REG - Rio Tinto - Rio Tinto fourth quarter production results
Rio Tinto releases fourth quarter production results
18 January 2019
Rio Tinto chief executive J-S Jacques said "We delivered a solid operational performance in the final quarter of 2018, in particular across our copper assets. During the year, we further strengthened our asset portfolio, continuing to invest in high quality growth. 2018 saw the early completion of Amrun, the deployment of AutoHaul™, the Koodaideri and Robe River investments and the signing of the power agreement at Oyu Tolgoi. Meanwhile, we completed disposals of $8.6 billion, including the Grasberg mine in Indonesia and our remaining coal assets. With a firm 'value over volume' focus and disciplined allocation of capital, we will continue to progress our strategic objectives and to deliver superior returns to shareholders in the short, medium and long term."
Q4 2018
vs Q4 2017
vs Q3 2018
2018
vs 2017
Pilbara iron ore shipments (100% basis)
Mt
87.4
-3%
+7%
338.2
+2%
Pilbara iron ore production (100% basis)
Mt
86.6
-1%
+5%
337.8
+2%
Bauxite
kt
11,790
-14%
-7%
50,421
-1%
Aluminium
kt
874
-1%
-1%
3,458
-3%
Mined copper
kt
177.8
+20%
+11%
633.5
+33%
Titanium dioxide slag
kt
294
-14%
-1%
1,116
-15%
IOC iron ore pellets and concentrate
Mt
2.8
+4%
-2%
9.0
-20%
Operational update
•
Pilbara iron ore shipments of 338 million tonnes (100 per cent basis) in 2018 were two per cent higher than 2017.
•
During the quarter, Rio Tinto announced it had successfully deployed AutoHaul™ at its Pilbara operations, approved a $2.6 billion investment in the Koodaideri iron ore replacement mine, and approved an investment of $1.55 billion (Rio Tinto's 53 per cent share $820 million) at two projects to sustain production capacity at the Robe River Joint Venture.
•
Bauxite production of 50.4 million tonnes in 2018 was one per cent lower than 2017. Third party shipments increased by two per cent to 32.8 million tonnes. During the fourth quarter, commissioning works at CBG in Guinea and the transition of operations from East Weipa to Amrun in Queensland resulted in a short term drop in production.
•
Aluminium production of 3.5 million tonnes was three per cent lower than 2017 due primarily to ongoing labour disruptions at the non-managed Becancour smelter in Canada.
•
Mined copper production of 634 thousand tonnes was 33 per cent higher than 2017, and above the guidance range, primarily reflecting strong performance at Escondida and increased production from Rio Tinto Kennecott due largely to higher grades.
•
Titanium dioxide slag production of 1.1 million tonnes was 15 per cent lower than 2017 due to production disruptions at Rio Tinto Fer et Titane in the second quarter, and intermittent stoppages related to labour disputes between contractors and their employees at Richards Bay Minerals in the first half.
•
Fourth quarter production at Iron Ore Company of Canada was four per cent higher than the fourth quarter of 2017. However, 2018 production was 20 per cent lower than 2017, due to a strike at the mine that significantly impacted second quarter production.
•
Other major milestones in the quarter included first bauxite shipment from Amrun, achieved six weeks ahead of schedule, and the signing of the Power Source Framework Agreement between Oyu Tolgoi and the Government of Mongolia.
Corporate update
•
Disposal proceeds received in 2018 were approximately $8.6 billion, pre-tax, including:
- The completion of the sale of our entire interest in the Grasberg mine in Indonesia for $3.5 billion, including a $0.1 billion attributable share of copper and gold revenues, net of our capital contribution for the year.
- The completion of the sale of our aluminium smelter at Dunkerque, France for $0.4 billion, net of completion adjustments.
- The completion of the sale of a wharf and land in Kitimat, British Columbia for $0.6 billion.
- The completion of the sale of our coking coal assets for $4.1 billion.
•
During the quarter, Rio Tinto announced that it had entered into a binding agreement with China National Uranium Corporation for the sale of its entire 68.62 per cent stake in Rössing Uranium. Subject to certain conditions precedent being met, the transaction is expected to complete in the first half of 2019.
•
In 2018, Rio Tinto repurchased $5.4 billion of shares. This included an off-market buy-back tender in Rio Tinto Limited shares for $2.1 billion, and further on-market purchases of Rio Tinto plc shares of $3.3 billion. See page 11 for details.
•
In the first half of 2018, Rio Tinto noted the negative impact to EBITDA resulting from raw material input price inflation, particularly in the Aluminium business, and the escalation of alumina index prices which impacted its alumina legacy contracts. These trends have continued to be observed in the second half of 2018.
Average realised prices
2018
vs 2017
Iron ore
$/dmt, FOB
62.5
-4%
Aluminium
$/t (including VAP, mid-west premium)
2,470
+11%
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. To allow production numbers to be compared on a like-for-like basis, production from asset divestments completed in 2017 is excluded from Rio Tinto share of production data but assets sold in 2018 remain in comparisons.
IRON ORE
Rio Tinto share of production (million tonnes)
Q4 2018
vs Q4 2017
vs Q3 2018
2018
vs 2017
Pilbara Blend Lump
21.7
+3%
+5%
84.8
+5%
Pilbara Blend Fines
31.7
+2%
+6%
122.6
+5%
Robe Valley Lump
1.4
-14%
-4%
5.9
-4%
Robe Valley Fines
2.6
-12%
-5%
11.0
+6%
Yandicoogina Fines (HIY)
14.9
-8%
+3%
57.5
-0%
Total Pilbara production
72.2
-1%
+4%
281.8
+4%
Total Pilbara production (100% basis)
86.6
-1%
+5%
337.8
+2%
Pilbara operations
Pilbara operations produced 337.8 million tonnes (Rio Tinto share 281.8 million tonnes) in 2018, two per cent higher than 2017, at the upper end of guidance. The production performance is attributable to the ramp-up of expanded mines and minimal weather events.
Fourth quarter production of 86.6 million tonnes (Rio Tinto share 72.2 million tonnes) was one per cent lower than the corresponding quarter of 2017.
2018 sales of 338.2 million tonnes (Rio Tinto share 280.8 million tonnes) were two per cent higher than 2017, whilst fourth quarter sales of 87.4 million tonnes (Rio Tinto share 72.7 million tonnes) were three per cent lower than the same period of last year.
Approximately 17 per cent of sales in 2018 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 or on the spot market.
Approximately 32 per cent of sales in 2018 were made free on board (FOB), with the remainder sold including freight.
Achieved average pricing in 2018 was $57.6 per wet metric tonne on an FOB basis (equivalent to $62.5 per dry metric tonne). In 2017, the full year price achieved was $59.6 per wet metric tonne (equivalent to $64.8 per dry metric tonne).
Pilbara projects
On 28 December 2018, Rio Tinto announced it had successfully deployed AutoHaul™, establishing the world's first automated heavy-haul, long distance rail network. Since completing the first autonomous haulage run in July 2018, Rio Tinto has steadily increased the number of autonomous journeys in a controlled and safe manner, with over 1.6 million kilometres now travelled autonomously. The programme will now focus on optimising autonomous operations.
