----------
(1) SP10 includes other lower grade products.
(2) Shipments includes material shipped from the Pilbara to our
portside trading facility in China which may not be sold onwards by
the group in the same period.
(3) While Rio Tinto has a 53% net beneficial interest in Robe
River Iron Associates, it recognises 65% of the assets,
liabilities, sales revenues and expenses in its accounts (as 30% is
held through a 60% owned subsidiary and 35% is held through a 100%
owned subsidiary). The consolidated basis sales reported here
include Robe River Iron Associates on a 65% basis to enable
comparison with revenue reported in the financial statements.
Pilbara operations
We produced 81.3 million tonnes (Rio Tinto share 68.6 million
tonnes) in the second quarter, 3% higher than the corresponding
period of 2022. The ramp-up of Gudai-Darri continued to plan, with
the mine reaching nameplate capacity on a sustained basis during
the period. Challenges at the Yandicoogina mine associated with
materials handling and plant reliability, highlighted in the first
quarter, continued into the period.
Shipments of 79.1 million tonnes (Rio Tinto share 66.6 million
tonnes) were 1% lower than the second quarter of 2022, and 4% lower
than the prior quarter. This was primarily due to planned major
maintenance at the Dampier Port and a train derailment on 17 June.
The rail line was reopened on 21 June.
With ongoing operational improvements across the Pilbara system,
and uplift from implementation of the Safe Production System, full
year shipments are expected to be in the upper half of the original
320 to 335 million tonne range. With higher production anticipated
in the second half, SP10 is expected to be a larger proportion of
shipments (first half 2023 = 10%(1) ).
Approximately 10% of sales in the second quarter were priced by
reference to the prior quarter's average index lagged by one month.
The remainder was sold either on current quarter average, current
month average, average of two months, forward month or on the spot
market. Approximately 26% of sales in the second quarter were made
on a free on board (FOB) basis, with the remainder sold including
freight.
Achieved average pricing in the first half of 2023 was $98.6 per
wet metric tonne ($110.9 in the first half of 2022) on an FOB basis
(equivalent to $107.2 per dry metric tonne, with a 8% moisture
assumption). This compares to the average first half price for the
monthly average Platts index for 62% iron fines converted to an FOB
basis of $109.8 per dry metric tonne.
China Portside Trading
We continue to see strong demand for Rio Tinto's portside
product in China. Our iron ore portside sales in China were 11.9
million tonnes in the first half of 2023 (14.2 million tonnes in
the first half of 2022). At 30 June, inventory levels were 5.7
million tonnes, including 2.6 million tonnes of Pilbara product. In
the first half of 2023 approximately 90% of our portside sales were
either screened or blended in Chinese ports.
(1) Based on total Pilbara shipments on a 100% basis.
Aluminium
Q2 vs Q2 vs Q1 H1 vs H1
Rio Tinto share of
production ('000 tonnes) 2023 2022 2023 2023 2022
-------------------------- ------------------- ---------- ---------- ------------------ ---------
Bauxite 13,492 -5 % +12 % 25,581 -8 %
Bauxite third party
shipments 9,159 -5 % +16 % 17,039 -14 %
Alumina 1,861 0 % 0 % 3,720 -1 %
Aluminium 814 +11 % +4 % 1,598 +9 %
-------------------------- ------------------- ---------- ---------- ------------------ ---------
Bauxite
Bauxite production of 13.5 million tonnes was 5% lower than the
second quarter of 2022 as our Weipa operations were impacted by the
higher-than-average first quarter rainfall, which continued to
reduce pit access and led to longer haul distances. Production was
further affected by equipment downtime at both Weipa and Gove. As a
result, our bauxite full year production is expected to be at the
lower end of our 54 to 57 million tonne range, as we implement
plans to recover lost production at both operations through the
remainder of the year.
We shipped 9.2 million tonnes of bauxite to third parties in the
second quarter, 5% lower than the same period of 2022.
Alumina
Alumina production of 1.9 million tonnes was in line with the
second quarter of 2022 as improved operational stability at our
Yarwun and Vaudreuil refineries was offset by unplanned plant
downtime at Queensland Alumina Limited (QAL). As a result, our full
year alumina production has been reduced to 7.4 to 7.7 million
tonnes (previously 7.7 to 8.0 million tonnes), as QAL implements
initiatives to improve plant stability and production rates.
As the result of QAL activation of a step-in process following
sanction measures by the Australian Government, Rio Tinto has taken
on 100% of capacity for as long as the step-in continues. This
results in use of Rusal's 20% share of capacity by Rio Tinto under
the tolling arrangement with QAL. This additional output is
excluded from the production tables in this report as QAL remains
80% owned by Rio Tinto and 20% owned by Rusal.
Aluminium
Aluminium production of 0.8 million tonnes was 11% higher than
the second quarter of 2022 as we benefited from the continued
ramp-up of the Kitimat smelter. Recovery at the Boyne and Kitimat
smelters is progressing to plan with full ramp-up expected to be
completed later in the year. All our other smelters continued to
demonstrate stable performance during the quarter.
Average realised aluminium prices including premiums for
value-added products (VAP) decreased 25% to $2,866 per tonne in the
first half of 2023 (first half 2022: $3,808 per tonne). The LME
price decreased by 24% to $2,329 per tonne (first half 2022: $3,082
per tonne), whilst the mid-west premium duty paid declined 27% to
$583 per tonne in the first half of 2023 (first half 2022: $801 per
tonne), which is 56% of our total volumes (58% in the first half of
2022). Our VAP sales decreased to 47% of primary metal sold in the
first half of 2023 (first half 2022: 52%). Product premiums for VAP
sales decreased, averaging $377 per tonne of VAP sold (first half
2022: $422 per tonne).
