REG - Rio Tinto - Second quarter production results
16/07/2024 07:15
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RNS Number : 4999W Rio Tinto PLC 16 July 2024
Rio Tinto releases second quarter production results
16 July 2024
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* Q2 vs Q2 vs Q1 H1 vs H1
2023
2024
2024 2024 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 and 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
(https://www.riotinto.com/en/news/releases/2024/long-term-future-for-new-zealands-tiwai-point-aluminium-smelter-secured-with-new-power-deals)
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.
( )
2024 guidance
Rio Tinto production share, unless otherwise stated 2023 Actuals H1 2024 2024 2024
Actuals Previous Current
Pilbara iron ore (shipments, 100% basis) (Mt) 331.8 158.3 323 to 338 Unchanged
Bauxite (Mt) 54.6 28.1 53 to 56 53 to 56(1)
Alumina (Mt) 7.5 3.5 7.6 to 7.9 7.0 to 7.3
Aluminium (Mt) 3.3 1.7 3.2 to 3.4 Unchanged
Mined copper (consolidated basis) (kt) 620 327 660 to 720 660 to 720(2)
Refined copper (kt) 175 125 230 to 260 Unchanged
Titanium dioxide slag (Mt) 1.1 0.5 0.9 to 1.1 Unchanged
IOC(3) iron ore pellets and concentrate (Mt) 9.7 4.8 9.8 to 11.5 Unchanged
Boric oxide equivalent (Mt) 0.5 0.2 ~0.5 Unchanged
(1) Around the top end.
(2) Around the bottom end.
(3) Iron Ore Company of Canada continues to be reported at Rio Tinto share.
• Guidance for 2024 alumina production has been reduced to 7.0 to
7.3 million tonnes (previously 7.6 to 7.9 million tonnes), as our Gladstone
operations continue to operate at reduced rates following the breakage of a
third party gas pipeline in March. We expect gas supplies from the pipeline to
return to normal levels by the end of 2024.
• Expectations for Pilbara iron ore shipments in 2024 remain at 323
to 338 million tonnes. SP10 levels are expected to remain elevated until
replacement projects are delivered. This guidance remains subject to the
timing of approvals for planned mining areas and heritage clearances.
• Iron ore shipments and bauxite production guidance remain subject
to weather impacts.
Operating costs
• Guidance for 2024 Pilbara iron ore unit cash costs is unchanged at
$21.75 to $23.50 per tonne (based on an average A$:US$ exchange rate of 0.66).
Pilbara iron ore unit cash costs in the first half of 2024 are expected to be
towards the top end of the full year guidance range, with shipments weighted
to the second half.
• Guidance for 2024 copper C1 unit costs is unchanged at 140 to 160
US cents/lb.
( )
Aluminium modelling
To assist with 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.
( )
Alumina refining
Production cash cost (%) FY 23 H1 24
Bauxite 31 32
Conversion 34 39
Caustic 22 17
Energy 13 12
Total 100 100
Input costs (nominal) H1 23 H2 23 H1 24 FY 24
Index price Index price Index price Annual cost sensitivity impact on underlying EBITDA
Caustic soda(1) ($/t) 424 369 376 $11m per $10/t
Natural gas(2) ($/mmbtu) 2.54 2.79 2.21 $4m per $0.10/GJ
Brent oil ($/bbl) 79.7 85.5 84 $2m per $10/bbl
(1)North East Asia FOB | (2)Henry Hub
Aluminium smelting
Production cash cost (%) FY 23 HY 24
Alumina 38 41
Power 18 19
Conversion 21 22
Carbon 21 16
Materials 2 2
Total 100 100
Input costs (nominal) H1 23 H2 23 H1 24 FY 24
Index price Index price Index price Annual cost sensitivity impact on underlying EBITDA
Alumina(1) ($/t) 352 335 400 $65m per $10/t
Petroleum coke(2) ($/t) 631 491 394 $11m per $10/t
Coal tar pitch(3) ($/t) 1,386 1,130 958 $3m per $10/t
(1)Australia FOB | (2)US Gulf FOB | (3)North America FOB
Investments, growth and development projects
• Pre-tax and pre-divestment expenditure on exploration and
evaluation charged to the income statement in 2024 was $487 million, compared
with $392 million in 2023, on the same basis (excluding Simandou spend, which
was $318 million in the first half of 2023). Approximately 24% of the spend
was by central exploration, 36% by minerals (with the majority focusing on
lithium), 27% by copper, 12% by iron ore and 1% by aluminium. In 2024, all
qualifying expenditure relating to Simandou is being capitalised.
Pilbara projects
• Construction of our Western Range mine is now 70% complete, with
the development of the initial mining area completed during the quarter. We
continue to focus on construction of the greenfield crushing and screening
plant, and Paraburdoo plant tie-in, with first ore from that new system on
plan for 2025.
• We continue to advance our next tranche of Pilbara mine
replacement studies including Hope Downs 1 (Hope Downs 2 and Bedded Hilltop),
Brockman 4 (Brockman Syncline 1), Greater Nammuldi and West Angelas projects.
Early works have commenced at Hope Downs 1. Project timelines remain subject
to timing of approvals and heritage clearances with the Greater Nammuldi
project starting to diverge from the original development schedule.
• The Rhodes Ridge pre-feasibility study (PFS) continues to progress
with good engagement with Traditional Owners and government. The PFS, which is
targeting an initial capacity of up to 40 million tonnes per year, subject to
relevant approvals, is expected to be completed in 2025. First ore is expected
by the end of the decade.
• The Coastal Water desalination project received State Agreement
approval in May 2024 allowing for commencement of early works. The $395
million plant will provide water to our port operations in Dampier. At full
capacity, it will produce approximately 4GL/year to reduce draw from the
Bungaroo aquifer to sustainable levels.
Oyu Tolgoi underground project
• The sinking of ventilation Shafts 3 and 4 was completed in April
following the breakthrough to surface. Both shafts remain on track to be
commissioned in the second half of 2024.
• Construction works for the conveyor to surface continued to plan
and were 97% complete at the end of the quarter. Commissioning remains on
track for the second half of 2024.
• Construction works for the concentrator conversion remains on
schedule. Commissioning is expected to be progressively completed from the
fourth quarter of 2024 through to the second quarter of 2025.
• Construction of primary crusher 2 is progressing to plan and
remains on track to be completed by the end of 2025.
Simandou iron ore project
• 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. Our transaction to implement a joint venture to
co-develop the rail and port infrastructure with Winning Consortium Simandou
(WCS)(1) is now unconditional and expected to close during the week of 15
July.
• The Simfer mine(2) is on track to deliver first production in
2025, ramping up over 30 months to an annualised capacity of 60 million tonnes
per year(3) (27 million tonnes per year Rio Tinto share).
• For the Simfer mine, work on support facilities, including camps,
roads, and water and waste facilities is progressing well. With 8,500 workers
on site for the Simfer mine and Simfer-managed scope of the co-developed
infrastructure, the focus for the second half of the year is bulk earthworks,
construction of the stockyard and rail loop, installation of early ore
crushers and mobilisation of primary crusher construction teams.
• During the second quarter, for the Simfer infrastructure scope, we
completed preparatory work on the bridge foundations which will be used to
construct the railway spur. All infrastructure contracts have now been
awarded. The focus for the Simfer scope of rail and port for the remainder of
the year is to advance construction for the earthworks, tunnels, piers,
culverts, transhipment vessel (TSV) wharf and port facilities.
• Biodiversity monitoring continues with several local communities,
as do our rehabilitation efforts with 7,000 trees propagated in the Canga
nursery. Our community commitments continue, and include two completed
programs on education and land use, in addition to ten ongoing projects to
promote social, infrastructure and economic development.
Other key projects and exploration and evaluation
• At Complexe Jonquière in Quebec, Canada, AP60 expansion
construction activities progressed, with the first prefabricated steel
structures delivered to site. Once completed, the project will add 96 new AP60
pots, increasing capacity by approximately 160,000 tonnes of primary aluminium
per year by the end of 2026. This new capacity, in addition to 30,000 tonnes
of new recycling capacity at Arvida expected to open in the fourth 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 Kennecott, first production from the Lower Commercial Skarn
(LCS) area was achieved in June 2024, marking the mine's return to underground
production after more than four decades. The LCS is expected to deliver about
30,000 tonnes of mined copper through to 2027 alongside open cut operations.
