REG - Rio Tinto - Fourth quarter production results
16/01/2024 07:00
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RNS Number : 7675Z Rio Tinto PLC 16 January 2024
Rio Tinto releases fourth quarter production results
16 January 2024
Rio Tinto Chief Executive Jakob Stausholm said: "We were fatality free for the
fifth consecutive year at our managed operations but we remain vigilant and
continue to learn from safety incidents. The Group's total copper equivalent
production increased by just over 3% from 2022, reflecting the Gudai-Darri
mine in the Pilbara reaching its nameplate capacity and deployment of our Safe
Production System. We also benefited from our increased ownership in Oyu
Tolgoi as the underground ramps up and the Kitimat aluminium smelter returned
to full capacity.
"We made real progress in shaping our portfolio for the future, entering the
recycled aluminium market in North America and progressing the world class
Simandou iron ore project in Guinea. We have one of the most exciting
exploration pipelines in years, including our new copper joint venture with
Codelco, launched in December. We continue to work hard to transform our
culture and to invest in deep engagement and partnerships with Traditional
Owners, such as our agreement to explore renewable energy projects with the
Yindjibarndi Energy Corporation.
"There is good demand for the materials we produce, and our purpose and
long-term strategy make more sense than ever. The work we are doing today is
creating a stronger Rio Tinto for years to come, as we invest in profitable
growth while continuing to deliver attractive shareholder returns."
Production* Q4 vs Q4 vs Q3 vs 2022
2022
2023
2023 2023
Pilbara iron ore shipments (100% basis) Mt 86.3 -1% +3% 331.8 +3%
Pilbara iron ore production (100% basis) Mt 87.5 -2% +5% 331.5 +2%
Bauxite Mt 15.1 +15% +8% 54.6 0%
Aluminium kt 846 +8% +2% 3,272 +9%
Mined copper (consolidated basis) kt 160 +5% -6% 620 +2%
Titanium dioxide slag kt 275 -15% +11% 1,111 -7%
IOC** iron ore pellets and concentrate Mt 2.7 +7% +13% 9.7 -6%
*Rio Tinto share unless otherwise stated
**Iron Ore Company of Canada
Q4 2023 operational highlights and other key announcements
• The safety, health and wellbeing of our workforce and communities
where we operate remains our priority. We achieved our fifth consecutive year
with no fatalities at our managed operations. But we maintain a state of
chronic unease as safety incidents continued to occur at our sites, including
two Permanent Disabling Injuries in 2023. We are applying learnings from these
to enhance processes across our operations.
• Pilbara operations produced 331.5 million tonnes (100% basis) of
iron ore, 2% higher than 2022. Improved productivity, supported by ongoing
implementation of the Safe Production System, and the ramp up of Gudai-Darri
to its nameplate capacity of 43 million tonnes per annum, within 12 months of
commissioning, more than offset mine depletion. Shipments were 331.8 million
tonnes (100% basis), 3% higher (+10 million tonnes) than 2022 and the second
highest on record, with healthy inventory positions at year-end.
• On 18 October, we announced
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-to-increase-gudai-darri-iron-ore-mine-capacity-)
plans to increase iron ore production capacity at Gudai-Darri by 7 million
tonnes to 50 million tonnes a year through incremental productivity gains, at
a cost of around $70 million. The capacity increase is subject to
environmental, heritage and other relevant approvals.
• Bauxite production of 54.6 million tonnes in 2023 was unchanged
from 2022. Operations saw a continued improvement in the fourth quarter, with
production 8% higher than the prior quarter, following the challenges of
higher-than-average rainfall at Weipa in the first quarter and equipment
downtime at both Weipa and Gove in the first half.
• Aluminium production of 3.3 million tonnes was 9% higher than 2022
after we returned to full capacity at the Kitimat smelter and completed cell
recovery efforts at Boyne during the third quarter. All other smelters
continued to demonstrate stable performance.
• On 1 December, we announced
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-and-giampaolo-group-complete-matalco-aluminium-recycling-transaction)
the completion of a transaction to form the Matalco joint venture. Following
receipt of all regulatory approvals, we acquired, and settled payment for, a
50% equity stake from Giampaolo Group for $0.7 billion, subject to usual
closing adjustments. Matalco will remain the operator of the joint venture's
one Canadian and six US sites which have a combined annual capacity of ~900
thousand tonnes. Production from Matalco in 2023 was 582 thousand tonnes of
recycled aluminium with Rio Tinto marketing these products from 1 December
2023.
• Mined copper production of 620 thousand tonnes (consolidated
basis) was 2% higher than 2022 reflecting first sustainable production from
Oyu Tolgoi underground in the first quarter and a full year of increased
ownership of Oyu Tolgoi. This offset challenges at Kennecott following the
conveyor failure in March, with the concentrator not returning to full
capacity until the third quarter.
• Refined copper production of 175 thousand tonnes was 16% lower
than 2022 as we undertook the largest rebuild of the smelter and refinery in
Kennecott's history across the second and third quarters. With the smelter
rebuild successfully completed and the ramp-up progressing, we expect a return
to stable production in the first quarter of 2024.
• On 8 November, we completed
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-and-codelco-complete-nuevo-cobre-exploration-joint-venture-agreement)
the acquisition of PanAmerican Silver's stake in Agua de la Falda and entered
a joint venture (known as Nuevo Cobre) with Corporación Nacional del Cobre de
Chile (Codelco) to explore and potentially develop copper assets in Chile's
prospective Atacama region.
• Titanium dioxide slag (TiO(2)) production of 1,111 thousand tonnes
was 7% lower than 2022. Two furnaces at our RTIT Quebec Operations remain
offline following process safety incidents in June and July. In the fourth
quarter, we decommissioned an additional furnace, which is due for
reconstruction in 2024.
• IOC production of 9.7 million tonnes, was 6% lower than 2022 with
challenges due to the wildfires in Northern Quebec in the second quarter, as
well as extended plant downtime and conveyor belt failures in the third
quarter.
• We are now deploying our Safe Production System at ~60% of our
sites, with implementation at various stages of maturity. Key performance
highlights include a 20% yearly improvement in AIFR globally where the Safe
Production System has been deployed, as well as a 5 million tonne uplift in
iron ore production. With eight Safe Production System deployment sites having
achieved their best ever demonstrated production in recent months, we are well
positioned to deliver our 2024 priorities, including a further 5 million tonne
uplift at our Pilbara operations.
• On 6 December, we held our Investor Seminar
(https://www.riotinto.com/en/invest/investor-seminars) in Sydney where we
provided an update on our long-term strategy of investing with discipline to
strengthen operations, delivering growth in a decarbonising world and
continuing to generate attractive shareholder returns. We gave an update on
the world class Simandou iron ore project in Guinea, as well as our
decarbonisation investments, with our commitment to halve Scope 1 and 2
emissions by 2030 remaining unchanged.
• The full year cash outflow from an increase in working capital was
comparable to the first half ($0.9 billion outflow in the first half of 2023).
This movement was driven by healthy stocks in the Pilbara, still elevated
in-process inventory at Kennecott following the smelter rebuild and weaker
market conditions including for titanium dioxide feedstock. Receivables also
reflected a higher iron ore price at the end of 2023 that will be monetised in
2024. Operating cash flow was also impacted by lower dividends from Escondida.
• There were four changes to the Board during the fourth quarter:
◦ On 25 October, we announced
(https://www.riotinto.com/en/news/releases/2023/joc-o-rourke-joins-rio-tinto-board)
the appointment of James "Joc" O'Rourke as a non-executive director. Mr
O'Rourke has more than 25 years of experience across the mining industry,
including as former CEO of The Mosaic Company and a range of executive roles
at Barrick Gold Corporation.
◦ On 15 December, we confirmed
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-board-change) that
Dr Megan Clark has stepped down as a non-executive director, having served for
nine years on the Board.
◦ On 22 December, we announced
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-board-changes-c4a430f10)
the appointment of Martina Merz as a non-executive director. Ms Merz brings
extensive leadership and operational experience, most recently as CEO of
industrial engineering and steel production conglomerate ThyssenKrupp. Ms Merz
has held numerous leadership roles, including at Robert Bosch.
◦ On 22 December, we also announced
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-board-changes-c4a430f10)
the appointment of Sharon Thorne as a non-executive director. Ms Thorne is a
Chartered Accountant and has had a 36-year career with Deloitte, becoming an
audit partner in 1998 and holding numerous Executive and Board roles. Ms
Thorne was appointed Global Chair in 2019, before retiring in 2023.
• On 22 November, we announced
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-settlement-with-securities-and-exchange-commission)
that we had reached a court approved settlement with the Securities and
Exchange Commission (SEC) of a suit brought in 2017 concerning disclosure of
the impairment of Rio Tinto Coal Mozambique reflected in our 2012 accounts.
Without admitting to or denying the SEC's allegations related to our books,
records and reporting requirements, we agreed to pay a $28 million penalty and
retain an independent consultant to advise on our current policies,
procedures, and controls related to impairment, disclosures and project risk.
With this settlement, all investigations of Rio Tinto regarding this matter
have been finalised.
• Subsequent to the end of the period, Dampier Salt Limited entered
into a sales agreement for the Lake MacLeod salt and gypsum operation in
Carnarvon, Western Australia with privately-owned salt company Leichhardt
Industrials Group for $251 million (A$375 million). Completion of the sale is
subject to certain commercial and regulatory conditions being satisfied.