Copper
Q2 vs Q2 vs Q1 H1 vs H1
Rio Tinto share of production
('000 tonnes) 2023 2022 2023 2023 2022
------------------------------- ------ ---------- ---------- ------ ----------
Mined copper
------------------------------- ------ ---------- ---------- ------ ----------
Kennecott 24.8 -27 % -18 % 55.1 -32 %
Escondida 77.4 -6 % +7 % 149.7 -1 %
Oyu Tolgoi (66% basis)(1) 28.3 +176 % +1 % 56.4 +176 %
------------------------------- ------ ---------- ---------- ------ ----------
Total mined copper production 130.5 +3 % 0 % 261.2 +4 %
Total mined copper production
(consolidated basis(2) ) 145.0 -1 % 0 % 290.2 -1 %
------------------------------- ------ ---------- ---------- ------ ----------
Refined copper
------------------------------- ------ ---------- ---------- ------ ----------
Kennecott 14.4 -56 % -67 % 58.1 -20 %
Escondida 21.7 +30 % +43 % 37.0 +19 %
------------------------------- ------ ---------- ---------- ------ ----------
(1) Oyu Tolgoi production for 2022 reported on a 33.52% equity
share basis. Following the acquisition of Turquoise Hill Resources
Ltd on 16 December 2022, Oyu Tolgoi production for 2023 reported
on a 66% equity share basis.
(2) Includes Oyu Tolgoi on a 100% consolidated basis, Kennecott
and Escondida on an equity share basis.
Kennecott
Mined copper production was 27% lower than the second quarter of
2022 as the concentrator continued to recover from the failure of a
conveyor in March 2023. Mitigating activities have progressed in
line with recovery plans, with the conveyor now performing at rates
to enable the concentrator to return to full capacity in the third
quarter of 2023. The majority of the winter snowpack melted during
the quarter, with the successful implementation of a range of
measures to manage the associated geotechnical risk resulting in
minimal impact to operations.
Refined copper production was 56% lower than the second quarter
of 2022 as we commenced the largest rebuild of the smelter and
refinery in Kennecott's history in May 2023. The $300 million
rebuild has incorporated approximately 300 engineering and
maintenance projects and we are on track to complete the full scope
of work. While inspecting the integrity of the flash converting
furnace, we identified additional work necessitating a full
rebuild, rather than the planned partial rebuild. The full rebuild
is expected to further improve asset stability and process safety
management, however as a result the consolidated scope of work is
now expected to be completed in September 2023 (previously August
2023).
As a consequence of this extension, our refined copper
production guidance has been reduced to 160 to 190 thousand tonnes
(previously 180 to 210 thousand tonnes) and our copper C1 unit cost
guidance has been increased to 180 to 200 US cents/lb (from 160 to
180 US cents/lb).
Escondida
Mined copper production was 6% lower than the second quarter of
2022 due to 10% lower concentrator throughput rates following
unplanned maintenance, and lower crusher and conveyor availability.
In addition, there was also a 16% decrease in copper recoverable
from ore stacked for leaching due to lower grades and volume of
stacked material.
Refined production increased by 30% compared to the second
quarter of 2022 due to improved ore qualities in the oxide leach
and better sulphide leach performance on the run of mine pad.
On 17 May 2023, the Chamber of Deputies of Chile approved a new
mining royalty which will impact Escondida through a 1% ad-valorem
component and an increased operating margin component, all limited
by a maximum overall tax rate of 46.5%. The new mining royalty will
be effective as of 1 January 2024.
Oyu Tolgoi
Mined copper production on a 100% basis increased 40% from the
second quarter of 2022 as the ramp-up in underground production
continued to plan, delivering higher average copper head grades
(0.52% vs. 0.40%). During the quarter we delivered 0.9 million
tonnes of ore milled from the underground mine at an average copper
head grade of 1.56%, and 8.8 million tonnes from the open pit with
an average grade of 0.41%.
Following our acquisition of Turquoise Hill Resources Ltd on 16
December 2022, our equity share of production increased from 33.52%
to 66%, effective in reporting from 1 January 2023. We continue to
fully consolidate Oyu Tolgoi in our financials.
During the quarter we signed an extension with the Inner
Mongolian Power Company, securing our power supply for the
operation until 2030.
Nuton(TM)
Nuton(TM) , our proprietary copper heap leaching technology,
made further progress during the quarter, with associated results
reported by Arizona Sonoran Copper Company on 5 June , McEwen
Mining Inc. on
20 June and Regulus Resources Inc. on 6 July .
Minerals
Q2 vs Q2 vs Q1 H1 vs H1
Rio Tinto share of
production (million
tonnes) 2023 2022 2023 2023 2022
-------------------------- ------------------- --------- --------- ------------------ ------
Iron ore pellets and
concentrate
-------------------------- ------------------- --------- --------- ------------------ ------
IOC 2.1 -21 % -18 % 4.6 -8 %
-------------------------- ------------------- --------- --------- ------------------ ------
Q2 vs Q2 vs Q1 H1 vs H1
Rio Tinto share of
production ('000 tonnes) 2023 2022 2023 2023 2022
-------------------------- ------------------- --------- --------- ------------------ ------
Minerals
-------------------------- ------------------- --------- --------- ------------------ ------
Borates - B(2) O(3)
content 133 -3 % +8 % 257 -1 %
Titanium dioxide slag 303 +4 % +6 % 589 +4 %
-------------------------- ------------------- --------- --------- ------------------ ------
Q2 vs Q2 vs Q1 H1 vs H1
Rio Tinto share of
production ('000 carats) 2023 2022 2023 2023 2022
-------------------------- ------------------- --------- --------- ------------------ ------
Diavik 970 -16 % +2 % 1,924 -10 %
-------------------------- ------------------- --------- --------- ------------------ ------
Iron Ore Company of Canada (IOC)
Iron ore production was 21% lower than the second quarter of
2022, as we lost 3.5 weeks of production in June, primarily due to
wildfires in Northern Quebec, together with a slightly extended
shutdown. Operations have resumed, however our full year production
guidance has been reduced to 10.0 to 11.0 million tonnes
(previously 10.5 to 11.5 million tonnes), and remains subject to
further disruption from fire conditions.
Shipments were 1% higher than the second quarter of 2022, as we
drew down inventory. Although logistics have resumed following the
wildfires, loading restrictions at the rail and port remain a risk
as we repair areas of the rail line damaged by fire.
Borates
Borates production in the second quarter was 3% lower than the
corresponding period of 2022 due to the deferral of a bulk vessel
to the next quarter. We continued to see an easing of supply chain
constraints at the Port of Los Angeles in the period.
Iron and Titanium
Titanium dioxide slag production was 4% higher than the second
quarter of 2022, due to improved operational performance at our
smelters. Notwithstanding, our RTIT Quebec Operations experienced
two incidents in separate furnaces in June and July which we are
currently investigating. Given these investigations and weaker
market conditions, our full year production is expected to be at
the lower end of our 1.1 to 1.4 million tonne range.
