REG - Rio Tinto - Rio Tinto second quarter production results
Rio Tinto releases second quarter production results
17 July 2020
Rio Tinto Chief Executive J-S Jacques said "We delivered a strong performance, particularly in iron ore and bauxite, demonstrating the underlying resilience of our business and ability to adapt in difficult conditions. Our iron ore assets are performing well in a strong pricing environment and we are on track to meet our 2020 iron ore guidance. Despite various COVID-19 related challenges, all our assets have continued to operate, with our first priority to protect the health and safety of all our employees and communities.
"Our focus is to maintain a business as usual approach with many safeguards at a very unusual time. Our operational teams are continuing to run our assets safely so we can continue to contribute to local and national economies and serve our customers. We remain even more committed to our relationship with communities, following the Juukan Gorge events in the Pilbara, and we are engaging extensively with Traditional Owners around our operations and across Australia.
"We are executing our value over volume strategy to drive performance, productivity and free cash flow per share. We will remain agile and ready to adapt to the changing operating and macro environment."
Production*
Q2
2020vs Q2
2019vs Q1
2020H1
2020vs H1
2019Pilbara iron ore shipments (100% basis)
Mt
86.7
+1
%
+19
%
159.6
+3
%
Pilbara iron ore production (100% basis)
Mt
83.2
+4
%
+7
%
161.1
+3
%
Bauxite
Mt
14.6
+9
%
+5
%
28.4
+8
%
Aluminium
kt
785
-2
%
0
%
1,568
-2
%
Mined Copper
kt
132.8
-3
%
0
%
265.7
-5
%
Titanium dioxide slag
kt
262
-13
%
-10
%
555
-7
%
IOC iron ore pellets and concentrate
Mt
2.8
+9
%
+8
%
5.3
+6
%
*Rio Tinto share unless otherwise stated
Q2 Operational update
• We continue to prioritise the health and safety of our employees and communities during this turbulent period. We achieved an all injury frequency rate of 0.37 for the first half of 2020, trending positively compared with a rate of 0.42 in 2019. We have now fully embedded our rigorous COVID-19 health and hygiene controls as we adapt to the new operating conditions. Our operational sites and offices are moving ahead with the implementation of fit for purpose COVID-19 screening as an additional measure to protect our people and communities.
• We remain even more committed to our relationship with communities, following the Juukan Gorge events in the Pilbara. We are engaging extensively with Traditional Owners, including the Puutu Kunti Kurrama and Pinikura people, and indigenous leaders in the Pilbara and across Australia. On 19 June 2020, we announced a board-led review of our heritage management processes within Iron Ore to be completed by October 2020. We will also contribute to the Inquiry by the Joint Standing Committee on Northern Australia that will report to the Senate and we will continue to support the West Australian government's planned reform of the Aboriginal Heritage Act 1972 (WA).
• Overall, we achieved a robust production performance with volumes up 1% compared with the second quarter of 2019 on a copper equivalent basis despite significant global challenges, restrictions related to COVID-19 and the impact of the earthquake at Kennecott, Utah.
• Pilbara iron ore shipments of 86.7 million tonnes (100% basis) were 1% higher than the second quarter of 2019 despite the impact of COVID-19 related operational controls. With 1.7 million tonnes of port sales in the second quarter, we continue to grow our portside business steadily, looking to better serve our existing customers and open opportunities to sell to new customers who do not participate in the seaborne market.
• Bauxite production of 14.6 million tonnes, 9% higher than the second quarter of 2019, continued the first quarter trend following the successful ramp-up of Amrun in 2019, and higher production at the non-managed CBG joint venture in Guinea reflecting good progress on the ramp-up of the expansion.
• Aluminium production of 0.8 million tonnes in the second quarter was 2% lower than the second quarter of 2019 primarily due to pot relining at Kitimat, the decision to operate the ISAL smelter at 85% capacity and the curtailment of the fourth pot line at our New Zealand Aluminium Smelter (NZAS) in April 2020 due to COVID-19 impacts.
• On 9 July 2020, we announced the wind-down of operations and eventual closure of NZAS following the conclusion of the strategic review.
• Second quarter mined copper was 3% lower than the same period of 2019 due to lower head grade at Kennecott. Second quarter refined copper was 67% lower than the same period of 2019 due to the impact from the 5.7 magnitude earthquake in the first quarter resulting in an unplanned flash converting furnace rebuild at Kennecott, in addition to the planned 45-day smelter shutdown in May/June.