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 2023 2024
Guidance Actuals Guidance
Pilbara iron ore (shipments, 100% basis) (Mt) 320 to 335(1) 331.8 323 to 338
Bauxite (Mt) 54 to 57(2) 54.6 53 to 56
Alumina (Mt) 7.4 to 7.7 7.5 7.6 to 7.9
Aluminium (Mt) 3.1 to 3.3 3.3 3.2 to 3.4
Mined copper (kt)(3) 590 to 640 620 660 to 720
Refined copper (kt) 160 to 190 175 230 to 260
Diamonds (M carats) 3.0 to 3.8 3.3 Not provided
Titanium dioxide slag (Mt) 1.1 to 1.4(2) 1.1 0.9 to 1.1
IOC(4) iron ore pellets and concentrate (Mt) 9.3 to 9.8 9.7 9.8 to 11.5
Boric oxide equivalent (Mt) ~0.5 0.5 ~0.5
(1)In the upper half of the range.
(2)In the lower end of the range.
(3)Mined copper for 2023 guidance and actuals includes Oyu Tolgoi on a 100%
consolidated basis following Rio Tinto's acquisition of Turquoise Hill
Resources Ltd, which completed on 16 December 2022.
(4)Iron Ore Company of Canada continues to be reported at Rio Tinto share.
• 2024 production guidance is unchanged since December 2023.
• Expectations for Pilbara iron ore shipments in 2024 remain at 323
to 338 million tonnes, unchanged since October 2023. SP10 levels are expected
to remain elevated until replacement projects are delivered. Levels are
dependent on the timing of approvals for planned mining areas, including
heritage clearances.
• Iron ore shipments and bauxite production guidance remain subject
to weather impacts.
Operating costs
• Guidance for 2024 Pilbara iron ore and Copper C1 unit cash costs
will be provided in the 2023 full year results release due on 21 February
2024.
• Guidance for 2023 Pilbara iron ore unit cash costs is unchanged at
the lower half of our $21.0 to $22.5 per tonne range (based on an average
actual A$:US$ exchange rate for 2023 of 0.66).
• We expect to be in the upper half of the 2023 Copper C1 unit costs
guidance range of 180 to 200 US cents/lb.
Aluminium modelling
As reported in the first half of 2023, 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 22 H1 23 H2 23 FY 23
Bauxite 31 31 31 31
Conversion 32 32 36 33
Caustic 23 24 20 22
Energy 14 13 13 13
Total 100 100 100 100
Input costs (nominal) H1 22 H2 22 H1 23 H2 23 Inventory flow(3) FY 23
Index price Index price Index price Index price Annual cost sensitivity impact on underlying EBITDA
Caustic soda(1) ($/t) 675 595 432 369 3 - 4 months $11m per $10/t
Natural gas(2) ($/mmbtu) 6.02 7.01 2.61 2.79 0 - 1 month $4m per $0.10/GJ
Brent oil ($/bbl) 105.9 93.8 79.2 85.4 N/A $2m per $10/bbl
(1)North East Asia FOB | (2)Henry Hub | (3) Based on quarterly standard
costing (moving average)
Aluminium smelting
Production cash cost (%) FY 22 H1 23 H2 23 FY 23
Alumina 41 37 38 37
Power 19 18 19 18
Conversion 17 20 22 21
Carbon 21 23 19 21
Materials 2 2 2 2
Total 100 100 100 100
Input costs (nominal) H1 22 H2 22 H1 23 H2 23 Inventory flow(4) FY 23
Index price Index price Index price Index price Annual cost sensitivity impact on underlying EBITDA
Alumina(1) ($/t) 395 328 349 335 1 - 2 months $60m per $10/t
Petroleum coke(2) ($/t) 695 719 636 496 2 - 3 months(5) $11m per $10/t
Coal tar pitch(3) ($/t) 1103 1476 1,399 1,130 1- 2 months $2m per $10/t
(1)Australia FOB | (2)US Gulf FOB | (3)North America FOB | (4)Based on
quarterly standard costing (moving average) | (5)Pet coke flows through
inventory on a two to three month basis. This does not take into consideration
the lag between market index prices and realised cost through to EBITDA. There
is an additional lag of 1 - 3 months between price settlement and shipment
date.
Investments, growth and development projects
• Pre-tax and pre-divestment expenditure on exploration and
evaluation charged to the profit and loss account in 2023, excluding Simandou,
was $855 million, compared with $706 million in 2022 on the same basis.
Approximately 30% of the spend was by central exploration, 31% by Minerals
(with the majority focusing on lithium), 31% by Copper and 7% by Iron Ore.
• Spend on Simandou in 2023 was $0.9 billion (on a 100%(1) basis),
compared to $0.2 billion in 2022. The 2023 spend includes around $0.4 billion
to be funded by CIOH after receiving Chinese regulatory approvals.
Pilbara mine projects
• Construction of our Western Range mine is currently on schedule
with civil work well advanced, while we continue to progress primary crusher
works, bulk earthworks and mine pre-strip.
• We advanced our next tranche of Pilbara mine replacement project
studies including Hope Downs 1 Sustaining (Hope Downs 2 and Bedded Hilltop),
Brockman 4 sustaining (Brockman Syncline 1), Greater Nammuldi Sustaining and
West Angelas Sustaining. We are working closely with Traditional Owners and
Government Regulators on Part IV environmental approvals and heritage
clearances.
• On 5 December, we announced approval
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-progresses-rhodes-ridge-to-next-study-phase)
of a $77 million pre-feasibility study (PFS) to progress development of the
Rhodes Ridge project. The PFS follows completion of an Order of Magnitude
study that considered development of an operation with initial capacity of up
to 40 million tonnes per year, subject to relevant approvals. Completion of
the PFS is expected by the end of 2025 and will be followed by a feasibility
study, with first ore expected by the end of the decade.
Oyu Tolgoi underground project
• We continue to see strong performance from the underground mine,
with a total of 86 drawbells opened from Panel 0, including 14 during the
quarter. The operation is expected to ramp up to deliver average mined copper
production of ~500ktpa (100% basis) between 2028 and 2036(2).
• Sinking of ventilation shafts 3 and 4 continued to progress well
during the quarter and at the end of December reached depths of 923 metres and
1,013 metres below ground level, respectively. Final depths required for
shafts 3 and 4 are 1,130 and 1,176 metres respectively. Both shafts are
expected to be commissioned in the second half of 2024.
• Construction of the conveyor to surface works continued to plan
and was 88% 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.
• During the quarter, Rio Tinto, Oyu Tolgoi and the Government of
Mongolia continued to work together towards the implementation of Mongolian
Parliamentary Resolution 103.
Simandou iron ore project
• During our Investor Seminar
(https://www.riotinto.com/en/invest/investor-seminars) , we gave an update
(https://www.riotinto.com/en/news/releases/2023/simandou-iron-ore-project-update)
on Rio Tinto's Simandou iron ore project in Guinea, which is being progressed
through the Simfer joint venture in partnership with CIOH, a Chinalco-led
consortium(3) and the Republic of Guinea. Simandou is the world's largest
untapped high-grade iron ore deposit
(https://cdn-rio.dataweavers.io/-/media/content/documents/invest/reserves-and-resources/2023/rt-simandou-resources-reserves-2023.pdf?rev=99baa2fa87354af8ad3a60401c70e444)
. We estimate our initial(4) share of capital expenditure is approximately
$6.2 billion(5) including development of the Simfer mine, to be owned and
operated by our existing Simfer joint venture, and the co-developed rail and
port infrastructure project, to be constructed through a joint venture between
our Simfer joint venture, Winning Consortium Simandou (WCS)(6), Baowu and the
Republic of Guinea. We expect full year expenditure for 2023 of around $0.9
billion to progress critical path works, including around $0.4 billion to be
funded by CIOH after receiving Chinese regulatory approvals. First production
from the Simfer mine is expected in 2025, ramping up over 30 months to an
annualised capacity of 60 million tonnes per year(7) (27 million tonnes per
year Rio Tinto share).
• We continued to make progress through the fourth quarter towards
finalising the infrastructure joint venture arrangements between Simfer
Jersey, WCS, Baowu and the Republic of Guinea, with a number of additional
agreements signed in December. We continue to work with our partners to
finalise(8) regulatory approvals. Chinese outbound investment approval
processes are advancing and expected in the first quarter. In the meantime,
antitrust clearances, including from China, were received in December. Full
sanction of the project by the Rio Tinto Board is subject to the remaining
conditions being met, including joint venture partner approvals and regulatory
approvals from China and Guinea. Simfer mobilisation continued with a
workforce of nearly 6,000 on site to support critical path works to ensure
progress on mine, port and rail construction.
Other key projects and exploration and evaluation
• At Complexe Jonquière in Quebec, Canada, we continued early works
for the expansion of our low-carbon AP60 aluminium smelter during the quarter.
Once completed, the project will add 96 new AP60 pots, increasing capacity by
approximately 160,000 metric tonnes of primary aluminium per year. This new
capacity, in addition to 30,000 tonnes of new recycling capacity at Arvida
expected to open in the first quarter of 2025, will offset the 170,000 tonnes
of capacity lost through the gradual closure of potrooms at the Arvida smelter
from 2024.
• At Kennecott, progress on the North Rim Skarn (NRS) underground
development and infrastructure was impacted by a ground fall event. Full
underground activities have resumed, however, production from the NRS is now
forecast to commence in the first quarter of 2025 (previously 2024).
• At the Resolution Copper project in Arizona, the United States
Forest Service (USFS) continued work to progress the Final Environmental
Impact Statement (FEIS) and complete actions necessary for the land exchange.