Diamonds
At Diavik, our share of carats was 16% lower than the second
quarter of 2022 due to the completion of an underground pipe and
area of the open pit during the period.
Exploration and evaluation
Pre-tax and pre-divestment expenditure on exploration and
evaluation charged to the profit and loss account in the first half
of 2023 was $710 million, compared with $367 million in the first
half of 2022. Approximately 45% of this expenditure was incurred
for Simandou, 18% by central exploration, 17% by Minerals, 15% by
Copper and 4% by Iron Ore. The increase in expenditure reflects the
continued ramp-up of early works at Simandou (included on a 100%
basis(1) ) and Argentina.
Our annual budget for central greenfield exploration remains
around $250 million, mainly focused on copper, with a growing
battery minerals programme.
Exploration highlights
Rio Tinto has a strong portfolio of projects with activity in 18
countries across eight commodities in early exploration and studies
stages. The bulk of the exploration expenditure in the second
quarter focused on copper in Australia, Colombia, Chile, Zambia,
Peru, the US and Kazakhstan, and diamonds in Angola.
Rio Tinto recently partnered in two lithium exploration projects
in Quebec and greenfield lithium exploration continues in Canada,
Australia, US and Africa. Exploration for nickel is ongoing in
Canada, Finland, Brazil and Peru. Mine-lease exploration continued
at Rio Tinto managed businesses including Bingham Canyon in the US,
Pilbara Iron Ore in Australia and Diavik in Canada.
A summary of activity for the quarter is as follows:
Greenfield/ Brownfield
Commodities Studies Stage Advanced projects programmes
----------------- ------------------------- ------------------ ------------------------
Melville Island,
Australia
Bauxite Cape York, Australia
----------------- ------------------------- ------------------ ------------------------
Nickel Greenfield:
Australia, Brazil,
Canada, Finland,
Peru
Lithium Greenfield:
Australia, Brazil,
Rincon Lithium, Argentina Canada, Chile,
Lithium borates: China, Finland,
Jadar, Serbia US
Nickel: Tamarack, Lithium borates
Battery Materials US (3rd party operated) Brownfield: US
----------------- ------------------------- ------------------ ------------------------
Copper Greenfield:
Angola, Australia,
Brazil, Canada,
Chile, China, Colombia,
Finland, Kazakhstan,
Namibia, Laos,
Copper: La Granja, Peru, Papua New
Copper/molybdenum: Peru Pribrezhniy, Guinea, Serbia,
Resolution, US Kazakhstan US, Zambia
Copper/Gold: Winu, Calibre-Magnum, Copper Brownfield:
Copper Australia Australia US
----------------- ------------------------- ------------------ ------------------------
Diamonds Greenfield:
Angola
Diamonds Brownfield:
Diamonds Falcon, Canada(2) Diavik
----------------- ------------------------- ------------------ ------------------------
Greenfield and
Pilbara, Australia Brownfield: Pilbara,
Iron Ore Simandou, Guinea Pilbara, Australia Australia
----------------- ------------------------- ------------------ ------------------------
Potash Greenfield:
Potash: KL262(3) Canada
, Canada Heavy mineral sands
Heavy mineral sands: Greenfield: Australia,
Minerals Mutamba, Mozambique South Africa
----------------- ------------------------- ------------------ ------------------------
(1) Costs relating to the Simfer joint venture where the
Government of Guinea holds 15% and Simfer Jersey holds 85%. Simfer
Jersey is owned by Rio Tinto (53%) and Chalco Iron Ore Holdings
(CIOH) (47%).
(2) The Falcon Project in Saskatchewan, Canada, is currently in
care and maintenance whilst Rio Tinto considers alternative
commercial options, including potential exit.
(3) Limited activity during the quarter.
Forward-looking statement
This announcement includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical facts
included in this announcement, including, without limitation, those
regarding Rio Tinto's financial position, business strategy, plans
and objectives of management for future operations (including
development plans and objectives relating to Rio Tinto's products,
production forecasts and reserve and resource positions and any
statements related to the ongoing impact of the COVID-19 pandemic),
are forward-looking statements. The words "intend", "aim",
"project", "anticipate", "estimate", "plan", "believes", "expects",
"may", "would", "should", "could", "will", "target", "set to",
"seek", "risk" or similar expressions, commonly identify such
forward-looking statements.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Rio Tinto, or industry results, to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on numerous
assumptions regarding Rio Tinto's present and future business
strategies and the environment in which Rio Tinto will operate in
the future. Among the important factors that could cause Rio
Tinto's actual results, performance or achievements to differ
materially from those in the forward-looking statements are levels
of actual production during any period, levels of demand and market
prices, the ability to produce and transport products profitably,
the impact of foreign currency exchange rates on market prices and
operating costs, operational problems, political uncertainty and
economic conditions in relevant areas of the world, the actions of
competitors, activities by governmental authorities such as changes
in taxation or regulation, the risks and uncertainties associated
with the ongoing impacts of COVID-19 or other pandemic and such
other risk factors identified in Rio Tinto's most recent Annual
report and accounts in Australia and the United Kingdom and the
most recent Annual report on Form 20-F filed with the United States
Securities and Exchange Commission (the "SEC") or Form 6-Ks
furnished to, or filed with, the SEC. The above list is not
exhaustive. Forward-looking statements should, therefore, be
construed in light of such risk factors and undue reliance should
not be placed on forward-looking statements, particularly in light
of the current economic climate and the significant volatility,
uncertainty and disruption caused by the outbreak of COVID-19.
These forward-looking statements speak only as of the date of this
announcement. Rio Tinto expressly disclaims any obligation or
undertaking (except as required by applicable law, the UK Listing
Rules, the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority and the Listing Rules of the Australian
Securities Exchange) to release publicly any updates or revisions
to any forward-looking statement contained herein to reflect any
change in Rio Tinto's expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based.
Nothing in this announcement should be interpreted to mean that
future earnings per share of Rio Tinto plc or Rio Tinto Limited
will necessarily match or exceed its historical published earnings
per share.
