REG - Rio Tinto - Fourth quarter production results
17/01/2023 07:00
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RNS Number : 9124M Rio Tinto PLC 17 January 2023
Rio Tinto releases fourth quarter production results
17 January 2023
Rio Tinto Chief Executive Jakob Stausholm, said: "We were fatality free for
the fourth consecutive year, as we continue to put safety at the forefront of
everything we do. A number of operational records were achieved in the second
half across the Pilbara iron ore mine and rail system. Deployment of our Safe
Production System resulted in improved performance at those sites and overall
production was higher versus 2021 across all commodities, with the exception
of aluminium and alumina.
"The acquisition of Turquoise Hill Resources strengthens our copper portfolio
and demonstrates our ability to allocate capital with discipline to grow in
materials the world needs for the energy transition and delivering long-term
value for our shareholders. Copper guidance has been increased accordingly. We
continue to invest in future growth, progressing the Rincon lithium project in
Argentina and are working with our partners to progress the Simandou project
in Guinea.
"We continue to work hard to transform our culture and invest in genuine
partnerships. I am proud that we have reached new agreements with the
Yindjibarndi and Puutu Kunti Kurrama and Pinikura peoples in Australia, and
the Pekuakamiulnuatsh First Nation in Canada.
"In line with our new purpose of finding better ways to provide the materials
the world needs, we will continue to progress our four objectives and strategy
to strengthen the business, which will lead to profitable growth and continue
to deliver attractive shareholder returns."
Production* Q4 vs Q4 vs Q3 Full Year vs Full Year
2021
2022
2021
2022 2022
Pilbara iron ore shipments (100% basis) Mt 87.3 +4% +5% 321.6 0%
Pilbara iron ore production (100% basis) Mt 89.5 +6% +6% 324.1 +1%
Bauxite Mt 13.2 +1% -4% 54.6 +1%
Aluminium kt 783 +3% +3% 3,009 -4%
Mined copper kt 131 -1% -5% 521 +6%
Titanium dioxide slag kt 323 +42% +4% 1,200 +18%
IOC** iron ore pellets and concentrate Mt 2.5 +1% -9% 10.3 +6%
*Rio Tinto share unless otherwise stated
**Iron Ore Company of Canada
2022 operational highlights and other key announcements
• We continue to prioritise the safety, health and wellbeing of our
workforce and communities where we operate. We experienced our fourth
consecutive year with no fatalities at our managed operations, and continue to
work hard with our partners to achieve the same results at our non-managed
assets and marine operations.
• Pilbara operations produced 324.1 million tonnes (100% basis) in
2022, 1% higher than 2021. Shipments were 321.6 million tonnes (100% basis),
in line with 2021. Performance improvements continued across the system and we
achieved record second half performance across the mine and rail system. We
expect Gudai-Darri to reach its nameplate capacity on a sustained basis during
2023.
• Bauxite production of 54.6 million tonnes was 1% higher than 2021,
despite equipment reliability issues at Weipa and Gove in Australia.
• Aluminium production of 3.0 million tonnes was 4% lower than 2021
due to reduced output at our Kitimat smelter in British Columbia, Canada and
Boyne smelter in Queensland, Australia. The rate of pot restarts at Kitimat
picked up in the fourth quarter and Boyne smelter cell recovery efforts
continued. Recovery at both smelters is progressing with full ramp-up expected
to be completed during the course of 2023. All of our other aluminium smelters
continued to demonstrate stable performance.
• On 1 December, we commissioned
(https://www.riotinto.com/news/releases/2022/Rio-Tinto-completes-Kemano-hydropower-project)
the second tunnel (T2) to carry water into the Kemano Powerhouse in British
Columbia, marking the end of the Kemano T2 hydropower project. The new,
16-kilometre tunnel produced its first megawatt of electricity in July 2022
after construction was completed in May 2022. Both T1 and T2 are now operating
together, ensuring the long-term reliability of the power supply for our
aluminium smelter in Kitimat and neighbouring communities.
• Mined copper production of 521 thousand tonnes was 6% higher than
2021 due to higher grades at Kennecott and Escondida, partly offset by lower
grades and recoveries at Oyu Tolgoi as a result of planned mine sequencing.
Unplanned maintenance was required at Kennecott in the fourth quarter of 2022
in our anode furnaces leading to extended downtime and continued poor anode
production, likely to result in weak cathode production in the first quarter
of 2023. Refined copper production at Kennecott will continue to be challenged
due to the smelter and refinery performance, until we undertake the largest
rebuild in nine years which is planned for the second quarter of 2023 and is
expected to take approximately three months.
• On 16 December, we completed
(https://www.riotinto.com/news/releases/2022/Rio-Tinto-completes-acquisition-of-Turquoise-Hill)
the acquisition of Turquoise Hill Resources Ltd for a consideration of
approximately $3.1 billion(1), simplifying ownership of the world-class Oyu
Tolgoi mine in Mongolia, significantly strengthening Rio Tinto's copper
portfolio, and demonstrating our long-term commitment to the project and
Mongolia. We now hold a 66% direct interest in the Oyu Tolgoi project with the
remaining 34% owned by the Government of Mongolia through Erdenes Oyu Tolgoi.
Cash consideration of approximately $2.9 billion was paid in December 2022.
Oyu Tolgoi production for 2022 remains on a 33.52% Rio Tinto share basis.
• Titanium dioxide slag production of 1,200 thousand tonnes was 18%
higher than 2021, due to community disruptions at Richards Bay Minerals (RBM)
in South Africa in 2021, and continued improved performance of operations at
Rio Tinto Fer et Titane (RTFT), Canada. Production constraints related to
nationwide electrical power loadshedding at RBM were experienced in the fourth
quarter.
• Iron Ore Company of Canada (IOC) production of pellets and
concentrate was 6% higher than 2021. Successful deployment of the Rio Tinto
Safe Production System (SPS) at the concentrator was completed in the year,
with record performance metrics achieved in the year, including monthly
records for concentrate production and total material moved in the second
quarter. Planning for SPS deployment at the pellet plant commenced in
December.
• We achieved our SPS deployment target for 2022 with 30 deployments
across 16 sites. Roll-outs are ongoing to continuously improve safety,
strengthen employee engagement and sustainably lift operational performance
across our global portfolio.
• As reported in the first half, higher rates of inflation have
increased our closure liabilities with an impact to underlying earnings. This
resulted in increased charges for the year of approximately $1.3 billion
pre-tax within underlying earnings (first half 2022: $0.4 billion) compared
with 2021, including a $1.1 billion full year increase in amortisation of
discount (first half 2022: $0.3 billion), with the remainder impacting
Underlying EBITDA.
• As part of the agreement reached with the Australian Taxation Office
(ATO) in July, we paid the ATO additional tax of A$613 million for the period
from 2010 to 2021 in August 2022.
• The sale of a royalty on an area including the Cortez mine
operational area, a direct wholly-owned subsidiary of Royal Gold Inc., for
$525 million in cash, was settled in August. This amount will be recorded in
'Sales of financial assets' in the group cash flow statement and is therefore
not included in Free cash flow.
• The sale of our wholly owned Roughrider uranium development
completed in October for total consideration of $150 million, including $80
million in cash, will be recorded in 'Disposal of subsidiaries' in the group
cash flow statement and is therefore not included in Free cash flow.
• On 30 November, we provided a detailed update at our Investor
Seminar
(https://www.riotinto.com/news/releases/2022/Rio-Tinto-progresses-strategy-to-strengthen-decarbonise-and-grow)
on execution of our strategy and evolution of our culture, including SPS and
decarbonisation activities, to strengthen the business, grow in a
decarbonising world and continue to deliver attractive shareholder returns.
Capital expenditure to decarbonise our assets of an estimated $7.5 billion to
2030 is being prioritised and phased. This remains subject to Traditional
Owner and other stakeholder engagement, regulatory approvals and technology
developments. New long-term power contracts will also be required for the
aluminium business to meet targets. Our incremental operating expenditure on
building new teams and energy efficiency initiatives remains around $200
million per annum in addition to Research and Development investment.
• On 19 December, we announced
(https://www.riotinto.com/news/releases/2022/Kaisa-Hietala-to-join-Rio-Tinto-Board)
the appointment of Kaisa Hietala as a non-executive director to the Rio Tinto
Board, commencing 1 March 2023. Ms Hietala, a Finnish citizen, played a
central role in the commercial transformation of Neste, the world's largest
and most profitable producer of renewable products, as Executive Vice
President of Renewable Products. She serves on the Boards of Exxon Mobil and
Smurfit Kappa Group, and is Chair of the Board at Tracegrow, a private Finnish
sustainable fertilisers company.
• All figures in this report are unaudited. All currency figures in
this report are US dollars, and comments refer to Rio Tinto's share of
production, unless otherwise stated.
(1)Based on a value of C$43.00 per share and a USD/CAD FX rate of 1.3618 as of
15 December 2022 and includes amounts we expect to pay in 2023.
2023 guidance
Rio Tinto share, unless otherwise stated 2022 Guidance 2022 2023
Actuals
Pilbara iron ore (shipments, 100% basis) (Mt) 320 to 335(1) 322 320 to 335
Bauxite (Mt) 54 to 57 55 54 to 57
Alumina (Mt) 7.6 to 7.8 7.5 7.7 to 8.0
Aluminium (Mt) 3.0 to 3.1 3.0 3.1 to 3.3
Mined copper (kt) 500 to 575 521 650 to 710(2)
Refined copper (kt) 190 to 220 209 180 to 210
Diamonds (M carats) 4.5 to 5.0 4.7 3.0 to 3.8
Titanium dioxide slag (Mt) 1.1 to 1.4 1.2 1.1 to 1.4
IOC(3) iron ore pellets and concentrate (Mt) 10.0 to 11.0 10.3 10.5 to 11.5
Boric oxide equivalent (Mt) ~0.5 0.5 ~0.5
(1)At the low end of range.