• On 29 June 2020, we announced an agreement with Turquoise Hill Resources and the Government of Mongolia on the preferred domestic power solution for Oyu Tolgoi that paves the way for the Government to fund and construct a State Owned Power Plant at Tavan Tolgoi. Parties will work towards finalising a Power Purchase Agreement by March 2021.
• The new Oyu Tolgoi mine design announced on 3 July 2020, confirms that the caving method of mining remains valid. We are targeting first sustainable production between October 2022 to June 2023 and development capital of $6.6 to $7.1 billion based on the updated mine design of Panel 0. Material contained in pillars retained on either side of Panel 0 have been reclassified from Ore Reserves to Mineral Resources. Part of the material contained in these pillars is expected to be recoverable at a later stage following additional studies which are currently underway.
• Titanium dioxide slag production of 262 thousand tonnes was 13% lower than the second quarter of 2019 partly due to COVID-19 restrictions in Quebec and South Africa.
• Production of pellets and concentrate at the Iron Ore Company of Canada (IOC) was 9% higher than the same period of 2019 with continued focus on concentrate feed to match market demand.
• Governments are gradually lifting restrictions on the movement of goods and people as part of their COVID-19 recovery plans. However, some restrictions remain in place or are being reintroduced. As a result, there continues to be an impact on projects in general although to a lesser degree than earlier in the year.
• Capital expenditure is expected to be around $6 billion in 2020 (previously $5 to $6 billion) due to an appreciation in our major operating currencies against the US dollar since the first quarter and a reduced impact of COVID-19 on both sustaining and development expenditure. Capital expenditure for 2021 and 2022 is expected to be around $7 billion per year (previously $6.5 billion). This includes spend from 2020 that has been re-phased as a result of COVID-19 restrictions. Further details can be found in the Investments, growth and development projects section below.
• We made a final payment of US$1.0 billion in Australian income tax in June 2020 with respect to 2019 profits.
COVID-19
Our markets
In China, conditions have improved through the second quarter and appear to be stabilising. While employment and trade uncertainties remain, the construction and infrastructure sectors are performing well; house prices and stock markets are also recovering, lending support to consumer confidence. The United States and Europe have started to re-open and recover. A second wave of infections remains a key threat for advanced economies.
• China's demand for iron ore continues while the recovery in Japan and Europe is yet to begin meaningfully and is likely to be subdued when it does.
• The automotive sector is showing initial signs of recovery from a very low base, supporting demand for aluminium value-added products (VAP).
• There has been limited impact on bauxite demand to date.
• China's copper concentrate market remains favourable; however, the US market is weaker. COVID-19 related supply disruptions are between 3 to 4% of annual copper supply currently, in addition to normal industry supply disruptions, and could increase further.
Average realised prices achieved for our major commodities
Units
H1 19
FY 19
Q1 20
Q2 20
H1 20
Pilbara iron ore
FOB, $/wmt
78.5
79.0
77.3
79.6
78.5
Pilbara iron ore
FOB, $/dmt
85.3
85.9
84.0
86.5
85.4
Aluminium
Metal $/t
2,174
2,132
2,014
1,715
1,849
Copper
US cents per pound
282.0
275.0
260.5
240.1
250.0
IOC pellets
$/wmt
141.4
137.1
116.6
117.6
117.0
Our assets
During the COVID-19 pandemic, we have implemented strict protocols globally across the business. These measures are in line with government guidance and directives, and advice from leading medical experts and international health organisations on best practice to keep our employees, contractors and partners healthy and safe. These range from physical distancing to travel restrictions, roster changes and team splits, to flexible working arrangements, rapid screening and personal hygiene controls.
While uncertainties continue to exist in our business environment, we are focused on our underlying resilience and ability to adapt in a fast-moving environment. Key updates are outlined below and full details of initiatives taken to date can be found on our website.
Operations and Workforce
• With the de-escalation of health restrictions in Western Australia, we are progressing the return to normal rosters at our Iron Ore operations, construction and exploration projects. We expect this transition to be completed by August 2020.
• Our office-based employees are beginning to return to offices in regions where permitted. In most cases, employees are returning to offices in alternate teams to reduce the risk of widespread transmission and ensure business continuity.