Contacts Please direct all enquiries to
media.enquiries@riotinto.com
Media Relations, UK Media Relations, Australia
Matthew Klar Matt Chambers
M +44 7796 630 637 M +61 433 525 739
David Outhwaite Jesse Riseborough
M +44 7787 597 493 M +61 436 653 412
Media Relations, Americas
Simon Letendre
M +1 514 796 4973
Malika Cherry
M +1 418 592 7293
-------------------------- ------------------------------
Investor Relations, UK Investor Relations, Australia
Menno Sanderse Tom Gallop
M +44 7825 195 178 M +61 439 353 948
David Ovington Amar Jambaa
M +44 7920 010 978 M +61 472 865 948
Danielle Smith
M: +44 7788 190 672
-------------------------- ------------------------------
Rio Tinto plc Rio Tinto Limited
6 St James's Square Level 43, 120 Collins Street
London SW1Y 4AD Melbourne 3000
United Kingdom Australia
T +44 20 7781 2000 T +61 3 9283 3333
Registered in England Registered in Australia
No. 719885 ABN 96 004 458 404
-------------------------- ------------------------------
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto's Group Company Secretary.
riotinto.com
LEI: 213800YOEO5OQ72G2R82
Classification: 3.1 Additional regulated information required to
be disclosed under the laws of a Member State
Rio Tinto production summary
Rio Tinto share of production
Quarter Half Year % change
Q2 23 Q2 23 H1 2023
2022 2023 2023 2022 2023 vs vs vs
Q2 Q1 Q2 H1 H1 Q2 22 Q1 23 H1 2022
---------------------- ------ ------ ------ ------ ------- ------- ------- ------ ----------
Principal commodities
('000
Alumina t) 1,864 1,860 1,861 3,765 3,720 0 % 0 % -1 %
('000 +11
Aluminium t) 731 785 814 1,467 1,598 % +4 % +9 %
('000 +12
Bauxite t) 14,131 12,089 13,492 27,757 25,581 -5 % % -8 %
('000
Borates t) 137 124 133 260 257 -3 % +8 % -1 %
('000
Copper - mined t) 126.4 130.7 130.5 251.9 261.2 +3 % 0 % +4 %
('000 -27 -39
Copper - refined t) 49.4 58.9 36.2 104.1 95.1 % % -9 %
('000 -16
Diamonds cts) 1,149 954 970 2,140 1,924 % +2 % -10 %
('000
Iron Ore t) 68,640 69,784 70,632 131,105 140,416 +3 % +1 % +7 %
Titanium dioxide ('000
slag t) 293 285 303 566 589 +4 % +6 % +4 %
---------------------- ------ ------ ------ ------ ------- ------- ------- ------ ----------
Other Metals &
Minerals
('000 +17
Gold - mined oz) 52.5 64.4 61.4 121.0 125.7 % -5 % +4 %
('000 -13
Gold - refined oz) 20.9 22.0 19.2 53.1 41.2 -8 % % -22 %
('000 -25 +144
Molybdenum t) 0.4 0.1 0.3 1.5 0.4 % % -70 %
('000 +60 +14
Salt t) 1,030 1,450 1,652 2,625 3,101 % % +18 %
('000 -17
Silver - mined oz) 846 935 775 1,858 1,710 -8 % % -8 %
('000 -24
Silver - refined oz) 290 432 329 867 761 +13 % % -12 %
---------------------- ------ ------ ------ ------ ------- ------- ------- ------ ----------
Throughout this report, figures in italics indicate adjustments
made since the figure was previously quoted on the equivalent page
or reported for the first time. Production figures are sometimes
more precise than the rounded numbers shown, hence small
differences may result between the total of the quarter figures and
the year to date figures.
Rio Tinto share of production
Rio Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
------------------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
ALUMINA
Production ('000 tonnes)
100
Jonquière (Vaudreuil) % 325 336 368 371 346 659 717
Jonquière (Vaudreuil) 100
specialty Alumina plant % 30 30 29 25 27 55 51
Queensland Alumina 80 % 697 662 678 632 677 1,401 1,309
São Luis (Alumar) 10 % 91 95 97 94 66 185 159
100
Yarwun % 721 715 769 739 745 1,465 1,483
Rio Tinto total alumina production 1,864 1,838 1,941 1,860 1,861 3,765 3,720
ALUMINIUM
Production ('000 tonnes)
100
Australia - Bell Bay % 44 46 48 45 46 91 92
Australia - Boyne Island 59 % 61 65 68 70 73 134 143
Australia - Tomago 52 % 75 76 76 75 75 150 150
100
Canada - six wholly owned % 323 341 360 367 389 641 756
Canada - Alouette (Sept-Îles) 40 % 63 64 63 62 63 124 126
Canada - Bécancour 25 % 29 29 29 29 29 57 58
100
Iceland - ISAL (Reykjavik) % 50 51 52 51 52 100 103
New Zealand - Tiwai Point 79 % 66 67 68 66 66 132 132
Oman - Sohar 20 % 20 20 20 20 20 39 39
Rio Tinto total aluminium
production 731 759 783 785 814 1,467 1,598
BAUXITE
Production ('000 tonnes)
(a)
100
Gove % 2,637 2,905 2,874 2,579 2,739 5,731 5,317
Porto Trombetas 12 % 308 393 391 275 327 548 601
Sangaredi (b) 1,946 1,953 1,588 1,744 1,614 3,710 3,358
100
Weipa % 9,240 8,429 8,328 7,492 8,813 17,768 16,304
Rio Tinto total bauxite production 14,131 13,680 13,181 12,089 13,492 27,757 25,581
------------------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
(a) Mine production figures for metals refer to the total
quantity of metal produced in concentrates, leach liquor or doré
bullion irrespective of whether these products are then refined
onsite, except for the data for bauxite and iron ore which
represent production of marketable quantities of ore plus
concentrates and pellets.
(b) Rio Tinto has a 22.95% shareholding in the Sangaredi mine
but benefits from 45.0% of production.