We continued to advance partnership discussions with federally-recognised
Native American Tribes who are part of the formal consultation process. We are
also monitoring the Apache Stronghold versus USFS case held in the US Ninth
Circuit Court of Appeals. While there is significant local support for the
project, we respect the views of groups who oppose it and will continue our
efforts to address and mitigate concerns.
• At the Winu copper-gold project in Western Australia, Project
Planning Agreements were executed with the Nyangumarta and Martu groups, the
Traditional Owners of the land on which the proposed Winu mine and airstrip
will be located. Study activities, drilling and fieldwork progressed
sufficiently to commence Winu's formal Western Australian Environmental
Protection Authority (EPA) approval process. Work in 2024 to complete the
environmental approval deliverables and the Project Agreement negotiations
with both Traditional Owner groups remains the priority.
• Nuton, our proprietary copper heap leaching technology venture,
announced non-dilutive financing of $33 million for an option to enter into
a joint venture agreement with Arizona Sonoran Copper Company Inc. (ASCU). The
strategic alliance aims to deploy Nuton at ASCU's Cactus Mine and the
Parks/Salyer Project in Arizona. In addition, Nuton invested $10 million in
the Yerington project, owned by Lion Copper & Gold (LionCG) and located in
Nevada. As at the end of 2023, Nuton's portfolio comprised of six partnerships
(Cactus with ASCU, Yerington with LionCG, Johnson Camp with Excelsior,
AntaKori with Regulus, Escondida with BHP and Los Azules with McEwen) across
four countries.
• We continue to believe that the Jadar lithium-borate project in
Serbia has the potential to be a world-class asset, that will support the
development of other future industries in Serbia, acting as a catalyst for
tens of thousands of jobs for current and future generations, and sustainably
producing materials critical to the energy transition. We are focused on
consultation with all stakeholders to explore options related to the project's
future.
• At the Rincon lithium project in Argentina, development of the
three thousand tonne per annum lithium carbonate starter plant is ongoing with
the installation of the adsorption columns, evaporator, main tanks and
construction camp. We progressed studies for the full-scale operation during
the quarter, and the exploration campaign to further understand Rincon's
basin, brine and water reservoirs. We continue to engage with communities, the
province of Salta and the Government of Argentina to ensure an open and
transparent dialogue with stakeholders about the works underway. We continue
to expect first production from the three thousand tonne per annum lithium
carbonate starter plant by the end of 2024.
(1)Costs relating to the Simfer joint venture where the Government of Guinea
holds 15% and Simfer Jersey holds 85%. Simfer Jersey is owned by Rio Tinto
(53%) and Chalco Iron Ore Holdings (CIOH) (47%).
(2) The 500ktpa 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 Australian Securities Exchange (ASX)
dated 11 July 2023 "Investor site visit to Oyu Tolgoi copper mine, Mongolia".
All material assumptions underpinning that production target and those
production profiles continue to apply and have not materially changed.
(3)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.
(4)A true-up mechanism will apply between Simfer and WSC to equalise their out
of pocket costs of constructing the co-developed rail and port infrastructure.
(5)Estimated numbers, subject to approval by all joint venture partners and
government authorities.
(6)WCS is currently a consortium of Singaporean company, Winning International
Group (50%), Weiqiao Aluminium (part of the China Hongqiao Group) (50%) and
United Mining Supply Group (nominal shareholding). WCS is the holder of
Simandou Blocks 1 & 2 (with the Government of Guinea holding a 15%
interest in the mining vehicle and WCS holding 85%) and associated
infrastructure. Baowu Resources has entered into an agreement to acquire a 49%
share of WCS mine and infrastructure projects through a Baowu-led consortium,
subject to conditions including regulatory approvals. In the case of the mine,
Baowu has an option to increase to 51% during operations.
(7)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 Australian Securities Exchange (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.
( 8)Co-development of the rail and port infrastructure remains subject to a
number of conditions, including regulatory approvals in Guinea and China, the
entry into a number of legal agreements, ratification of the investment
framework for co-development by the Republic of Guinea, and agreement between
Simfer, WCS and the Republic of Guinea regarding the budget for the rail and
port infrastructure.
( )
( )
Sustainability highlights
During 2023, we continued to implement the 26 recommendations of the Everyday
Respect rep
(https://www.riotinto.com/en/sustainability/talent-diversity-inclusion/everyday-respect)
ort
(https://www.riotinto.com/en/sustainability/talent-diversity-inclusion/everyday-respect)
. As part of this, we have invested in developing the mindsets, behaviours and
skills of all employees to create a safe, respectful and inclusive
workplace. This included all our leaders and ~81% of employees completing
training on building psychological safety and being an upstander. Twenty new
village councils are now in place and Care Hub has been launched to help
people impacted by harmful behaviours, reaching ~30,000 employees, across
Australia, New Zealand and Mongolia. We will be conducting an independent
progress review with Elizabeth Broderick during 2024 which we plan to share
externally.
Through 2023, we continued our work on our 2019 water targets, which consisted
of one Group and six-site based targets, and, at year-end, remained on-track
to substantially meet these. In 2023, on World Water Day, we became the
first major mining company to release our site-by-site water usage. The
interactive online map (https://www.riotintowaterdashboard.com/) shows surface
water usage across our global network of managed sites in 35 countries. In
December 2023, we released our 2021 - 2023 Water Report for QMM
(https://cdn-rio.dataweavers.io/-/media/content/documents/operations/qmm/rt-qmm-water-report-2021-2023.pdf?rev=e6f0f88292eb4f198eda2d6e853c75e8)
which provides further detail on the water strategy, and water quality data
and performance at our operations in Madagascar. In 2024, we will be launching
our next 5-year water targets.
Other sustainability highlights for the fourth quarter include:
12 October 2023 | Rio Tinto becomes official aluminium partner of the Montreal
Canadiens
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-becomes-official-aluminium-partner-of-the-montreal-canadiens)
30 October 2023
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-and-prysmian-partner-on-sustainable-supply-of-materials-for-the-energy-transition)
|
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-and-prysmian-partner-on-sustainable-supply-of-materials-for-the-energy-transition)
Rio Tinto and Prysmian partner on sustainable supply of materials
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-and-prysmian-partner-on-sustainable-supply-of-materials-for-the-energy-transition)
21 November 2023
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-starts-recycling-steel-from-australias-largest-ever-demolition-project-on-the-northern-territorys-gove-peninsula)
|
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-starts-recycling-steel-from-australias-largest-ever-demolition-project-on-the-northern-territorys-gove-peninsula)
Rio Tinto starts recycling steel from Australia's largest ever demolition
project
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-starts-recycling-steel-from-australias-largest-ever-demolition-project-on-the-northern-territorys-gove-peninsula)
Communities & Social Performance (CSP)
Key highlights from the quarter are provided below, with further information
available our website (https://www.riotinto.com/sustainability/communities) .
10 October 2023 | Rio Tinto to provide ad
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-australia-japan-innovation-fund)
ditional funding to the Aus
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-australia-japan-innovation-fund)
tralia-Japan Innovation Fund
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-australia-japan-innovation-fund)
10 November 2023 | Rio Tinto Kennecott donates $10 million to M
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-kennecott-donates-10-million-to-museum-of-utah)
useum of Utah
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-kennecott-donates-10-million-to-museum-of-utah)
29 November 2023 | Rio Tinto amplifies support for domestic and family
violence prevention in Canada
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-amplifies-support-for-domestic-and-family-violence-prevention-in-canada)
4 December 2023 | UNESCO and Rio Tinto sign partnership to support sustainable
development in Mongolia
(https://www.riotinto.com/en/news/releases/2023/unesco-and-rio-tinto-sign-partnership-to-support-sustainable-development-in-mongolia)
Climate change, product stewardship and our value chain
At our Investor Seminar (https://www.riotinto.com/en/invest/investor-seminars)
, on 6 December, we re-iterated our commitment to halve Scope 1 and 2
emissions by 2030 and achieve net zero by 2050. Our decarbonisation capital
spend to 2030 was revised to $5-6bn (previously ~$7.5bn) including around
$1.5bn from 2024 to 2026. This reflects factors including the use of
commercial partnerships outside of capital expenditure, such as renewable
power purchase agreements and biofuel contracts, to accelerate
decarbonisation, and aligning the timing of investment in the second phase of
Pilbara renewable infrastructure to beyond 2030 when it will be needed to
support fleet electrification. We also gave an update on our continued work on
Scope 3, with partnerships and technology development fundamental to helping
our customers decarbonise. As part of the update, we set out near-term Scope 3
ambitions such as a 50% reduction in Scope 3 from IOC by 2035 and our aim to
commission a BioIron(TM) Continuous Pilot Plant by 2026 (both subject to
funding approval and technical feasibility). A brief guide on BioIron(TM) from
our Chief Scientist, Nigel Steward, can be found here
(https://www.riotinto.com/en/invest/presentations/2023/introduction-to-bioiron)
.