• We have introduced screening programmes across sites as a control to stop the spread of COVID-19. For the Pilbara fly-in-fly-out workforce, we have conducted more than 50,000 checks through facilities we established at Perth and regional airports as an enhanced control for employees boarding flights to site.
• At our copper assets in Mongolia and the US, our teams have used virtual technology to overcome some challenges related to COVID-19 travel restrictions. At our Oyu Tolgoi underground project in Mongolia, the use of virtual reality glasses has helped gain access to global experts to support project progression during construction and commissioning stages.
• At Richards Bay Minerals (RBM), furnaces are gradually ramping up production following easing of restrictions in South Africa. However, we are managing the situation carefully in the challenging South African environment.
Products
• In the second quarter, we continued to focus on the optimisation of IOC product mix to match market demand, moving from pellet to concentrate.
• In aluminium, in response to market conditions we have reduced the proportion of primary metal being produced as VAP, which represented 40% of primary metal sold in the first half of 2020 (first half 2019: 54%).
Production guidance
Rio Tinto share, unless otherwise stated
2019 Actuals
H1 2020 (YTD)
2020
Pilbara iron ore (shipments, 100% basis) (Mt)
327
159.6
324 to 334
Bauxite (Mt)
55
28.4
55 to 58
Alumina (Mt)
7.7
4.0
7.8 to 8.2
Aluminium (Mt)
3.2
1.6
3.1 to 3.3
Mined copper (kt)
577
265.7
475 to 520
Refined copper (kt)
260
74.1
165 to 205
Diamonds (M carats)
17
7.7
12 to 14
Titanium dioxide slag (Mt)
1.2
0.6
Lower end of 1.2 to 1.4
IOC iron ore pellets and concentrate (Mt)
10.5
5.3
10.5 to 12.0
Boric oxide equivalent (Mt)
0.5
0.26
~0.5
• Production guidance remains unchanged across all commodities from the First Quarter Operations Review.
• We will continue to monitor and adjust production levels and product mix to meet customer requirements in 2020, in line with our value over volume strategy, government imposed restrictions related to COVID-19, and any other potential COVID-19 related disruptions.
Operating costs
• Pilbara iron ore 2020 unit cost guidance is expected to be within the previous guidance of $14 to $15 per tonne, including unplanned one-off COVID-19 costs of $0.50 per tonne mostly incurred in the first half of 2020, relating to controls such as cleaning, screening, additional flights, and roster changes. The guidance is based on an Australian dollar exchange rate of $0.67.
• Copper C1 unit cost guidance in 2020 remains unchanged at 120-135 US cents/lb.
Investments, growth and development projects
• Governments are gradually lifting restrictions on the movement of goods and people as part of their COVID-19 recovery plans. Nevertheless, the pace is controlled and some restrictions remain in place or are being reintroduced. This continues to have an impact on projects in general although to a lesser degree than earlier in the year.
• Capital expenditure is expected to be around $6 billion in 2020 (previously $5 to $6 billion) due to an appreciation in our major operating currencies against the US dollar since the first quarter and a reduced impact of COVID-19 on both sustaining and development expenditure. Our focus is to complete as much of the original planned sustaining expenditure as possible in the second half to enhance the resilience of our asset base. Capital expenditure for 2021 and 2022 is expected to be around $7 billion per year (previously $6.5 billion). This includes spend from 2020 that has been re-phased as a result of COVID-19 restrictions.
• Exploration and evaluation spend in the second quarter was $136 million ($280 million in the first half of 2020), 16% lower than the second quarter of 2019, and 5% lower than the first quarter of 2020.
Pilbara replacement projects
• Project teams continue to actively manage the impacts of COVID-19 with the implementation of project response plans. Recovery efforts are underway including a transition back to the usual three weeks on, one week off project rosters in the Pilbara.
• Supply chain issues are being managed and construction continues to progress despite necessary roster changes, social distancing and travel restrictions.
• The Koodaideri project is progressing with production ramp-up still expected to occur in early 2022. The primary crusher surge bin was delivered to site in May 2020, representing the first significant structural component for the processing plant.
• First ore from the Robe River Joint Venture sustaining production projects (West Angelas C&D and Mesa B, C and H at Robe Valley) is still expected in 2021. All primary approvals for Mesa H have now been received.
Oyu Tolgoi underground project
• Work continues to progress despite international travel restrictions issued by the Government of Mongolia to manage the risk of COVID-19 transmission.