Rio Tinto share of production
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
--------------- ---------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
BORATES
Production
('000 tonnes
B(2) O(3)
content)
Rio Tinto
Borates - 100
borates % 137 130 141 124 133 260 257
--------------- ---------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
COPPER
Mine production
('000
tonnes) (a)
Bingham 100
Canyon % 33.9 50.7 47.5 30.3 24.8 81.0 55.1
Escondida 30 % 82.3 75.1 73.0 72.3 77.4 150.5 149.7
Oyu Tolgoi
(b) 66 % 10.2 12.2 10.8 28.1 28.3 20.4 56.4
Rio Tinto total
mine
production 126.4 138.0 131.3 130.7 130.5 251.9 261.2
Rio Tinto total
mine
production -
consolidated
basis 146.7 162.1 152.8 145.2 145.0 292.3 290.2
--------------- ---------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Refined
production
('000
tonnes)
Escondida 30 % 16.7 14.9 14.9 15.2 21.7 31.1 37.0
100
Kennecott (c) % 32.7 39.2 36.1 43.6 14.4 72.9 58.1
Rio Tinto total
refined
production 49.4 54.1 51.0 58.9 36.2 104.1 95.1
--------------- ---------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(a) Mine production figures for metals refer to the total
quantity of metal produced in concentrates, leach liquor or doré
bullion irrespective of whether these products are then refined
onsite, except for the data for bauxite and iron ore which
represent production of marketable quantities of ore plus
concentrates and pellets.
(b) On 16 December 2022, Rio Tinto completed the acquisition of
100% of Turquoise Hill Resources Ltd, increasing our ownership in
Oyu Tolgoi from 33.52% to 66%. From 1 January 2023, our share of
production has been updated to reflect this change.
(c) We continue to process third party concentrate to optimise
smelter utilisation. There was no cathode produced from purchased
concentrate in 2023 year-to-date. Purchased and tolled copper
concentrates are excluded from reported production figures and
production guidance. Sales of cathodes produced from purchased
concentrate are included in reported revenues.
DIAMONDS
Production ('000 carats)
100
Diavik % 1,149 1,192 1,319 954 970 2,140 1,924
GOLD
Mine production ('000
ounces) (a)
100
Bingham Canyon % 22.8 32.5 29.7 20.6 18.7 60.6 39.3
Escondida 30 % 13.7 11.5 14.5 14.7 16.1 24.6 30.7
Oyu Tolgoi (b) 66 % 16.0 14.3 11.5 29.1 26.6 35.8 55.7
Rio Tinto total mine
production 52.5 58.2 55.7 64.4 61.4 121.0 125.7
Refined production ('000
ounces)
100
Kennecott % 20.9 30.5 30.3 22.0 19.2 53.1 41.2
------------------------- ----- ----- ----- ----- ---- ---- ----- -----
(a) Mine production figures for metals refer to the total
quantity of metal produced in concentrates, leach liquor or doré
bullion irrespective of whether these products are then refined
onsite, except for the data for bauxite and iron ore which
represent production of marketable quantities of ore plus
concentrates and pellets.
(b) On 16 December 2022, Rio Tinto completed the acquisition of
100% of Turquoise Hill Resources Ltd, increasing our ownership in
Oyu Tolgoi from 33.52% to 66%. From 1 January 2023, our share of
production has been updated to reflect this change.
Rio Tinto share of production
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines (b) 52,636 56,650 61,339 54,433 55,004 100,315 109,437
Hope Downs 50 % 6,385 6,264 5,945 5,885 5,763 12,215 11,649
Iron Ore Company of Canada 59 % 2,603 2,776 2,530 2,526 2,063 5,007 4,589
Robe River - Pannawonica (Mesas
J and A) 53 % 3,054 3,540 4,178 3,123 3,897 5,828 7,020
Robe River - West Angelas 53 % 3,961 4,496 4,424 3,816 3,905 7,740 7,721
Rio Tinto iron ore production
('000 tonnes) 68,640 73,726 78,415 69,784 70,632 131,105 140,416
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Breakdown of Production:
Pilbara Blend and SP10 Lump
(c) 19,309 21,317 21,443 19,612 21,042 36,391 40,654
Pilbara Blend and SP10 Fines
(c) 30,240 32,592 35,097 30,851 31,750 55,898 62,601
Robe Valley Lump 1,180 1,389 1,645 1,136 1,488 2,230 2,624
Robe Valley Fines 1,874 2,151 2,533 1,987 2,409 3,598 4,395
Yandicoogina Fines (HIY) 13,433 13,501 15,168 13,672 11,880 27,981 25,552
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Pilbara iron ore production
('000 tonnes) 66,037 70,951 75,886 67,258 68,569 126,098 135,827
IOC Concentrate 1,282 1,237 1,186 1,241 1,120 2,244 2,361
IOC Pellets 1,321 1,539 1,343 1,285 943 2,763 2,228
IOC iron ore production ('000
tonnes) 2,603 2,776 2,530 2,526 2,063 5,007 4,589
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Breakdown of Shipments:
Pilbara Blend Lump 12,684 15,301 15,089 15,689 14,691 23,493 30,380
Pilbara Blend Fines 25,156 31,597 32,659 28,528 27,474 46,855 56,002
Robe Valley Lump 971 1,281 1,244 1,051 1,152 1,645 2,203
Robe Valley Fines 2,309 2,392 2,896 2,262 2,489 4,040 4,751
Yandicoogina Fines (HIY) 14,201 13,530 14,661 13,689 12,558 28,689 26,247
SP10 Lump (c) 4,456 1,647 2,824 1,686 1,652 8,283 3,338
SP10 Fines (c) 6,775 3,766 5,062 6,832 6,613 13,843 13,446
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Pilbara iron ore shipments
('000 tonnes) (d) 66,552 69,515 74,435 69,738 66,629 126,847 136,367
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Pilbara iron ore shipments - consolidated
basis ('000 tonnes) (d) (f) 68,114 71,379 76,303 71,505 68,322 129,931 139,827
--------------------------------------------- ------ ------ ------ ------ ------ ------- -------
IOC Concentrate 1,083 1,316 1,174 984 1,247 1,683 2,231
IOC Pellets 1,484 1,443 1,036 1,143 1,352 2,896 2,495
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IOC Iron ore shipments ('000
tonnes) (d) 2,567 2,759 2,210 2,127 2,599 4,580 4,726
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Rio Tinto iron ore shipments
('000 tonnes) (d) 69,119 72,274 76,645 71,864 69,228 131,427 141,093
Rio Tinto iron ore sales ('000
tonnes) (e) 71,263 74,587 75,337 74,273 71,678 137,946 145,951
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
(a) Mine production figures for metals refer to the total
quantity of metal produced in concentrates, leach liquor or doré
bullion irrespective of whether these products are then refined
onsite, except for the data for bauxite and iron ore which
represent production of marketable quantities of ore plus
concentrates and pellets.