(2)Oyu Tolgoi production for 2022 remains on a 33.52% Rio Tinto share basis.
Subsequent to Rio Tinto's acquisition of Turquoise Hill Resources which
completed on 16 December, 2023 mined copper guidance now includes Oyu Tolgoi
on a 100% consolidated basis and continues to reflect our 30% share of
Escondida.
(3)Iron Ore Company of Canada continues to be reported at Rio Tinto share.
• 2023 production guidance is unchanged since November 2022 with the
exception of mined copper. On a Rio Tinto share basis, mined copper production
guidance changed from 550 to 600 thousand tonnes to 600 to 655 thousand
tonnes. This reflects our increased ownership in Oyu Tolgoi from 33% to 66%.
Our headline production guidance of 650 to 710 thousand tonnes now includes
100% of Oyu Tolgoi, in line with the consolidation of Oyu Tolgoi in
Consolidated sales revenue and Underlying EBITDA in our group financial
statements.
• Iron ore shipments and bauxite production guidance remain subject
to weather and market conditions. Pilbara shipments guidance remains subject
to progressing the ramp-up of shipments from new mines and management of
cultural heritage.
Operating costs
• Our 2022 Pilbara iron ore unit cash costs are likely to end up
slightly above the top end of our $19.5-21.0 per tonne guidance range,
primarily due to inflation, diesel prices and labour costs.
• Guidance for 2023 Pilbara iron ore unit cash costs is unchanged at
$21.0 to $22.5 per tonne, based on A$:US$ exchange rate of 0.70.
• Guidance for 2023 copper C1 unit costs is unchanged at 160 to 180
US cents/lb.
• Working capital has stabilised but remains somewhat elevated with
commodity price volatility, higher raw material prices and global supply chain
pressures.
Aluminium modelling
As reported in the first half of 2022, 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. Higher raw
material prices are also increasing inventory balances.
Alumina refining
Production cash cost (%) FY 21 H1 22 H2 22 FY 22
Bauxite 39 32 30 31
Conversion 34 33 32 32
Caustic 14 22 24 23
Energy 13 13 14 14
Total 100 100 100 100
Input costs (nominal) H1 21 H2 21 H1 22 H2 22 FY 22
Index price Index price Index price Index price Annual cost sensitivity impact on underlying EBITDA
Caustic soda(1) ($/t) 274 535 675 595 $10m per $10/t
Natural gas(2) ($/mmbtu) 2.85 4.59 6.02 7.01 $4m per $0.10/GJ
Brent oil ($/bbl) 64.6 76.3 105.9 93.8 $2m per $10/bbl
(1)North East Asia FOB | (2)Henry Hub
Aluminum smelting
Production cash cost (%) FY 21 H1 22 H2 22 FY 22
Alumina 41 42 39 41
Power 21 20 19 19
Conversion 21 17 17 17
Carbon 15 19 23 21
Materials 2 2 2 2
Total 100 100 100 100
Input costs (nominal) H1 21 H2 21 H1 22 H2 22 FY 22
Index price Index price Index price Index price Annual cost sensitivity impact on underlying EBITDA
Alumina(1) ($/t) 288 369 395 328 $64m per $10/t
Petroleum coke(2) ($/t) 373 491 695 719 $11m per $10/t
Coal tar pitch(3) ($/t) 748 818 1,103 1,476 $2m per $10/t
(1)LME Australia | (2)US Gulf FOB | (3)North America FOB
Investments, growth and development projects
• Exploration and evaluation expense in 2022 was $897 million, $171
million (24%) higher than 2021, with continued ramp-up of activities in
Guinea, Argentina and Australia. Our annual budget for greenfield exploration
remains around $250 million, mainly focused on copper, with a growing battery
minerals programme.
Pilbara mine projects
• We have safely completed required works and demobilised from our
recently commissioned Pilbara mine replacement projects during the period. We
expect Gudai-Darri to reach its nameplate capacity on a sustained basis during
2023.
• At Robe Valley, the Mesa A wet plant performance verification was
successfully completed during the quarter and construction resources have
demobilised from site.
• We have now received all primary environmental and Australian
government approvals for the Western Range Iron Ore project (Greater
Paraburdoo), a joint venture between Rio Tinto (54 per cent) and China Baowu
Steel Group Co. Ltd (46 per cent). The joint venture remains subject to
Chinese regulatory approvals. Rio Tinto commenced early works site
mobilisation and major contracts for bulk earthworks and Civil, Structural,
Mechanical, Piping, Electrical and Instrumentation have been awarded. Heritage
surveying continued with final surveys planned for the first quarter of 2023.
• In addition, we continue to progress our next tranche of Pilbara
mine projects including Hope Downs 1 Sustaining (Hope Downs 2 and Bedded
Hilltop) and Brockman 4 Sustaining (Brockman Syncline 1). We expect to
complete the Rhodes Ridge order of magnitude study in 2023.
Oyu Tolgoi underground project
• At the end of the quarter, a total of 19 drawbells had been fired.
Drawbell progression accelerated as a result of improvement initiatives
implemented by the Oyu Tolgoi teams, bringing projected first sustainable
production from Panel 0 forward to the first quarter of 2023 (previously first
half of 2023).
• At the end of December, shafts 3 and 4 sinking reached 378 metres
and 507 metres below ground level, respectively. Operational safety sinking
pauses have caused some delays against the 2022 reforecast(1) to shaft sinking
across the fourth quarter. Final depths required for shafts 3 and 4 are 1,148
and 1,149 metres below ground level, respectively. Construction of conveyor to
surface works continued during the quarter with civil scope of works completed
and other contractors mobilised to site.
• Study work for Panels 1 and 2 (which are required to support the
ramp-up to 95,000 tonnes of ore per day) remains on track to be completed in
the first half of 2023. It will incorporate any ventilation impacts due to the
shaft 3 and 4 delays as a result of COVID-19 restrictions and reprioritisation
of the mobilised workforce over the course of 2022, as previously reported.
• During the quarter, Rio Tinto and the Government of Mongolia
continued to focus on supporting Oyu Tolgoi to reach the sustainable
production milestone and continuing progress on the remaining measures
contained in Mongolian Parliamentary Resolution 103 which enabled the
agreement to reset the relationship and commence underground mining operations
in January 2022.
• Rio Tinto now has a 66% direct interest in Oyu Tolgoi following
the successful completion of the acquisition of Turquoise Hill Resources Ltd.
This is allowing Rio Tinto to focus fully on strengthening its relationship
with the Government of Mongolia and moving the project forward with a simpler
and more efficient ownership and governance structure.
Other key projects and exploration and evaluation
• At the Resolution Copper project in Arizona, the US Forest Service
continued work to progress the Final Environmental Impact Statement (FEIS) and
complete actions necessary for the land exchange. We continued to advance
partnership discussions with several federally-recognised Native American
Tribes who are part of the formal consultation process. We note the US Ninth
Circuit Court of Appeals' decision in November to re-hear the appeal before
the entire bench of judges. This same court of appeal previously upheld the
lower court's ruling, which denied Apache Stronghold's request for injunctive
relief. While there is significant local support for the project, we respect
the views of groups who oppose it and will continue our efforts to address and
mitigate these concerns. Costs attributable to the Resolution project in 2022
were $122 million(3).
• At the Winu copper-gold project in Western Australia, we continued
to strengthen our relationships and advanced agreement making over the quarter
with our host Traditional Owners, the Martu and Nyangumarta groups. Planned
drilling, fieldwork and study activities continued over the period
strengthening the development pathway ahead of applications for regulatory and
other required approvals. Costs attributable to the Winu project in 2022 were
$56 million(3).
• At the Simandou iron ore project in Guinea, negotiations
towards the co-development of project infrastructure progressed with the
December signing of a non-binding term sheet between Rio Tinto joint venture
Simfer, Baowu Resources, Winning Consortium (WCS) and the Government of
Guinea(2). The term sheet further establishes the co-development principles
following the incorporation of La Compagnie du TransGuinéen on 27 July 2022,
and is a pivotal next step towards securing the shareholder agreement, cost
estimates and regulatory authority approvals necessary to progress the
co-development of rail and port facilities. Progress was also made on enabling
works at Rio Tinto Simfer blocks 3 and 4 and the projected rail spur
connection line. We also progressed land access agreements with communities
and upgrade works to camp facilities. The award of contracts for key work
packages continued in the quarter, including the major package tender
evaluations for bulk earthworks and mine process plant equipment. Costs
attributable to the Simandou project in 2022 were $189 million(3).
• We continue to believe that the Jadar lithium-borate project in
Serbia has the potential to be a world-class asset, that will support the
development of other future industries in Serbia, acting as a catalyst for
tens of thousands of jobs for current and future generations, and sustainably
produce materials critical to the energy transition. We are focused on
consultation with all stakeholders to explore all options related to the
project's future.