• Underground lateral development continues to achieve high productivity with average monthly rates above 1,800 equivalent metres (eqm) in April, May and June.
• Shafts 3 and 4 remain on care and maintenance with no effective progress for the quarter and non-critical surface construction work areas have now also been placed on care and maintenance. Limited night shift work has recommenced on critical underground handling infrastructure, with the material handling system currently progressing at approximately 40% of planned rates.
• The new mine design announced on 3 July 2020, confirms that the caving method of mining remains valid and that the underground schedule and costs currently remain within the ranges previously disclosed. We are targeting first sustainable production between October 2022 to June 2023 and development capital of $6.6 to $7.1 billion based on the updated mine design of Panel 0.1
• Material contained in pillars retained on either side of Panel 0 have been reclassified from Ore Reserves to Mineral Resources. Part of the material contained in these pillars is expected to be recoverable at a later stage following additional studies which are currently underway.
• The definitive estimate of cost and schedule for Panel 0 is still expected in the second half of 2020.
Other key projects and exploration and evaluation
• Phase one of the south wall pushback project at Kennecott remains on track, despite disruptions from the 5.7 magnitude earthquake in the first quarter, with access to higher grades expected from 2021.
• The Zulti South project in South Africa remains on full suspension due to security and community issues.
• The Kemano hydropower tunnel project is targeting a re-start of tunnel excavation works in the third quarter of 2020.
• We are continuing our study programme at the Resolution Copper project in Arizona, USA despite COVID-19 disruptions. The study commenced underground characterisation of the ore body following Board approval in April 2020. Sinking of Shaft 9 continues on schedule and on budget, reaching a depth of 1,906m out of 2,086m total at the end of June.
• At our Winu project in Western Australia, drilling and fieldwork activities continue with strong health protocols in place to prevent the transmission of COVID-19. Restrictions are beginning to ease, allowing people movements and access to sites. We continue to see potential to develop the Paterson into a broader opportunity through both our own exploration and joint ventures in the region.
• The Simandou iron ore project (Blocks 3 and 4) in Guinea is progressing as we collaborate with our partners to optimise the programme. A scope of work has been prepared to enable selected China-based design institutes to update the infrastructure elements of the project including the design of its designated trans-Guinean rail line and to assess shipping methods.
1 The level of accuracy of these estimates is preliminary in nature and subject to a range of variables, in line with previous guidance. The confidence level of these estimates is at a level associated with a Pre-Feasibility Study, and further work is required between now and the second half of 2020 to refine the mine design options and study them to a level of confidence and accuracy associated with Feasibility Study quality estimates.
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 2019 is excluded from Rio Tinto share of production data.
IRON ORE
Rio Tinto share of production (Million tonnes)
Q2
2020vs Q2
2019vs Q1
2020H1
2020vs H1
2019Pilbara Blend and SP10 Lump1
19.0
-4
%
+3
%
37.5
-6
%
Pilbara Blend and SP10 Fines1
30.9
+8
%
+11
%
58.6
+2
%
Robe Valley Lump
1.3
+10
%
-10
%
2.8
+52
%
Robe Valley Fines
3.0
+40
%
+24
%
5.4
+60
%
Yandicoogina Fines (HIY)
14.8
+6
%
+5
%
28.9
+5
%
Total Pilbara production
68.9
+5
%
+7
%
133.2
+3
%
Total Pilbara production (100% basis)
83.2
+4
%
+7
%
161.1
+3
%
Rio Tinto share of shipments (Million tonnes)
Q2
2020vs Q2
2019vs Q1
2020H1
2020vs H1
2019Pilbara Blend Lump
16.7
-7
%
+16
%
31.1
-8
%
Pilbara Blend Fines
33.0
+3
%
+24
%
59.7
+1
%
Robe Valley Lump
1.1
+8
%
-1
%
2.2
+51
%
Robe Valley Fines
3.0
+16
%
+12
%
5.7
+46
%
Yandicoogina Fines (HIY)
15.6
+2
%
+21
%
28.5
+4
%
SP10 Lump1
1.0
+60
%
+1
%
2.0
+218
%
SP10 Fines1
1.6
-8
%
+47
%
2.7
-18
%
Total Pilbara shipments2
72.0
+1
%
+20
%
132.0
+2
%
Total Pilbara shipments (100% basis)2
86.7
+1
%
+19
%
159.6
+3
%
Total Pilbara Shipments (consolidated basis)2, 3
74.0
+1
%
+20
%
135.7
+2
%
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 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
Pilbara operations produced 161.1 million tonnes (Rio Tinto share 133.2 million tonnes) in the first half of 2020, 3% higher than the same period of 2019. Total material moved across our operations, including waste, was 8% higher than the corresponding period of 2019.