On 29 November 2018, Rio Tinto announced the full approval of a $2.6 billion investment in the Koodaideri iron ore replacement mine. Koodaideri will deliver a new production hub in the Pilbara, incorporating a processing plant and infrastructure including a 166-kilometre rail line connecting the mine to the existing network. Construction will start in 2019 with first production expected in late-2021. Once complete, the mine will have an annual capacity of 43 million tonnes, underpinning production of the Pilbara Blend. Construction of accommodation facilities has commenced at site. A $44 million pre-feasibility study into Koodaideri Phase 2 was also approved in the fourth quarter.
On 1 October 2018, Rio Tinto announced an investment of $1.55 billion (Rio Tinto's 53 per cent share $820 million) at two projects to sustain production capacity at the Robe River Joint Venture. Approvals and commencement of works are proceeding to plan.
2019 guidance
Rio Tinto's Pilbara shipments in 2019 are expected to be between 338 and 350 million tonnes, (100 per cent basis), subject to weather and market conditions.
Following a plant fire at the port of Cape Lambert A on 10 January 2019, Rio Tinto expects limited disruption to Robe Valley lump and fines shipments, which is reflected in the above guidance.
ALUMINIUM
Rio Tinto share of production ('000 tonnes)
Q4 2018
vs Q4 2017
vs Q3 2018
2018
vs 2017
Rio Tinto Aluminium
Bauxite
11,790
-14%
-7%
50,421
-1%
Alumina
2,020
-3%
+2%
7,980
-2%
Aluminium
874
-1%
-1%
3,458
-3%
Bauxite
Bauxite production in 2018 of 50.4 million tonnes was one per cent lower than 2017 and at the upper end of guidance. Strong production at Gove and the Andoom mining area in Weipa was offset by lower production at two non-managed operations. The CBG mine in Guinea was impacted by planned tie-in works as part of the commissioning of the expansion project, and MRN in Brazil was affected by the Alunorte refinery outage.
Fourth quarter production was 14 per cent lower than the corresponding period of 2017, reflecting the planned transition of operations from East Weipa to Amrun in Queensland, and the tie-in works at CBG.
32.8 million tonnes of bauxite were shipped to third parties in 2018, two per cent higher than 2017. Fourth quarter shipments were 19 per cent lower than the fourth quarter of 2017, reflecting the lower quarterly production.
Amrun
The Amrun project achieved first shipment six weeks ahead of schedule, with a total of nine ships loading 0.6 million tonnes before the end of 2018.
Alumina
Alumina production in 2018 was two per cent lower than 2017, primarily due to the timing of maintenance shutdowns.
Aluminium
Aluminium production of 3.5 million tonnes was three per cent lower than 2017 and in line with guidance, which was revised during the year due to an ongoing lock-out at the non-managed Becancour smelter, which began on 11 January 2018, and a power interruption at Dunkerque Aluminium in the first quarter. Excluding these smelters, aluminium production was one per cent higher than 2017, reflecting continued productivity creep.
On 14 December 2018, Rio Tinto completed the sale of its aluminium smelter at Dunkerque, France, to Liberty House for $0.4 billion, net of completion adjustments. Production of 0.2 million tonnes is reflected up until this date.
Average realised aluminium prices in 2018 were $2,470 per tonne (2017: $2,231 per tonne). This includes premiums for value-added products (VAP), which represented 57 per cent of primary metal sold in 2018 (2017: 57 per cent) and generated attractive product premiums averaging $224 per tonne of VAP sold (2017: $221 per tonne) on top of the physical market premiums. The mid-west premium increased from $199 per tonne in 2017 to $419 per tonne in 2018.
Kemano
The starter tunnel at the Kemano project in Kitimat, British Columbia was completed in December 2018 and associated rail installation has commenced. The tunnel boring machine is forecast to be moved into the tunnel before the end of January 2019. The $0.5 billion project is due to be completed by late-2020.
Market disruptions
In December, the United States Treasury Department announced its intention to lift the sanctions implemented on various Russian individuals and companies on 21 January 2019. Rio Tinto continues to monitor this situation closely.
2019 guidance
Rio Tinto's expected share of bauxite production in 2019 is between 56 and 59 million tonnes. Aluminium production guidance is between 3.2 and 3.4 million tonnes and alumina production guidance is 8.1 to 8.4 million tonnes.
COPPER & DIAMONDS
Rio Tinto share of production ('000 tonnes)
Q4 2018
vs Q4 2017
vs Q3 2018
2018
vs 2017
Mined copper
Rio Tinto Kennecott
58.3
+67%
-1%
203.9
+37%
Escondida
79.7
-14%
-9%
350.4
+29%
Grasberg
25.9
+353%
N/A
25.9
+353%
Oyu Tolgoi
13.9
-8%
+5%
53.3
+1%
Refined copper
Rio Tinto Kennecott
64.6
+193%
+19%
194.7
+55%
Escondida
21.6
-6%
+30%
80.0
+12%
Diamonds ('000 carats)
Argyle
3,211
-48%
-16%
14,069
-18%
Diavik
1,078
+2%
+1%
4,358
-3%
Rio Tinto Kennecott
Mined copper production in 2018 was 37 per cent higher than 2017 as mining activity continued in a higher grade area of the pit, coupled with productivity improvements and increased plant throughput.
Refined copper was 55 per cent higher than 2017 as better mine grades improved concentrate quality and smelting throughput. Fourth quarter 2017 production was impacted by a fatality at the smelter.
Rio Tinto Kennecott continues to toll and purchase third party concentrate to optimise smelter utilisation, with 100 thousand tonnes of concentrate received for processing in 2018, compared with 161 thousand tonnes in 2017. Purchased and tolled copper concentrate are excluded from reported production figures.
In 2019, the production profile will see increased variability in grade as operations mine in lower levels of the pit, together with waste stripping related to the south wall pushback expansion. Anticipated south wall pushback grades begin to increase in late-2020 and are expected to offset this variability over the longer term.
Escondida
Mined copper production at Escondida in 2018 was 29 per cent higher than 2017, reflecting the ramp-up of production to nameplate capacity following commissioning of the Los Colorados concentrator, and the absence of a labour strike which significantly impacted 2017 production.
Oyu Tolgoi
Mined copper production from the open pit in 2018 was one per cent higher than 2017, with higher copper recovery partly offset by lower plant throughput due to the processing of harder ore.
Oyu Tolgoi Underground Project
Work continues on the critical Shaft Two equipping activities, central heating plant, mine infrastructure, underground materials handling systems and on priority underground development. Overall progress continues to track in-line with the re-forecast undertaken in the third quarter of 2018. The project workforce has now reached peak levels of around 9,400, whilst maintaining a high (88 per cent) participation rate of Mongolian nationals.
On 31 December 2018, Rio Tinto announced the signing of the Power Source Framework Agreement between Oyu Tolgoi and the Government of Mongolia. The agreement provides a binding framework and pathway for the construction of a power plant and also sets out an amended timetable for Oyu Tolgoi to meet its obligation to source power domestically. The 300 megawatt plant will be majority owned by Oyu Tolgoi LLC and will be situated close to the Tavan Tolgoi coalfields. Construction is scheduled to start in 2020, with the commissioning of the plant by mid-2023.