In the fourth quarter, we progressed initiatives to decarbonise our assets and
continued to develop partnerships and technologies to decarbonise our value
chains. Key developments are provided below:
10 October 2023
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-kennecott-completes-construction-of-solar-power-plant)
|
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-kennecott-completes-construction-of-solar-power-plant)
Rio Tinto Kennecott completes construction of solar power plant
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-kennecott-completes-construction-of-solar-power-plant)
20 October 2023 | Rio Tinto and
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-and-yindjibarndi-energy-sign-pilbara-renewables-mou)
Yindjibarndi Energy sign Pilbara renewables MOU
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-and-yindjibarndi-energy-sign-pilbara-renewables-mou)
21
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-partners-with-aymium-to-trial-renewable-biocarbon-product)
No
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-partners-with-aymium-to-trial-renewable-biocarbon-product)
vember 2023 |
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-partners-with-aymium-to-trial-renewable-biocarbon-product)
Rio Tinto partners with Aymium to trial renewable biocarbon product
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-partners-with-aymium-to-trial-renewable-biocarbon-product)
4
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-approves-new-solar-farm-and-battery-storage-to-power-its-amrun-bauxite-operations-on-cape-york)
December 2023 |
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-approves-new-solar-farm-and-battery-storage-to-power-its-amrun-bauxite-operations-on-cape-york)
Rio Tinto approves new solar farm and battery storage to power its Amrun
bauxite operations on Cape York
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-approves-new-solar-farm-and-battery-storage-to-power-its-amrun-bauxite-operations-on-cape-york)
5 December 2023
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-kennecott-to-fully-transition-to-renewable-diesel)
|
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-kennecott-to-fully-transition-to-renewable-diesel)
Rio Tinto Kennecott to fully transition to renewable diese
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-kennecott-to-fully-transition-to-renewable-diesel)
l
(https://www.riotinto.com/en/news/releases/2023/rio-tinto-kennecott-to-fully-transition-to-renewable-diesel)
Our markets
Commodity prices found some support during the quarter, amid increased Chinese
policy measures, lower global recession fears and a broad slowdown in
inflation. Monetary policy in advanced economies remains tight. However,
interest rates may now have peaked. Global supply chain challenges have
improved, although risks remain on certain routes such as the Panama and Suez
Canals, while labour costs are still rising amidst tight markets in Australia,
Canada and the USA.
• China's economy stabilised earlier in the fourth quarter.
Resilient infrastructure and manufacturing investment, and an increase in the
automotive sector and consumer goods, helped offset the prolonged weakness in
the property market. Market confidence increased following strong fiscal
easing and improvement in manufacturing and consumption levels. Stimulus
measures are expected to drive a gradual recovery in 2024, albeit weighted
towards the second half, with the real estate sector remaining weak.
• The US economy is slowing down with labour markets cooling.
Consumers remain pressured by higher interest rates, tighter lending standards
and depleted savings. Inflation has eased to its lowest level in two years,
but the Federal Reserve's top priority is still to reduce it further to the 2%
target, even as the prospect of rate cuts increases in 2024. The services
sector has held up relatively well, although industrial production growth is
subdued, while the manufacturing PMI continues to remain contractionary.
• The eurozone has been stagnant during the past year, driven by the
contractionary monetary policy, impact of inflation on consumers' real income
and weak external demand. A gradual recovery later in 2024 from a low base is
expected to gather momentum as consumption improves while financial conditions
ease.
• Iron ore prices rose by 17% over the quarter, while the average
monthly price in the fourth quarter of $129/dmt (Platts CFR 62% Fe index) was
13% higher than the third quarter. Seaborne supply increased by ~1%
quarter-on-quarter, which was absorbed by the ~3% quarter-on-quarter growth in
China's iron ore imports and the stabilisation of steel demand in other
developed and emerging regions. China's steel and pig iron production
run-rates decelerated in late-December, while iron ore arrivals remained
elevated in line with typical fourth quarter seasonality. China's port
inventories increased by ~6 million tonnes during the quarter, reaching 120
million tonnes by the end of the year.
• The LME aluminium price increased by 1% over the quarter, while
the average price rose 2%, from the third quarter, to $2,190/t. Aluminium
demand in North America and Europe remained weak, except in the transport
sector. Chinese primary production growth slowed during the quarter on renewed
winter disruptions in southern China. Low global reported inventories remained
supportive of aluminium prices. China bauxite import prices were well
supported throughout the fourth quarter. Bauxite mines in Henan and Shanxi
suspended production for several months on environmental requirements,
resulting in high import demand and robust prices. A major fuel depot
explosion in Conakry raised concerns of an interruption to bauxite mining
operations in Guinea, leading to increased price volatility in bauxite and
alumina. Guinea supplies ~67% of China's total seaborne bauxite requirement.
• The LME copper price increased by 3% over the quarter, although
the $3.70/lb average price was 2% lower than the third quarter. Major mine
supply disruptions in Central and South America, and lower expectations for
2024 supply, have tightened the market balance. Energy transition-related
copper demand supported growth in 2023 and helped offset weaker demand from
the construction sector.
• The decline in the lithium carbonate spot price continued in the
fourth quarter, having fallen ~80% since early 2023, driven by increased
global mine supply and destocking along the supply chain. Electric vehicle
(EV) demand growth slowed, albeit from a higher base. Market fundamentals for
lithium remain strong over the longer term. EV penetration rates will continue
to increase as countries decarbonise and more investment into mine supply will
be required to fill the supply gap.
• Global TiO2 feedstock demand witnessed a small improvement in the
fourth quarter in line with rising operating rates of the TiO2 pigment
industry. Underlying pigment demand remains subdued on weak real-estate
activity in the Americas, Europe and China; whereas titanium sponge demand
remains robust, driven by a recovery in the aircraft industry.
• Borates demand has been weak in 2023, driven by pronounced
weakness in the housing and construction markets. Macro headwinds and latent
supply capacity could put further downward pressure on prices. Additionally
boric acid inventories are particularly high which is reducing apparent
demand.
Average realised prices achieved for our major commodities
Units H1 2023 H2 2023 2023 2022
Pilbara iron ore FOB, $/wmt 98.6 100.8 99.7 97.6
Pilbara iron ore FOB, $/dmt 107.2 109.6 108.4 106.1
Aluminium* Metal $/t 2,866 2,612 2,738 3,330
Copper** US c/lb 396 381 390 403
IOC pellets FOB $/wmt 154.7 155.2 155.0 190.3
*LME plus all-in premiums (product and market).
**Average realised price for all units sold. Realised price does not include
the impact of the provisional pricing adjustments, which positively impacted
revenues in 2023 by $2 million (2022 negative impact of $175 million).
Iron Ore
Rio Tinto share of production (Million tonnes) Q4 vs Q4 vs Q3 vs 2022
2022
2023
2023 2023
Pilbara Blend and SP10 Lump(1) 22.2 +4% +4% 84.3 +7%
Pilbara Blend and SP10 Fines(1) 33.5 -5% +6% 127.8 +3%
Robe Valley Lump 1.6 -3% -4% 5.9 +12%
Robe Valley Fines 2.7 +8% +12% 9.6 +16%
Yandicoogina Fines (HIY) 13.8 -9% +1% 53.0 -7%
Total Pilbara production 73.8 -3% +4% 280.5 +3%
Total Pilbara production (100% basis) 87.5 -2% +5% 331.5 +2%
Rio Tinto share of shipments (Million tonnes) Q4 vs Q4 vs Q3 vs 2022
2022
2023
2023 2023
Pilbara Blend Lump 14.5 -4% -2% 59.7 +11%
Pilbara Blend Fines 23.7 -27% -7% 105.1 -5%
Robe Valley Lump 1.5 +21% +16% 5.0 +20%
Robe Valley Fines 3.1 +5% +13% 10.5 +13%
Yandicoogina Fines (HIY) 13.6 -7% 0% 53.5 -6%
SP10 Lump(1) 4.6 +64% +11% 12.1 -5%
SP10 Fines(1) 12.2 +141% +26% 35.4 +56%
Total Pilbara shipments(2) 73.3 -2% +2% 281.4 +4%
Total Pilbara shipments (100% basis)(2) 86.3 -1% +3% 331.8 +3%
Total Pilbara Shipments (consolidated basis)(2, 3) 75.1 -2% +2% 288.4 +4%
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 87.5 million tonnes (Rio Tinto share 73.8 million tonnes) in the
fourth quarter, 2% lower than the corresponding period of 2022, and 5% higher
than the prior quarter.
Shipments of 86.3 million tonnes (Rio Tinto share 73.3 million tonnes) were 1%
lower than the fourth quarter of 2022, and 3% higher than the prior quarter.
SP10 was a larger proportion of shipments during the fourth quarter (20%(1)).
Shipments for 2023, on a 100% basis, were 3% higher (+10 million tonnes) than
in 2022, making 2023 the second highest shipment year on record. Improved
system performance supported by a 5 million tonne uplift from implementation
of the Safe Production System, and ramp-up of Gudai-Darri to its 43 million
tonne nameplate capacity, offset mine depletion.
Yandicoogina Fines shipments were 6% lower than in 2022 due to progressive ore
depletion. SP10 volumes accounted for 47.5 million tonnes of 2023 shipments
(or 14%(1)).
Approximately 10% of sales in 2023 were priced by reference to the prior
quarter's average index lagged by one month. The remainder was sold either on
current quarter average, current month average, average of two months, forward
month or on the spot market. Approximately 26% of sales in 2023 were made on a
free on board (FOB) basis, with the remainder sold including freight.
China Portside Trading
Our iron ore portside sales in China were 5.8 million tonnes in the fourth
quarter of 2023 (4.8 million tonnes in the fourth quarter of 2022), leading to
a total of 23.3 million tonnes in 2023 (24.3 million tonnes in 2022). At the
end of December, inventory levels were 6.4 million tonnes, including 3.9
million tonnes of Pilbara product. In 2023, approximately 86% of our portside
sales were either screened or blended in Chinese ports (80% in 2022).
(1)Based on total Pilbara shipments on a 100% basis.