First half shipments of 159.6 million tonnes (Rio Tinto share 132.0 million tonnes) were 3% higher than the first half of 2019, despite infrastructure damage and significant disruptions experienced at our ports as a result of Tropical Cyclone Damien in February. In the second quarter, our operations performed well, despite the strict measures implemented to manage COVID-19. In early June, our port operations achieved a record week of shipping with rates exceeding 400 million tonnes per annum.
Approximately 14% of shipments in the first half of 2020 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 31% of first half 2020 sales were made on a free on board (FOB) basis, with the remainder sold including freight.
Achieved average pricing in the first half of 2020 was $78.5 per wet metric tonne on an FOB basis (equivalent to $85.4 per dry metric tonne, at 8% moisture assumption). This compares to the average first half price for the Platts 62% index of $85.1 per dry metric tonne.
China Portside Trading
We continue to increase the volumes of our port sales in China, with 2.5 million tonnes of sales during the first half of 2020 (1.7 million tonnes in the second quarter), and included product from our IOC and Pilbara operations, as well as third party volume. Our portside trading sales are now serving 61 new customers.
Heritage
Following the Juukan Gorge heritage events in the Pilbara, we announced a board-led review of our heritage management processes within Iron Ore to be completed by October 2020. We will also contribute to the Inquiry by the Joint Standing Committee on Northern Australia that will report to the Senate and we will continue to support the West Australian government's planned reform of the Aboriginal Heritage Act 1972 (WA). We have introduced additional controls related to heritage management and we are actively engaging with Traditional Owners and Aboriginal and Torres Strait Islander communities around our operations and across Australia more broadly.
ALUMINIUM
Rio Tinto share of production ('000 tonnes)
Q2
2020vs Q2
2019vs Q1
2020H1
2020vs H1
2019Bauxite
14,560
+9
%
+5
%
28,373
+8
%
Bauxite third party shipments
10,721
+13
%
+13
%
20,190
+10
%
Alumina
1,990
+6
%
-1
%
4,000
+3
%
Aluminium
785
-2
%
0
%
1,568
-2
%
Bauxite
Second quarter bauxite production of 14.6 million tonnes was 9% higher than the second quarter of 2019. Production at managed operations increased by 9% underpinned by the Amrun mine, whilst production at the non-managed CBG joint venture in Guinea increased by 7% reflecting good progress on the ramp-up of the expansion.
We shipped 10.7 million tonnes of bauxite to third parties in the second quarter, 13% higher than same period of 2019.
Our Bauxite Integrated Operations Centre (BIOC) in Brisbane, Australia provides 24/7 operation and monitoring of all safety, production and quality aspects at our remote bauxite sites in Weipa, Queensland and Gove, Northern Territory. We continue to apply technology solutions for optimising the supply chain, leveraging data analytics and progressing automation initiatives. For instance, we are utilising a fully automated "drone in a box" for remote monitoring of stock piles, removing the need for manual visual inspection.
Alumina
Alumina production in the second quarter of 2020 is 6% higher than the same period of 2019 due to higher production levels in the Pacific refineries with Yarwun delivering a half year production record.
Aluminium
Aluminium production in the second quarter of 0.8 million tonnes was 2% lower than the second quarter of 2019 (flat on the prior quarter), primarily due to pot relining at Kitimat, the decision to operate the ISAL smelter in Iceland at 85% of its capacity, and the curtailment of the fourth pot line at NZAS on 3 April 2020 due to COVID-19 impacts. This has been partly offset by the non-managed Becancour smelter which has reached 93% capacity, following its ramp-up after a lock-out in 2019.