Grasberg
On 21 December 2018, Rio Tinto announced that it had completed the sale of its entire interest in the Grasberg mine in Indonesia as part of a series of transactions involving Inalum (PT Indonesia Asahan Aluminium (Persero)), Indonesia's state mining company, and Freeport McMoRan Inc. Total proceeds from the transaction were $3.5 billion, including $0.1 billion for the 2018 attributable metal share of 25.9 thousand tonnes of copper and 266.7 thousand ounces of gold, net of the capital contribution for the year.
Provisional pricing
At 31 December 2018, the Group had an estimated 240 million pounds of copper sales that were provisionally priced at 277 cents per pound. The final price of these sales will be determined during the first half of 2019. This compares with 250 million pounds of open shipments at 31 December 2017, provisionally priced at 304 cents per pound.
Diamonds
At Argyle, carat production in 2018 was 18 per cent lower than 2017, when production was enhanced by the processing of higher grade alluvial tailings.
At Diavik, carats recovered in 2018 were three per cent lower than 2017 as lower recovered grade were partially offset by higher ore processing. The A21 project successfully mined first ore in March 2018 and reached commercial production during the fourth quarter.
2019 guidance
Rio Tinto's share of mined copper production for 2019 is expected to be between 550 and 600 thousand tonnes, subject to grade availability. Refined copper production is expected to be between 220 and 250 thousand tonnes.
Diamond production guidance for 2019 is between 15 and 17 million carats.
ENERGY & MINERALS
Rio Tinto share of production
Q4 2018
vs Q4 2017
vs Q3 2018
2018
vs 2017
Coal ('000 tonnes)
Hard coking coal
-
-100%
-100%
3,988
-48%
Thermal coal (a)
-
-100%
-100%
2,527
-38%
Iron ore pellets and concentrate (million tonnes)
IOC
2.8
+4%
-2%
9.0
-20%
Minerals ('000 tonnes)
Borates - B2O3 content
118
-2%
-14%
512
-1%
Salt
1,496
-3%
+1%
6,153
+21%
Titanium dioxide slag
294
-14%
-1%
1,116
-15%
Uranium ('000 lbs)
Energy Resources of Australia
924
+1%
+13%
3,014
-13%
Rössing
979
+9%
-1%
3,750
+17%
(a) Production from Coal & Allied of 9.9 million tonnes (Rio Tinto share) prior to divestment on 1 September 2017 has been excluded from the comparisons above.
Coal
Following the completion of the sale of Rio Tinto's interests in Kestrel and Hail Creek on 1 August 2018, production of coal attributable to Rio Tinto ceased. The sale of these assets, along with the Valeria coal and Winchester South development projects resulted in gross disposal proceeds of $4.15 billion.
Iron Ore Company of Canada (IOC)
Fourth quarter production at IOC was four per cent higher than the corresponding period of 2017.
IOC production and sales in 2018 were impacted by a two month strike at the mine in the second quarter, but was in line with revised guidance. Pellet production of 8.5 million tonnes (Rio Tinto share 5.0 million tonnes) was 18 per cent lower than 2017, whilst concentrate production for sale of 6.7 million tonnes (Rio Tinto share 3.9 million tonnes) was 22 per cent lower than 2017.
Total sales of pellets and concentrates achieved in 2018 were 15.0 million tonnes (Rio Tinto share 8.8 million tonnes), 21 per cent lower than 2017.
Borates
Borates production was one per cent lower than 2017, and in line with guidance, with production aligned to customer demand.
Iron and Titanium
Titanium dioxide feedstock production was 15 per cent lower in 2018 compared to 2017, primarily due to disruptions at Rio Tinto Fer et Titane (RTFT), the deflagration of a furnace at RTFT, and intermittent stoppages related to labour disputes between contractors and their employees at Richards Bay Minerals (RBM) in the first half. Production was in line with revised guidance.
Three of nine furnaces at RTFT are idle, two of which are being rebuilt. One of four furnaces at RBM remains idle. The focus remains on maximising the productivity of the furnaces currently in operation, and a decision to re-start idle furnaces will be based on maximising value over volume.
Salt
Salt production in 2018 was 21 per cent higher than 2017, with production aligned to customer demand.
Uranium
Energy Resources of Australia continues to process existing low grade stockpiles. 2018 production was 13 per cent lower than 2017 due to declining grades and completion of laterite processing.
Production at Rössing Uranium in 2018 was 17 per cent higher than 2017 due to higher mill grades.
On 26 November 2018, Rio Tinto announced it had entered into a binding agreement with China National Uranium Corporation for the sale of its entire 68.62 per cent stake in Rössing Uranium. The transaction is subject to certain conditions precedent including merger approval from the Namibian Competition Commission. Subject to these conditions precedent being met, the transaction is expected to complete in the first half of 2019.
2019 guidance
At IOC, guidance for Rio Tinto's expected share of iron ore pellets and concentrates production in 2019 is between 11.3 and 12.3 million tonnes. Titanium dioxide slag production guidance is between 1.2 and 1.4 million tonnes, and boric oxide equivalent production guidance is 0.5 million tonnes.
CORPORATE UPDATE
Share buy-back
During 2018, Rio Tinto purchased $5.4 billion of shares through a combination of on-market purchases of Rio Tinto plc shares and an off-market tender of Rio Tinto Limited shares. As at 1 January 2019, a further $1.7 billion of previously announced buy-backs in Rio Tinto plc shares remains outstanding.
Rio Tinto Limited
The Group returned $2.1 billion through a Rio Tinto Limited off-market tender announced on 20 September 2018 and completed on 12 November 2018.
Rio Tinto plc
In 2018, on-market purchases were completed of $3.3 billion in Rio Tinto plc shares. These comprised the return of $1.9 billion announced in the second half of 2017, the $1 billion programme announced on 7 February 2018 and $0.4 billion of a $1 billion programme announced on 1 August 2018. The remaining $0.6 billion of this last programme will be completed no later than 27 February 2019.
A further $1.1 billion of the programme announced in September 2018 will be returned through an on-market Rio Tinto plc share buy-back commencing on 28 February 2019 and will be completed no later than 28 February 2020.
Cash inflows of approximately $8.6 billion, pre-tax, from divestments in 2018
Pre-tax proceeds received in 2018
$ billion
Aluminium Dunkerque, France sold to Liberty House*
0.4
Hail Creek coal mine and Valeria coal development project, both in Queensland, Australia, sold to Glencore
1.7
Kestrel underground coal mine, Queensland, Australia, sold to EMR Capital and PT Adaro Energy Tbk
2.3
Interest in Grasberg mine sold to Inalum (PT Indonesia Asahan Aluminium (Persero))**
3.4
Wharf and land in Kitimat, British Columbia sold to LNG Canada
0.6
Other, including Winchester South coal development project
0.2
Total
8.6
* Net of completion adjustments
** Before a $0.1 billion attributable share of copper and gold revenues, net of Rio Tinto's capital contribution for the year.