• At the Rincon lithium project in Argentina, development of the
three thousand tonne per annum lithium carbonate starter plant progressed. To
optimise the process and recoveries, we continue to produce battery-grade
lithium carbonate from raw brine from the existing pilot plant operating at
site. Early works construction activities progressed on phase one camp
facilities with rooms for 250 persons completed. In the period, airstrip
permits were received and contractors mobilised. Detailed studies for the full
scale operation were advanced, and the exploration campaign progressed to
further understand Rincon's basin and brine reservoir. We continue to engage
with communities, the province of Salta and the Government of Argentina to
ensure an open and transparent dialogue with stakeholders about the works
underway.
• Costs attributable to Battery Materials were $161 million(3).
(1)A cost and schedule reforecast was performed in June 2022 and estimates
that $7.06 billion is required to complete the Hugo North 1 project (an
increase of $0.3 billion beyond the 2020 Definitive Estimate). The 2022
Reforecast excludes impacts of COVID-19 restrictions arising after June 2022.
The 2022 reforecast remains subject to Oyu Tolgoi Board approval.
(2)This followed notification to Rio Tinto and the Government of Guinea, of
Baowu's earlier entry into a term sheet agreement with WCS in respect of an
investment into WCS InfraCo and WCS MineCo (blocks 1 and 2) - an agreement
welcomed by Rio Tinto. Baowu Resources Co. is a member of China Baowu Steel
Group Corporation Limited.
(3)Costs are included in the total 2022 exploration and evaluation expense.
Excludes amounts capitalised in the period.
Sustainability highlights
We are implementing the 26 recommendations of the Everyday Respect report in
line with the management team's commitment to a safe, respectful and inclusive
Rio Tinto. We are creating an open and transparent environment which will make
positive and lasting change and strengthen our workplace culture for the long
term. We exceeded our leadership training target of 80% by the end of the
year, achieving 91% completion. On 15 November, we announced
(https://www.riotinto.com/news/releases/2022/Rio-Tinto-BHP-and-Fortescue-launch-pilot-program-to-create-safer-workplaces)
the launch of an innovative pilot programme, 'Building Safe and Respectful
Workplaces', with BHP and Fortescue, aimed at helping to eliminate
disrespectful behaviour in the resources industry including sexual harassment,
bullying and racism. The three companies have worked together with leading
experts to design and develop the industry-first program aimed at educating
new entrants to the sector.
On 30 October, we announced
(https://www.riotinto.com/news/releases/2022/BHP-and-Rio-Tinto-to-collaborate-on-new-tailings-technology)
a partnership agreement with BHP to accelerate the development of technology
that could significantly increase water recovery from mine tailings, and in
turn reduce potential safety risks and environmental footprints associated
with tailings storage facilities. The first project will involve testing the
application of an innovative large-volume filter unit at a BHP copper mine in
Chile, which would remove up to 80% of the water in the tailings stream before
it is deposited in a storage facility.
On 6 December, we announced
(https://www.riotinto.com/news/releases/2022/OZ-Minerals-Boliden-and-Rio-Tinto-partnership)
a collaboration with Oz Minerals and Boliden to unlock new and innovative
technologies for managing tailings, helping the mining industry to further
reduce risk while extracting the materials the world needs for the energy
transition from what was previously regarded as 'waste'. The collaboration
will support innovators by providing materials, funding, technical guidance
and the potential for field trials at mine operations. Innovators will retain
ownership of their intellectual property rights, with a licence to use those
rights granted to the companies that support them.
Communities & Social Performance (CSP)
On 3 November, we announced
(https://www.riotinto.com/news/releases/2022/Rio-Tinto-partners-with-PCLMP) an
investment of A$5.6 million over five years into the Pilbara Cultural Land
Management Project (PCLMP) that enables Pilbara Traditional Owners to work
together to preserve their Country and culture and keep their people strong.
The PCLMP has continued to evolve over the past two years as its members drive
the design and development of a program to support cultural and conservation
management across their native title determinations. On 21 November, we
announced
(https://www.riotinto.com/news/releases/2022/Rio-Tinto-commits-A250-million-to-support-Western-Australian-communities)
a A$250 million commitment to the State Government's new Resources Community
Investment Initiative. An initial pipeline of projects has already been
identified. We will work with Western Australian Government to further define
the projects that we will contribute funding towards over the next 10 years.
On 27 November, the Puutu Kunti Kurrama and Pinikura Aboriginal Corporation
and Rio Tinto agreed to create the Juukan Gorge Legacy Foundation
(https://www.riotinto.com/news/releases/2022/PKKP-and-Rio-Tinto-to-create-Juukan-Gorge-Legacy-Foundation)
after signing a remedy agreement regarding the tragic destruction of two rock
shelters at Juukan Gorge in May 2020. Financial support will be provided to
the Traditional Owner-led foundation to progress major cultural and social
projects including a new keeping place for storage of important cultural
materials. The agreement forms part of our commitment to remedying and
rebuilding the relationship with the Puutu Kunti Kurrama and Pinikura people.
On 9 November 2022, we signed an updated agreement
(https://www.riotinto.com/en/news/releases/2022/Rio-Tinto-and-Yindjibarndi-people-strengthen-ties-with-updated-agreement)
with Yindjibarndi Aboriginal Corporation. This agreement will deliver social
and economic outcomes for future generations, and reflects our commitment to
create more opportunities for Yindjibarndi people to participate in our
operations.
On 15 December, Pekuakamiulnuatsh First Nation and Rio Tinto signed their
first agreement
(https://www.riotinto.com/news/releases/2022/The-wind-is-turning-between-Pekuakamiulnuatsh-First-Nation-and-Rio-Tinto)
named Kuessilueu, which means "the wind is turning" in Nelueun. This new
agreement marks the beginning of a new era and sets the foundation for an
innovative and sustainable partnership. Multidisciplinary teams will identify
opportunities for collaboration and establish recommendations in six shared
priorities areas - employment and training, business opportunities, cultural
heritage and environment, partnerships, energy transition and governance. The
goal is to finalise a long-term partnership agreement within 18 months to
provide long-term shared benefits across the Saguenay-Lac-Saint-Jean region in
Quebec.
In December, we released our revised Human Rights policy
(https://www.riotinto.com/-/media/Content/Documents/Sustainability/Corporate-policies/RT-Human-rights-policy.pdf?rev=431c0faa9caa4b8cacefe96dd3773313)
. The Policy has been developed to advance our human rights performance in
line with our business objectives, values, emerging regulatory requirements
and stakeholder expectations. Building on our existing commitments, the
revised Policy aims to strengthen our position to respect the rights of
affected stakeholders and prevent and address our involvement in adverse
impacts through our activities and value chain.
Key highlights from the quarter are outlined above, with further information
available on our website (https://www.riotinto.com/sustainability/communities)
.
Climate change, product stewardship and our value chain
On 30 November, we provided an update at our Investor Seminar
(https://www.riotinto.com/news/releases/2022/Rio-Tinto-progresses-strategy-to-strengthen-decarbonise-and-grow)
on execution of our strategy and evolution of our culture, including Safe
Production System (SPS) and decarbonisation activities, to strengthen the
business, grow in a decarbonising world and continue to deliver attractive
shareholder returns. Details were provided on projects underway to meet
challenging decarbonisation targets to halve our Scope 1 and 2 emissions by
2030. Six large emissions abatement programmes are focused on renewable power,
process heat, diesel and the ELYSIS(TM) zero carbon aluminium smelting
technology to drive the transition to net zero by 2050, supported by
high-quality nature based solutions. Capital expenditure to decarbonise our
assets of an estimated $7.5 billion to 2030 is being prioritised and phased.
This remains subject to Traditional Owner and other stakeholder engagement,
regulatory approvals and technology developments. New long-term power
contracts will also be required for the aluminium business to meet targets.
Our incremental operating expenditure on building new teams and energy
efficiency initiatives remains around $200 million in addition to Research and
Development investment.
In the fourth quarter, we progressed initiatives to decarbonise our business
and actively develop
technologies to decarbonise our value chains.
• On 22 November, we announced
(https://www.riotinto.com/news/releases/2022/Rio-Tintos-BioIron-proves-successful-for-low-carbon-iron-making)
that we had proved the effectiveness of our low-carbon iron-making process
using ores from our mines in Australia in a small-scale pilot plant in
Germany. We are now planning a larger-scale pilot plant to further assess its
potential to help decarbonise the steel value chain. The process, known as
BioIron™, uses raw biomass instead of metallurgical coal as a reductant and
microwave energy to convert Pilbara iron ore to metallic iron in the
steelmaking process. BioIron™ has the potential to support near-zero CO(2)
steel-making, and can result in net negative emissions if linked with carbon
capture and storage.
• On 30 November, we announced
(https://www.riotinto.com/news/releases/2022/Rio-Tinto-plans-further-investment-in-renewable-energy-in-the-Pilbara)
an intention to invest a further $600 million in renewable energy assets in
the Pilbara as part of our efforts to decarbonise our Western Australian iron
ore operations. The investment is intended to fund the construction of two
100MW solar power facilities as well as 200MWh of on-grid battery storage in
the Pilbara by 2026. This is in addition to the 34MW of solar power installed
at the recently commissioned Gudai-Darri iron ore mine.
• In November, during the China International Import Expo in
Shanghai, Rio Tinto and other industry participants signed various Memorandum
of Understandings (MoUs) with the China Mineral Resources Group. Our MoU
highlights areas we plan to collaborate which includes steel decarbonisation
cooperation, creating long-term sustainable and efficient value chains, and
mineral resource supply development including cooperation on international
resource identification and development.