Aluminium
Rio Tinto share of production ('000 tonnes) Q4 vs Q4 vs Q3 vs 2022
2022
2023
2023 2023
Bauxite 15,098 +15% +8% 54,619 0%
Bauxite third party shipments 10,749 +16% +13% 37,337 -2%
Alumina 1,919 -1% +1% 7,537 0%
Aluminium 846 +8% +2% 3,272 +9%
Bauxite
Bauxite production of 15.1 million tonnes was 15% higher than the fourth
quarter of 2022 and 8% higher than the prior quarter as we continued to
stabilise both Weipa and Gove with improvements in equipment reliability.
We shipped 10.7 million tonnes of bauxite to third parties in the fourth
quarter, 16% higher than the same period of 2022.
Alumina
Alumina production of 1.9 million tonnes was 1% lower than the fourth quarter
of 2022 but 1% higher than the third quarter of 2023 with the Yarwun and
Queensland Alumina Limited (QAL) refineries showing improved operational
stability.
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 8% higher than the fourth
quarter of 2022 after we returned to full capacity at our Kitimat smelter and
completed cell recovery efforts at Boyne in the prior period. All our other
smelters continued to demonstrate stable performance during the quarter.
Production from Matalco in 2023 was 582 thousand tonnes of recycled aluminium
products with Rio Tinto marketing these products from 1 December 2023. With
this addition to our aluminium portfolio, we are able to offer customers a
full suite of aluminium products including low-carbon primary aluminium made
with hydropower and a diverse portfolio of recycled aluminium solutions.
Copper
Rio Tinto share of production ('000 tonnes) Q4 vs Q4 vs Q3 vs 2022
2022
2023
2023 2023
Mined copper
Kennecott 47.8 +1% -2% 151.6 -15%
Escondida 71.6 -2% -9% 299.9 0%
Oyu Tolgoi (66% basis)(1) 26.8 +148% -3% 110.9 +156%
Total mined copper production 146.2 +11% -6% 562.4 +8%
Total mined copper production (consolidated basis(2)) 160.0 +5% -6% 619.6 +2%
Refined copper
Kennecott 32.0 -11% +73% 108.6 -27%
Escondida 14.1 -5% -10% 66.7 +9%
(1)Oyu Tolgoi production for 2022 reported on a 33.52% equity share basis.
Following the acquisition of Turquoise Hill Resources Ltd on 16 December 2022,
Oyu Tolgoi production for 2023 reported on a 66% equity share basis.
(2)Includes Oyu Tolgoi and Kennecott on a 100% consolidated basis, and
Escondida on an equity share basis.
Kennecott
Mined copper production was 1% higher than the fourth quarter of 2022 with the
concentrator continuing to run at full capacity, following the recovery from a
conveyor failure in March 2023.
Refined copper production was 11% lower than the fourth quarter of 2022 as the
smelter continues to ramp up following the completion of the largest rebuild
of the smelter and refinery in Kennecott's history. The ramp up during the
fourth quarter of 2023 meant that the smelter was not at full production rates
leading to reduced cathode production when compared to the fourth quarter of
2022. With the smelter rebuild successfully completed and the ramp-up
progressing, we expect a return to stable production in the first quarter of
2024.
Escondida
Mined copper production was 2% lower than the fourth quarter of 2022 due to a
3% lower recovery in the concentrator and lower grade on the oxide leach pad,
offset by 2% higher throughput partially due to softer ore and 3% higher head
grade in the concentrator due to mine sequencing. Refined production was 5%
lower than the fourth quarter of 2022 due to lower stacking and a lower copper
grade fed into the process.
Oyu Tolgoi
Mined copper production on a 100% basis increased 26% from the fourth quarter
of 2022 as the ramp-up in underground production continued to plan, delivering
average copper head grades of 0.53%. During the quarter, we delivered 0.9
million tonnes of ore milled from the underground mine at an average copper
head grade of 1.59% and 8.7 million tonnes from the open pit with an average
grade of 0.42%.
Oyu Tolgoi LLC received a tax assessment on 20 December 2023 from the
Mongolian Tax Authority of approximately US$80 million. This relates to a tax
audit covering the 2019 and 2020 income years. Oyu Tolgoi has paid more than
MNT9.9 trillion (US$4.2 billion) in taxes, royalties and fees in Mongolia
since 2010 and will continue to make all payments required under the relevant
Mongolian legislation and Investment Agreement.
Provisional pricing
At 31 December 2023, the Group had approximately 243 million pounds of copper
sales that were provisionally priced at 381 cents per pound. The final price
of these sales will be determined during the first half of 2024. This compares
with 221 million pounds of open shipments at 31 December 2022, provisionally
priced at 368 cents per pound. Provisional pricing adjustments positively
impacted revenues in 2023 by $2 million (2022 negative impact of $175
million).
Minerals
Rio Tinto share of production (million tonnes) Q4 vs Q4 vs Q3 vs 2022
2022
2023
2023 2023
Iron ore pellets and concentrate
IOC 2.7 +7% +13% 9.7 -6%
Rio Tinto share of production ('000 tonnes) Q4 vs Q4 vs Q3 vs 2022
2022
2023
2023 2023
Minerals
Borates - B(2)O(3) content 111 -21% -12% 495 -7%
Titanium dioxide slag 275 -15% +11% 1,111 -7%
Rio Tinto share of production ('000 carats) Q4 vs Q4 vs Q3 vs 2022
2022
2023
2023 2023
Diavik 659 -50% -13% 3,340 -28%
Iron Ore Company of Canada (IOC)
Iron ore production was 7% higher than the fourth quarter of 2022 and 13%
higher than the prior quarter, due to improved equipment reliability at the
concentrator, pellet plant and ore delivery system.
Shipments were 16% higher than the fourth quarter of 2022, driven by improved
production.
Borates
Borates production in the fourth quarter was 21% lower than the corresponding
period of 2022 due to a scheduled shut in December.
Iron and Titanium
Titanium dioxide slag production was 15% lower than the fourth quarter of
2022. Two furnaces at our RTIT Quebec Operations remain offline following
process safety incidents in June and July. In the fourth quarter, we
decommissioned an additional furnace that reached the end of its useful life
and is due for reconstruction in 2024. As a result, we enter 2024 with six out
of nine furnaces operating at our RTIT Quebec Operations and three out of four
online at Richards Bay Minerals (RBM).
Diamonds
At Diavik, our share of carats was 50% lower than the fourth quarter of 2022
due to lower ore mined as a result of the closure of the A418 underground and
A21 open pit kimberlite pipes earlier in 2023, partially offset by
improvements in A154N underground ore deliveries.
Exploration and evaluation
Pre-tax and pre-divestment expenditure on exploration and evaluation charged
to the profit and loss account in 2023, excluding Simandou, was $855 million,
compared with $706 million in 2022 on the same basis. Approximately 30% of the
spend was by Central Exploration, 31% by Minerals (with the majority focusing
on lithium), 31% by Copper and 7% by Iron Ore.
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 fourth quarter focused on copper in
Australia, Colombia, Chile, and Namibia, nickel in Peru and Brazil, heavy
mineral sands in South Africa, and potash in Canada. Rio Tinto recently
partnered with Codelco on the Nuevo Cobre copper project in the prospective
Atacama region in Chile and with Charger Metals on the Lake Johnston lithium
project in the Yilgarn, Western Australia. Rio Tinto divested its interest in
the Amargosa bauxite project in Brazil. Greenfield exploration for copper
continues in Zambia, US, Angola, Kazakhstan, Peru, Australia, Laos and Papua
New Guinea. Greenfield exploration for lithium continues in Australia, Canada,
Chile, Finland, Rwanda and US and for nickel in Australia, Brazil, Canada,
Finland and Peru. Mine lease exploration continued on 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 programmes
Bauxite Melville Island, Australia
Cape York, Australia
Battery Materials Rincon Lithium, Argentina Nickel Greenfield: Australia, Brazil, Canada, Finland, Peru
Lithium borates: Jadar, Serbia Lithium Greenfield: Australia, Brazil, Canada, Chile, China, Finland, Rwanda,
US
Nickel: Tamarack, US (3rd party operated)
Lithium borates Brownfield: US
Copper Copper/molybdenum: Resolution, US Copper: La Granja, Peru Pribrezhniy, Kazakhstan Copper Greenfield: Angola, Australia, Brazil, Canada, Chile, China, Colombia,
Finland, Kazakhstan, Namibia, Laos, Peru, Papua New Guinea, Serbia, US, Zambia
Copper/Gold: Winu, Australia Calibre-Magnum, Australia
Copper Brownfield: US
Diamonds Falcon, Canada(1) Diamonds Greenfield: Angola
Iron Ore Pilbara, Australia Pilbara, Australia Greenfield and Brownfield: Pilbara, Australia
Simandou, Guinea
Minerals Potash: KL262(2), Canada Heavy mineral sands Greenfield: Australia, South
Africa
Heavy mineral sands: Mutamba, Mozambique Rutile-graphite: Malawi Potash Greenfield:
Canada
(1)The Falcon Project in Saskatchewan, Canada, is currently in care and
maintenance whilst Rio Tinto considers alternative commercial options,
including potential exit.
(2)Limited activity during the quarter.
Forward-looking statement
This announcement includes "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements other
than statements of historical facts included in this announcement, including,
without limitation, those regarding Rio Tinto's financial position, business
strategy, plans and objectives of management for future operations (including
development plans and objectives relating to Rio Tinto's products, production
forecasts and reserve and resource positions and any statements related to the
ongoing impact of the COVID-19 pandemic), are forward-looking statements. The
words "intend", "aim", "project", "anticipate", "estimate", "plan",
"believes", "expects", "may", "would", "should", "could", "will", "target",
"set to", "seek", "risk" or similar expressions, commonly identify such
forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of Rio Tinto, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding Rio Tinto's present and future business
strategies and the environment in which Rio Tinto will operate in the future.