Simandou
The non-binding heads of agreement, originally signed on 28 October 2016, for Chinalco to acquire Rio Tinto's entire interest in the Simandou iron ore project in Guinea has lapsed. Rio Tinto and Chinalco, who respectively own 45.05 per cent and 39.95 per cent of Simandou, will continue to work with the Government of Guinea to explore other options to realise value from the world-class Simandou iron ore deposit. The Government of Guinea owns a 15 per cent stake in the project.
EXPLORATION AND EVALUATION
Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in 2018 was $488 million, compared with $445 million in 2017, driven primarily by increased activity at Resolution. Approximately 48 per cent of this expenditure was incurred by central exploration, 37 per cent by Copper & Diamonds, eight per cent by Iron Ore and the remainder by Energy & Minerals and Aluminium.
There were no significant divestments of central exploration properties in the fourth quarter of 2018.
Exploration highlights
Rio Tinto has a strong portfolio of projects with activity in 16 countries across some eight commodities. The bulk of the exploration expenditure in this quarter was focused on copper targets in Australia, Canada, Chile, Kazakhstan, Mongolia, Namibia, Papua New Guinea, Peru, Serbia, United States, Zambia and diamond projects in Canada. Mine-lease exploration continued at a number of Rio Tinto managed businesses including Pilbara Iron in Australia, RTIT in Canada, Oyu Tolgoi In Mongolia, Weipa in Australia and Bingham in the US.
A summary of activity for the quarter is as follows:
Product Groups
Studies stage
Advanced exploration
projects
Greenfield/ Brownfield
programmes
Aluminium
Cape York, Australia
Amargosa, Brazil
Sanxai, Laos
Cape York, Australia
Copper & Diamonds
Copper/molybdenum: Resolution, US
Copper: La Granja, Peru
Nickel: Tamarack, US
Diamonds: FalCon1, Canada
Copper Greenfield: Australia, Chile, China, Kazakhstan, Mongolia, Namibia, Papua New Guinea, Peru, Serbia, US, Zambia
Copper Brownfield: Bingham, US
Nickel Greenfield: Canada, Uganda
Diamonds: Canada
Energy & Minerals
Lithium borates: Jadar, Serbia
Potash: KP405, Canada
Heavy mineral sands: Mutamba, Mozambique and Zulti South, South Africa
Uranium: Roughrider, Canada
Heavy mineral sands: Tanzania, Canada
Iron Ore
Pilbara, Australia
Pilbara, Australia
Koodaideri, Australia
(1) Formerly Forte a la Corne
Forward-looking statements
This announcement may include "forward-looking statements" within the meaning of the US 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 production forecast or guidance, financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto's products and reserve and resource positions), are forward-looking statements. The words "intend", "aim", "project", "anticipate", "estimate", "plan", "believes", "expects", "may", "should", "will", "target", "set to", "assumes" 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 production, performance or results of Rio Tinto to be materially different from any future production, performance or results expressed or implied by such forward-looking statements. Such forward-looking statements could be influenced by such risk factors as identified in Rio Tinto's most recent Annual Report and Accounts in Australia and the United Kingdom and the most recent Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the "SEC") or Form 6-Ks furnished to, or filed with, the SEC. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this announcement. Rio Tinto expressly disclaims any obligation or undertaking (except as required by applicable law, the UK Listing Rules, the Disclosure 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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Rio Tinto production summary
Rio Tinto share of production
Quarter
Full Year
% Change
2017
Q42018
Q32018
Q4
2017
2018
Q4 18
vs
Q4 17Q4 18
vs
Q3 182018
vs
2017Principal Commodities
Alumina
('000 t)
2,077
1,972
2,020
8,131
7,980
-3%
2%
-2%
Aluminium
('000 t)
887
880
874
3,551
3,458
-1%
-1%
-3%
Bauxite
('000 t)
13,762
12,700
11,790
50,796
50,421
-14%
-7%
-1%
Borates
('000 t)
120
137
118
517
512
-2%
-14%
-1%
Coal - hard coking
('000 t)
2,322
712
-
7,704
3,988
-100%
-100%
-48%
Coal - thermal
('000 t)
966
397
-
4,065
2,527
-100%
-100%
-38%
Copper - mined
('000 t)
148.6
159.7
177.8
478.1
633.5
20%
11%
33%
Copper - refined
('000 t)
44.9
70.8
86.1
197.2
274.8
92%
22%
39%
Diamonds
('000 cts)
7,207
4,896
4,290
21,627
18,427
-40%
-12%
-15%
Iron Ore
('000 t)
75,656
72,010
75,018
282,484
290,800
-1%
4%
3%
Titanium dioxide slag
('000 t)
341
297
294
1,315
1,116
-14%
-1%
-15%
Uranium
('000 lbs)
1,821
1,814
1,904
6,650
6,764
5%
5%
2%
Other Metals & Minerals
Gold - mined
('000 oz)
62.6
101.4
385.1
260.1
638.8
515%
280%
146%
Gold - refined
('000 oz)
55.4
50.3
58.6
203.7
198.0
6%
17%
-3%
Molybdenum
('000 t)
1.9
1.4
2.2
5.0
5.8
15%
63%
16%
Salt
('000 t)
1,535
1,481
1,496
5,090
6,153
-3%
1%
21%
Silver - mined
('000 oz)
1,172
1,384
1,840
4,194
5,910
57%
33%
41%
Silver - refined
('000 oz)
516
730
807
2,378
2,865
56%
10%
21%
Throughout this report, figures in italics indicate adjustments made since the figure was previously quoted on the equivalent page. 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
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
ALUMINA
Production ('000 tonnes)
Jonquière (Vaudreuil)
100%
365
362
365
363
354
1,448
1,444
Jonquière (Vaudreuil) specialty Alumina plant
100%
29
31
32
31
29
122
124
Queensland Alumina
80%
773
717
752
748
742
2,988
2,958
São Luis (Alumar)
10%
93
87
87
85
92
370
351
Yarwun
100%
816
793
763
744
803
3,203
3,103
Rio Tinto total alumina production
2,077
1,990
1,999
1,972
2,020
8,131
7,980
ALUMINIUM
Production ('000 tonnes)
Australia - Bell Bay
100%
47
47
47
48
48
187
189
Australia - Boyne Island
59%
74
72
74
75
74
302
295
Australia - Tomago
52%
77
75
76
78
77
304
305
Canada - six wholly owned
100%
405
398
402
407
408
1,596
1,616
Canada - Alouette (Sept-Îles)
40%
60
58
58
59
58
239
234
Canada - Bécancour
25%
27
10
9
8
8
110
34
France - Dunkerque (a)
0%
72
51
52
66
57
284
227
Iceland - ISAL (Reykjavik)
100%
54
52
53
53
54
212
212
New Zealand - Tiwai Point
79%
67
66
67
68
70
267
270
Oman - Sohar
20%
5
17
19
20
20
51
76
Rio Tinto total aluminium production
887
846
858
880
874
3,551
3,458
(a) On 14 December 2018, Rio Tinto completed the sale of its 100% interest in the Dunkerque smelter. Production is reported up to the date of completion.