• In December, we signed a MoU with Mitsui & Co. to explore ways
to reduce emissions across supply chains - from steel decarbonisation to
alternative fuels for mining vehicles and shipping.
Our markets
Commodity prices found some support during the fourth quarter of 2022. The
global economy continues to slow, but some external pressures have eased, with
the change in China's stance on COVID controls, the fall in energy prices
alleviating cost pressures, and markets anticipating a slower pace of interest
rate hikes. Global supply chain pressures have also improved and freight rate
pressures have eased. However, the Russia-Ukraine war continues to pose energy
and food security risks, while fears of recession in the US and Europe remain.
• China continues to provide support to its economy on various
fronts, including the infrastructure and property sectors. However, the end to
COVID controls in December and the subsequent wave of COVID cases bring high
volatility in the coming quarter, with increased short-term risks of supply
chain disruptions and labour shortages. Although more financing is being
provided, consumers remain cautious of the property market. The country's
trade balance remains healthy, but slowing global demand poses downside risks
to exports.
• The US economy has been more resilient than previously envisaged
despite interest rate hikes. The labour market added more jobs compared to
consensus forecasts, and the unemployment rate remained low. The Federal
Reserve continued its tightening monetary policy with a 50 basis points hike
in December, following four consecutive 75 basis point increases, and is
expected to further tighten albeit at a slower pace until inflation rate is
kept under control. Risk of a recession remains as consumer spending will
likely be constrained by rising interest rates and depleted savings.
• The Eurozone economy showed signs of a downturn, as industrial
activity contracted with persistent low demand while inflation remains high.
The European Central Bank (ECB) tightened its monetary policy with the latest
50 basis point increase in December and is expected to continue into this
year. Although the region reduced the chances of a winter energy crisis
through rebuilding of gas inventories, uncertainty remains as the spill over
impacts of the ban on Russian crude oil and refined petroleum set in.
• Iron ore Platts CFR prices rebounded 22% in the quarter, although
the average price of $99/t in the fourth quarter was 4% lower than the third
quarter. Market sentiment strengthened after Beijing released three stimulus
packages in November to stabilise the real estate market by lifting all
previously applied financing constraints on property developers. Prices
trended above $110/dmt at year-end as China began dismantling its zero-COVID
policy and gradually reopening the economy, while mills also started to
replenish in-plant inventories ahead of the Lunar New Year holidays. Steel
demand recovery hinges on the country's ability to control the COVID outbreak.
• The LME cash aluminium price increased 8% in the quarter, although
the average price of $2,324/t in the fourth quarter was 1% lower than the
third quarter. The market was supported by low reported levels of inventories,
and expectations of improving Chinese demand. In North America, shipments of
extrusions and rolled products softened over the quarter, mainly on weaker
extrusion shipments into the building and construction sector. Aluminium
demand growth from renewables and Electric Vehicles (EVs) remains firm. LME
stocks are now at their lowest level in 22 years, and Chinese warehouse stocks
are at a six-year low.
• The copper LME price rose 10% in the fourth quarter to $3.80/lb,
as market sentiment turned more positive on a series of supply disruptions and
low and declining visible stocks, which remain at historically low levels.
Price support came in the form of Chinese government policy changes such as in
the property market and easing COVID-19 restrictions, together with demand
growth in renewables and EVs, plus the return of the investor net long
position in copper.
• The EV market continues to experience strong growth supported by
China as lithium carbonate prices remain elevated on the back of strong global
demand in the quarter. Short-term uncertainty is expected to remain as the
global economy slows and rising interest rates dampen consumers' discretionary
spending. Nonetheless, the long-term outlook remains favourable as governments
continue their push for EV adoption.
Average realised prices achieved for our major commodities
Units H1 2022 H2 2022 2022 2021
Pilbara iron ore FOB, $/wmt 110.9 86.0 97.6 132.3
Pilbara iron ore FOB, $/dmt 120.5 93.5 106.1 143.8
Aluminium* Metal $/t 3,808 2,870 3,330 2,899
Copper** US c/lb 447 362 403 424
IOC pellets FOB $/wmt 199.0 180.1 190.3 214.4
*LME plus all-in premiums (product and market).
**Average realised price for all units sold. Realised price does not include
the impact of the provisional pricing adjustments, which negatively impacted
revenues in 2022 by $175 million (2021 positive impact of $246 million).
IRON ORE
Rio Tinto share of production (Million tonnes) Q4 vs Q4 vs Q3 Full Year vs Full Year
2021
2022
2021
2022 2022
Pilbara Blend and SP10 Lump(1) 21.4 +5 % +1 % 79.2 +4 %
Pilbara Blend and SP10 Fines(1) 35.1 +9 % +8 % 123.6 +3 %
Robe Valley Lump 1.6 +43 % +18 % 5.3 +3 %
Robe Valley Fines 2.5 +24 % +18 % 8.3 -2 %
Yandicoogina Fines (HIY) 15.2 +5 % +12 % 56.6 -1 %
Total Pilbara production 75.9 +8 % +7 % 272.9 +2 %
Total Pilbara production (100% basis) 89.5 +6 % +6 % 324.1 +1 %
Rio Tinto share of shipments (Million tonnes) Q4 vs Q4 vs Q3 Full Year vs Full Year
2021
2022
2021
2022 2022
Pilbara Blend Lump 15.1 +18 % -1 % 53.9 +5 %
Pilbara Blend Fines 32.7 +34 % +3 % 111.1 +1 %
Robe Valley Lump 1.2 +17 % -3 % 4.2 +5 %
Robe Valley Fines 2.9 +29 % +21 % 9.3 -1 %
Yandicoogina Fines (HIY) 14.7 +4 % +8 % 56.9 0 %
SP10 Lump(1) 2.8 -42 % +71 % 12.8 -21 %
SP10 Fines(1) 5.1 -53 % +34 % 22.7 +11 %
Total Pilbara shipments(2) 74.4 +6 % +7 % 270.8 +1 %
Total Pilbara shipments (100% basis)(2) 87.3 +4 % +5 % 321.6 0 %
Total Pilbara Shipments (consolidated basis)(2, 3) 76.3 +6 % +7 % 277.6 +1 %
(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 89.5 million tonnes (Rio Tinto share 75.9 million tonnes) in the
fourth quarter, 6% higher than the corresponding period of 2021, and 6% higher
than the prior quarter.
Fourth quarter shipments of 87.3 million tonnes (Rio Tinto share 74.4 million
tonnes) were 4% higher than the fourth quarter of 2021, and 5% higher than the
prior quarter.
Performance improvements continued across the system during the quarter and we
achieved record second half performance across the mine and rail system. We
expect Gudai-Darri to reach its nameplate capacity on a sustained basis during
2023. System inventories at the end of December are healthy including strong
blasted stocks, mine and port stocks.
Approximately 10% of sales in 2022 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 fourth quarter
were made on a free on board (FOB) basis, with the remainder sold including
freight.
Achieved realised pricing in 2022 was $97.6 per wet metric tonne on an FOB
basis, equivalent to $106.1 per dry metric tonne, at 8% moisture assumption.
This compares to the monthly average Platts index for
62% fines converted to an FOB basis of $109.8 per dry metric tonne. In 2021,
average realised pricing was
$132.3 per wet metric tonne ($143.8 per dry metric tonne).
In October, representatives of the Robe River Joint Venture partners, Rio
Tinto, Mitsui and Nippon Steel, gathered in Perth to celebrate the 50-year
anniversary of the venture's first shipment of iron ore from the Pilbara to
Japan. Since 1972, the Robe River Joint Venture has shipped more than 1.7
billion tonnes of iron ore.
China Portside Trading
Our iron ore portside sales in China were 4.8 million tonnes in the fourth
quarter of 2022 (5.1 million tonnes in the fourth quarter of 2021), leading to
a total of 24.3 million tonnes in 2022 (14.0 million tonnes in 2021). At the
end of the December, inventory levels were 7.8 million tonnes, including 5.5
million tonnes of Pilbara product. In 2022 approximately 80% of our portside
sales were either screened or blended in Chinese ports.
ALUMINIUM
Rio Tinto share of production ('000 tonnes) Q4 vs Q4 vs Q3 Full Year vs Full Year
2021
2022
2021
2022 2022
Bauxite 13,181 +1 % -4 % 54,618 +1 %
Bauxite third party shipments 9,233 +3 % +2 % 38,016 +1 %
Alumina 1,941 +2 % +6 % 7,544 -4 %
Aluminium 783 +3 % +3 % 3,009 -4 %
Bauxite
Bauxite production of 13.2 million tonnes was 1% higher than the fourth
quarter of 2021, despite being 4% lower than the prior quarter due to
equipment downtime at Amrun and Gove in Australia as well as lower production
from Compagnie des Bauxites de Guinée (CBG).
We shipped 9.2 million tonnes of bauxite to third parties in the fourth
quarter, 3% higher than the same period of 2021.
Alumina
Alumina production of 1.9 million tonnes was 2% higher than the fourth quarter
of 2021, and 6% higher than the prior quarter, as a result of the timing of
shutdowns and improved processing performance at Yarwun in Queensland, partly
offset by plant reliability and unplanned outages at Queensland Alumina
Limited (QAL). Production at the Vaudreuil refinery in Quebec, Canada remained
stable year on year.
As the result of QAL activation of a step-in process following sanction
measures by the Australian Government, Rio Tinto has taken on 100% of capacity
for as long as the step-in continues. This results in use of Rusal's 20% share
of capacity by Rio Tinto under the tolling arrangement with QAL. This
additional output is excluded from the production tables in this report as QAL
remains 80% owned by Rio Tinto and 20% owned by Rusal.