Average realised aluminium prices including premiums for value-added products (VAP) were down by 15% to $1,849 per tonne in the first half of 2020 (first half 2019: $2,174 per tonne). The LME price decreased by 13% to $1,595 per tonne (first half 2019: $1,826), whilst the mid-west premium duty paid dropped 41% to $249 per tonne in the first half of 2020 (first half 2019: $420 per tonne) due to the impact of COVID-19. Our VAP sales also dropped significantly to 40% of primary metal sold in the first half of 2020 (first half 2019: 54%) in line with the market, but this was substituted by sales of standard ingot products (P1020). Product premiums for VAP sales declined by 14% averaging, $208 per tonne of VAP sold (first half 2019: $242 per tonne).
The aluminium industry continues to face challenging conditions in global markets and policy uncertainty, exacerbated by the impact of COVID-19. On 9 July 2020, we announced the wind-down of operations and eventual closure of the Tiwai Point Aluminium Smelter (NZAS) following the conclusion of the strategic review which has shown the business is no longer viable given high energy costs and a challenging outlook for the aluminium industry. As a result, NZAS has given Meridian Energy notice to terminate the power contract, which will end in August 2021 when the smelter's wind-down of operations is expected to be complete.
We continue to actively work on enhancing the competitiveness of our smelters, including discussing energy pricing with stakeholders, to ensure the sustainability of our smelters in Australia and Iceland. Work on the strategic review of the ISAL smelter in Iceland announced in February 2020 is ongoing, to determine the viability and competitive position of the operation considering all options including closure.
COPPER AND DIAMONDS
Rio Tinto share of production ('000 tonnes)
Q2
2020vs Q2
2019vs Q1
2020H1
2020vs H1
2019Mined copper
Rio Tinto Kennecott
36.5
-11
%
+4
%
71.5
-24
%
Escondida
84.0
+2
%
-3
%
170.2
+7
%
Oyu Tolgoi
12.2
-7
%
+4
%
24.0
-16
%
Refined copper
Rio Tinto Kennecott
7.2
-89
%
-73
%
33.6
-64
%
Escondida
19.7
+3
%
-6
%
40.5
+7
%
Rio Tinto share of production ('000 carats)
Q2
2020vs Q2
2019vs Q1
2020H1
2020vs H1
2019Argyle
3,271
-1
%
+27
%
5,849
-4
%
Diavik
963
-19
%
+12
%
1,820
-17
%
Kennecott
Mined copper production was 11% lower than the same quarter of 2019, primarily due to pit sequencing and lower copper grades, with the end of the east wall lower pit mining approaching. Copper grades were 11% lower in the second quarter of 2020 compared with the same quarter of 2019. Grades will continue to be lower through 2020 before increasing from the first half of 2021, with the transition from east wall to south wall mining.
Refined copper was 89% lower than the same quarter in 2019, driven by the shutdown of the flash converting furnace required as a result of the earthquake on 18 March, and the consequent shutdown of anode production. Low levels of refined copper produced in the second quarter were based on anodes refined prior to the shutdown and refining of scrap anodes.
The planned 45-day smelter shutdown in May has concluded and we are now focused on the safe re-start of the smelter. The flash converting furnace rebuild required following the earthquake in Utah on 18 March is on track for completion by the second half of July.
Escondida
Escondida operated with a reduced workforce to incorporate preventative measures in response to COVID-19 in the second quarter. Despite this, mined copper production was 2% higher than the same quarter of 2019 due to record concentrator throughput, which was offset by 6% lower grade and 3% lower amount of material stacked into the leaching pads.
Oyu Tolgoi
Mined copper production from the open pit was 7% lower than the same quarter of 2019 primarily due to a scheduled maintenance shutdown in the mill. Sales recovered in the second quarter with the easing of COVID-19 trucking restrictions within China and improved border access. Mine development and production phasing have been successfully accelerated so that access to higher copper and gold grades are now expected in the second half of 2020 instead of the originally planned first half of 2021.
Provisional pricing
At 30 June 2020, the Group had an estimated 230 million pounds of copper sales that were provisionally priced at 255 cents per pound. The final price of these sales will be determined during the second half of 2020. This compares with 220 million pounds of open shipments at 31 December 2019, provisionally priced at 277 cents per pound.
Diamonds
At Argyle, carat production was 1% lower than the same period of 2019 as a result of an 11% reduction in recovered grade, partially offset by higher tonnes mined and processed. Preparation continues for the safe cessation of Argyle operations before the end of 2020 and closure activities commencing in 2021.
At Diavik, carats recovered in second quarter 2020 were 19% lower than the second quarter of 2019 due to lower processed tonnes and lower grade in the underground.