Activities continued on the North Rim Skarn (NRS) underground development and
infrastructure. Production from the NRS is forecast to commence around
mid-year 2025 with a production target of approximately 250,000 tonnes through
to 2033(4).
• At the Resolution Copper project in Arizona, the Ninth Circuit
Court of Appeals denied Apache Stronghold's request to further hear their case
to stop the land exchange between Resolution Copper and the federal
government. It is anticipated that Apache Stronghold will file a petition this
fall for the case to be heard by the U.S. Supreme Court. We continue to
progress the Final Environmental Impact Statement (FEIS) with the United
States Forest Service (USFS), but they have yet to advise on the date of
re-publication. We also advanced partnership discussions with
federally-recognised Native American Tribes who are part of the formal
consultation process. 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 concerns.
• Rio Tinto continues to work with the Traditional Owners to
progress the Winu copper-gold project, which remains subject to all of the
required approvals. Drilling, studies and fieldwork to advance the key
environmental permitting and Project Agreement negotiations with Nyangumarta
and the Martu remain our priority.
• Nuton, Rio Tinto's copper heap leaching technology venture,
continues to develop its path towards deployment, with nine partnerships in
four countries: United States, Chile, Peru and Argentina. In May, Excelsior
announced the execution of an agreement with Nuton to build an industrial
scale demonstration heap that is expected to produce first Nuton copper in the
first half of 2025.
• The Constitutional Court of Serbia has issued a decision that
states the 2022 decree to abolish the Jadar project spatial plan was
unconstitutional and illegal. We welcome this decision and continue to believe
that the Jadar project has the potential to be a world-class lithium-borates
asset that could act as a catalyst for the development of other industries and
thousands of jobs for the current and future generations in Serbia. We are
focused on consultation with all key stakeholders, including providing
comprehensive factual information about the project. To support a public
dialogue, we recently released the draft Environmental Impact Assessment
studies which provide insights into the project's potential environmental
impacts and the proposed mitigation actions. Independent Serbian and
international experts have confirmed the Jadar project can be implemented
safely in line with the highest environmental standards.
• At the Rincon lithium project in Argentina, development of the
three thousand tonne per annum lithium carbonate starter plant continues to
progress to plan with civil concrete work completed and all steel, cable and
piping on site, and being progressively installed. An additional 400-bed camp
facility has also been constructed, bringing the total number of new beds on
site to 900. Commissioning planning is advancing and we continue to expect
first production from the starter plant by the end of 2024. We expect to
complete the feasibility study for the full-scale operation in the third
quarter of 2024. 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.
(1) WCS is the holder of Simandou North Blocks 1 & 2 (with the Government
of Guinea holding a 15% interest in the mining vehicle and WCS holding 85%)
and associated infrastructure. WCS was originally held by WCS Holdings, a
consortium of Singaporean company, Winning International Group (50%) and
Weiqiao Aluminium (part of the China Hongqiao Group) (50%). On 19 June 2024,
Baowu Resources completed the acquisition of a 49% share of the WCS mine and
infrastructure projects, with WCS Holdings owning the remaining 51%. In the
case of the mine, Baowu also has an option to increase to 51% during
operations. After Closing, Simfer will hold 34% of the shares in the WCS
infrastructure entities during construction with WCS holding the remaining
66%.
(2) Simfer Jersey Limited is a joint venture between the Rio Tinto Group (53%)
and Chalco Iron Ore Holdings Ltd (CIOH) (47%), a Chinalco-led joint venture of
leading Chinese SOEs (Chinalco (75%), Baowu (20%), China Rail Construction
Corporation (2.5%) and China Harbour Engineering Company (2.5%)). Simfer S.A.
is the holder of the mining concession covering Simandou Blocks 3 & 4, and
is owned by the Guinean State (15%) and Simfer Jersey Limited (85%). Simfer
Infraco Guinée S.A.U. will deliver Simfer's scope of the co-developed rail
and port infrastructure, and is, on the date of this notice, a wholly-owned
subsidiary of Simfer Jersey Limited, but will be co-owned by the Guinean State
(15%) after closing of the co-development arrangements. Simfer Jersey will
ultimately own 42.5% of Compagnie du Transguinéen, which will own and operate
the co-developed infrastructure during operations.
(3) The estimated annualised capacity of approximately 60 million dry tonnes
per annum iron ore for the Simandou life of mine schedule was previously
reported in a release to the ASX dated 6 December 2023 titled "Investor
Seminar 2023". Rio Tinto confirms that all material assumptions underpinning
that production target and those production profiles continue to apply and
have not materially changed.
(4) The LCS production target of around 30 thousand tonnes of additional mined
copper over the period to 2027 and the NRS production target of around 250
thousand tonnes of additional mined copper over ten years (2023 to 2033) at
Kennecott were previously reported in a release to the Australian Securities
Exchange (ASX) dated 20 June 2023 titled "Rio Tinto invests to strengthen
copper supply in US". Rio Tinto confirms that all material assumptions
underpinning that production targets continue to apply and have not materially
changed.
Sustainability highlights
During the second quarter, we continued to work on the Everyday Respect
recommendations. As part of this, we commenced our independently led Progress
Review. The outcomes will enable us to understand where our actions have had
the most impact and where we need to focus on our journey of culture change to
continue to create a safe, respectful and inclusive organisation. We expect to
receive the final report in the fourth quarter of 2024 and will subsequently
make this publicly available.
In May, we published our 2023 Statement on Modern Slavery
(https://www.riotinto.com/en/invest/reports/modern-slavery) , which is our
eighth report under Australian modern slavery reporting legislation, our
fourth report under UK legislation and our first report under Canadian
legislation. The statement highlights the steps we are taking to identify and
address modern slavery risks in our global business, the communities in which
we operate and across our supply chains.
Communities & Social Performance (CSP)
Key highlights from the second quarter include:
3
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-manage-the-ranger-rehabilitation-project-for-era)
April 2024 | Rio Tinto to manage the Ranger Rehabilitation
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-manage-the-ranger-rehabilitation-project-for-era)
Project for ERA
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-manage-the-ranger-rehabilitation-project-for-era)
8 April 2024 | Yinhawangka People and Rio Tinto partner to co-design 'Living
Cultures Program'
(https://www.riotinto.com/en/news/releases/2024/yinhawangka-people-and-rio-tinto-partner-to-co-design-living-cultures-program)
12 April 2024 | Rio Tinto celebrates WA businesses as regional and Indigenous
supplier spend grows
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-celebrates-wa-businesses-as-regional-and-indigenous-supplier-spend-grows)
18 April 2024
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-donates-1_5-million-to-support-the-people-and-community-of-grindavk-in-iceland)
| Rio Tinto donates $1.5 million to support the people and community of Gr
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-donates-1_5-million-to-support-the-people-and-community-of-grindavk-in-iceland)
indav
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-donates-1_5-million-to-support-the-people-and-community-of-grindavk-in-iceland)
í
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-donates-1_5-million-to-support-the-people-and-community-of-grindavk-in-iceland)
k in Iceland
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-donates-1_5-million-to-support-the-people-and-community-of-grindavk-in-iceland)
3 June 2024 | Rio T
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-marks-70-years-of-operations-in-kitimat)
into marks 70 ye
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-marks-70-years-of-operations-in-kitimat)
ars of operations
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-marks-70-years-of-operations-in-kitimat)
in
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-marks-70-years-of-operations-in-kitimat)
Kitimat
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-marks-70-years-of-operations-in-kitimat)
5 June 2024 | Rio Tinto invests $8 million in Pilbara conservation land
management
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-invests-8-million-in-pilbara-conservation-land-management)
Climate change, product stewardship and our value chain
We continued to make progress towards our 2030 goal of a 50% reduction in
emissions (Scope 1 and 2) during the quarter with the signing of 20-year
electricity arrangements backed by renewable electricity at NZAS, a
partnership with BHP to collaborate on battery-electric haul truck trials in
the Pilbara and a new renewable energy agreement at Richards Bay Minerals.