Aluminium
Aluminium production of 0.8 million tonnes was 3% higher than the fourth
quarter of 2021, and 3% higher than the prior quarter, as the rate of pot
restarts at Kitimat picked up in the fourth quarter and Boyne smelter cell
recovery efforts continued. Recovery at both smelters is progressing with full
ramp-up expected to be completed during the course of 2023. All of our other
smelters continued to demonstrate stable performance.
Average realised aluminium prices including both product and market premiums
for value-added products
(VAP) and remelt increased by 15% to $3,330 per tonne in 2022 (2021: $2,899
per tonne). This is despite weakened pricing in the second half of 2022 with
average realised pricing $2,870 per tonne versus $3,808 in the first half of
2022. The LME price increased by 9% to $2,703 per tonne (2021: $2,480 per
tonne), whilst the mid-west premium duty paid increased by 12% to $655 per
tonne in 2022 (2021: $584 per tonne). Our VAP sales comprised 50% of primary
metal sold in 2022 (2021: 50%). Product premiums for VAP sales averaged $431
per tonne of VAP sold (2021: $230 per tonne).
The coal contracts for the Gladstone Power Station supplying power to the
Boyne smelter in Australia were renewed in late 2022. We continue to support
the potential development of multiple new wind and solar power projects that
can, in parallel with firming solutions, start supplying power to our
Gladstone assets through the Queensland grid by 2030.
COPPER
Rio Tinto share of production ('000 tonnes) Q4 vs Q4 vs Q3 Full Year vs Full Year
2021
2022
2021
2022 2022
Mined copper
Kennecott 47.5 -4 % -6 % 179.2 +12 %
Escondida 73.0 +5 % -3 % 298.6 +7 %
Oyu Tolgoi 10.8 -17 % -11 % 43.4 -21 %
Refined copper
Kennecott 36.1 +42 % -8 % 148.3 +3 %
Escondida 14.9 +3 % 0 % 60.9 +4 %
Kennecott
Mined copper production was 4% lower than the fourth quarter of 2021 due to
mine sequencing in an area of the pit with lower head grade.
Refined copper production was 42% higher than the fourth quarter of 2021 due
to the furnace failure in September 2021 which led to the smelter being
offline until the end of October. Unplanned maintenance was required in the
fourth quarter of 2022 in our anode furnaces leading to extended downtime and
continued poor anode production, likely to result in weak cathode production
in the first quarter of 2023. Refined copper production will continue to be
challenged at Kennecott due to the smelter and refinery performance, until we
undertake the largest rebuild in nine years which is planned for the second
quarter of 2023 and is expected to take approximately three months.
Escondida
Mined copper production was 5% higher than the fourth quarter of 2021 due to
7% higher concentrator feed grade in line with mine sequencing in the higher
grade area of the pit, partly offset by lower throughput and the impact of
road blockades in Northern Chile. Mined copper production was 7% higher than
2021 due to 9% higher concentrator feed grade and 18% higher copper
recoverable from ore stacked for leaching due to higher volume of material
stacked in both oxide and sulphide leach pads.
Oyu Tolgoi
Mined copper production from the open pit was 17% lower than the fourth
quarter of 2021 due to lower copper grades and recoveries as a result of
planned mine sequencing. Gold grades were significantly lower than the fourth
quarter of the prior year (0.21g/t vs 0.38g/t), due to the mine sequence.
Provisional pricing
At 31 December 2022, the Group had approximately 221 million pounds of copper
sales that were
provisionally priced at 368 cents per pound. The final price of these sales
will be determined during the first
half of 2023. This compares with 201 million pounds of open shipments at 31
December 2021, provisionally
priced at 436 cents per pound. Provisional pricing adjustments negatively
impacted revenues in 2022 by $175 million (2021 positive impact of $246
million).
Nuton(TM)
In December, Rio Tinto made a $15 million investment in Regulus Resources Inc.
through its copper leaching technology venture, Nuton. Regulus and Nuton will
jointly undertake copper sulphide leach testing utilising Nuton technologies
with samples from the AntaKori copper-gold-silver project in northern Peru.
MINERALS
Rio Tinto share of production (million tonnes) Q4 vs Q4 vs Q3 Full Year vs Full Year
2021
2022
2021
2022 2022
Iron ore pellets and concentrate
IOC 2.5 +1 % -9 % 10.3 +6 %
Rio Tinto share of production ('000 tonnes) Q4 vs Q4 vs Q3 Full Year vs Full Year
2021
2022
2021
2022 2022
Minerals
Borates - B(2)O(3) content 141 +20 % +9 % 532 +9 %
Titanium dioxide slag 323 +42 % +4 % 1,200 +18 %
Rio Tinto share of production ('000 carats) Q4 vs Q4 vs Q3 Full Year vs Full Year
2021
2022
2021
2022 2022
Diavik(1) 1,319 +14 % +11 % 4,651 +21 %
(1)Reflects 100% ownership of Diavik (previously 60%) from 1st November 2021.
Iron Ore Company of Canada (IOC)
Iron ore production was 1% higher than the fourth quarter of 2021, despite the
fourth quarter being 9% lower than the previous quarter, due to equipment
availability at the loadout. Successful deployment of the Rio Tinto Safe
Production System (SPS) at the concentrator was completed in the year, with
record performance metrics achieved in the year, including monthly records for
concentrate production and total material moved in the second quarter.
Planning for SPS deployment at the pellet plant commenced in December.
Borates
Borates production in the fourth quarter was 20% higher than the corresponding
period of 2021 with strong production rates and higher grades as well as
improved equipment reliability versus the same period in 2021. There was some
easing of supply chain constraints in the fourth quarter, enabling the
business to achieve more than a 10% increase in container and rail shipments
compared to 2021 levels. Production in 2022 was 9% higher than 2021, at its
highest annual level in more than a decade.
Iron and Titanium
Titanium dioxide production was 42% higher than the fourth quarter of 2021 due
to community disruptions at Richards Bay Minerals in South Africa in 2021, and
continued improved performance of operations at Rio Tinto Fer et Titane,
Canada. Production constraints related to nationwide electrical power
loadshedding at RBM were experienced in the fourth quarter.
Diamonds
At Diavik, our share of carats was 14% higher than the fourth quarter of 2021
due to the benefit of our increased share of production since taking 100%
ownership of Diavik from November 2021, partly offset by lower carats
recovered due to lower throughput.
EXPLORATION AND EVALUATION
Pre-tax and pre-divestment expenditure on exploration and evaluation charged
to the profit and loss account in 2022 was $897 million, compared with $726
million in 2021. Approximately 45% of this expenditure was incurred by Copper
(includes Simandou), 28% by central exploration, 19% by Minerals, 7% by Iron
Ore and 1% by Aluminium.
Our annual budget for greenfield exploration remains around $250 million,
mainly focused on copper, with a growing battery minerals programme.
Exploration highlights
Rio Tinto has a strong portfolio of projects with activity in 18 countries
across seven commodities in early exploration and studies stages. The bulk of
the exploration expenditure in the fourth quarter of 2022 focused on copper in
Australia, Colombia, Namibia, Peru, United States and Zambia diamonds in
Angola and heavy mineral sands projects in Australia and South Africa.
Exploration is ongoing for nickel in Canada and Finland and in lithium across
all regions, with opportunities emerging in the United States and Africa.
Mine-lease exploration continued at Rio Tinto managed businesses including
Pilbara Iron in Australia, Diavik in Canada and Cape York in Australia.
A summary of activity for the quarter is as follows:
Commodities Studies Stage Advanced projects Greenfield/ Brownfield programmes
Bauxite Amargosa, Brazil*, Melville Island, Australia
Sanxai, Laos* Cape York, Australia
Battery Materials Rincon Lithium, Argentina Nickel Greenfield: Australia, Canada, Finland, Peru
Lithium borates: Jadar, Serbia Lithium Greenfield: US, Australia
Nickel: Tamarack, US (3rd party operated)
Copper Copper/molybdenum: Resolution, US Copper: La Granja, Peru, Pribrezhniy, Kazakhstan Copper Greenfield: Australia, Brazil, Canada, Chile, China, Colombia, Finland,
Kazakhstan, Namibia, Laos, Peru, Serbia, US, Zambia
Copper/Gold: Winu, Australia Calibre-Magnum, Australia
Diamonds Falcon, Canada* Diamonds Greenfield: Canada, Angola
Diamonds Brownfield: Diavik
Iron Ore Pilbara, Australia Pilbara, Australia Greenfield and Brownfield: Pilbara, Australia
Simandou, Guinea
Minerals Potash: KL262*, Canada Heavy mineral sands Greenfield: Australia, South Africa
Heavy mineral sands: Mutamba, Mozambique
*Limited activity during the quarter. The Falcon Project in Saskatchewan,
Canada, is currently in care and maintenance whilst Rio Tinto considers
alternative commercial options, including potential exit.
FORWARD-LOOKING STATEMENT
This announcement includes "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements other
than statements of historical facts included in this announcement, including,
without limitation, those regarding Rio Tinto's financial position, business
strategy, plans and objectives of management for future operations (including
development plans and objectives relating to Rio Tinto's products, production
forecasts and reserve and resource positions and any statements related to the
ongoing impact of the COVID-19 pandemic), are forward-looking statements. The
words "intend", "aim", "project", "anticipate", "estimate", "plan",
"believes", "expects", "may", "would", "should", "could", "will", "target",
"set to", "seek", "risk" or similar expressions, commonly identify such
forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of Rio Tinto, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding Rio Tinto's present and future business
strategies and the environment in which Rio Tinto will operate in the future.