BAUXITE
Production ('000 tonnes) (a)
Gove
100%
3,224
3,124
3,274
2,893
3,250
11,201
12,540
Porto Trombetas
12%
426
353
393
342
489
1,764
1,576
Sangaredi
(b)
1,809
1,745
1,657
1,261
1,204
6,934
5,868
Weipa
100%
8,304
7,431
7,955
8,204
6,847
30,898
30,437
Rio Tinto total bauxite production
13,762
12,653
13,279
12,700
11,790
50,796
50,421
(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
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
BORATES
Production ('000 tonnes B2O3 content)
Rio Tinto Borates - borates
100%
120
124
132
137
118
517
512
COAL - hard coking
Rio Tinto Coal Australia ('000 tonnes)
Hail Creek Coal (a) (c)
0%
1,275
758
1,131
325
-
4,303
2,214
Kestrel Coal (b) (c)
0%
1,048
344
1,043
387
-
3,402
1,774
Rio Tinto total hard coking coal production
2,322
1,102
2,174
712
-
7,704
3,988
(a) On 1 August 2018, Rio Tinto completed the sale of its 82% interest in the Hail Creek mine. Production is reported up to the date of completion.
(b) On 1 August 2018, Rio Tinto completed the sale of its 80% interest in the Kestrel mine. Production is reported up to the date of completion.
(c) Kestrel and Hail Creek produce hard coking coal and thermal coal through their mining operations. Both mines may blend coal types at ports.
COAL - thermal
Rio Tinto Coal Australia ('000 tonnes)
Hail Creek Coal (a) (c)
0%
785
1,060
835
368
-
3,390
2,264
Kestrel Coal (b) (c)
0%
180
59
176
28
-
674
263
Rio Tinto total thermal coal production
966
1,119
1,011
397
-
4,065
2,527
(a) On 1 August 2018, Rio Tinto completed the sale of its 82% interest in the Hail Creek mine. Production is reported up to the date of completion.
(b) On 1 August 2018, Rio Tinto completed the sale of its 80% interest in the Kestrel mine. Production is reported up to the date of completion.
(c) Kestrel and Hail Creek produce hard coking coal and thermal coal through their mining operations. Both mines may blend coal types at ports.
Rio Tinto share of production
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
COPPER
Mine production ('000 tonnes) (a)
Bingham Canyon
100%
34.8
35.4
51.2
59.1
58.3
148.9
203.9
Escondida
30%
92.9
90.9
92.4
87.4
79.7
270.8
350.4
Grasberg - Joint Venture (b)
40%
5.7
0.0
0.0
0.0
25.9
5.7
25.9
Oyu Tolgoi (c)
34%
15.2
13.0
13.2
13.2
13.9
52.8
53.3
Rio Tinto total mine production
148.6
139.3
156.8
159.7
177.8
478.1
633.5
Refined production ('000 tonnes)
Escondida
30%
22.8
20.8
21.0
16.6
21.6
71.4
80.0
Rio Tinto Kennecott
100%
22.1
35.3
40.7
54.2
64.6
125.8
194.7
Rio Tinto total refined production
44.9
56.1
61.7
70.8
86.1
197.2
274.8
(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.
(b) Through a joint venture agreement with Freeport-McMoRan (FCX), Rio Tinto is entitled to 40% of additional material mined as a consequence of expansions and developments of the Grasberg facilities since 1998. On 21 December 2018, Rio Tinto completed the sale of its entire interest in the Grasberg mine in Indonesia to PT Indonesia Asahan Aluminium (Persero) (Inalum). Production is reported up to 30 November 2018. Net cashflow of $0.1 billion relating to this production is included in the total divestments proceeds of $3.5 billion.
(c) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in Turquoise Hill Resources Ltd.
DIAMONDS
Production ('000 carats)
Argyle
100%
6,146
3,551
3,476
3,830
3,211
17,135
14,069
Diavik
60%
1,060
1,065
1,150
1,066
1,078
4,492
4,358
Rio Tinto total diamond production
7,207
4,616
4,626
4,896
4,290
21,627
18,427
GOLD
Mine production ('000 ounces) (a)
Bingham Canyon
100%
35.9
37.4
45.6
56.6
57.1
177.9
196.7
Escondida
30%
15.1
18.0
20.5
19.1
22.1
43.9
79.7
Grasberg - Joint Venture (b)
40%
0.0
0.0
0.0
0.0
266.7
0.0
266.7
Oyu Tolgoi (c)
34%
11.7
14.0
16.8
25.8
39.1
38.3
95.7
Rio Tinto total mine production
62.6
69.4
82.8
101.4
385.1
260.1
638.8
Refined production ('000 ounces)
Rio Tinto Kennecott
100%
55.4
40.8
48.4
50.3
58.6
203.7
198.0
(a) Mine production figures for metals refer to the total quantity of metal produced in concentrates, leach liquor or doré bullion irrespective of whether these products are then refined onsite, except for the data for bauxite and iron ore which represent production of marketable quantities of ore plus concentrates and pellets.
(b) Through a joint venture agreement with Freeport-McMoRan (FCX), Rio Tinto is entitled to 40% of additional material mined as a consequence of expansions and developments of the Grasberg facilities since 1998. On 21 December 2018, Rio Tinto completed the sale of its entire interest in the Grasberg mine in Indonesia to PT Indonesia Asahan Aluminium (Persero) (Inalum). Production is reported up to 30 November 2018. Net cashflow of $0.1 billion relating to this production is included in the total divestments proceeds of $3.5 billion.
(c) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in Turquoise Hill Resources Ltd.