Among the important factors that could cause Rio Tinto's actual results,
performance or achievements to differ materially from those in the
forward-looking statements are levels of actual production during any period,
levels of demand and market prices, the ability to produce and transport
products profitably, the impact of foreign currency exchange rates on market
prices and operating costs, operational problems, political uncertainty and
economic conditions in relevant areas of the world, the actions of
competitors, activities by governmental authorities such as changes in
taxation or regulation, the risks and uncertainties associated with the
ongoing impacts of COVID-19 or other pandemic and such other risk factors
identified in Rio Tinto's most recent Annual report and accounts in Australia
and the United Kingdom and the most recent Annual report on Form 20-F filed
with the United States Securities and Exchange Commission (the "SEC") or Form
6-Ks furnished to, or filed with, the SEC. The above list is not exhaustive.
Forward-looking statements should, therefore, be construed in light of such
risk factors and undue reliance should not be placed on forward-looking
statements, particularly in light of the current economic climate and the
significant volatility, uncertainty and disruption caused by the outbreak of
COVID-19. These forward-looking statements speak only as of the date of this
announcement. Rio Tinto expressly disclaims any obligation or undertaking
(except as required by applicable law, the UK Listing Rules, the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority and the
Listing Rules of the Australian Securities Exchange) to release publicly any
updates or revisions to any forward-looking statement contained herein to
reflect any change in Rio Tinto's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.
Nothing in this announcement should be interpreted to mean that future
earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily
match or exceed its historical published earnings per share.
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Laura Brooks
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Rio Tinto plc Rio Tinto Limited
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Tinto's Group Company Secretary.
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Rio Tinto production summary
Rio Tinto share of production
Quarter Full Year % change
2022 2023 2023 2022 2023 Q4 23 Q4 23 2023
Q4 Q3 Q4 vs vs vs
Q4 22 Q3 23 2022
Principal commodities
Alumina ('000 t) 1,941 1,897 1,919 7,544 7,537 -1% +1% 0%
Aluminium ('000 t) 783 828 846 3,009 3,272 +8% +2% +9%
Bauxite ('000 t) 13,181 13,940 15,098 54,618 54,619 +15% +8% 0%
Borates ('000 t) 141 127 111 532 495 -21% -12% -7%
Copper - mined ('000 t) 131.3 155.1 146.2 521.1 562.4 +11% -6% +8%
Copper - refined ('000 t) 51.0 34.1 46.1 209.2 175.2 -10% +35% -16%
Iron Ore ('000 t) 78,415 73,241 76,514 283,247 290,171 -2% +4% +2%
Titanium dioxide slag ('000 t) 323 247 275 1,200 1,111 -15% +11% -7%
Other Metals & Minerals
Diamonds ('000 cts) 1,319 757 659 4,651 3,340 -50% -13% -28%
Gold - mined ('000 oz) 55.7 80.2 75.6 235.0 281.5 +36% -6% +20%
Gold - refined ('000 oz) 30.3 12.4 20.6 113.9 74.2 -32% +67% -35%
Molybdenum ('000 t) 1.1 0.6 0.8 3.3 1.8 -30% +21% -46%
Salt ('000 t) 1,458 1,434 1,438 5,757 5,973 -1% 0% +4%
Silver - mined ('000 oz) 1,042 1,001 1,100 3,940 3,811 +6% +10% -3%
Silver - refined ('000 oz) 512 240 406 1,950 1,407 -21% +69% -28%
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 2022 2023
interest
2022
2023
2023
2023
2023
ALUMINA
Production ('000 tonnes)
Jonquière (Vaudreuil) 100% 368 371 346 325 349 1,364 1,392
Jonquière (Vaudreuil) specialty Alumina plant 100% 29 25 27 28 29 114 109
Queensland Alumina 80% 678 632 677 720 664 2,740 2,693
São Luis (Alumar) 10% 97 94 66 88 90 377 338
Yarwun 100% 769 739 745 736 786 2,949 3,006
Rio Tinto total alumina production 1,941 1,860 1,861 1,897 1,919 7,544 7,537
ALUMINIUM
Production ('000 tonnes)
Australia - Bell Bay 100% 48 45 46 47 47 185 186
Australia - Boyne Island 59% 68 70 73 76 76 267 295
Australia - Tomago 52% 76 75 75 77 77 302 304
Canada - six wholly owned 100% 360 367 389 398 410 1,341 1,565
Canada - Alouette (Sept-Îles) 40% 63 62 63 64 64 251 253
Canada - Bécancour 25% 29 29 29 28 30 115 117
Iceland - ISAL (Reykjavik) 100% 52 51 52 52 54 202 209
New Zealand - Tiwai Point 79% 68 66 66 66 67 267 265
Oman - Sohar 20% 20 20 20 20 20 79 80
Rio Tinto total aluminium production 783 785 814 828 846 3,009 3,272
BAUXITE
Production ('000 tonnes) (a)
Gove 100% 2,874 2,579 2,739 3,015 3,234 11,510 11,566
Porto Trombetas (b) 22% 391 275 327 391 509 1,332 1,502
Sangaredi (c) 1,588 1,744 1,614 1,524 1,544 7,252 6,425
Weipa 100% 8,328 7,492 8,813 9,010 9,811 34,525 35,126
Rio Tinto total bauxite production 13,181 12,089 13,492 13,940 15,098 54,618 54,619
(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 Q4 Q1 Q2 Q3 Q4 2022 2023
interest
2022
2023
2023
2023
2023
BORATES
Production ('000 tonnes B(2)O(3) content)
Rio Tinto Borates - borates 100% 141 124 133 127 111 532 495
COPPER
Mine production ('000 tonnes) (a)
Bingham Canyon 100% 47.5 30.3 24.8 48.8 47.8 179.2 151.6
Escondida 30% 73.0 72.3 77.4 78.6 71.6 298.6 299.9
Oyu Tolgoi (b) 66% 10.8 28.1 28.3 27.7 26.8 43.4 110.9
Rio Tinto total mine production 131.3 130.7 130.5 155.1 146.2 521.1 562.4
Rio Tinto total mine production - consolidated basis 152.8 145.2 145.0 169.4 160.0 607.2 619.6
Refined production ('000 tonnes)
Escondida 30% 14.9 15.2 21.7 15.6 14.1 60.9 66.7
Kennecott (c) 100% 36.1 43.6 14.4 18.5 32.0 148.3 108.6
Rio Tinto total refined production 51.0 58.9 36.2 34.1 46.1 209.2 175.3
(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.
(b) On 16 December 2022, Rio Tinto completed the acquisition of 100% of
Turquoise Hill Resources Ltd, increasing our ownership in Oyu Tolgoi from
33.52% to 66%. From 1 January 2023, our share of production has been updated
to reflect this change.
(c) We continue to process third party concentrate to optimise smelter
utilisation. There was no cathode produced from purchased concentrate in 2023
year-to-date. Purchased and tolled copper concentrates are excluded from
reported production figures and production guidance. Sales of cathodes
produced from purchased concentrate are included in reported revenues.
DIAMONDS
Production ('000 carats)
Diavik 100% 1,319 954 970 757 659 4,651 3,340
GOLD
Mine production ('000 ounces) (a)
Bingham Canyon 100% 29.7 20.6 18.7 32.0 33.5 122.7 104.8
Escondida 30% 14.5 14.7 16.1 14.4 14.6 50.6 59.7
Oyu Tolgoi (b) 66% 11.5 29.1 26.6 33.8 27.5 61.6 117.0
Rio Tinto total mine production 55.7 64.4 61.4 80.2 75.6 235.0 281.5
Refined production ('000 ounces)
Kennecott 100% 30.3 22.0 19.2 12.4 20.6 113.9 74.2
(a) Mine production figures for metals refer to the total quantity of metal
produced in concentrates, leach liquor or doré bullion irrespective of
whether these products are then refined onsite, except for the data for
bauxite and iron ore which represent production of marketable quantities of
ore plus concentrates and pellets.
(b) On 16 December 2022, Rio Tinto completed the acquisition of 100% of
Turquoise Hill Resources Ltd, increasing our ownership in Oyu Tolgoi from
33.52% to 66%. From 1 January 2023, our share of production has been updated
to reflect this change.