Among the important factors that could cause Rio Tinto's actual results,
performance or achievements to differ materially from those in the
forward-looking statements are levels of actual production during any period,
levels of demand and market prices, the ability to produce and transport
products profitably, the impact of foreign currency exchange rates on market
prices and operating costs, operational problems, political uncertainty and
economic conditions in relevant areas of the world, the actions of
competitors, activities by governmental authorities such as changes in
taxation or regulation, the risks and uncertainties associated with the
ongoing impacts of COVID-19 or other pandemic and such other risk factors
identified in Rio Tinto's most recent Annual report and accounts in Australia
and the United Kingdom and the most recent Annual report on Form 20-F filed
with the United States Securities and Exchange Commission (the "SEC") or Form
6-Ks furnished to, or filed with, the SEC. The above list is not exhaustive.
Forward-looking statements should, therefore, be construed in light of such
risk factors and undue reliance should not be placed on forward-looking
statements, particularly in light of the current economic climate and the
significant volatility, uncertainty and disruption caused by the outbreak of
COVID-19. These forward-looking statements speak only as of the date of this
announcement. Rio Tinto expressly disclaims any obligation or undertaking
(except as required by applicable law, the UK Listing Rules, the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority and the
Listing Rules of the Australian Securities Exchange) to release publicly any
updates or revisions to any forward-looking statement contained herein to
reflect any change in Rio Tinto's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.
Nothing in this announcement should be interpreted to mean that future
earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily
match or exceed its historical published earnings per share.
Contacts Please direct all enquiries to media.enquiries@riotinto.com
Media Relations, UK Media Relations, Australia
Matthew Klar Matt Chambers
M +44 7796 630 637 M +61 433 525 739
David Outhwaite Jesse Riseborough
M +44 7787 597 493 M +61 436 653 412
Media Relations, Americas
Simon Letendre
M +1 514 796 4973
Malika Cherry
M +1 418 592 7293
Investor Relations, UK Investor Relations, Australia
Menno Sanderse Tom Gallop
M +44 7825 195 178 M +61 439 353 948
David Ovington Amar Jambaa
M +44 7920 010 978 M +61 472 865 948
Clare Peever
M: +44 7788 967 877
Rio Tinto plc Rio Tinto Limited
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This announcement is authorised for release to the market by Steve Allen, Rio
Tinto's Group Company Secretary.
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Rio Tinto production summary
Rio Tinto share of production
Quarter Full Year % change
2021 2022 2022 2021 2022 Q4 22 Q4 22 2022
Q4 Q3 Q4 vs vs vs
Q4 21 Q3 22 2021
Principal commodities
Alumina ('000 t) 1,911 1,838 1,941 7,894 7,544 +2 % +6 % -4 %
Aluminium ('000 t) 757 759 783 3,151 3,009 +3 % +3 % -4 %
Bauxite ('000 t) 13,095 13,680 13,181 54,326 54,618 +1 % -4 % +1 %
Borates ('000 t) 117 130 141 488 532 +20 % +9 % +9 %
Copper - mined ('000 t) 132.3 138.0 131.3 493.5 521.1 -1 % -5 % +6 %
Copper - refined ('000 t) 40.0 54.1 51.0 201.9 209.2 +28 % -6 % +4 %
Diamonds ('000 cts) 1,155 1,192 1,319 3,847 4,651 +14 % +11 % +21 %
Iron Ore ('000 t) 72,561 73,726 78,415 276,557 283,247 +8 % +6 % +2 %
Titanium dioxide slag ('000 t) 228 310 323 1,014 1,200 +42 % +4 % +18 %
Other Metals & Minerals
Gold - mined ('000 oz) 73.9 58.2 55.7 344.9 235.0 -25 % -4 % -32 %
Gold - refined ('000 oz) 31.5 30.5 30.3 176.4 113.9 -4 % -1 % -35 %
Molybdenum ('000 t) 1.1 0.8 1.1 7.6 3.3 -1 % +33% -56 %
Salt ('000 t) 1,471 1,674 1,458 5,848 5,757 -1 % -13 % -2 %
Silver - mined ('000 oz) 1,108 1,040 1,042 4,148 3,940 -6 % 0 % -5 %
Silver - refined ('000 oz) 516 571 512 2,671 1,950 -1 % -10 % -27 %
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 Q4 Q1 Q2 Q3 Q4 Full Year Full Year
interest
2021
2022
2022
2022
2022
2021
2022
ALUMINA
Production ('000 tonnes)
Jonquière (Vaudreuil) 100 % 338 334 325 336 368 1,364 1,364
Jonquière (Vaudreuil) specialty Alumina plant 100 % 28 25 30 30 29 107 114
Queensland Alumina 80 % 727 704 697 662 678 2,964 2,740
São Luis (Alumar) 10 % 99 94 91 95 97 366 377
Yarwun 100 % 719 745 721 715 769 3,093 2,949
Rio Tinto total alumina production 1,911 1,901 1,864 1,838 1,941 7,894 7,544
ALUMINIUM
Production ('000 tonnes)
Australia - Bell Bay 100 % 48 46 44 46 48 189 185
Australia - Boyne Island 59 % 75 73 61 65 68 298 267
Australia - Tomago 52 % 78 75 75 76 76 305 302
Canada - six wholly owned 100 % 325 318 323 341 360 1,444 1,341
Canada - Alouette (Sept-Îles) 40 % 63 62 63 64 63 251 251
Canada - Bécancour 25 % 30 28 29 29 29 116 115
Iceland - ISAL (Reykjavik) 100 % 52 50 50 51 52 203 202
New Zealand - Tiwai Point 79 % 67 66 66 67 68 264 267
Oman - Sohar 20 % 20 19 20 20 20 79 79
Rio Tinto total aluminium production 757 736 731 759 783 3,151 3,009
BAUXITE
Production ('000 tonnes) (a)
Gove 100 % 2,787 3,093 2,637 2,905 2,874 11,763 11,510
Porto Trombetas 12 % 416 240 308 393 391 1,366 1,332
Sangaredi (b) 1,704 1,765 1,946 1,953 1,588 7,109 7,252
Weipa 100 % 8,188 8,527 9,240 8,429 8,328 34,088 34,525
Rio Tinto total bauxite production 13,095 13,625 14,131 13,680 13,181 54,326 54,618
(a) Mine production figures for metals refer to the total quantity of metal
produced in concentrates, leach liquor or doré bullion irrespective of
whether these products are then refined onsite, except for the data for
bauxite and iron ore which represent production of marketable quantities of
ore plus concentrates and pellets.
(b) Rio Tinto has a 22.95% shareholding in the Sangaredi mine but benefits
from 45.0% of production.
Rio Tinto share of production
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
interest
2021
2022
2022
2022
2022
2021
2022
BORATES
Production ('000 tonnes B(2)O(3) content)
Rio Tinto Borates - borates 100 % 117 123 137 130 141 488 532
COPPER
Mine production ('000 tonnes) (a)
Bingham Canyon 100 % 49.7 47.1 33.9 50.7 47.5 159.4 179.2
Escondida 30 % 69.6 68.2 82.3 75.1 73.0 279.5 298.6
Oyu Tolgoi (b) 66 % 13.0 10.2 10.2 12.2 10.8 54.6 43.4
Rio Tinto total mine production 132.3 125.5 126.4 138.0 131.3 493.5 521.1
Refined production ('000 tonnes)
Escondida 30 % 14.5 14.4 16.7 14.9 14.9 58.6 60.9
Rio Tinto Kennecott (c) 100 % 25.5 40.2 32.7 39.2 36.1 143.3 148.3
Rio Tinto total refined production 40.0 54.7 49.4 54.1 51.0 201.9 209.2
(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) Production data in the table represent 33.52% ownership in Oyu Tolgoi. On
16 December 2022, Rio Tinto completed the acquisition of 100% of Turquoise
Hill Resources Ltd, increasing our ownership in Oyu Tolgoi from 33.52% to 66%.
From 1 January 2023, our share of production will be updated to reflect this
change. We will also separately report production from open pit and
underground operations.
(c) We continue to process third party concentrate to optimise smelter
utilisation, including 4.8 thousand tonnes of cathode produced from purchased
concentrate in year-to-date 2022. 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 (a) 100 % 1,155 991 1,149 1,192 1,319 3,847 4,651
(a) On 17 November 2021, Rio Tinto's ownership interest in Diavik increased
from 60% to 100%. Production is reported including this change from 1 November
2021.
GOLD
Mine production ('000 ounces) (a)
Bingham Canyon 100 % 34.7 37.8 22.8 32.5 29.7 139.5 122.7
Escondida 30 % 12.9 10.9 13.7 11.5 14.5 48.5 50.6
Oyu Tolgoi (b) 66 % 26.3 19.8 16.0 14.3 11.5 156.9 61.6
Rio Tinto total mine production 73.9 68.5 52.5 58.2 55.7 344.9 235.0
Refined production ('000 ounces)
Rio Tinto Kennecott 100 % 31.5 32.2 20.9 30.5 30.3 176.4 113.9
(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) Production data in the table represent 33.52% ownership in Oyu Tolgoi. On
16 December 2022, Rio Tinto completed the acquisition of 100% of Turquoise
Hill Resources Ltd, increasing our ownership in Oyu Tolgoi from 33.52% to 66%.