Rio Tinto share of production
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines
(b)
56,501
53,631
56,034
54,583
56,364
206,760
220,612
Hamersley - Channar
60%
1,345
1,136
1,227
604
1,337
6,479
4,304
Hope Downs
50%
5,987
5,342
5,783
5,713
5,845
23,470
22,684
Iron Ore Company of Canada
59%
2,733
2,364
871
2,880
2,836
11,166
8,952
Robe River - Pannawonica (Mesas J and A)
53%
4,580
4,672
4,048
4,208
4,004
16,526
16,932
Robe River - West Angelas
53%
4,509
4,290
4,373
4,021
4,631
18,082
17,316
Rio Tinto iron ore production ('000 tonnes)
75,656
71,436
72,336
72,010
75,018
282,484
290,800
Breakdown of Production:
Pilbara Blend Lump
21,082
20,714
21,901
20,554
21,674
80,770
84,843
Pilbara Blend Fines
31,172
29,769
31,239
29,921
31,652
116,359
122,582
Robe Valley Lump
1,646
1,587
1,431
1,470
1,409
6,128
5,897
Robe Valley Fines
2,934
3,086
2,617
2,738
2,595
10,398
11,035
Yandicoogina Fines (HIY)
16,088
13,916
14,277
14,446
14,852
57,663
57,491
Pilbara iron ore production ('000 tonnes)
72,922
69,072
71,465
69,129
72,182
271,318
281,848
IOC Concentrate
1,163
799
572
1,131
1,433
5,020
3,934
IOC Pellets
1,571
1,566
299
1,750
1,403
6,146
5,018
IOC iron ore production ('000 tonnes)
2,733
2,364
871
2,880
2,836
11,166
8,952
Breakdown of Sales:
Pilbara Blend Lump
18,861
18,062
19,424
17,967
18,439
71,156
73,892
Pilbara Blend Fines
35,575
30,746
35,158
31,432
35,205
127,272
132,541
Robe Valley Lump
1,388
1,223
1,264
1,174
1,219
5,217
4,881
Robe Valley Fines
3,287
2,996
3,255
2,839
2,996
11,204
12,085
Yandicoogina Fines (HIY)
15,731
13,578
14,388
14,583
14,831
57,185
57,380
Pilbara iron ore sales ('000 tonnes)
74,843
66,604
73,489
67,995
72,690
272,034
280,778
IOC Concentrate
1,559
746
62
1,521
1,558
5,053
3,887
IOC Pellets
1,615
1,574
202
1,659
1,516
6,108
4,950
IOC Iron ore sales ('000 tonnes)
3,173
2,320
263
3,180
3,073
11,161
8,837
Rio Tinto iron ore sales ('000 tonnes)
78,016
68,925
73,752
71,175
75,763
283,195
289,614
(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, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass 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 share of production
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
MOLYBDENUM
Mine production ('000 tonnes) (a)
Bingham Canyon
100%
1.9
1.5
0.7
1.4
2.2
5.0
5.8
(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%
1,535
1,514
1,662
1,481
1,496
5,090
6,153
SILVER
Mine production ('000 ounces) (a)
Bingham Canyon
100%
418
461
615
708
736
2,156
2,520
Escondida
30%
658
702
758
599
771
1,712
2,830
Grasberg - Joint Venture (b)
40%
0
0
0
0
253
0
253
Oyu Tolgoi (c)
34%
96
74
75
77
80
326
306
Rio Tinto total mine production
1,172
1,237
1,448
1,384
1,840
4,194
5,910
Refined production ('000 ounces)
Rio Tinto Kennecott
100%
516
867
461
730
807
2,378
2,865
(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) Through a joint venture agreement with Freeport-McMoRan (FCX), Rio Tinto is entitled to 40% of additional material mined as a consequence of expansions and developments of the Grasberg facilities since 1998. On 21 December 2018, Rio Tinto completed the sale of its entire interest in the Grasberg mine in Indonesia to PT Indonesia Asahan Aluminium (Persero) (Inalum). Production is reported up to 30 November 2018. Net cashflow of $0.1 billion relating to this production is included in the total divestments proceeds of $3.5 billion.
(c) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in Turquoise Hill Resources Ltd.
TITANIUM DIOXIDE SLAG
Production ('000 tonnes)
Rio Tinto Iron & Titanium (a)
100%
341
294
232
297
294
1,315
1,116
(a) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio Tinto's 74% interest in Richards Bay Minerals (RBM).
URANIUM
Production ('000 lbs U3O8) (a)
Energy Resources of Australia
68%
919
667
603
820
924
3,458
3,014
Rössing (b)
69%
902
848
928
994
979
3,192
3,750
Rio Tinto total uranium production
1,821
1,515
1,531
1,814
1,904
6,650
6,764
(a) ERA and Rössing production reported are drummed U3O8.
(b) On 26 November 2018, Rio Tinto signed a binding agreement to sell its 68.62% interest in the Rossing mine in Namibia to China National Uranium Corporation Limited.
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.
The Rio Tinto percentage shown above is at 31 December 2018.
Rio Tinto's interest in the Coal and Allied mines were sold in 2017. No data for these operations are included in the Share of production table.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
ALUMINA
Smelter Grade Alumina - Aluminium Group
Alumina production ('000 tonnes)
Australia
Queensland Alumina Refinery - Queensland
80.0%
966
896
940
935
927
3,735
3,697
Yarwun refinery - Queensland
100.0%
816
793
763
744
803
3,203
3,103
Brazil
São Luis (Alumar) refinery
10.0%
934
871
869
851
918
3,697
3,509
Canada
Jonquière (Vaudreuil) refinery - Quebec (a)
100.0%
365
362
365
363
354
1,448
1,444
(a) Jonquière's (Vaudreuil's) production shows smelter grade alumina only and excludes hydrate produced and used for specialty alumina.
Specialty Alumina - Aluminium Group
Specialty alumina production ('000 tonnes)
Canada
Jonquière (Vaudreuil) plant - Quebec
100.0%
29
31
32
31
29
122
124
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
ALUMINIUM
Primary Aluminium
Primary aluminium production ('000 tonnes)
Australia
Bell Bay smelter - Tasmania
100.0%
47
47
47
48
48
187
189
Boyne Island smelter - Queensland
59.4%
124
122
124
126
125
508
497
Tomago smelter - New South Wales
51.6%
149
145
148
151
149
590
592
Canada
Alma smelter - Quebec
100.0%
116
115
116
117
118
457
465
Alouette (Sept-Îles) smelter - Quebec
40.0%
150
144
146
148
146
598
584
Arvida smelter - Quebec
100.0%
44
43
43
43
44
171
173
Arvida AP60 smelter - Quebec
100.0%
14
13
13
13
13
57
52
Bécancour smelter - Quebec
25.1%
108
39
35
32
30
438
136
Grande-Baie smelter - Quebec
100.0%
58
57
58
59
59
229
233
Kitimat smelter - British Columbia
100.0%
110
108
109
110
109
433
436
Laterrière smelter - Quebec
100.0%
64
63
64
65
65
249
257
France
Dunkerque smelter (a)
0%
72
51
52
66
57
284
227
Iceland
ISAL (Reykjavik) smelter
100.0%
54
52
53
53
54
212
212
New Zealand
Tiwai Point smelter
79.4%
85
83
84
85
88
337
341
Oman
Sohar smelter
20.0%
27
87
97
98
99
253
380
(a) On 14 December 2018, Rio Tinto completed the sale of its 100% interest in the Dunkerque smelter. Production is reported up to the date of completion.
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
BAUXITE
Bauxite production ('000 tonnes)
Australia
Gove mine - Northern Territory
100.0%
3,224
3,124
3,274
2,893
3,250
11,201
12,540
Weipa mine - Queensland
100.0%
8,304
7,431
7,955
8,204
6,847
30,898
30,437
Brazil
Porto Trombetas (MRN) mine
12.0%
3,550
2,939
3,273
2,848
4,073
14,698
13,134
Guinea
Sangaredi mine (a)
23.0%
4,020
3,878
3,683
2,803
2,675
15,409
13,039
Rio Tinto share of bauxite shipments
Share of total bauxite shipments ('000 tonnes)
13,557
12,551
12,936
12,427
11,622
50,240
49,536
Share of third party bauxite shipments ('000 tonnes)
9,164
8,248
8,738
8,441
7,387
32,303
32,813
(a) Rio Tinto has a 22.95% shareholding in the Sangaredi mine but benefits from 45.0% of production.
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
BORATES
Rio Tinto Borates - borates
100.0%
US
Borates ('000 tonnes) (a)
120
124
132
137
118
517
512
(a) Production is expressed as B2O3 content.