We continue to execute our value over volume strategy to match market demand during a challenging period for the industry.
ENERGY AND MINERALS
Rio Tinto share of production (million tonnes)
Q2
2020vs Q2
2019vs Q1
2020H1
2020vs H1
2019Iron ore pellets and concentrate
IOC
2.8
+9
%
+8
%
5.3
+6
%
Rio Tinto share of production ('000 tonnes)
Q2
2020vs Q2
2019vs Q1
2020H1
2020vs H1
2019Minerals
Borates - B2O3 content
132
-5
%
+5
%
258
+2
%
Titanium dioxide slag
262
-13
%
-10
%
555
-7
%
Rio Tinto share of production ('000 lbs)
Q2
2020vs Q2
2019vs Q1
2020H1
2020vs H1
2019Uranium
Energy Resources of Australia
718
+16
%
+6
%
1,393
-1
%
Iron Ore Company of Canada (IOC)
Iron ore pellets and concentrate production was 9% higher than the second quarter of 2019 with focus on higher concentrator feed (28% higher than the corresponding period). In the second quarter of 2019, production was adversely affected by a flooding incident.
In the second quarter, we continued to focus on the optimisation of product mix (pellet and concentrate) to match market demand.
Borates
Borates production was 5% below the corresponding period of 2019. Refinery operating rates continued to be below name plate capacity during the quarter. We adjust refinery operating rates to match market demand for borates products. Market demand is being adversely impacted by COVID-19 in a number of end-use segments.
Iron and Titanium
Titanium dioxide feedstock production was 13% lower than same period of 2019, due to community disruptions that resulted in a site wide shutdown at RBM in December 2019. Operations have resumed at RBM following COVID-19 restrictions. However, we are managing the situation carefully in the challenging South African environment.
We have restarted production at the Rio Tinto Fer et Titane (RTFT) metal powder plant in Sorel-Tracy, Quebec. The restart follows a temporary suspension of production that was implemented in the first quarter due to the slowdown in demand from the automotive industry.
Uranium
ERA's Ranger operation continued to process existing stockpiles uninterrupted during the second quarter, 16% higher than the second quarter of 2019. We sold additional material from inventory to capitalise on improved market conditions.
EXPLORATION AND EVALUATION
Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in the first half of 2020 was $280 million, compared with $287 million in the first half of 2019. Approximately 44% of this expenditure was incurred by central exploration, 41% by Copper & Diamonds, 10% by Energy & Minerals and the remainder by Iron Ore and Aluminium.
There were no significant divestments of central exploration properties in the second quarter of 2020.
Exploration highlights
Rio Tinto has a strong portfolio of projects with activity in 15 countries across six commodities. Due to COVID-19, there have been significant impacts on exploration activities in some jurisdictions. All projects have followed government requirements and guidelines while focusing on protecting well-being and health of local and indigenous communities. The bulk of the exploration expenditure in this quarter focused on copper in Australia, Brazil, Canada, Chile, Colombia, Kazakhstan, Mongolia, Peru, Serbia, United States and Zambia, and diamonds projects in Canada. Mine-lease exploration continued at Rio Tinto managed businesses including Pilbara Iron in Australia, and Diavik in Canada. At Winu, studies are ongoing and drilling has focused on resource definition and brownfield exploration. At Falcon, processing of samples collected in 2020 is ongoing. A summary of activity for the quarter is as follows:
Commodities
Studies stage
Advanced projects
Greenfield/Brownfield programmes
Bauxite
Amargosa, Brazil*; Sanxai, Laos*
Cape York, Australia
Base Metals
Copper/molybdenum: Resolution, US; Winu, Australia
La Granja, Peru
Nickel: Tamarack, US (3rd party operated)
Pribrezhniy, KazakhstanCopper Greenfield: Australia, Chile, China, Kazakhstan, Nicaragua, Peru, Serbia, US, Zambia, Brazil, Canada, Colombia, Finland
Nickel Greenfield: Canada, FinlandDiamonds
Falcon, Canada
Greenfield: Canada
Brownfield: Diavik, CanadaMinerals
Lithium borates: Jadar, Serbia
Heavy mineral sands: Mutamba, Mozambique (third party operated)
Iron Ore
Pilbara, Australia
Pilbara, Australia
Brownfield: Pilbara, Australia
*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.