From 1 January 2023, our share of production will be updated to reflect this
change. We will also separately report production from open pit and
underground operations.
Rio Tinto share of production
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2022
interest 2021 2022 2022 2022 2022 2021
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines (b) 55,049 47,678 52,636 56,650 61,339 210,329 218,304
Hope Downs 50 % 6,567 5,830 6,385 6,264 5,945 24,642 24,425
Iron Ore Company of Canada 59 % 2,498 2,404 2,603 2,776 2,530 9,727 10,312
Robe River - Pannawonica (Mesas J and A) 53 % 3,196 2,774 3,054 3,540 4,178 13,514 13,546
Robe River - West Angelas 53 % 5,252 3,779 3,961 4,496 4,424 18,345 16,660
Rio Tinto iron ore production ('000 tonnes) 72,561 62,465 68,640 73,726 78,415 276,557 283,247
Breakdown of Production:
Pilbara Blend and SP10 Lump (c) 20,374 17,081 19,309 21,317 21,443 76,431 79,152
Pilbara Blend and SP10 Fines (c) 32,081 25,658 30,240 32,592 35,097 119,947 123,587
Robe Valley Lump 1,152 1,051 1,180 1,389 1,645 5,102 5,264
Robe Valley Fines 2,044 1,724 1,874 2,151 2,533 8,412 8,281
Yandicoogina Fines (HIY) 14,412 14,548 13,433 13,501 15,168 56,938 56,650
Pilbara iron ore production ('000 tonnes) 70,063 60,061 66,037 70,951 75,886 266,830 272,934
IOC Concentrate 1,009 962 1,282 1,237 1,186 3,863 4,667
IOC Pellets 1,489 1,442 1,321 1,539 1,343 5,864 5,646
IOC iron ore production ('000 tonnes) 2,498 2,404 2,603 2,776 2,530 9,727 10,312
Breakdown of Shipments:
Pilbara Blend Lump 12,832 10,809 12,684 15,301 15,089 51,522 53,883
Pilbara Blend Fines 24,308 21,698 25,156 31,597 32,659 109,569 111,110
Robe Valley Lump 1,061 675 971 1,281 1,244 3,981 4,171
Robe Valley Fines 2,237 1,731 2,309 2,392 2,896 9,395 9,329
Yandicoogina Fines (HIY) 14,121 14,487 14,201 13,530 14,661 56,889 56,880
SP10 Lump (c) 4,841 3,827 4,456 1,647 2,824 16,078 12,753
SP10 Fines (c) 10,684 7,067 6,775 3,766 5,062 20,487 22,672
Pilbara iron ore shipments ('000 tonnes) (d) 70,084 60,295 66,552 69,515 74,435 267,921 270,798
Pilbara iron ore shipments - consolidated basis ('000 tonnes) (d) (f) 71,972 61,818 68,114 71,379 76,303 275,161 277,613
IOC Concentrate 989 600 1,083 1,316 1,174 4,110 4,174
IOC Pellets 1,711 1,412 1,484 1,443 1,036 5,865 5,375
IOC Iron ore shipments ('000 tonnes) (d) 2,700 2,012 2,567 2,759 2,210 9,976 9,548
Rio Tinto iron ore shipments ('000 tonnes) (d) 72,784 62,307 69,119 72,274 76,645 277,897 280,346
Rio Tinto iron ore sales ('000 tonnes) (e) 69,489 66,683 71,263 74,587 75,337 273,153 287,871
(a) Mine production figures for metals refer to the total quantity of metal
produced in concentrates, leach liquor or doré bullion irrespective of
whether these products are then refined onsite, except for the data for
bauxite and iron ore which represent production of marketable quantities of
ore plus concentrates and pellets.
(b) Includes 100% of production from Paraburdoo, Mt Tom Price, Western Turner
Syncline, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass, Channar,
Gudai-Darri and the Eastern Range mines. Whilst Rio Tinto owns 54% of the
Eastern Range mine, under the terms of the joint venture agreement, Hamersley
Iron manages the operation and is obliged to purchase all mine production from
the joint venture and therefore all of the production is included in Rio
Tinto's share of production. Rio Tinto's ownership interest in Channar mine
increased from 60% to 100%, following conclusion of its joint venture with
Sinosteel Corporation upon reaching planned 290 million tonnes production on
22 October 2020.
(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 Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2022
interest 2021 2022 2022 2022 2022 2021
MOLYBDENUM
Mine production ('000 tonnes) (a)
Bingham Canyon 100 % 1.1 1.1 0.4 0.8 1.1 7.6 3.3
(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 % 1,471 1,595 1,030 1,674 1,458 5,848 5,757
SILVER
Mine production ('000 ounces) (a)
Bingham Canyon 100 % 589 561 385 591 521 2,228 2,057
Escondida 30 % 439 381 393 363 453 1,591 1,590
Oyu Tolgoi (b) 66 % 80 71 67 86 68 328 292
Rio Tinto total mine production 1,108 1,012 846 1,040 1,042 4,148 3,940
Refined production ('000 ounces)
Rio Tinto Kennecott 100 % 516 577 290 571 512 2,671 1,950
(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) Production data in the table represent 33.52% ownership in Oyu Tolgoi. On
16 December 2022, Rio Tinto completed the acquisition of 100% of Turquoise
Hill Resources Ltd, increasing our ownership in Oyu Tolgoi from 33.52% to 66%.
From 1 January 2023, our share of production will be updated to reflect this
change. We will also separately report production from open pit and
underground operations.
TITANIUM DIOXIDE SLAG
Production ('000 tonnes)
Rio Tinto Iron & Titanium (a) 100 % 228 273 293 310 323 1,014 1,200
(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 31 December 2022.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
interest
2021
2022
2022
2022
2022
2021
2022
ALUMINA
Smelter Grade Alumina - Aluminium Group
Alumina production ('000 tonnes)
Australia
Queensland Alumina Refinery - Queensland 80 % 909 880 871 827 847 3,705 3,425
Yarwun refinery - Queensland 100 % 719 745 721 715 769 3,093 2,949
Brazil
São Luis (Alumar) refinery 10 % 993 940 910 946 975 3,662 3,771
Canada
Jonquière (Vaudreuil) refinery - Quebec (a) 100 % 338 334 325 336 368 1,364 1,364
(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 % 28 25 30 30 29 107 114
Rio Tinto percentage interest shown above is at 31 December 2022. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2021
2022
interest 2021 2022 2022 2022 2022
ALUMINIUM
Primary Aluminium
Primary aluminium production ('000 tonnes)
Australia
Bell Bay smelter - Tasmania 100 % 48 46 44 46 48 189 185
Boyne Island smelter - Queensland 59 % 126 123 103 110 114 502 450
Tomago smelter - New South Wales 52 % 150 145 145 148 147 592 586
Canada
Alma smelter - Quebec 100 % 119 117 121 122 122 471 482
Alouette (Sept-Îles) smelter - Quebec 40 % 157 154 157 159 158 629 628
Arvida smelter - Quebec 100 % 43 42 42 43 44 168 171
Arvida AP60 smelter - Quebec 100 % 15 14 14 15 15 60 58
Bécancour smelter - Quebec 25 % 119 111 117 116 116 463 459
Grande-Baie smelter - Quebec 100 % 58 57 58 59 58 230 232
Kitimat smelter - British Columbia 100 % 25 25 26 38 57 263 145
Laterrière smelter - Quebec 100 % 64 63 63 64 64 252 253
Iceland
ISAL (Reykjavik) smelter 100 % 52 50 50 51 52 203 202
New Zealand
Tiwai Point smelter 79 % 85 83 83 85 85 333 336
Oman
Sohar smelter 20 % 100 97 98 100 100 395 395
Rio Tinto percentage interest shown above is at 31 December 2022. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2021
2022
interest 2021 2022 2022 2022 2022
BAUXITE
Bauxite production ('000 tonnes)
Australia
Gove mine - Northern Territory 100 % 2,787 3,093 2,637 2,905 2,874 11,763 11,510
Weipa mine - Queensland 100 % 8,188 8,527 9,240 8,429 8,328 34,088 34,525
Brazil
Porto Trombetas (MRN) mine 12 % 3,469 2,000 2,569 3,275 3,256 11,383 11,100
Guinea
Sangaredi mine (a) 23 % 3,786 3,922 4,323 4,339 3,530 15,797 16,115
Rio Tinto share of bauxite shipments
Share of total bauxite shipments ('000 tonnes) 13,031 13,876 14,054 13,294 13,561 54,278 54,784
Share of third party bauxite shipments ('000 tonnes) 8,988 10,135 9,599 9,049 9,233 37,596 38,016
(a) Rio Tinto has a 22.95% shareholding in the Sangaredi mine but benefits
from 45.0% of production.
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
interest
2021
2022
2022
2022
2022
2021
2022
BORATES
Rio Tinto Borates - borates 100 %
US
Borates ('000 tonnes) (a) 117 123 137 130 141 488 532
(a) Production is expressed as B(2)O(3) content.