Subsequent to the end of the quarter, we also announced the construction of
two new solar farms on the Gove Peninsula to secure a more sustainable power
supply for our Gove operations and the region.
On steel decarbonisation, we have committed to developing a BioIron(TM)
R&D facility in Western Australia and, in aluminium, we continue to
develop and test ELYSIS(TM) technology, with a new demonstration plant
announced at our Arvida smelter in Quebec.
Further detail on these developments, and others in the second quarter, is
provided in the links below:
10 April 2024 | Rio Tinto
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-invest-in-the-worlds-best-technology-startups)
to invest in the world
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-invest-in-the-worlds-best-technology-startups)
'
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-invest-in-the-worlds-best-technology-startups)
s best technology sta
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-invest-in-the-worlds-best-technology-startups)
rtups
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-invest-in-the-worlds-best-technology-startups)
12 April 202
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-spends-more-than-a16_1-billion-with-suppliers-in-australia)
4 | Rio Tinto s
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-spends-more-than-a16_1-billion-with-suppliers-in-australia)
pends more than A$16.1 billion with suppliers in Australia
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-spends-more-than-a16_1-billion-with-suppliers-in-australia)
14 May 2024 | Rio Tinto IOC recognized with T
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-ioc-recognized-with-towards-sustainable-mining-tsm-environmental-excellence-award)
owards Sustainable Mining (TSM) Environmental Excellence
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-ioc-recognized-with-towards-sustainable-mining-tsm-environmental-excellence-award)
Award
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-ioc-recognized-with-towards-sustainable-mining-tsm-environmental-excellence-award)
27 May 2024
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-and-bhp-collaborate-on-battery-electric-haul-truck-trials-in-the-pilbara)
| Rio Tinto and BHP collaborate on ba
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-and-bhp-collaborate-on-battery-electric-haul-truck-trials-in-the-pilbara)
ttery-electric ha
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-and-bhp-collaborate-on-battery-electric-haul-truck-trials-in-the-pilbara)
ul truck tr
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-and-bhp-collaborate-on-battery-electric-haul-truck-trials-in-the-pilbara)
ials in the Pilbara
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-and-bhp-collaborate-on-battery-electric-haul-truck-trials-in-the-pilbara)
31 May 2024 | Long-term future for New Zealand
(https://www.riotinto.com/en/news/releases/2024/long-term-future-for-new-zealands-tiwai-point-aluminium-smelter-secured-with-new-power-deals)
'
(https://www.riotinto.com/en/news/releases/2024/long-term-future-for-new-zealands-tiwai-point-aluminium-smelter-secured-with-new-power-deals)
s Tiwai P
(https://www.riotinto.com/en/news/releases/2024/long-term-future-for-new-zealands-tiwai-point-aluminium-smelter-secured-with-new-power-deals)
oint aluminium smelter secured with new power deal
(https://www.riotinto.com/en/news/releases/2024/long-term-future-for-new-zealands-tiwai-point-aluminium-smelter-secured-with-new-power-deals)
4 June 2024 | Rio Tinto to develop BioIron
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-develop-bioiron-rd-facility-in-western-australia-to-test-low-carbon-steelmaking)
(TM
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-develop-bioiron-rd-facility-in-western-australia-to-test-low-carbon-steelmaking)
) R&D facili
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-develop-bioiron-rd-facility-in-western-australia-to-test-low-carbon-steelmaking)
ty in Western A
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-develop-bioiron-rd-facility-in-western-australia-to-test-low-carbon-steelmaking)
ustralia to test low-carbon steelmaking
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-develop-bioiron-rd-facility-in-western-australia-to-test-low-carbon-steelmaking)
6 June 2024 | Richards Bay Miner
(https://www.riotinto.com/en/news/releases/2024/richards-bay-minerals-signs-agreement-for-an-additional-140-mw-of-renewable-energy)
als signs agreement for an additional 140 MW of
(https://www.riotinto.com/en/news/releases/2024/richards-bay-minerals-signs-agreement-for-an-additional-140-mw-of-renewable-energy)
renewable energy
(https://www.riotinto.com/en/news/releases/2024/richards-bay-minerals-signs-agreement-for-an-additional-140-mw-of-renewable-energy)
28 June 2024
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-install-carbon-free-aluminium-smelting-cells-using-first-elysistm-technology-licence)
| Rio Tinto to install carbon free aluminium smelting cells using
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-install-carbon-free-aluminium-smelting-cells-using-first-elysistm-technology-licence)
first ELYSIS
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-install-carbon-free-aluminium-smelting-cells-using-first-elysistm-technology-licence)
(TM
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-install-carbon-free-aluminium-smelting-cells-using-first-elysistm-technology-licence)
) technology licence
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-install-carbon-free-aluminium-smelting-cells-using-first-elysistm-technology-licence)
3 July 2024
(https://www.riotinto.com/en/news/releases/2024/two-new-solar-farms-for-gove-peninsula-as-rio-tinto-works-to-secure-more-sustainable-power)
| Two new solar farms for Gove Peninsula as Rio Tinto works to
(https://www.riotinto.com/en/news/releases/2024/two-new-solar-farms-for-gove-peninsula-as-rio-tinto-works-to-secure-more-sustainable-power)
secure more sust
(https://www.riotinto.com/en/news/releases/2024/two-new-solar-farms-for-gove-peninsula-as-rio-tinto-works-to-secure-more-sustainable-power)
ainable p
(https://www.riotinto.com/en/news/releases/2024/two-new-solar-farms-for-gove-peninsula-as-rio-tinto-works-to-secure-more-sustainable-power)
ower
(https://www.riotinto.com/en/news/releases/2024/two-new-solar-farms-for-gove-peninsula-as-rio-tinto-works-to-secure-more-sustainable-power)
Our markets
The global economy remains resilient - industrial production is recovering,
China's manufacturing growth is intact and the outlook for the US economy has
improved through the year. Geopolitical tensions and monetary policy settings
remain near-term global economic risks.
• China's economy continues to be supported by a manufacturing
recovery and more resilient exports. The government has provided additional
measures for the property market to destock the large inventory overhang;
however, housing activity remains weak. Disinflation pressures persist amidst
muted domestic demand, while manufacturing faces risks of overcapacity in some
sectors and increasing tariffs from external markets.
• The US services sector continued to outperform manufacturing, with
healthy consumer spending and modest construction investment. The labour
market, resilient in the first half, is showing early signs of weakening.
Similarly, latest inflation data shows further moderation, providing leeway
for interest rate cuts in the second half.
• The eurozone economic outlook remains uncertain. The pace of
recovery is uneven, with Germany lagging given weakness in its manufacturing
sector. The eurozone monthly composite PMI expanded consecutively during the
quarter, but this has been driven by services, as manufacturing PMIs continue
to be in contraction for most countries in the region.
• Iron ore prices increased by 4% over the quarter, while the average
monthly price in the second quarter of $112/dmt (Platts CFR 62% Fe index) was
9% lower than the first quarter. In the two-month period of April to May,
China's crude steel production contracted by 5% year-on-year, despite a 16%
year-on-year increase in its steel exports. As a result, domestic steel
consumption in the period declined by 7% year-on-year from the corresponding
two-month period of 2023. Meanwhile, strong seaborne supply maintained China's
monthly average iron ore imports at almost 110 million tonnes in the quarter
and portside inventories increased by 5 million tonnes to 149 million tonnes
during the period. Lump premiums recovered strongly during the same period,
while iron ore fines price relativities widened.
• The LME aluminium price increased by 9% over the quarter, while the
average price rose 15% from the first quarter to $2,520/t. Aluminium demand
growth eased in the US and Canada and stabilised in Europe, albeit at a low
level. On the supply side, Chinese smelting production rose to an annualised
rate of over 43 million tonnes in June, following restarts in Yunnan province
and commissioning of new capacity, and is now close to the 45 million tonne
cap. Global reported aluminium inventories increased over the quarter, but
remain at low levels historically, supporting market premiums. Alumina prices
rose firmly over the quarter on refinery disruptions outside China and
constrained bauxite supply to refineries in China. Chinese import bauxite
prices remained strong on firm demand.