(b) Includes 100% of production from Paraburdoo, Mt Tom Price,
Western Turner Syncline, Marandoo, Yandicoogina, Brockman,
Nammuldi, Silvergrass, Channar, Gudai-Darri and the Eastern Range
mines. Whilst Rio Tinto owns 54% of the Eastern Range mine, under
the terms of the joint venture agreement, Hamersley Iron manages
the operation and is obliged to purchase all mine production from
the joint venture and therefore all of the production is included
in Rio Tinto's share of production.
(c) SP10 includes other lower grade products.
(d) Shipments includes material shipped to our portside trading
facility in China which may not be sold onwards in the same
period.
(e) Represents the difference between amounts shipped to
portside trading and onward sales from portside trading, and third
party volumes sold.
(f) While Rio Tinto has a 53% net beneficial interest in Robe
River Iron Associates, it recognises 65% of the assets,
liabilities, sales revenues and expenses in its accounts (as 30% is
held through a 60% owned subsidiary and 35% is held through a 100%
owned subsidiary). The consolidated basis sales reported here
include Robe River Iron Associates on a 65% basis to enable
comparison with revenue reported in the financial statements.
Rio Tinto share of production
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
---------------------- --------- ----- ----- ----- ----- ------ ----- ------
MOLYBDENUM
Mine production ('000
tonnes) (a)
100
Bingham Canyon % 0.4 0.8 1.1 0.1 0.3 1.5 0.4
---------------------- --------- ----- ----- ----- ----- ------ ----- ------
(a) Mine production figures for metals refer to the total
quantity of metal produced in concentrates, leach liquor or doré
bullion irrespective of whether these products are then refined
onsite, except for the data for bauxite and iron ore which
represent production of marketable quantities of ore plus
concentrates and pellets.
SALT
Production ('000 tonnes)
Dampier Salt 68 % 1,030 1,674 1,458 1,450 1,652 2,625 3,101
-------------------------------- ----- ----- ----- ----- ----- ----- ----- -----
SILVER
Mine production ('000
ounces) (a)
100
Bingham Canyon % 385 591 521 356 296 945 652
Escondida 30 % 393 363 453 404 302 774 706
Oyu Tolgoi (b) 66 % 67 86 68 176 177 138 352
-------------------------------- ----- ----- ----- ----- ----- ----- ----- -----
Rio Tinto total mine production 846 1,040 1,042 935 775 1,858 1,710
-------------------------------- ----- ----- ----- ----- ----- ----- ----- -----
Refined production ('000
ounces)
100
Kennecott % 290 571 512 432 329 867 761
-------------------------------- ----- ----- ----- ----- ----- ----- ----- -----
(a) Mine production figures for metals refer to the total
quantity of metal produced in concentrates, leach liquor or doré
bullion irrespective of whether these products are then refined
onsite, except for the data for bauxite and iron ore which
represent production of marketable quantities of ore plus
concentrates and pellets.
(b) On 16 December 2022, Rio Tinto completed the acquisition of
100% of Turquoise Hill Resources Ltd, increasing our ownership in
Oyu Tolgoi from 33.52% to 66%. From 1 January 2023, our share of
production has been updated to reflect this change.
TITANIUM DIOXIDE SLAG
Production ('000 tonnes)
Rio Tinto Iron & Titanium 100
(a) % 293 310 323 285 303 566 589
---------------------------- ---- --- --- --- --- --- --- ---
(a) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio
Tinto's 74% interest in Richards Bay Minerals (RBM).
Production figures are sometimes more precise than the rounded
numbers shown, hence small differences may result between the total
of the quarter figures and the year to date figures.
Rio Tinto percentage interest shown above is at 30 June
2023.
Rio Tinto operational data
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
------------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
ALUMINA
Smelter Grade Alumina
- Aluminium Group
Alumina production ('000
tonnes)
Australia
Queensland Alumina Refinery
- Queensland 80 % 871 827 847 790 846 1,751 1,637
100
Yarwun refinery - Queensland % 721 715 769 739 745 1,465 1,483
Brazil
São Luis (Alumar)
refinery 10 % 910 946 975 936 657 1,850 1,593
Canada
Jonquière (Vaudreuil) 100
refinery - Quebec (a) % 325 336 368 371 346 659 717
(a) Jonquière's (Vaudreuil's) production shows smelter grade
alumina only and excludes hydrate produced and used for specialty
alumina.
Speciality Alumina - Aluminium
Group
Speciality alumina production
('000 tonnes)
Canada
Jonquière (Vaudreuil) 100
plant - Quebec % 30 30 29 25 27 55 51
Rio Tinto percentage interest shown above is at 30 June 2023.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
------------------------------- --------- ----- ----- ----- ----- ------ ------ ------
ALUMINIUM
Primary Aluminium
Primary aluminium production
('000 tonnes)
Australia
100
Bell Bay smelter - Tasmania % 44 46 48 45 46 91 92
Boyne Island smelter - 59
Queensland % 103 110 114 117 123 226 240
Tomago smelter - New South 52
Wales % 145 148 147 145 146 291 291
Canada
100
Alma smelter - Quebec % 121 122 122 120 121 237 241
Alouette (Sept-Îles) 40
smelter - Quebec % 157 159 158 156 159 311 314
100
Arvida smelter - Quebec % 42 43 44 43 43 84 85
100
Arvida AP60 smelter - Quebec % 14 15 15 14 14 28 29
Bécancour smelter 25
- Quebec % 117 116 116 115 118 228 232
100
Grande-Baie smelter - Quebec % 58 59 58 57 57 115 114
Kitimat smelter - British 100
Columbia % 26 38 57 72 92 50 165
Laterrière smelter 100
- Quebec % 63 64 64 61 62 125 123
Iceland
100
ISAL (Reykjavik) smelter % 50 51 52 51 52 100 103
New Zealand
79
Tiwai Point smelter % 83 85 85 83 83 166 166
Oman
20
Sohar smelter % 98 100 100 98 99 195 197
Rio Tinto percentage interest shown above is at 30 June 2023.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
--------------------------------- --------- ------ ------ ------ ------ ------ ------ ------
BAUXITE
Bauxite production ('000 tonnes)
Australia
100
Gove mine - Northern Territory % 2,637 2,905 2,874 2,579 2,739 5,731 5,317
100
Weipa mine - Queensland % 9,240 8,429 8,328 7,492 8,813 17,768 16,304
Brazil
Porto Trombetas (MRN) mine 12 % 2,569 3,275 3,256 2,288 2,724 4,569 5,012
Guinea
Sangaredi mine (a) 23 % 4,323 4,339 3,530 3,876 3,586 8,245 7,462
Rio Tinto share of bauxite
shipments
Share of total bauxite shipments
('000 tonnes) 14,054 13,294 13,561 12,264 13,603 27,930 25,867
Share of third party bauxite shipments
('000 tonnes) 9,599 9,049 9,233 7,880 9,159 19,734 17,039
(a) Rio Tinto has a 22.95% shareholding in the Sangaredi mine
but benefits from 45.0% of production.