COAL
Rio Tinto Coal Australia
Hail Creek Coal mine (a)
0.0%
Queensland
Hard coking coal ('000 tonnes)
1,555
924
1,380
396
-
5,247
2,700
Thermal coal ('000 tonnes)
958
1,293
1,018
449
-
4,134
2,760
Hunter Valley Operations (b)
0.0%
New South Wales
Semi-soft coking coal ('000 tonnes)
-
-
-
-
-
1,529
-
Thermal coal ('000 tonnes)
-
-
-
-
-
8,502
-
Kestrel Coal mine (c)
0.0%
Queensland
Hard coking coal ('000 tonnes)
1,309
430
1,303
484
-
4,252
2,217
Thermal coal ('000 tonnes)
226
74
220
35
-
843
329
Mount Thorley Operations (b)
0.0%
New South Wales
Semi-soft coking coal ('000 tonnes)
-
-
-
-
-
876
-
Thermal coal ('000 tonnes)
-
-
-
-
-
2,011
-
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
COAL (continued)
Warkworth mine (b)
0.0%
New South Wales
Semi-soft coking coal ('000 tonnes)
-
-
-
-
-
514
-
Thermal coal ('000 tonnes)
-
-
-
-
-
4,521
-
Total hard coking coal production ('000 tonnes)
2,864
1,354
2,683
880
-
9,499
4,917
Total semi-soft coking coal production ('000 tonnes)
-
-
-
-
-
2,919
-
Total thermal coal production ('000 tonnes)
1,183
1,367
1,238
485
-
20,010
3,089
Total coal production ('000 tonnes)
4,047
2,721
3,921
1,365
-
32,429
8,007
Total coal sales ('000 tonnes)
4,092
3,050
3,717
1,725
-
32,053
8,492
Rio Tinto Coal Australia share (d)
Share of hard coking coal sales ('000 tonnes)
2,429
1,368
2,228
650
-
8,181
4,246
Share of semi-soft coal sales ('000 tonnes) (e)
-
-
-
-
-
2,010
-
Share of thermal coal sales ('000 tonnes) (e)
896
1,119
791
754
-
13,186
2,664
(a) On 1 August 2018, Rio Tinto completed the sale of its 82% interest in the Hail Creek mine. Production is reported up to the date of completion.
(b) On 1 September 2017, Rio Tinto completed the sale of Coal & Allied, a wholly owned subsidiary of Rio Tinto Coal Australia (RTCA) and production from these assets is included to this date. This included Coal & Allied's 67.6% interest in the Hunter Valley Operations mine, 80% interest in the Mount Thorley mine and 55.6% interest in the Warkworth mine. In an earlier restructuring of the Coal & Allied group completed on 3 February 2016, Rio Tinto had obtained 100% of Coal & Allied and retained a 67.6% interest in the newly created Hunter Valley Operations joint venture. Prior to restructuring, Rio Tinto's interest in the Hunter Valley Operations, Mount Thorley and Warkworth mines was 80%, 64% and 44.46% respectively.
(c) On 1 August 2018, Rio Tinto completed the sale of its 80% interest in the Kestrel mine. Production is reported up to the date of completion.
(d) Kestrel and Hail Creek produce hard coking coal and thermal coal through their mining operations. Both mines may blend coal types at ports.
(e) Sales relate only to coal mined by the operations and exclude traded coal.
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
COPPER & GOLD
Escondida
30.0%
Chile
Sulphide ore to concentrator ('000 tonnes)
30,260
32,203
31,732
30,513
30,507
81,171
124,956
Average copper grade (%)
0.98
0.96
0.96
0.94
0.87
1.03
0.93
Mill production (metals in concentrates):
Contained copper ('000 tonnes)
245.7
252.6
253.6
241.9
219.9
684.5
968.0
Contained gold ('000 ounces)
50
60
68
64
74
146
266
Contained silver ('000 ounces)
2,193
2,339
2,527
1,997
2,570
5,707
9,433
Recoverable copper in ore stacked for leaching ('000 tonnes) (a)
63.9
50.4
54.4
49.4
45.7
218.2
199.9
Refined production from leach plants:
Copper cathode production ('000 tonnes)
76.1
69.4
70.1
55.4
71.9
238.0
266.8
(a) The calculation of copper in material mined for leaching is based on ore stacked at the leach pad.
Freeport-McMoRan
Grasberg mine (a)
0.0% (b)
Papua, Indonesia
Ore treated ('000 tonnes)
16,381
15,625
17,101
17,535
14,049
51,262
64,310
Average mill head grades:
Copper (%)
1.03
1.12
1.06
1.00
0.73
1.01
0.99
Gold (g/t)
1.28
1.63
1.77
1.77
1.08
1.15
1.59
Silver (g/t)
4.36
4.68
5.09
4.49
2.09
4.32
4.17
Production of metals in concentrates:
Copper in concentrates ('000 tonnes)
153.2
159.9
165.7
158.7
85.4
468.2
569.7
Gold in concentrates ('000 ounces)
579
693
842
842
402
1,602
2,779
Silver in concentrates ('000 ounces)
1,293
1,513
1,548
1,439
545
3,877
5,045
Sales of payable metals in concentrates: (c)
Copper in concentrates ('000 tonnes)
154.3
157.4
145.3
170.6
82.7
450.3
556.0
Gold in concentrates ('000 ounces)
584
676
740
903
399
1,540
2,719
Silver in concentrates ('000 ounces)
1,044
1,184
1,098
1,221
426
2,964
3,928
(a) Through a joint venture agreement with Freeport-McMoRan (FCX), Rio Tinto is entitled to 40% of additional material mined as a consequence of expansions and developments of the Grasberg facilities since 1998. The Q4 2018 results show the forecast from FCX's most recent five-year plan, because FCX is not releasing its actual 100% operating data for Q4 2018 until the release of its 2018 fourth-quarter results on 24 January 2019. On 21 December 2018, Rio Tinto completed the sale of its entire interest in the Grasberg mine in Indonesia to PT Indonesia Asahan Aluminium (Persero) (Inalum).
(b) Rio Tinto share of Grasberg production is 40% of the expansion.
(c) Net of smelter deductions.
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
COPPER & GOLD (continued)
Rio Tinto Kennecott
Bingham Canyon mine
100.0%
Utah, US
Ore treated ('000 tonnes)
9,074
9,260
8,974
11,173
10,853
39,382
40,260
Average ore grade:
Copper (%)
0.43
0.43
0.63
0.58
0.59
0.43
0.56
Gold (g/t)
0.21
0.23
0.26
0.26
0.26
0.25
0.25
Silver (g/t)
1.89
2.25
2.73
2.62
2.76
2.33
2.60
Molybdenum (%)
0.036
0.025
0.025
0.030
0.032
0.029
0.028
Copper concentrates produced ('000 tonnes)
162
171
194
233
222
704
820
Average concentrate grade (% Cu)
21.5
20.7
26.4
25.3
26.0
21.1
24.8
Production of metals in copper concentrates:
Copper ('000 tonnes) (a)
34.8
35.4
51.2
59.1
58.3
148.9
203.9
Gold ('000 ounces)
36
37
46
57
57
178
197
Silver ('000 ounces)
418
461
615
708
736
2,156
2,520
Molybdenum concentrates produced ('000 tonnes):
3.8
2.8
1.5
2.8
4.5
9.8
11.6
Molybdenum in concentrates ('000 tonnes)
1.9
1.5
0.7
1.4
2.2
5.0
5.8
Kennecott smelter & refinery
100.0%
Copper concentrates smelted ('000 tonnes)
90
200
224
246
262
644
932
Copper anodes produced ('000 tonnes) (b)
12.1
42.4
44.4
58.1
62.4
129.0
207.3
Production of refined metal:
Copper ('000 tonnes)
22.1
35.3
40.7
54.2
64.6
125.8
194.7
Gold ('000 ounces) (c)
55.4
40.8
48.4
50.3
58.6
203.7
198.0
Silver ('000 ounces) (c)
516
867
461
730
807
2,378
2,865
(a) Includes a small amount of copper in precipitates.