• The LME copper price increased by 9% over the quarter, with the
average price up 16% quarter-on-quarter to $4.42/lb. Chinese copper demand
growth slowed moderately into the second quarter, as rising prices temporarily
hit demand. Elsewhere, demand has stabilised in developed markets, with a
notable decline in US inventories. Globally, exchange inventories have
increased but remain low on a historic basis. The copper concentrate market
remains tight, which is reflected in historically low smelting and refining
charges (TCRCs).
• Lithium prices remained subdued over the second quarter as demand
growth continues to slow from very high rates amid robust supply growth in key
producing countries. In the first five months of this year, global EV sales
rose 21% year-on-year, compared to 40% over the same period in 2023. Europe
and the US witnessed particularly weak growth (up ~6% year-on-year) due to the
pull-back in EV subsidies and a high interest rate environment. On the supply
side, upstream inventories are building and projects in Africa, Australia and
China continue to progress despite softening lithium prices.
• Underlying demand for titanium dioxide feedstocks remains soft,
especially from paints and coatings due to weak property markets. Inventory is
building downstream after re-stocking in the first quarter and early second
quarter. The European Commission proceeded with provisional anti-dumping
duties against Chinese titanium dioxide importers. The proposal to impose
close to 40% duties on Chinese titanium dioxide may curtail exports to the EU,
but is likely to push more Chinese exports into other markets, particularly
Asia. Meanwhile, temporary pigment production outages in May and June resulted
in lower feedstock consumption.
• The borates market is recovering from supply chain disruptions
surrounding the Red Sea and is returning to a well-supplied position. Some
sectors are showing signs of gradual recovery, including South American
agriculture and industrial-related applications (textile, fibreglass). Demand
from the US construction sector has been robust to date, while demand from
China's construction sector remains weak.
Average realised prices achieved for our major commodities
Units H1 2024 Q2 2024 Q1 2024 H1 2023 2023
Pilbara iron ore FOB, $/wmt 97.3 92.1 102.6 98.6 99.7
Pilbara iron ore* FOB, $/dmt 105.8 100.1 111.5 107.2 108.4
Aluminium** Metal $/t 2,746 2,910 2,587 2,866 2,738
Copper*** US c/lb 419 446 387 396 390
IOC pellets FOB $/wmt 153.9 147.7 159.9 154.7 155.0
*Assuming 8% moisture.
**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 positively impacted
revenues in the first half by $93 million (first half 2023 negative impact of
$10 million).
Iron Ore
Rio Tinto share of production (Million tonnes) Q2 vs Q2 vs Q1 H1 vs H1
2023
2024
2024 2024 2023
Pilbara Blend and SP10 Lump(1) 20.8 -1% +5% 40.7 0%
Pilbara Blend and SP10 Fines(1) 31.3 -1% +5% 61.1 -2%
Robe Valley Lump 1.5 +4% +1% 3.1 +17%
Robe Valley Fines 2.6 +10% -3% 5.4 +22%
Yandicoogina Fines (HIY) 11.2 -5% -7% 23.4 -9%
Total Pilbara production 67.5 -2% +2% 133.6 -2%
Total Pilbara production (100% basis) 79.5 -2% +2% 157.4 -2%
Rio Tinto share of shipments (Million tonnes) Q2 vs Q2 vs Q1 H1 vs H1
2023
2024
2024 2024 2023
Pilbara Blend Lump 12.5 -15 % -3% 25.3 -17%
Pilbara Blend Fines 24.7 -10 % +7% 47.9 -15%
Robe Valley Lump 1.3 +16 % +9% 2.6 +16%
Robe Valley Fines 3.1 +24 % +5% 6.0 +27%
Yandicoogina Fines (HIY) 11.4 -10 % -7 % 23.6 -10%
SP10 Lump(1) 5.1 +207 % +13 % 9.5 +186%
SP10 Fines(1) 8.2 +24 % -11 % 17.4 +30%
Total Pilbara shipments(2) 66.2 -1 % 0 % 132.3 -3%
Total Pilbara shipments (100% basis)(2) 80.3 +2 % +3 % 158.3 -2 %
Total Pilbara Shipments (consolidated basis)(2, 3) 68.3 0 % +1 % 136.2 -3%
Production figures are sometimes more precise than the rounded numbers shown,
hence small rounding differences may appear.
(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 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.
SP10 volumes accounted for 17%(1) of shipments in the second quarter, in line
with the first quarter of 2024.
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 25% 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 2024 was $97.3 per wet metric
tonne ($98.6 in the first half of 2023) on an FOB basis (equivalent to $105.8
per dry metric tonne, with an 8% moisture assumption). This compares to the
average first half price for the monthly average Platts index for 62% iron
fines converted to a FOB basis of $106.0 per dry metric tonne.
China Portside Trading
Our iron ore portside sales in China were 14.0 million tonnes in the first
half of 2024 (11.9 million tonnes in the first half of 2023). At the end of
June, inventory levels were 6.1 million tonnes (6.4 million tonnes at the end
of December 2023), including 3.2 million tonnes of Pilbara product. In the
first half of 2024, 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
Rio Tinto share of production ('000 tonnes) Q2 vs Q2 vs Q1 H1 vs H1
2023
2024
2024 2024 2023
Bauxite 14,723 +9% +10% 28,142 +10%
Bauxite third party shipments 10,691 +17% +26% 19,187 +13%
Alumina 1,676 -10% -10% 3,540 -5%
Aluminium 824 +1% 0 % 1,650 +3 %
Recycled aluminium 70 n/a -6 % 144 n/a
Bauxite
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, 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.
We shipped 10.7 million tonnes of bauxite to third parties in the second
quarter, 17% higher than the same period of 2023.
Alumina
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. Gas
supplies are currently meeting ~90% of our requirements and are expected to
return to normal levels by the end of 2024. 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).
The gas pipeline outage has reduced our third party sales but there has been
no impact on our aluminium production. As a result, our net long alumina
position in the first half of 2024 was only 0.1 million tonnes.
As the result of sanction measures by the Australian Government, Rio Tinto has
taken on 100% of capacity of Queensland Alumina Limited (QAL) for as long as
the sanctions continue. 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 1% higher than the second
quarter of 2023. Our smelters continued to demonstrate stable performance
during the quarter, with ISAL returning to 100% capacity after reducing its
electricity load following volcanic eruptions in the prior quarter.
Average realised aluminium prices including premiums for value-added products
(VAP) decreased 4% to $2,746 per tonne in the first half of 2024 (first half
2023: $2,866 per tonne). The LME price increased by 1% to $2,358 per tonne
(first half 2023: $2,329 per tonne), whilst the mid-west premium duty paid
declined 28% to $417 per tonne in the first half of 2024 (first half 2023:
$583 per tonne), which is 59% of our total volumes (56% in the first half of
2023). Our VAP sales decreased to 45% of primary metal sold in the first half
of 2024 (first half 2023: 47%). Product premiums for VAP sales decreased,
averaging $287 per tonne of VAP sold (first half 2023: $377 per tonne).
On 11 June, we announced
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-to-acquire-mitsubishis-11_65-stake-in-boyne-aluminium-smelter)
that we will acquire Mitsubishi Corporation's 11.65% interest in Boyne
Smelters Ltd (BSL), which owns and operates the Boyne Island aluminium
smelter. Earlier in the quarter, we also announced
(https://www.riotinto.com/en/news/releases/2024/long-term-future-for-new-zealands-tiwai-point-aluminium-smelter-secured-with-new-power-deals)
that we will acquire SCC's 2.46% interest in BSL. On completion of these
transactions, Rio Tinto's interest in BSL will increase to 73.5%.
In addition, on 18 June, we announced
(https://www.riotinto.com/en/news/releases/2024/rio-tinto-invests-to-maintain-anode-production-at-grande-baie-smelter)
that we will invest $165 million in our Grande-Baie smelter to refurbish two
anode baking furnaces that have reached the end of their useful life.
Recycled aluminium
Rio Tinto's share of production from Matalco was 70 thousand tonnes in the
second quarter (139 thousand tonnes on a 100% basis), as production was
impacted by weak market conditions in North America. Full year 2023 production
from Matalco was 582 thousand tonnes (on a 100% basis) of recycled aluminium
products.