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
---------------------------- ---------- -------- -------- -------- -------- -------- ------------ ------------
BORATES
100
Rio Tinto Borates - borates %
US
Borates ('000 tonnes) (a) 137 130 141 124 133 260 257
(a) Production is expressed as B(2) O(3) content.
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
----------------------------- --------- -------- -------- -------- -------- -------- ------------ ------------
COPPER & GOLD
Escondida 30 %
Chile
Sulphide ore to concentrator
('000 tonnes) 34,318 32,894 33,911 33,309 30,749 64,553 64,058
Average copper grade (%) 0.87 0.83 0.76 0.78 0.93 0.84 0.85
Mill production (metals in
concentrates):
Contained copper ('000
tonnes) 239.5 214.6 212.8 210.0 228.9 430.9 438.9
Contained gold ('000
ounces) 45.8 38.2 48.4 49.0 53.5 82.1 102.5
Contained silver ('000
ounces) 1,311 1,210 1,510 1,346 1,008 2,581 2,353
Recoverable copper in ore stacked
for leaching ('000 tonnes) (a) 34.8 35.8 30.4 31.0 29.1 70.7 60.2
Refined production from leach
plants:
Copper cathode production
('000 tonnes) 55.7 49.6 49.7 50.8 72.4 103.8 123.2
(a) The calculation of copper in material mined for leaching is
based on ore stacked at the leach pad.
Rio Tinto percentage interest shown above is at 30 June 2023.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
---------------------- --------- --------- --------- --------- --------- --------- ------------- -------------
COPPER & GOLD
(continued)
Kennecott
100
Bingham Canyon mine %
Utah, US
Ore treated ('000
tonnes) 6,862 10,125 10,449 7,405 5,339 16,991 12,744
Average ore grade:
Copper (%) 0.55 0.56 0.52 0.47 0.52 0.53 0.49
Gold (g/t) 0.17 0.16 0.14 0.12 0.16 0.18 0.14
Silver (g/t) 2.39 2.50 2.20 2.16 2.36 2.37 2.24
Molybdenum (%) 0.017 0.021 0.020 0.012 0.018 0.019 0.014
Copper concentrates
produced
('000 tonnes) 136 192 184 116 92 312 208
Average concentrate
grade
(% Cu) 24.9 26.2 25.6 26.1 26.8 26.0 26.4
Production of metals
in copper
concentrates:
Copper ('000 tonnes)
(a) 33.9 50.7 47.5 30.3 24.8 81.0 55.1
Gold ('000 ounces) 22.8 32.5 29.7 20.6 18.7 60.6 39.3
Silver ('000 ounces) 385 591 521 356 296 945 652
Molybdenum
concentrates produced
('000 tonnes): 0.9 1.8 2.0 0.1 0.6 2.9 0.7
Molybdenum in
concentrates
('000 tonnes) 0.4 0.8 1.1 0.1 0.3 1.5 0.4
Kennecott smelter & 100
refinery %
Copper concentrates
smelted
('000 tonnes) 152 166 194 200 41 365 241
Copper anodes produced
('000
tonnes) (b) 27.9 46.2 24.5 55.1 18.2 73.7 73.3
Production of refined
metal:
Copper ('000 tonnes)
(c) 32.7 39.2 36.1 43.6 14.4 72.9 58.1
Gold ('000 ounces)
(d) 20.9 30.5 30.3 22.0 19.2 53.1 41.2
Silver ('000 ounces)
(d) 290 571 512 432 329 867 761
(a) Includes a small amount of copper in precipitates.
(b) New metal excluding recycled material.
(c) We continue to process third party concentrate to optimise
smelter utilisation. There was no cathode produced from purchased
concentrate in 2023 year-to-date. Purchased and tolled copper
concentrates are excluded from reported production figures and
production guidance. Sales of cathodes produced from purchased
concentrate are included in reported revenues.
(d) Includes gold and silver in intermediate products.
Rio Tinto percentage interest shown above is at 30 June 2023.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
------------------- --------- ---------- ---------- ---------- ---------- ---------- ------------ ------------
COPPER & GOLD
(continued)
Oyu Tolgoi mine (a) 66 %
Mongolia
Ore Treated ('000
tonnes)
- Open Pit 9,225 10,141 8,900 9,613 8,809 18,545 18,421
Ore Treated ('000
tonnes)
- Underground 460 544 510 675 900 721 1,575
Ore Treated ('000
tonnes)
- Total 9,685 10,685 9,411 10,288 9,709 19,266 19,996
Average mill head
grades:
Open Pit
Copper (%) 0.39 0.40 0.41 0.43 0.41 0.39 0.42
Gold (g/t) 0.26 0.22 0.20 0.21 0.19 0.29 0.20
Silver (g/t) 1.12 1.28 1.14 1.16 1.10 1.19 1.13
Underground
Copper (%) 0.57 0.82 1.03 1.36 1.56 0.51 1.47
Gold (g/t) 0.24 0.22 0.29 0.35 0.38 0.22 0.36
Silver (g/t) 1.73 2.16 2.54 3.26 3.67 1.48 3.49
Total
Copper (%) 0.40 0.42 0.45 0.49 0.52 0.40 0.51
Gold (g/t) 0.26 0.22 0.21 0.22 0.21 0.29 0.21
Silver (g/t) 1.15 1.32 1.21 1.30 1.34 1.20 1.32
Copper concentrates
produced
('000 tonnes) 146.0 173.6 151.9 201.8 200.3 290.3 402.0
Average
concentrate
grade
(% Cu) 20.9 20.9 21.3 21.1 21.4 21.0 21.2
Production of
metals in
concentrates:
Copper in
concentrates
('000 tonnes) 30.6 36.3 32.3 42.6 42.8 60.8 85.4
Gold in
concentrates
('000
ounces) 47.6 42.7 34.2 44.1 40.3 106.8 84.4
Silver in
concentrates
('000 ounces) 201 256 204 266 268 412 534
Sales of metals in
concentrates:
Copper in
concentrates
('000 tonnes) 35.3 41.8 25.3 41.4 43.2 65.2 84.6
Gold in
concentrates
('000
ounces) 67.9 56.0 26.2 44.0 40.4 125.3 84.4
Silver in
concentrates
('000 ounces) 224 282 152 242 257 403 499
(a) On 16 December 2022, Rio Tinto completed the acquisition of
100% of Turquoise Hill Resources Ltd, increasing our ownership in
Oyu Tolgoi from 33.52% to 66%. From 1 January 2023, our share of
production has been updated to reflect this change.
