REG - Rio Tinto - Financial community visit to Pilbara operations

Rio TintoAnnouncement

09/10/2023 07:00

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RNS Number : 3891P  Rio Tinto PLC  09 October 2023

 

Notice to
ASX/LSE

 

Financial community visit to Pilbara iron ore operations

9 October 2023

 

Today, Rio Tinto is hosting a site visit for the financial community to its
Pilbara operations in Western Australia. The site visit will showcase our
world-class ports, autonomous rail network and 17 mines, including our newest
mine, Gudai-Darri, and the Rhodes Ridge project, one of the world's largest
and highest quality undeveloped iron ore deposits. The presentation by
management will be webcast at 13:45 AWST / 06:45 BST and can be found on our
website at: https://www.riotinto.com/en/invest/presentations
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.riotinto.com%2Fen%2Finvest%2Fpresentations&esheet=53053356&newsitemid=20221212005859&lan=en-US&anchor=https%3A%2F%2Fwww.riotinto.com%2Fen%2Finvest%2Fpresentations&index=1&md5=f46430f34625f4fac2670de185f7903a)

Rio Tinto Iron Ore Chief Executive, Simon Trott said: "As we head into the
fourth quarter of 2023 we are in a strong and stable position. We have
systematically improved our operating performance, reset relationships with
external stakeholders and established a foundation for the future. We
understand our strengths and challenges, and are making good progress as we
continue to reflect and learn."

In the third quarter of 2023, Pilbara iron ore shipments totalled 83.9 million
tonnes and production was 83.5 million tonnes (100% basis).

Shipments guidance (100% basis) is unchanged for 2023 and remains in the upper
half of the 320 to 335 million tonne range, with the Safe Production System on
track to deliver a 5 million tonne productivity uplift.  2023 shipments
include 45 to 50 million tonnes of SP10 product, 13 to 15% of total tonnes
(previously >10%). This is higher than forecast, reflecting overall
production in the upper half of guidance and delayed access to some mine
areas.

Pilbara unit cost guidance for 2023 remains at $21.0 to $22.5 per wet metric
tonne.

Shipments guidance has been provided for 2024 of 323 to 338 million tonnes.
SP10 levels are expected to remain elevated for the next few years as we work
through the next tranche of mine replacement projects.  Levels are dependent
on the timing of approvals for planned mining areas.

The Gudai-Darri mine reached its 43 million tonne per year nameplate capacity
on a sustained basis in the second quarter of 2023. We are now targeting a 7
million tonne uplift to capacity towards 50 million tonnes per year and aim to
achieve this during 2025 for incremental capital of $70 million.

We will continue to invest with discipline in our Pilbara iron ore operations:
over 2024 to 2026, sustaining capital is expected to average $1.8 billion per
year with replacement capital of $1.8 billion per year ($20-50 per tonne of
installed capacity) and decarbonisation capital of $0.2 billion per year(1).

Mid-term capacity remains at 345 to 360 million tonnes per year.  Meeting
this range will require approval and delivery of four additional replacement
mines over the next five years. We expect to commence construction of these
projects in 2024, subject to regulatory approval, with first ore in 2027-28.

We are targeting mid-term iron ore unit costs of $20 per tonne(2), with
increasing volumes and productivity improvements offsetting the impacts of a
rising work index.

Rhodes Ridge is one of the world's largest and highest quality undeveloped
iron ore deposits - grade-advantaged and close to infrastructure. An Order of
Magnitude study is underway and is expected to be completed in 2023. The study
considers the development of an operation before the end of the decade with
initial plant capacity of up to 40 million tonnes annually, subject to the
receipt of relevant approvals. Study work to date indicates a staged
development with the initial hub likely to be in the northern aspect of the
tenement, positioned adjacent to rail infrastructure. Rhodes Ridge contains
6.8 billion tonnes of Mineral Resources at an average grade of 61.6% Fe,
including 5.3 billion tonnes at 62.2% Fe and 0.6 billion tonnes at 63.9%
Fe(3).

We expect our effective equity share of Pilbara free cash flow to remain
stable at around 85% post Rhodes Ridge ramp up.

 

(1) Capital expenditure for 2024 to 2026 provided on a real basis and is
subject to inflationary pressures.

(2) Based on an Australian dollar exchange rate of 0.67, provided on a real
basis and is subject to inflationary pressures.

(3) The Mineral Resources reported for the Rhodes Ridge Joint Venture between
Rio Tinto (50 per cent) and Wright Prospecting Pty Ltd (50 per cent), form
part of the Pilbara Mineral Resource estimates reported in Rio Tinto's 2022
Annual Report released to the ASX on 22 February 2023. These Mineral Resources
are not materially different to the breakdown of the Rhodes Ridge Mineral
Resources reported in Rio Tinto's 2020 Annual Report released to the ASX on 22
February 2021. The Competent Persons responsible for reporting these Mineral
Resource estimates were Mr P Savory, who is a Fellow of The Australasian
Institute of Mining and Metallurgy, and Ms N Brajkovich, Mr C Kyngdon, Mr M
Judge and Ms A Latscha who are Members of The Australasian Institute of Mining
and Metallurgy. Rio Tinto is not aware of any new information or data that
materially affects these Mineral Resource estimates and confirms that all
material assumptions and technical parameters underpinning the estimate
continue to apply and have not materially changed. The form and context in
which the Competent Persons' findings are presented have not been materially
modified from when they were reported. Mineral Resources are quoted in this
release on a 100 per cent basis, as dry in-situ tonnes. Rhodes Ridge contains
6.8 billion tonnes of Mineral Resources at an average grade of 61.6% Fe;
comprising 0.8 billion tonnes of Indicated Mineral Resources at an average
grade of 62.4% Fe and 6.0 billion tonnes of Inferred Mineral Resources at an
average grade of 61.5% Fe. These Mineral Resources include 0.6 billion tonnes
of high grade Brockman Indicated Mineral Resources at an average grade of
63.9% Fe; 0.03 billion tonnes of high grade Detrital Indicated Mineral
Resources at an average grade of 61.3% Fe; and 5.3 billion tonnes of high
grade Brockman, Marra Mamba and Detrital Inferred Mineral Resources at an
average grade of 62.2% Fe.

 

 

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

 

 

 

 Media Relations,        Media Relations,               Media Relations,
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                         Michelle Lee

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 Investor Relations,     Investor Relations,
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 Menno Sanderse          Tom Gallop

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 David Ovington          Amar Jambaa

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 Laura Brooks

 M +44 7826 942 797

 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

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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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