Copper
Rio Tinto share of production ('000 tonnes) Q2 vs Q2 vs Q1 H1 vs H1
2023
2024
2024 2024 2023
Mined copper
Kennecott 32.3 +30% -1% 64.8 +18%
Escondida 86.4 +12% +12% 163.5 +9 %
Oyu Tolgoi (66% basis) 34.7 +23% +14% 65.1 +15%
Total mined copper production 153.3 +17% +9% 293.4 +12%
Total mined copper production (consolidated basis(1)) 171.2 +18% +10% 326.9 +13%
Refined copper
Kennecott 47.5 +229% -1% 95.3 +64%
Escondida 15.2 -30% +3% 29.9 -19%
(1) Includes Oyu Tolgoi and Kennecott on a 100% consolidated basis, and
Escondida on an equity share basis.
Kennecott
Mined copper production 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.
The change in ore type also impacted recoveries. 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 our 660 to 720 thousand
tonne range.
Refined copper production was 229% higher than the second quarter of 2023 and
1% lower than the prior quarter. The smelter continued normal operations,
processing both material from the mine and concentrate inventory, following
the largest rebuild of the smelter and refinery in Kennecott's history in
2023.
Escondida
Mined copper production was 12% higher than the second quarter of 2023 due to
a 7% improvement in concentrator feed grade to 0.99% (0.93% in second quarter
of 2023) as mining continued into higher grade zones, together with 12% higher
concentrator output. Refined copper production was 30% lower than the same
quarter of last year due to lower oxide ore grade and lower sulphide ore
stacking.
Oyu Tolgoi
Mined copper production increased 23% from the second quarter of 2023. We
continue to see good performance from the underground mine, with a total of
114 drawbells opened from Panel 0, including 14 during the quarter.
During the quarter, we delivered 1.5 million tonnes of ore milled from the
underground mine at an average copper head grade of 2.02% and 9.3 million
tonnes from the open pit with an average grade of 0.37%. This ramp-up remains
on track to reach 500 thousand tonnes of copper production per annum (100%
basis and stated as recoverable metal) for the Oyu Tolgoi underground and open
pit mines for the years 2028 to 2036 1 (#_ftn1) .
We expect to enter negotiations on a new Collective Labour Agreement in the
second half of the year. Our current agreement expires in April 2025.
Minerals
Rio Tinto share of production (million tonnes) Q2 vs Q2 vs Q1 H1 vs H1
2023
2024
2024 2024 2023
Iron ore pellets and concentrate
IOC 2.2 +6% -16% 4.8 +5%
Rio Tinto share of production ('000 tonnes) Q2 vs Q2 vs Q1 H1 vs H1
2023
2024
2024 2024 2023
Minerals
Borates - B(2)O(3) content 125 -6% +3% 246 -4%
Titanium dioxide slag 238 -22% -6% 492 -16%
Rio Tinto share of production ('000 carats) Q2 vs Q2 vs Q1 H1 vs H1
2023
2024
2024 2024 2023
Diavik 702 -28% -5% 1,441 -25%
Iron Ore Company of Canada (IOC)
Iron ore 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. Production is expected to be weighted
to the second half of 2024 supported by seasonal factors.
Shipments were 7% lower than the second quarter of 2023 due to low portside
inventories.
Borates
Borates production in the second quarter was 6% lower than the corresponding
period of 2023 but 3% higher than the previous quarter. Second quarter
production rates benefited from improved market demand and the re-start of the
plant during the first quarter, following completion of a scheduled shut in
December. These impacts were partially offset by unplanned plant downtime in
April.
Iron and Titanium
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).
Diamonds
At Diavik, carat production was 28% lower than the second quarter of 2023.
Production was impacted by the tragic plane crash earlier in the year, as well
as cessation of A21 open pit mining in the third quarter of 2023.
Exploration and evaluation
Pre-tax and pre-divestment expenditure on exploration and evaluation charged
to the income statement in 2024 was $487 million, compared with $392 million
in 2023 on the same basis (excluding Simandou, where spend for the first half
of 2023 was $318m). Approximately 24% of the spend was by central exploration,
36% by minerals (with the majority focusing on lithium), 27% by copper, 12% by
iron ore and 1% by aluminium. In 2024, all qualifying expenditure relating to
Simandou has been capitalised.
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 Chile,
Kazakhstan and Serbia, nickel in Brazil and Canada, lithium in Canada, US,
Chile, Rwanda and Australia, potash in Canada and heavy mineral sands (HMS) in
South Africa and Rwanda. Rio Tinto operated Nuevo Cobre joint venture copper
project in Chile continues to make good progress, with geological field
programs, environmental studies and community engagement ongoing. Mine-lease
exploration continued at Rio Tinto managed businesses including Bingham Canyon
in the US and Pilbara Iron Ore in Australia.
A summary of activity for the quarter is as follows:
Commodities Studies Stage Advanced projects Greenfield/ Brownfield programs
Bauxite Cape York, Australia
Battery Materials Rincon Lithium, Argentina Nickel Greenfield: Australia, Brazil, Canada, Finland
Lithium borates: Jadar, Serbia Lithium Greenfield: Australia, Brazil, Canada, Chile, China, Finland, Rwanda,
US
Nickel: Tamarack, US (3rd party operated)
Copper Copper/molybdenum: Resolution, US Copper: La Granja, Peru (3rd party operated) Copper Greenfield: Angola, Australia, Brazil, Canada, Chile, China, Colombia,
Kazakhstan, Laos, Peru, Papua New Guinea, Serbia, US, Zambia
Copper/Gold: Winu, Australia
Copper Brownfield: US (Bingham), Australia (Winu)
Diamonds Chiri, Angola
Iron Ore Pilbara, Australia Pilbara, Australia Greenfield and Brownfield: Pilbara, Australia
Minerals Potash: KL262 (3rd party operated), Canada Texas, Canada (potash), Kamiesberg, South Africa (HMS) (3rd party operated),
Kasiya, Malawi (rutile-graphite) (3rd party operated)
HMS: Mutamba, Mozambique
( )
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 report, 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), are forward-looking statements.
The words "intend", "aim", "project", "anticipate", "estimate", "plan",
"believes", "expects", "may", "should", "will", "target", "set to" or similar
expressions, commonly identify such forward-looking statement.
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, particularly in light of the current economic
climate and the significant volatility, uncertainty and disruption arising in
connection with the Ukraine conflict. 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 include, but are not limited to: an inability to
live up to Rio Tinto's values and any resultant damage to its reputation; the
impacts of geopolitics on trade and investment; the impacts of climate change
and the transition to a low-carbon future; an inability to successfully
execute and/or realise value from acquisitions and divestments; the level of
new ore resources, including the results of exploration programs and/or
acquisitions; disruption to strategic partnerships that play a material role
in delivering growth, production, cash or market positioning; damage to Rio
Tinto's relationships with communities and governments; an inability to
attract and retain requisite skilled people; declines in commodity prices and
adverse exchange rate movements; an inability to raise sufficient funds for
capital investment; inadequate estimates of ore resources and reserves; delays
or overruns of large and complex projects; changes in tax regulation; safety
incidents or major hazard events; cyber breaches; physical impacts from
climate change; the impacts of water scarcity; natural disasters; an inability
to successfully manage the closure, reclamation and rehabilitation of sites;
the impacts of civil unrest; the impacts of the Ukraine conflict; breaches of
Rio Tinto's policies, standard and procedures, laws or regulations; trade
tensions between the world's major economies; increasing societal and investor
expectations, in particular with regard to environmental, social and
governance considerations; the impacts of technological advancements; and such
other risks 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. Forward-looking
statements should, therefore, be construed in light of such risk factors and
undue reliance should not be placed on forward-looking statements. These
forward-looking statements speak only as of the date of this report. 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. Past performance
cannot be relied on as a guide to future performance.