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2021
2022
interest 2021 2022 2022 2022 2022
COPPER & GOLD
Escondida 30 %
Chile
Sulphide ore to concentrator ('000 tonnes) 35,787 30,235 34,318 32,894 33,911 133,872 131,358
Average copper grade (%) 0.71 0.81 0.87 0.83 0.76 0.75 0.82
Mill production (metals in concentrates):
Contained copper ('000 tonnes) 203.6 191.5 239.5 214.6 212.8 815.5 858.4
Contained gold ('000 ounces) 42.9 36.3 45.8 38.2 48.4 161.7 168.7
Contained silver ('000 ounces) 1,462 1,270 1,311 1,210 1,510 5,305 5,301
Recoverable copper in ore stacked for leaching ('000 tonnes) (a) 28.4 35.9 34.8 35.8 30.4 116.3 136.9
Refined production from leach plants:
Copper cathode production ('000 tonnes) 48.4 48.1 55.7 49.6 49.7 195.3 203.1
(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 31 December 2022. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2021
2022
interest 2021 2022 2022 2022 2022
COPPER & GOLD (continued)
Rio Tinto Kennecott
Bingham Canyon mine 100 %
Utah, US
Ore treated ('000 tonnes) 9,809 10,130 6,862 10,125 10,449 37,776 37,565
Average ore grade:
Copper (%) 0.55 0.51 0.55 0.56 0.52 0.47 0.53
Gold (g/t) 0.21 0.19 0.17 0.16 0.14 0.21 0.16
Silver (g/t) 2.55 2.36 2.39 2.50 2.20 2.57 2.36
Molybdenum (%) 0.020 0.021 0.017 0.021 0.020 0.029 0.020
Copper concentrates produced ('000 tonnes) 187 176 136 192 184 648 688
Average concentrate grade (% Cu) 26.3 26.8 24.9 26.2 25.6 24.5 26.0
Production of metals in copper concentrates:
Copper ('000 tonnes) (a) 49.7 47.1 33.9 50.7 47.5 159.4 179.2
Gold ('000 ounces) 34.7 37.8 22.8 32.5 29.7 139.5 122.7
Silver ('000 ounces) 589 561 385 591 521 2,228 2,057
Molybdenum concentrates produced ('000 tonnes): 2.2 2.1 0.9 1.8 2.0 14.8 6.8
Molybdenum in concentrates ('000 tonnes) 1.1 1.1 0.4 0.8 1.1 7.6 3.3
Kennecott smelter & refinery 100 %
Copper concentrates smelted ('000 tonnes) 157 213 152 166 194 665 725
Copper anodes produced ('000 tonnes) (b) 32.9 45.8 27.9 46.2 24.5 142.5 144.5
Production of refined metal:
Copper ('000 tonnes) (c) 25.5 40.2 32.7 39.2 36.1 143.3 148.3
Gold ('000 ounces) (d) 31.5 32.2 20.9 30.5 30.3 176.4 113.9
Silver ('000 ounces) (d) 516 577 290 571 512 2,671 1,950
(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 4.8 thousand tonnes of cathode produced from purchased
concentrate in year-to-date 2022. 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 31 December 2022. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2021
2022
interest 2021 2022 2022 2022 2022
COPPER & GOLD (continued)
Turquoise Hill Resources
Oyu Tolgoi mine (a) 66 %
Mongolia
Ore Treated ('000 tonnes) 10,573 9,581 9,685 10,685 9,411 39,124 39,361
Average mill head grades:
Copper (%) 0.46 0.40 0.40 0.42 0.45 0.50 0.42
Gold (g/t) 0.38 0.32 0.26 0.22 0.21 0.54 0.25
Silver (g/t) 1.27 1.25 1.15 1.32 1.21 1.26 1.24
Copper concentrates produced ('000 tonnes) 182.7 144.3 146.0 173.6 151.9 749.6 615.8
Average concentrate grade (% Cu) 21.3 21.0 20.9 20.9 21.3 21.7 21.0
Production of metals in concentrates:
Copper in concentrates ('000 tonnes) 38.9 30.3 30.6 36.3 32.3 163.0 129.5
Gold in concentrates ('000 ounces) 78.6 59.2 47.6 42.7 34.2 468.1 183.8
Silver in concentrates ('000 ounces) 239 211 201 256 204 977 871
Sales of metals in concentrates:
Copper in concentrates ('000 tonnes) 34.4 29.9 35.3 41.8 25.3 139.4 132.3
Gold in concentrates ('000 ounces) 102.2 57.4 67.9 56.0 26.2 434.7 207.5
Silver in concentrates ('000 ounces) 192 179 224 282 152 783 836
(a) Production data in the table represent 33.52% ownership in Oyu Tolgoi. On
16 December 2022, Rio Tinto completed the acquisition of 100% of Turquoise
Hill Resources Ltd, increasing our ownership in Oyu Tolgoi from 33.52% to 66%.
From 1 January 2023, our share of production will be updated to reflect this
change. We will also separately report production from open pit and
underground operations.
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2021
2022
interest 2021 2022 2022 2022 2022
DIAMONDS
Diavik Diamonds (a) 100 %
Northwest Territories, Canada
Ore processed ('000 tonnes) 596 496 537 590 535 2,540 2,158
Diamonds recovered ('000 carats) 1,356 991 1,149 1,192 1,319 5,843 4,651
(a) On 17 November 2021, Rio Tinto's ownership interest in Diavik increased
from 60% to 100%. Production is reported including this change from 1 November
2021.
Rio Tinto percentage interest shown above is at 31 December 2022. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2021
2022
2022
2021
2022
interest 2022 2022
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production ('000 tonnes)
Hamersley mines (a) 55,049 47,678 52,636 56,650 61,339 210,329 218,304
Hope Downs 50 % 13,133 11,660 12,771 12,529 11,891 49,284 48,850
Robe River - Pannawonica (Mesas J and A) 53 % 6,031 5,234 5,762 6,679 7,882 25,497 25,558
Robe River - West Angelas 53 % 9,909 7,130 7,474 8,484 8,347 34,613 31,435
Total production ('000 tonnes) 84,122 71,703 78,643 84,342 89,458 319,724 324,146
Breakdown of total production:
Pilbara Blend and SP10 Lump (b) 24,998 20,827 23,228 25,452 25,251 92,463 94,758
Pilbara Blend and SP10 Fines (b) 38,681 31,094 36,220 38,709 41,158 144,826 147,180
Robe Valley Lump 2,173 1,982 2,226 2,621 3,103 9,626 9,932
Robe Valley Fines 3,857 3,252 3,536 4,058 4,779 15,871 15,625
Yandicoogina Fines (HIY) 14,412 14,548 13,433 13,501 15,168 56,938 56,650
Breakdown of total shipments:
Pilbara Blend Lump 16,616 13,626 16,043 18,860 18,153 64,697 66,682
Pilbara Blend Fines 31,620 27,915 32,243 38,186 38,835 138,203 137,179
Robe Valley Lump 2,001 1,273 1,832 2,417 2,348 7,512 7,870
Robe Valley Fines 4,221 3,266 4,357 4,514 5,464 17,727 17,602
Yandicoogina Fines (HIY) 14,121 14,487 14,201 13,530 14,661 56,889 56,880
SP10 Lump (b) 4,841 3,827 4,456 1,647 2,824 16,078 12,753
SP10 Fines (b) 10,684 7,067 6,775 3,766 5,062 20,487 22,672
Total shipments ('000 tonnes) (c) 84,104 71,462 79,907 82,920 87,347 321,592 321,636
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2021
2022
2022
2021
2022
interest 2022 2022
Iron Ore Company of Canada 59 %
Newfoundland & Labrador and Quebec in Canada
Saleable iron ore production:
Concentrates ('000 tonnes) 1,718 1,638 2,183 2,106 2,020 6,578 7,947
Pellets ('000 tonnes) 2,535 2,456 2,250 2,621 2,288 9,986 9,615
IOC Total production ('000 tonnes) 4,254 4,094 4,433 4,727 4,308 16,564 17,562
Shipments:
Concentrates ('000 tonnes) 1,684 1,022 1,845 2,241 1,999 7,000 7,108
Pellets ('000 tonnes) 2,914 2,405 2,527 2,457 1,764 9,988 9,153
IOC Total Shipments ('000 tonnes) (c) 4,598 3,427 4,372 4,699 3,763 16,989 16,261
Global Iron Ore Totals
Iron Ore Production ('000 tonnes) 88,375 75,797 83,076 89,069 93,766 336,288 341,708
Iron Ore Shipments ('000 tonnes) 88,702 74,889 84,279 87,619 91,110 338,581 337,897
Iron Ore Sales ('000 tonnes) (d) 85,256 79,194 86,108 89,689 89,650 333,185 344,641
(a) Includes 100% of production from Paraburdoo, Mt Tom Price, Western Turner
Syncline, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass, Channar,
Gudai-Darri and the Eastern Range mines. Whilst Rio Tinto owns 54% of the
Eastern Range mine, under the terms of the joint venture agreement, Hamersley
Iron manages the operation and is obliged to purchase all mine production from
the joint venture and therefore all of the production is included in Rio
Tinto's share of production. Rio Tinto's ownership interest in Channar mine
increased from 60% to 100%, following conclusion of its joint venture with
Sinosteel Corporation upon reaching planned 290 million tonnes production on
22 October 2020.
(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 31 December 2022. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
2021
2022
2022
2021
2022
interest 2022 2022
SALT
Dampier Salt 68 %
Western Australia
Salt production ('000 tonnes) 2,152 2,333 1,507 2,449 2,133 8,555 8,422
TITANIUM DIOXIDE SLAG
Rio Tinto Iron & Titanium 100 %
Canada and South Africa
(Rio Tinto share) (a)
Titanium dioxide slag ('000 tonnes) 228 273 293 310 323 1,014 1,200
(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 31 December 2022. The data
represents production and sales on a 100% basis unless otherwise stated.
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