Rio Tinto share of production
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
interest 2022 2023 2023 2023 2023
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines (b) 61,339 54,433 55,004 57,322 59,138 218,304 225,898
Hope Downs 50% 5,945 5,885 5,763 5,519 6,074 24,425 23,241
Iron Ore Company of Canada 59% 2,530 2,526 2,063 2,384 2,703 10,312 9,676
Robe River - Pannawonica (Mesas J and A) 53% 4,178 3,123 3,897 4,106 4,330 13,546 15,456
Robe River - West Angelas 53% 4,424 3,816 3,905 3,910 4,269 16,660 15,899
Rio Tinto iron ore production ('000 tonnes) 78,415 69,784 70,632 73,241 76,514 283,247 290,171
Breakdown of Production:
Pilbara Blend and SP10 Lump (c) 21,443 19,612 21,042 21,418 22,228 79,152 84,301
Pilbara Blend and SP10 Fines (c) 35,097 30,851 31,750 31,700 33,485 123,587 127,786
Robe Valley Lump 1,645 1,136 1,488 1,665 1,592 5,264 5,882
Robe Valley Fines 2,533 1,987 2,409 2,441 2,739 8,281 9,574
Yandicoogina Fines (HIY) 15,168 13,672 11,880 13,633 13,768 56,650 52,952
Pilbara iron ore production ('000 tonnes) 75,886 67,258 68,569 70,857 73,811 272,934 280,495
IOC Concentrate 1,186 1,241 1,120 1,137 1,298 4,667 4,796
IOC Pellets 1,343 1,285 943 1,247 1,405 5,646 4,880
IOC iron ore production ('000 tonnes) 2,530 2,526 2,063 2,384 2,703 10,312 9,676
Breakdown of Shipments:
Pilbara Blend Lump 15,089 15,689 14,691 14,812 14,533 53,883 59,725
Pilbara Blend Fines 32,659 28,528 27,474 25,375 23,706 111,110 105,083
Robe Valley Lump 1,244 1,051 1,152 1,297 1,506 4,171 5,005
Robe Valley Fines 2,896 2,262 2,489 2,706 3,054 9,329 10,511
Yandicoogina Fines (HIY) 14,661 13,689 12,558 13,669 13,628 56,880 53,544
SP10 Lump (c) 2,824 1,686 1,652 4,180 4,620 12,753 12,137
SP10 Fines (c) 5,062 6,832 6,613 9,699 12,208 22,672 35,353
Pilbara iron ore shipments ('000 tonnes) (d) 74,435 69,738 66,629 71,736 73,255 270,798 281,358
Pilbara iron ore shipments - consolidated basis ('000 tonnes) (d) (f) 76,303 71,505 68,322 73,553 75,058 277,613 288,438
IOC Concentrate 1,174 984 1,247 1,232 1,196 4,174 4,659
IOC Pellets 1,036 1,143 1,352 1,066 1,369 5,375 4,929
IOC Iron ore shipments ('000 tonnes) (d) 2,210 2,127 2,599 2,298 2,565 9,548 9,588
Rio Tinto iron ore shipments ('000 tonnes) (d) 76,645 71,864 69,228 74,034 75,820 280,346 290,947
Rio Tinto iron ore sales ('000 tonnes) (e) 75,337 74,273 71,678 74,488 76,269 287,871 296,707
(a) Mine production figures for metals refer to the total quantity of metal
produced in concentrates, leach liquor or doré bullion irrespective of
whether these products are then refined onsite, except for the data for
bauxite and iron ore which represent production of marketable quantities of
ore plus concentrates and pellets.
(b) Includes 100% of production from Paraburdoo, Mt Tom Price, Western Turner
Syncline, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass, Channar,
Gudai-Darri and the Eastern Range mines. Whilst Rio Tinto owns 54% of the
Eastern Range mine, under the terms of the joint venture agreement, Hamersley
Iron manages the operation and is obliged to purchase all mine production from
the joint venture and therefore all of the production is included in Rio
Tinto's share of production.
(c) SP10 includes other lower grade products.
(d) Shipments includes material shipped to our portside trading facility in
China which may not be sold onwards in the same period.
(e) Represents the difference between amounts shipped to portside trading and
onward sales from portside trading, and third party volumes sold.
(f) While Rio Tinto has a 53% net beneficial interest in Robe River Iron
Associates, it recognises 65% of the assets, liabilities, sales revenues and
expenses in its accounts (as 30% is held through a 60% owned subsidiary and
35% is held through a 100% owned subsidiary). The consolidated basis sales
reported here include Robe River Iron Associates on a 65% basis to enable
comparison with revenue reported in the financial statements.
Rio Tinto share of production
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
interest 2022 2023 2023 2023 2023
MOLYBDENUM
Mine production ('000 tonnes) (a)
Bingham Canyon 100% 1.1 0.1 0.3 0.6 0.8 3.3 1.8
(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% 1,458 1,450 1,652 1,434 1,438 5,757 5,973
SILVER
Mine production ('000 ounces) (a)
Bingham Canyon 100% 521 356 296 462 504 2,057 1,618
Escondida 30% 453 404 302 350 420 1,590 1,476
Oyu Tolgoi (b) 66% 68 176 177 189 176 292 717
Rio Tinto total mine production 1,042 935 775 1,001 1,100 3,940 3,811
Refined production ('000 ounces)
Kennecott 100% 512 432 329 240 406 1,950 1,407
(a) Mine production figures for metals refer to the total quantity of metal
produced in concentrates, leach liquor or doré bullion irrespective of
whether these products are then refined onsite, except for the data for
bauxite and iron ore which represent production of marketable quantities of
ore plus concentrates and pellets.
(b) On 16 December 2022, Rio Tinto completed the acquisition of 100% of
Turquoise Hill Resources Ltd, increasing our ownership in Oyu Tolgoi from
33.52% to 66%. From 1 January 2023, our share of production has been updated
to reflect this change.
TITANIUM DIOXIDE SLAG
Production ('000 tonnes)
Rio Tinto Iron & Titanium (a) 100% 323 285 303 247 275 1,200 1,111
(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 2023.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
interest
2022
2023
2023
2023
2023
ALUMINA
Smelter Grade Alumina - Aluminium Group
Alumina production ('000 tonnes)
Australia
Queensland Alumina Refinery - Queensland 80% 847 790 846 900 830 3,425 3,366
Yarwun refinery - Queensland 100% 769 739 745 736 786 2,949 3,006
Brazil
São Luis (Alumar) refinery 10% 975 936 657 883 899 3,771 3,375
Canada
Jonquière (Vaudreuil) refinery - Quebec (a) 100% 368 371 346 325 349 1,364 1,392
(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% 29 25 27 28 29 114 109
Rio Tinto percentage interest shown above is at 31 December 2023. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
interest 2022 2023 2023 2023 2023
ALUMINIUM
Primary Aluminium
Primary aluminium production ('000 tonnes)
Australia
Bell Bay smelter - Tasmania 100% 48 45 46 47 47 185 186
Boyne Island smelter - Queensland 59% 114 117 123 127 128 450 496
Tomago smelter - New South Wales 52% 147 145 146 149 149 586 589
Canada
Alma smelter - Quebec 100% 122 120 121 121 123 482 484
Alouette (Sept-Îles) smelter - Quebec 40% 158 156 159 159 160 628 634
Arvida smelter - Quebec 100% 44 43 43 43 43 171 172
Arvida AP60 smelter - Quebec 100% 15 14 14 15 15 58 59
Bécancour smelter - Quebec 25% 116 115 118 114 119 459 465
Grande-Baie smelter - Quebec 100% 58 57 57 58 58 232 229
Kitimat smelter - British Columbia 100% 57 72 92 103 109 145 377
Laterrière smelter - Quebec 100% 64 61 62 59 62 253 244
Iceland
ISAL (Reykjavik) smelter 100% 52 51 52 52 54 202 209
New Zealand
Tiwai Point smelter 79% 85 83 83 83 85 336 334
Oman
Sohar smelter 20% 100 98 99 100 100 395 398
Rio Tinto percentage interest shown above is at 31 December 2023. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
interest 2022 2023 2023 2023 2023
BAUXITE
Bauxite production ('000 tonnes)
Australia
Gove mine - Northern Territory 100% 2,874 2,579 2,739 3,015 3,234 11,510 11,566
Weipa mine - Queensland 100% 8,328 7,492 8,813 9,010 9,811 34,525 35,126
Brazil
Porto Trombetas (MRN) mine (a) 22% 3,256 2,288 2,724 3,258 3,202 11,100 11,472
Guinea
Sangaredi mine (b) 23% 3,530 3,876 3,586 3,387 3,430 16,115 14,278
Rio Tinto share of bauxite shipments
Share of total bauxite shipments ('000 tonnes) 13,561 12,264 13,603 13,954 15,513 54,784 55,335
Share of third party bauxite shipments ('000 tonnes) 9,233 7,880 9,159 9,550 10,749 38,016 37,337
(a) 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.
(b) 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 2022 2023
interest
2022
2023
2023
2023
2023
BORATES
Rio Tinto Borates - borates 100%
US
Borates ('000 tonnes) (a) 141 124 133 127 111 532 495
(a) Production is expressed as B(2)O(3) content.
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
interest 2022 2023 2023 2023 2023
COPPER & GOLD
Escondida 30%
Chile
Sulphide ore to concentrator ('000 tonnes) 33,911 33,309 30,749 33,332 34,752 131,358 132,143
Average copper grade (%) 0.76 0.78 0.93 0.85 0.77 0.82 0.83
Mill production (metals in concentrates):
Contained copper ('000 tonnes) 212.8 210.0 228.9 225.7 217.6 858.4 882.1
Contained gold ('000 ounces) 48.4 49.0 53.5 48.1 48.6 168.7 199.2
Contained silver ('000 ounces) 1,510 1,346 1,008 1,168 1,401 5,301 4,921
Recoverable copper in ore stacked for leaching ('000 tonnes) (a) 30.4 31.0 29.1 36.4 21.0 136.9 117.5
Refined production from leach plants:
Copper cathode production ('000 tonnes) 49.7 50.8 72.4 52.0 46.9 203.1 222.2
(a) The calculation of copper in material mined for leaching is based on ore
stacked at the leach pad.