Contacts Please direct all enquiries to media.enquiries@riotinto.com
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United Kingdom
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Amar Jambaa
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Rio Tinto plc Rio Tinto Limited
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This announcement is authorised for release to the market by Andy Hodges, Rio
Tinto's Group Company Secretary.
riotinto.com
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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
2023 2024 2024 2023 2024 Q2 24 Q2 24 H1 2024
Q2 Q1 Q2 H1 H1 vs vs vs
Q2 23 Q1 24 H1 2023
Principal commodities
Alumina ('000 t) 1,861 1,864 1,676 3,720 3,540 -10 % 10 % -5 %
Aluminium (Primary) ('000 t) 814 826 824 1,598 1,650 +1% 0% +3%
Bauxite ('000 t) 13,492 13,418 14,723 25,581 28,142 + % +10% +10%
Borates ('000 t) 133 121 125 257 246 -6% +3% -4%
Copper - mined (consolidated) ('000 t) 145.0 155.8 171.2 290.2 326.9 +18 % +10% +13%
Copper - refined ('000 t) 36.2 62.5 62.7 95.0 125.2 +73% 0% +32%
Iron Ore ('000 t) 70,632 68,701 69,712 140,416 138,413 -1% +1% -1%
Titanium dioxide slag ('000 t) 303 254 238 589 492 -22 % -6% -16%
Other Metals & Minerals
Diamonds ('000 cts) 970 740 702 1,924 1,441 -28% -5 % -25%
Gold - mined ('000 oz) 61.4 66.6 67.1 125.7 133.6 +9% +1% +6%
Gold - refined ('000 oz) 19.2 35.3 39.7 41.2 75.0 +107% +82 %
+12 %
Molybdenum ('000 t) 0.3 0.7 0.6 0.4 1.3 +102 % -12 % +206 %
Salt ('000 t) 1,652 1,425 1,540 3,101 2,965 -7 % +8 % -4 %
Silver - mined ('000 oz) 775 973 1,072 1,710 2,046 +38 % +10 % +20 %
Silver - refined ('000 oz) 329 550 606 761 1,156 +84 % +10 % +52 %
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
2023
2023
2023
2024
2024
2023
2024
ALUMINA
Production ('000 tonnes)
Jonquière (Vaudreuil) 100 % 346 325 349 352 328 717 681
Jonquière (Vaudreuil) specialty Alumina plant 100 % 27 28 29 27 30 51 57
Queensland Alumina 80 % 677 720 664 675 602 1,309 1,277
São Luis (Alumar) 10 % 66 88 90 87 93 159 179
Yarwun 100 % 745 736 786 722 624 1,483 1,346
Rio Tinto total alumina production 1,861 1,897 1,919 1,864 1,676 3,720 3,540
ALUMINIUM
Primary production ('000 tonnes)
Australia - Bell Bay 100 % 46 47 47 47 47 92 93
Australia - Boyne Island 59 % 73 76 76 75 75 143 150
Australia - Tomago 52 % 75 77 77 73 75 150 148
Canada - six wholly owned 100 % 389 398 410 405 399 756 804
Canada - Alouette (Sept-Îles) 40 % 63 64 64 63 63 126 126
Canada - Bécancour 25 % 29 28 30 29 30 58 59
Iceland - ISAL (Reykjavik) 100 % 52 52 54 49 50 103 99
New Zealand - Tiwai Point 79 % 66 66 67 66 65 132 131
Oman - Sohar 20 % 20 20 20 20 20 39 40
Rio Tinto total primary aluminium production 814 828 846 826 824 1,598 1,650
Recycled production ('000 tonnes)
Matalco 50 % - - - 74 70 - 144
Rio Tinto total recycled aluminium production - - - 74 70 - 144
BAUXITE
Production ('000 tonnes) (a)
Gove 100 % 2,739 3,015 3,234 3,104 3,172 5,317 6,276
Porto Trombetas (b) 22 % 327 391 509 508 667 601 1,176
Sangaredi (c) 1,614 1,524 1,544 1,583 1,622 3,358 3,204
Weipa 100 % 8,813 9,010 9,811 8,224 9,262 16,304 17,486
Rio Tinto total bauxite production 13,492 13,940 15,098 13,418 14,723 25,581 28,142
(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 30 November 2023, Rio Tinto's ownership interest in Porto Trombetas
increased from 12% to 22%. Production is reported including this change from 1
December 2023.
(c) 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
2023
2023
2023
2024
2024
2023
2024
BORATES
Production ('000 tonnes B(2)O(3) content)
Rio Tinto Borates - borates 100 % 133 127 111 121 125 257 246
COPPER
Mine production ('000 tonnes) (a)
Bingham Canyon 100 % 24.8 48.8 47.8 32.5 32.3 55.1 64.8
Escondida 30 % 77.4 78.6 71.6 77.2 86.4 149.7 163.5
Oyu Tolgoi 66 % 28.3 27.7 26.8 30.4 34.7 56.4 65.1
Rio Tinto total mine production 130.5 155.1 146.2 140.1 153.3 261.1 293.4
Rio Tinto total mine production - consolidated basis 145.0 169.4 160.0 155.8 171.2 290.2 326.9
Refined production ('000 tonnes)
Escondida 30 % 21.7 15.6 14.1 14.7 15.2 37.0 29.9
Kennecott (b) 100 % 14.4 18.5 32.0 47.8 47.5 58.1 95.3
Rio Tinto total refined production 36.2 34.1 46.1 62.5 62.7 95.0 125.2
(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) We continue to process third party concentrate to optimise smelter
utilisation, including 1.6 thousand tonnes of cathode produced from purchased
concentrate in 2024 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)
Diavik 100% 970 757 659 740 702 1,924 1,441
GOLD
Mine production ('000 ounces) (a)
Bingham Canyon 100 % 18.7 32.0 33.5 26.7 22.5 39.3 49.2
Escondida 30% 16.1 14.4 14.6 11.7 13.6 30.7 25.3
Oyu Tolgoi 66% 26.6 33.8 27.5 28.2 30.9 55.7 59.2
Rio Tinto total mine production 61.4 80.2 75.6 66.6 67.1 125.7 133.6
Refined production ('000 ounces)
Kennecott (b) 20.6 35.3 39.7 41.2 75.0
(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) We continue to process third party concentrate to optimise smelter
utilisation, including 1.6 thousand tonnes of cathode produced from purchased
concentrate in 2024 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.