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
-------------------- --------- ---------- ---------- ---------- ---------- ---------- ----------- ------------
DIAMONDS
100
Diavik Diamonds %
-------------------- --------- ---------- ---------- ---------- ---------- ---------- ----------- ------------
Northwest
Territories,
Canada
Ore processed
('000 tonnes) 537 590 535 427 446 1,033 873
Diamonds recovered
('000
carats) 1,149 1,192 1,319 954 970 2,140 1,924
Rio Tinto percentage interest shown above is at 30 June 2023.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production
('000 tonnes)
Hamersley mines (a) 52,636 56,650 61,339 54,433 55,004 100,315 109,437
Hope Downs 50 % 12,771 12,529 11,891 11,771 11,527 24,431 23,298
Robe River - Pannawonica
(Mesas J and A) 53 % 5,762 6,679 7,882 5,892 7,353 10,996 13,244
Robe River - West Angelas 53 % 7,474 8,484 8,347 7,200 7,368 14,604 14,568
Total production ('000 tonnes) 78,643 84,342 89,458 79,296 81,251 150,346 160,547
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Breakdown of total production:
Pilbara Blend and SP10 Lump
(b) 23,228 25,452 25,251 23,196 24,910 44,055 48,106
Pilbara Blend and SP10 Fines
(b) 36,220 38,709 41,158 36,537 37,108 67,314 73,645
Robe Valley Lump 2,226 2,621 3,103 2,143 2,808 4,208 4,952
Robe Valley Fines 3,536 4,058 4,779 3,748 4,544 6,788 8,293
Yandicoogina Fines (HIY) 13,433 13,501 15,168 13,672 11,880 27,981 25,552
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Breakdown of total shipments:
Pilbara Blend Lump 16,043 18,860 18,153 18,733 17,757 29,669 36,489
Pilbara Blend Fines 32,243 38,186 38,835 35,349 33,668 60,158 69,018
Robe Valley Lump 1,832 2,417 2,348 1,983 2,173 3,105 4,156
Robe Valley Fines 4,357 4,514 5,464 4,268 4,696 7,623 8,964
Yandicoogina Fines (HIY) 14,201 13,530 14,661 13,689 12,558 28,689 26,247
SP10 Lump (b) 4,456 1,647 2,824 1,686 1,652 8,283 3,338
SP10 Fines (b) 6,775 3,766 5,062 6,832 6,613 13,843 13,446
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Total shipments ('000 tonnes)
(c) 79,907 82,920 87,347 82,540 79,118 151,369 161,658
Rio Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Iron Ore Company of Canada 59 %
Newfoundland & Labrador and Quebec
in Canada
Saleable iron ore production:
Concentrates ('000 tonnes) 2,183 2,106 2,020 2,113 1,908 3,821 4,021
Pellets ('000 tonnes) 2,250 2,621 2,288 2,189 1,605 4,706 3,794
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IOC Total production ('000
tonnes) 4,433 4,727 4,308 4,302 3,513 8,527 7,816
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Shipments:
Concentrates ('000 tonnes) 1,845 2,241 1,999 1,676 2,124 2,867 3,800
Pellets ('000 tonnes) 2,527 2,457 1,764 1,947 2,302 4,932 4,248
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IOC Total Shipments ('000
tonnes) (c) 4,372 4,699 3,763 3,622 4,426 7,799 8,048
Global Iron Ore Totals
Iron Ore Production ('000
tonnes) 83,076 89,069 93,766 83,599 84,764 158,873 168,363
Iron Ore Shipments ('000
tonnes) 84,279 87,619 91,110 86,162 83,543 159,168 169,706
Iron Ore Sales ('000 tonnes)
(d) 86,108 89,689 89,650 88,490 85,601 165,302 174,091
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
(a) Includes 100% of production from Paraburdoo, Mt Tom Price,
Western Turner Syncline, Marandoo, Yandicoogina, Brockman,
Nammuldi, Silvergrass, Channar, Gudai-Darri and the Eastern Range
mines. Whilst Rio Tinto owns 54% of the Eastern Range mine, under
the terms of the joint venture agreement, Hamersley Iron manages
the operation and is obliged to purchase all mine production from
the joint venture and therefore all of the production is included
in Rio Tinto's share of production.
(b) SP10 includes other lower grade products.
(c) Shipments includes material shipped to our portside trading
facility in China which may not be sold onwards in the same
period.
(d) Include Pilbara and IOC sales adjusted for portside trading
movements and third party volumes sold.
Rio Tinto percentage interest shown above is at 30 June 2023.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio
Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest 2022 2022 2022 2023 2023 2022 2023
SALT
Dampier Salt 68 %
Western Australia
Salt production
('000 tonnes) 1,507 2,449 2,133 2,121 2,416 3,840 4,537
-------------------- --------- ---------- ---------- ---------- ---------- ---------- ------------ ------------
TITANIUM DIOXIDE
SLAG
Rio Tinto Iron & 100
Titanium %
Canada and South
Africa
(Rio Tinto share)
(a)
Titanium dioxide
slag ('000
tonnes) 293 310 323 285 303 566 589
-------------------- --------- ---------- ---------- ---------- ---------- ---------- ------------ ------------
(a) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio
Tinto's 74% interest in Richards Bay Minerals' production. Ilmenite
mined in Madagascar is being processed in Canada.
Rio Tinto percentage interest shown above is at 30 June 2023.
The data represents production and sales on a 100% basis unless
otherwise stated.
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END
DRLSFAEEAEDSEDW
(END) Dow Jones Newswires
July 19, 2023 02:00 ET (06:00 GMT)
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