Rio Tinto percentage interest shown above is at 31 December 2023. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
interest 2022 2023 2023 2023 2023
COPPER & GOLD (continued)
Kennecott
Bingham Canyon mine 100%
Utah, US
Ore treated ('000 tonnes) 10,449 7,405 5,339 9,804 10,579 37,565 33,126
Average ore grade:
Copper (%) 0.52 0.47 0.52 0.56 0.50 0.53 0.51
Gold (g/t) 0.14 0.12 0.16 0.16 0.14 0.16 0.15
Silver (g/t) 2.20 2.16 2.36 2.10 2.10 2.36 2.16
Molybdenum (%) 0.020 0.012 0.018 0.018 0.019 0.020 0.017
Copper concentrates produced ('000 tonnes) 184 116 92 180 191 688 579
Average concentrate grade (% Cu) 25.6 26.1 26.8 26.8 25.0 26.0 26.1
Production of metals in copper concentrates:
Copper ('000 tonnes) (a) 47.5 30.3 24.8 48.8 47.8 179.2 151.6
Gold ('000 ounces) 29.7 20.6 18.7 32.0 33.5 122.7 104.8
Silver ('000 ounces) 521 356 296 462 504 2,057 1,618
Molybdenum concentrates produced ('000 tonnes): 2.0 0.1 0.6 1.4 1.6 6.8 3.7
Molybdenum in concentrates ('000 tonnes) 1.1 0.1 0.3 0.6 0.8 3.3 1.8
Kennecott smelter & refinery 100%
Copper concentrates smelted ('000 tonnes) 194 200 41 59 187 725 486
Copper anodes produced ('000 tonnes) (b) 24.5 55.1 18.2 1.4 44.1 144.5 118.9
Production of refined metal:
Copper ('000 tonnes) (c) 36.1 43.6 14.4 18.5 32.0 148.3 108.6
Gold ('000 ounces) (d) 30.3 22.0 19.2 12.4 20.6 113.9 74.2
Silver ('000 ounces) (d) 512 432 329 240 406 1,950 1,407
(a) Includes a small amount of copper in precipitates.
(b) New metal excluding recycled material.
(c) We continue to process third party concentrate to optimise smelter
utilisation. There was no cathode produced from purchased concentrate in 2023
year-to-date. Purchased and tolled copper concentrates are excluded from
reported production figures and production guidance. Sales of cathodes
produced from purchased concentrate are included in reported revenues.
(d) Includes gold and silver in intermediate products.
Rio Tinto percentage interest shown above is at 31 December 2023. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
interest 2022 2023 2023 2023 2023
COPPER & GOLD (continued)
Oyu Tolgoi mine (a) 66%
Mongolia
Ore Treated ('000 tonnes) - Open Pit 8,900 9,613 8,809 8,789 8,714 37,586 35,924
Ore Treated ('000 tonnes) - Underground 510 675 900 900 888 1,776 3,363
Ore Treated ('000 tonnes) - Total 9,411 10,288 9,709 9,689 9,602 39,361 39,288
Average mill head grades:
Open Pit
Copper (%) 0.41 0.43 0.41 0.39 0.42 0.40 0.41
Gold (g/t) 0.20 0.21 0.19 0.25 0.22 0.25 0.22
Silver (g/t) 1.14 1.16 1.10 1.19 1.24 1.20 1.17
Underground
Copper (%) 1.03 1.36 1.56 1.73 1.59 0.75 1.57
Gold (g/t) 0.29 0.35 0.38 0.37 0.37 0.24 0.37
Silver (g/t) 2.54 3.26 3.67 3.94 3.42 2.00 3.59
Total
Copper (%) 0.45 0.49 0.52 0.52 0.53 0.42 0.51
Gold (g/t) 0.21 0.22 0.21 0.26 0.23 0.25 0.23
Silver (g/t) 1.21 1.30 1.34 1.44 1.44 1.24 1.38
Copper concentrates produced ('000 tonnes) 151.9 201.8 200.3 197.6 196.0 615.8 795.7
Average concentrate grade (% Cu) 21.3 21.1 21.4 21.3 20.8 21.0 21.1
Production of metals in concentrates:
Copper in concentrates ('000 tonnes) 32.3 42.6 42.8 42.0 40.7 129.5 168.1
Gold in concentrates ('000 ounces) 34.2 44.1 40.3 51.2 41.7 183.8 177.3
Silver in concentrates ('000 ounces) 204 266 268 287 266 871 1,086
Sales of metals in concentrates:
Copper in concentrates ('000 tonnes) 25.3 41.4 43.2 42.7 38.4 132.3 165.7
Gold in concentrates ('000 ounces) 26.2 44.0 40.4 48.7 41.5 207.5 174.6
Silver in concentrates ('000 ounces) 152 242 257 269 240 836 1,008
(a) On 16 December 2022, Rio Tinto completed the acquisition of 100% of
Turquoise Hill Resources Ltd, increasing our ownership in Oyu Tolgoi from
33.52% to 66%. From 1 January 2023, our share of production has been updated
to reflect this change.
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
interest 2022 2023 2023 2023 2023
DIAMONDS
Diavik Diamonds 100%
Northwest Territories, Canada
Ore processed ('000 tonnes) 535 427 446 427 388 2,158 1,688
Diamonds recovered ('000 carats) 1,319 954 970 757 659 4,651 3,340
Rio Tinto percentage interest shown above is at 31 December 2023. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
2022
2023
2023
interest 2023 2023
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production ('000 tonnes)
Hamersley mines (a) 61,339 54,433 55,004 57,322 59,138 218,304 225,898
Hope Downs 50% 11,891 11,771 11,527 11,037 12,148 48,850 46,482
Robe River - Pannawonica (Mesas J and A) 53% 7,882 5,892 7,353 7,747 8,171 25,558 29,162
Robe River - West Angelas 53% 8,347 7,200 7,368 7,377 8,054 31,435 29,999
Total production ('000 tonnes) 89,458 79,296 81,251 83,484 87,511 324,146 331,542
Breakdown of total production:
Pilbara Blend and SP10 Lump (b) 25,251 23,196 24,910 25,268 26,308 94,758 99,682
Pilbara Blend and SP10 Fines (b) 41,158 36,537 37,108 36,836 39,264 147,180 149,745
Robe Valley Lump 3,103 2,143 2,808 3,142 3,004 9,932 11,097
Robe Valley Fines 4,779 3,748 4,544 4,605 5,167 15,625 18,065
Yandicoogina Fines (HIY) 15,168 13,672 11,880 13,633 13,768 56,650 52,952
Breakdown of total shipments:
Pilbara Blend Lump 18,153 18,733 17,757 17,785 17,355 66,682 71,629
Pilbara Blend Fines 38,835 35,349 33,668 31,008 29,840 137,179 129,866
Robe Valley Lump 2,348 1,983 2,173 2,447 2,842 7,870 9,444
Robe Valley Fines 5,464 4,268 4,696 5,105 5,762 17,602 19,832
Yandicoogina Fines (HIY) 14,661 13,689 12,558 13,669 13,628 56,880 53,544
SP10 Lump (b) 2,824 1,686 1,652 4,180 4,620 12,753 12,137
SP10 Fines (b) 5,062 6,832 6,613 9,699 12,208 22,672 35,353
Total shipments ('000 tonnes) (c) 87,347 82,540 79,118 83,892 86,255 321,636 331,805
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
2022
2023
2023
interest 2023 2023
Iron Ore Company of Canada 59%
Newfoundland & Labrador and Quebec in Canada
Saleable iron ore production:
Concentrates ('000 tonnes) 2,020 2,113 1,908 1,936 2,210 7,947 8,167
Pellets ('000 tonnes) 2,288 2,189 1,605 2,124 2,393 9,615 8,311
IOC Total production ('000 tonnes) 4,308 4,302 3,513 4,060 4,603 17,562 16,478
Shipments:
Concentrates ('000 tonnes) 1,999 1,676 2,124 2,098 2,037 7,108 7,934
Pellets ('000 tonnes) 1,764 1,947 2,302 1,815 2,331 9,153 8,394
IOC Total Shipments ('000 tonnes) (c) 3,763 3,622 4,426 3,913 4,368 16,261 16,329
Global Iron Ore Totals
Iron Ore Production ('000 tonnes) 93,766 83,599 84,764 87,543 92,114 341,708 348,020
Iron Ore Shipments ('000 tonnes) 91,110 86,162 83,543 87,805 90,623 337,897 348,134
Iron Ore Sales ('000 tonnes) (d) 89,650 88,490 85,601 88,030 91,072 344,641 353,193
(a) Includes 100% of production from Paraburdoo, Mt Tom Price, Western Turner
Syncline, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass, Channar,
Gudai-Darri and the Eastern Range mines. Whilst Rio Tinto owns 54% of the
Eastern Range mine, under the terms of the joint venture agreement, Hamersley
Iron manages the operation and is obliged to purchase all mine production from
the joint venture and therefore all of the production is included in Rio
Tinto's share of production.
(b) SP10 includes other lower grade products.
(c) Shipments includes material shipped to our portside trading facility in
China which may not be sold onwards in the same period.
(d) Include Pilbara and IOC sales adjusted for portside trading movements and
third party volumes sold.
Rio Tinto percentage interest shown above is at 31 December 2023. The data
represents production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 2022 2023
2022
2023
2023
interest 2023 2023
SALT
Dampier Salt 68%
Western Australia
Salt production ('000 tonnes) 2,133 2,121 2,416 2,097 2,103 8,422 8,737
TITANIUM DIOXIDE SLAG
Rio Tinto Iron & Titanium 100%
Canada and South Africa
(Rio Tinto share) (a)
Titanium dioxide slag ('000 tonnes) 323 285 303 247 275 1,200 1,111
(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 2023. The data
represents production and sales on a 100% basis unless otherwise stated.
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