Rio Tinto share of production
Rio Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
2024
interest 2023 2023 2023 2024 2024 2023
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines (b) 55,004 57,322 59,138 53,373 54,691 109,437 108,064
Hope Downs 50% 5,763 5,519 6,074 5,081 5,044 11,649 10,125
Iron Ore Company of Canada 59 % 2,063 2,384 2,703 2,613 2,185 4,589 4,798
Robe River - Pannawonica (Mesas J and A) 53% 3,897 4,106 4,330 4,245 4,186 7,020 8,431
Robe River - West Angelas 53% 3,905 3,910 4,269 3,388 3,607 7,721 6,995
Rio Tinto iron ore production ('000 tonnes) 70,632 73,241 76,514 68,701 69,712 140,416 138,413
Breakdown of Production:
Pilbara Blend and SP10 Lump (c) 21,042 21,418 22,228 19,885 20,828 40,654 40,714
Pilbara Blend and SP10 Fines (c) 31,750 31,700 33,485 29,836 31,277 62,601 61,114
Robe Valley Lump 1,488 1,665 1,592 1,534 1,546 2,624 3,080
Robe Valley Fines 2,409 2,441 2,739 2,711 2,640 4,395 5,351
Yandicoogina Fines (HIY) 11,880 13,633 13,768 12,122 11,235 25,552 23,357
Pilbara iron ore production ('000 tonnes) 68,569 70,857 73,811 66,088 67,527 135,827 133,615
IOC Concentrate 1,120 1,137 1,298 1,130 930 2,361 2,060
IOC Pellets 943 1,247 1,405 1,483 1,255 2,228 2,738
IOC iron ore production ('000 tonnes) 2,063 2,384 2,703 2,613 2,185 4,589 4,798
Breakdown of Shipments:
Pilbara Blend Lump 14,691 14,812 14,533 12,844 12,463 30,380 25,307
Pilbara Blend Fines 27,474 25,375 23,706 23,168 24,702 56,002 47,870
Robe Valley Lump 1,152 1,297 1,506 1,223 1,337 2,203 2,560
Robe Valley Fines 2,489 2,706 3,054 2,943 3,095 4,751 6,038
Yandicoogina Fines (HIY) 12,558 13,669 13,628 12,228 11,364 26,247 23,592
SP10 Lump (c) 1,652 4,180 4,620 4,474 5,071 3,338 9,544
SP10 Fines (c) 6,613 9,699 12,208 9,221 8,218 13,446 17,439
Pilbara iron ore shipments ('000 tonnes) (d) 66,629 71,736 73,255 66,100 66,250 136,367 132,350
Pilbara iron ore shipments - consolidated basis ('000 tonnes) (d) (f) 68,322 73,553 75,058 67,910 68,281 139,827 136,191
IOC Concentrate 1,247 1,232 1,196 1,162 986 2,231 2,147
IOC Pellets 1,352 1,066 1,369 1,493 1,438 2,495 2,931
IOC Iron ore shipments ('000 tonnes) (d) 2,599 2,298 2,565 2,654 2,423 4,726 5,078
Rio Tinto iron ore shipments ('000 tonnes) (d) 69,228 74,034 75,820 68,755 68,673 141,093 137,428
Rio Tinto iron ore sales ('000 tonnes) (e) 71,678 74,488 76,269 69,356 71,920 145,951 141,275
(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, Eastern Range and Western Range mines. Whilst Rio Tinto owns
54% of the Eastern Range and the Western Range mines, 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
2024
interest 2023 2023 2023 2024 2024 2023
MOLYBDENUM
Mine production ('000 tonnes) (a)
Bingham Canyon 100 0.3 0.6 0.8 0.7 0.6 0.4 1.3
%
(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% 1,652 1,434 1,438 1,425 1,540 3,101 2,965
SILVER
Mine production ('000 ounces) (a)
Bingham Canyon 100% 296 462 504 370 368 652 738
Escondida 30% 302 350 420 398 465 706 863
Oyu Tolgoi 66% 17 189 176 205 239 352 444
Rio Tinto total mine production 775 1,001 1,100 973 1,072 1,710 2,046
Refined production ('000 ounces)
Kennecott (b) 100% 329 240 406 550 606 761 1,156
(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) We continue to process third party concentrate to optimise smelter
utilisation, including 1.6 thousand tonnes of cathode produced from purchased
concentrate in 2024 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.
TITANIUM DIOXIDE SLAG
Production ('000 tonnes)
Rio Tinto Iron & Titanium (a) 100 % 303 247 275 254 238 589 492
(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 2024.
Rio Tinto operational data
Rio Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
interest
2023
2023
2023
2024
2024
2023
2024
ALUMINA
Smelter Grade Alumina - Aluminium Group
Alumina production ('000 tonnes)
Australia
Queensland Alumina Refinery - Queensland 80 % 846 900 830 844 752 1,637 1,597
Yarwun refinery - Queensland 100 % 745 736 786 722 624 1,483 1,346
Brazil
São Luis (Alumar) refinery 10 % 657 883 899 867 926 1,593 1,793
Canada
Jonquière (Vaudreuil) refinery - Quebec (a) 100 % 346 325 349 352 328 717 681
(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) plant - Quebec 100 % 27 28 29 27 30 51 57
Rio Tinto percentage interest shown above is at 30 June 2024. 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
2023
2024
interest 2023 2023 2023 2024 2024
ALUMINIUM
Primary Aluminium
Primary aluminium production ('000 tonnes)
Australia
Bell Bay smelter - Tasmania 100 % 46 47 47 47 47 92 93
Boyne Island smelter - Queensland 59 % 123 127 128 126 126 240 252
Tomago smelter - New South Wales 52 % 146 149 149 142 146 291 288
Canada
Alma smelter - Quebec 100 % 121 121 123 121 119 241 240
Alouette (Sept-Îles) smelter - Quebec 40% 159 159 160 157 158 314 315
Arvida smelter - Quebec 100% 43 43 43 43 37 85 80
Arvida AP60 smelter - Quebec 100% 14 15 15 15 15 29 31
Bécancour smelter - Quebec 25 % 118 114 119 116 119 232 235
Grande-Baie smelter - Quebec 100% 57 58 58 57 57 114 114
Kitimat smelter - British Columbia 100% 92 103 109 107 107 165 214
Laterrière smelter - Quebec 100 62 59 62 61 63 123 124
Iceland
ISAL (Reykjavik) smelter 100% 52 52 54 49 50 103 99
New Zealand
Tiwai Point smelter 79% 83 83 85 83 82 166 165
Oman
Sohar smelter 20% 99 100 100 99 99 197 198
Recycled Aluminium
Recycled aluminium production ('000 tonnes)
Matalco 50% - - - 148 139 - 288
Rio Tinto percentage interest shown above is at 30 June 2024. 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
2023
2024
interest 2023 2023 2023 2024 2024
BAUXITE
Bauxite production ('000 tonnes)
Australia
Gove mine - Northern Territory 100% 2,739 3,015 3,234 3,104 3,172 5,317 6,276
Weipa mine - Queensland 100% 8,813 9,010 9,811 8,224 9,262 16,304 17,486
Brazil
Porto Trombetas (MRN) mine 22% 2,724 3,258 3,202 2,310 3,034 5,012 5,344
Guinea
Sangaredi mine (a) 23% 3,586 3,387 3,430 3,517 3,604 7,462 7,121
Rio Tinto share of bauxite shipments
Share of total bauxite shipments ('000 tonnes) 13,603 13,954 15,513 12,715 15,177 25,867 27,892
Share of third party bauxite shipments ('000 tonnes) 9,159 9,550 10,749 8,496 10,691 17,039 19,187
(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
2023
2023
2023
2024
2024
2023
2024
BORATES
Rio Tinto Borates - borates 100 %
US
Borates ('000 tonnes) (a) 133 127 111 121 125 257 246
(a) Production is expressed as B(2)O(3) content.