(b) New metal excluding recycled material.
(c) Includes gold and silver in intermediate products.
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
COPPER & GOLD (continued)
Turquoise Hill Resources
Oyu Tolgoi mine (a)
33.5%
Mongolia
Ore Treated ('000 tonnes)
10,838
9,561
10,164
9,652
9,361
41,177
38,738
Average mill head grades:
Copper (%)
0.53
0.51
0.48
0.51
0.55
0.51
0.51
Gold (g/t)
0.20
0.25
0.26
0.38
0.56
0.17
0.36
Silver (g/t)
1.54
1.32
1.17
1.19
1.22
1.39
1.22
Copper concentrates produced ('000 tonnes)
205.5
177.3
178.8
179.8
189.0
722.5
724.9
Average concentrate grade (% Cu)
22.0
21.9
22.0
21.9
21.9
21.8
21.9
Production of metals in concentrates:
Copper in concentrates ('000 tonnes)
45.3
38.8
39.4
39.4
41.5
157.4
159.1
Gold in concentrates ('000 ounces)
34.8
41.8
50.0
77.0
116.7
114.3
285.4
Silver in concentrates ('000 ounces)
285
221
225
230
238
974
914
Sales of metals in concentrates:
Copper in concentrates ('000 tonnes)
35.7
34.3
46.1
36.0
40.2
149.3
156.7
Gold in concentrates ('000 ounces)
27
31
51
55
111
111
248
Silver in concentrates ('000 ounces)
205
206
250
201
216
860
873
(a) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in Turquoise Hill Resources.
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
DIAMONDS
Argyle Diamonds
100.0%
Western Australia
AK1 ore processed ('000 tonnes)
1,446
1,260
1,428
1,465
1,292
4,957
5,444
AK1 diamonds produced ('000 carats)
6,146
3,551
3,476
3,830
3,211
17,135
14,069
Diavik Diamonds
60.0%
Northwest Territories, Canada
Ore processed ('000 tonnes)
525
556
652
670
651
2,190
2,530
Diamonds recovered ('000 carats)
1,767
1,774
1,916
1,776
1,797
7,486
7,264
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production ('000 tonnes)
Hamersley mines
(a)
56,501
53,631
56,034
54,583
56,364
206,760
220,612
Hamersley - Channar
60.0%
2,241
1,893
2,045
1,007
2,228
10,798
7,173
Hope Downs
50.0%
11,975
10,685
11,567
11,426
11,691
46,941
45,368
Robe River - Pannawonica (Mesas J and A)
53.0%
8,642
8,816
7,637
7,940
7,555
31,182
31,947
Robe River - West Angelas
53.0%
8,507
8,094
8,252
7,587
8,738
34,116
32,672
Total production ('000 tonnes)
87,866
83,120
85,534
82,542
86,576
329,797
337,772
Breakdown of total production:
Pilbara Blend Lump
25,496
24,831
26,253
24,461
26,084
99,127
101,629
Pilbara Blend Fines
37,641
35,556
37,368
35,696
38,085
141,826
146,705
Robe Valley Lump
3,106
2,993
2,699
2,774
2,659
11,563
11,126
Robe Valley Fines
5,535
5,823
4,937
5,166
4,896
19,619
20,821
Yandicoogina Fines (HIY)
16,088
13,916
14,277
14,446
14,852
57,663
57,491
Breakdown of total sales:
Pilbara Blend Lump
22,377
21,457
22,954
21,644
22,161
86,059
88,215
Pilbara Blend Fines
43,039
37,320
42,638
38,100
42,497
155,895
160,555
Robe Valley Lump
2,619
2,307
2,386
2,215
2,301
9,843
9,209
Robe Valley Fines
6,202
5,652
6,141
5,356
5,652
21,140
22,801
Yandicoogina Fines (HIY)
15,731
13,578
14,388
14,583
14,831
57,185
57,380
Total sales ('000 tonnes) (b)
89,968
80,314
88,506
81,898
87,442
330,122
338,160
(a) Includes 100% of production from Paraburdoo, Mt Tom Price, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass 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) Sales represent iron ore exported from Western Australian ports.
Iron Ore Company of Canada
58.7%
Newfoundland & Labrador and Quebec in Canada
Saleable iron ore production:
Concentrates ('000 tonnes)
1,980
1,360
974
1,926
2,441
8,549
6,700
Pellets ('000 tonnes)
2,675
2,667
510
2,979
2,389
10,467
8,545
IOC Total production ('000 tonnes)
4,655
4,027
1,484
4,905
4,830
19,016
15,245
Sales:
Concentrates ('000 tonnes)
2,655
1,271
105
2,590
2,653
8,605
6,619
Pellets ('000 tonnes)
2,750
2,681
343
2,825
2,581
10,402
8,430
IOC Total Sales ('000 tonnes)
5,404
3,951
449
5,415
5,234
19,006
15,049
Global Iron Ore Totals
Iron Ore Production ('000 tonnes)
92,521
87,146
87,018
87,448
91,406
348,814
353,017
Iron Ore Sales ('000 tonnes)
95,373
84,265
88,954
87,314
92,676
349,128
353,209
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ4
2017Q1
2018Q2
2018Q3
2018Q4
2018Full Year
2017Full Year
2018
SALT
Dampier Salt
68.4%
Western Australia
Salt production ('000 tonnes)
2,246
2,215
2,431
2,167
2,188
7,446
9,001
TITANIUM DIOXIDE SLAG
Rio Tinto Iron & Titanium
100.0%
Canada and South Africa
(Rio Tinto share) (a)
Titanium dioxide slag ('000 tonnes)
341
294
232
297
294
1,315
1,116
(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.
URANIUM
Energy Resources of Australia Ltd
Ranger mine (a)
68.4%
Northern Territory, Australia
U3O8 Production ('000 lbs)
1,343
975
881
1,199
1,351
5,056
4,407
(a) ERA production data are drummed U3O8.
Rössing Uranium Ltd (a) (b)
68.6%
Namibia
U3O8 Production ('000 lbs)
1,314
1,236
1,352
1,449
1,427
4,652
5,465
(a) Rössing production data are drummed U3O8.
(b) On 26 November 2018, Rio Tinto signed a binding agreement to sell its 68.62% interest in the Rossing mine in Namibia to China National Uranium Corporation Limited.
Rio Tinto percentage interest shown above is at 31 December 2018. The data represent full production and sales on a 100% basis unless otherwise stated.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.ENDDRLCKODQDBKBADD
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