Rio Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
2023
2024
interest 2023 2023 2023 2024 2024
COPPER & GOLD
Escondida 30 %
Chile
Sulphide ore to concentrator ('000 tonnes) 30,749 33,332 34,752 31,653 34,377 64,058 66,030
Average copper grade (%) 0.93 0.85 0.77 0.92 0.99 0.85 0.96
Mill production (metals in concentrates):
Contained copper ('000 tonnes) 228.9 225.7 217.6 238.6 279.5 438.9 518.2
Contained gold ('000 ounces) 53.5 48.1 48.6 39.0 45.4 102.5 84.4
Contained silver ('000 ounces) 1,008 1,168 1,401 1,328 1,549 2,353 2,877
Recoverable copper in ore stacked for leaching ('000 tonnes) (a) 29.1 36.4 21.0 18.6 8.4 60.2 27.0
Refined production from leach plants:
Copper cathode production ('000 tonnes) 72.4 52.0 46.9 49.0 50.7 123.2 99.8
(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 2024. 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
2023
2024
interest 2023 2023 2023 2024 2024
COPPER & GOLD (continued)
Kennecott
Bingham Canyon mine 100 %
Utah, US
Ore treated ('000 tonnes) 5,339 9,804 10,579 8,271 10,257 12,744 18,528
Average ore grade:
Copper (%) 0.52 0.56 0.50 0.43 0.36 0.49 0.39
Gold (g/t) 0.16 0.16 0.14 0.14 0.11 0.14 0.12
Silver (g/t) 2.36 2.10 2.10 1.97 1.79 2.24 1.87
Molybdenum (%) 0.018 0.018 0.019 0.021 0.020 0.014 0.020
Copper concentrates produced ('000 tonnes) 92 180 191 127 135 208 262
Average concentrate grade (% Cu) 26.8 26.8 25.0 25.6 23.9 26.4 24.7
Production of metals in copper concentrates:
Copper ('000 tonnes) (a) 24.8 48.8 47.8 32.5 32.3 55.1 64.8
Gold ('000 ounces) 18.7 32.0 33.5 26.7 22.5 39.3 49.2
Silver ('000 ounces) 296 462 504 370 368 652 738
Molybdenum concentrates produced ('000 tonnes): 0.6 1.4 1.6 1.6 1.6 0.7 3.2
Molybdenum in concentrates ('000 tonnes) 0.3 0.6 0.8 0.7 0.6 0.4 1.3
Kennecott smelter & refinery 100 %
Copper concentrates smelted ('000 tonnes) 41 59 187 171 227 241 398
Copper anodes produced ('000 tonnes) (b) 18.2 1.4 44.1 56.7 54.4 73.3 111.2
Production of refined metal:
Copper ('000 tonnes) (c) 14.4 18.5 32.0 47.8 47.5 58.1 95.3
Gold ('000 ounces) (d) 19.2 12.4 20.6 35.3 39.7 41.2 75.0
Silver ('000 ounces) (d) 329 240 406 550 606 761 1,156
(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, including 1.6 thousand tonnes of cathode produced from purchased
concentrate in 2024 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 2024. 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
2023
2024
interest 2023 2023 2023 2024 2024
COPPER & GOLD (continued)
Oyu Tolgoi mine 66 %
Mongolia
Ore Treated ('000 tonnes) - Open Pit 8,809 8,789 8,714 9,011 9,284 18,421 18,295
Ore Treated ('000 tonnes) - Underground 900 900 888 1,313 1,533 1,575 2,845
Ore Treated ('000 tonnes) - Total 9,709 9,689 9,602 10,323 10,817 19,996 21,140
Average mill head grades:
Open Pit
Copper (%) 0.41 0.39 0.42 0.39 0.37 0.42 0.38
Gold (g/t) 0.19 0.25 0.22 0.19 0.17 0.20 0.18
Silver (g/t) 1.10 1.19 1.24 1.25 1.12 1.13 1.18
Underground
Copper (%) 1.56 1.73 1.59 1.67 2.02 1.47 1.86
Gold (g/t) 0.38 0.37 0.37 0.42 0.62 0.36 0.53
Silver (g/t) 3.67 3.94 3.42 3.28 4.75 3.49 4.07
Total
Copper (%) 0.52 0.52 0.53 0.55 0.61 0.51 0.58
Gold (g/t) 0.21 0.26 0.23 0.22 0.24 0.21 0.23
Silver (g/t) 1.34 1.44 1.44 1.50 1.64 1.32 1.57
Copper concentrates produced ('000 tonnes) 200.3 197.6 196.0 208.5 246.2 402.0 454.7
Average concentrate grade (% Cu) 21.4 21.3 20.8 22.1 21.3 21.2 21.7
Production of metals in concentrates:
Copper in concentrates ('000 tonnes) 42.8 42.0 40.7 46.1 52.5 85.4 98.6
Gold in concentrates ('000 ounces) 40.3 51.2 41.7 42.8 46.9 84.4 89.6
Silver in concentrates ('000 ounces) 268 287 266 311 363 534 673
Sales of metals in concentrates:
Copper in concentrates ('000 tonnes) 43.2 42.7 38.4 43.7 48.3 84.6 92.0
Gold in concentrates ('000 ounces) 40.4 48.7 41.5 41.5 43.3 84.4 84.8
Silver in concentrates ('000 ounces) 257 269 240 272 317 499 588
Rio Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
2023
2024
interest 2023 2023 2023 2024 2024
DIAMONDS
Diavik Diamonds 100 %
Northwest Territories, Canada
Ore processed ('000 tonnes) 446 427 388 343 361 873 705
Diamonds recovered ('000 carats) 970 757 659 740 702 1,924 1,441
Rio Tinto percentage interest shown above is at 30 June 2024. 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
2023
2024
2024
2023
2024
interest 2023 2023
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production ('000 tonnes)
Hamersley mines (a) 55,004 57,322 59,138 53,373 54,691 109,437 108,064
Hope Downs 50 % 11,527 11,037 12,148 10,163 10,087 23,298 20,250
Robe River - Pannawonica (Mesas J and A) 53 % 7,353 7,747 8,171 8,009 7,898 13,244 15,907
Robe River - West Angelas 53 % 7,368 7,377 8,054 6,393 6,805 14,568 13,198
Total production ('000 tonnes) 81,251 83,484 87,511 77,938 79,481 160,547 157,420
Breakdown of total production:
Pilbara Blend and SP10 Lump (b) 24,910 25,268 26,308 23,386 24,416 48,106 47,802
Pilbara Blend and SP10 Fines (b) 37,108 36,836 39,264 34,422 35,932 73,645 70,354
Robe Valley Lump 2,808 3,142 3,004 2,894 2,916 4,952 5,811
Robe Valley Fines 4,544 4,605 5,167 5,115 4,982 8,293 10,096
Yandicoogina Fines (HIY) 11,880 13,633 13,768 12,122 11,235 25,552 23,357
Breakdown of total shipments:
Pilbara Blend Lump 17,757 17,785 17,355 15,635 15,832 36,489 31,467
Pilbara Blend Fines 33,668 31,008 29,840 28,475 31,336 69,018 59,811
Robe Valley Lump 2,173 2,447 2,842 2,308 2,522 4,156 4,830
Robe Valley Fines 4,696 5,105 5,762 5,553 5,839 8,964 11,392
Yandicoogina Fines (HIY) 12,558 13,669 13,628 12,228 11,364 26,247 23,592
SP10 Lump (b) 1,652 4,180 4,620 4,612 5,141 3,338 9,753
SP10 Fines (b) 6,613 9,699 12,208 9,221 8,275 13,446 17,496
Total shipments ('000 tonnes) (c) 79,118 83,892 86,255 78,033 80,309 161,658 158,342
Rio Tinto Q2 Q3 Q4 Q1 Q2 H1 H1
2023
2024
2024
2023
2024
interest 2023 2023
Iron Ore Company of Canada 59 %
Newfoundland & Labrador and Quebec in Canada
Saleable iron ore production:
Concentrates ('000 tonnes) 1,908 1,936 2,210 1,924 1,584 4,021 3,508
Pellets ('000 tonnes) 1,605 2,124 2,393 2,526 2,137 3,794 4,663
IOC Total production ('000 tonnes) 3,513 4,060 4,603 4,450 3,721 7,816 8,171
Shipments:
Concentrates ('000 tonnes) 2,124 2,098 2,037 1,978 1,678 3,800 3,657
Pellets ('000 tonnes) 2,302 1,815 2,331 2,542 2,449 4,248 4,991
IOC Total Shipments ('000 tonnes) (c) 4,426 3,913 4,368 4,520 4,127 8,048 8,647
Global Iron Ore Totals
Iron Ore Production ('000 tonnes) 84,764 87,543 92,114 82,388 83,203 168,363 165,591
Iron Ore Shipments ('000 tonnes) 83,543 87,805 90,623 82,553 84,436 169,706 166,989
Iron Ore Sales ('000 tonnes) (d) 85,601 88,030 91,072 82,790 87,479 174,091 170,270
(a) Includes 100% of production from Paraburdoo, Mt Tom Price, Western Turner
Syncline, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass, Channar,
Gudai-Darri, Eastern Range and Western Range mines. Whilst Rio Tinto owns
54% of the Eastern Range and the Western Range mines, 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 2024. 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
2023
2024
2024
2023
2024
interest 2023 2023
SALT
Dampier Salt 68 %
Western Australia
Salt production ('000 tonnes) 2,416 2,097 2,103 2,085 2,253 4,537 4,337
TITANIUM DIOXIDE SLAG
Rio Tinto Iron & Titanium 100 %
Canada and South Africa
(Rio Tinto share) (a)
Titanium dioxide slag ('000 tonnes) 303 247 275 254 238 589 492
(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 2024. The data
represents production and sales on a 100% basis unless otherwise stated.
1 (#_ftnref1) The 500 thousand tonnes per annum copper production target
(stated as recoverable metal) for the Oyu Tolgoi underground and open pit
mines for the years 2028 to 2036 was previously reported in a release to the
ASX dated 11 July 2023 "Investor site visit to Oyu Tolgoi copper mine,
Mongolia
(https://www.riotinto.com/en/invest/presentations/2023/oyu-tolgoi-site-visit)
". All material assumptions underpinning that production target and those
production profiles continue to apply and have not materially changed.
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