CONTACTS
media.enquiries@riotinto.com
riotinto.com
Follow @RioTinto on Twitter
Media Relations, United Kingdom
Illtud Harri
M +44 7920 503 600
David Outhwaite
T +44 20 7781 1623
M +44 7787 597 493
Media Relations, Americas
Matthew Klar
T +1 514 608 4429
Media Relations, Asia
Grant Donald
T +65 6679 9290
M +65 9722 6028
Media Relations, Australia
Jonathan Rose
T +61 3 9283 3088
M +61 447 028 913
Matt Chambers
T +61 3 9283 3087
M +61 433 525 739
Jesse Riseborough
T +61 8 6211 6013
M +61 436 653 412
Investor Relations, United Kingdom
Menno Sanderse
T +44 20 7781 1517
M +44 7825 195 178
David Ovington
T +44 20 7781 2051
M +44 7920 010 978
Clare Peever
M: +44 7788 967 877
Investor Relations, Australia
Natalie Worley
T +61 3 9283 3063
M +61 409 210 462
Amar Jambaa
T +61 3 9283 3627
M +61 472 865 948
Group Company Secretary
Steve Allen
Rio Tinto plc
6 St James's Square
London SW1Y 4AD
United Kingdom
T +44 20 7781 2000
Registered in England
No. 719885
Joint Company Secretary
Tim Paine
Rio Tinto Limited
Level 7, 360 Collins Street
Melbourne 3000
Australia
T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404
This announcement is authorised for release to the market by Rio Tinto's Group Company Secretary.
LEI: 213800YOEO5OQ72G2R82
Classification: 3.1 Additional regulated information required to be disclosed under the laws of a Member State
Rio Tinto production summary
Rio Tinto share of production
Quarter
Half Year
% change
2019
Q22020
Q12020
Q2
2019
H12020
H1
Q2 20
vs
Q2 19Q2 20
vs
Q1 20H1 20
vs
H1 19Principal commodities
Alumina
('000 t)
1,878
2,010
1,990
3,886
4,000
+6
%
-1
%
+3
%
Aluminium
('000 t)
803
783
785
1,599
1,568
-2
%
0
%
-2
%
Bauxite
('000 t)
13,407
13,813
14,560
26,171
28,373
+9
%
+5
%
+8
%
Borates
('000 t)
138
126
132
253
258
-5
%
+5
%
+2
%
Copper - mined
('000 t)
136.9
133.0
132.8
280.8
265.7
-3
%
0
%
-5
%
Copper - refined
('000 t)
82.3
47.2
26.9
130.6
74.1
-67
%
-43
%
-43
%
Diamonds
('000 cts)
4,481
3,434
4,235
8,277
7,669
-5
%
+23
%
-7
%
Iron Ore
('000 t)
68,141
66,787
71,689
134,723
138,477
+5
%
+7
%
+3
%
Titanium dioxide slag
('000 t)
303
293
262
599
555
-13
%
-10
%
-7
%
Uranium
('000 lbs)
620
676
718
1,413
1,393
+16
%
+6
%
-1
%
Other Metals & Minerals
Gold - mined
('000 oz)
111.6
61.5
63.6
227.0
125.1
-43
%
+3
%
-45
%
Gold - refined
('000 oz)
52.9
44.8
30.1
94.6
74.9
-43
%
-33
%
-21
%
Molybdenum
('000 t)
2.6
5.1
3.9
4.4
8.9
+50
%
-24
%
+101
%
Salt
('000 t)
1,269
1,044
1,425
2,579
2,469
+12
%
+37
%
-4
%
Silver - mined
('000 oz)
1,403
1,027
1,077
2,883
2,104
-23
%
+5
%
-27
%
Silver - refined
('000 oz)
734
462
382
1,351
844
-48
%
-17
%
-38
%
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
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
ALUMINA
Production ('000 tonnes)
Jonquière (Vaudreuil)
100
%
336
360
345
373
340
709
713
Jonquière (Vaudreuil) specialty Alumina plant
100
%
31
28
24
24
25
57
49
Queensland Alumina
80
%
668
669
716
713
711
1,378
1,424
São Luis (Alumar)
10
%
86
99
97
94
95
172
188
Yarwun
100
%
757
671
850
806
820
1,570
1,626
Rio Tinto total alumina production
1,878
1,826
2,032
2,010
1,990
3,886
4,000
ALUMINIUM
Production ('000 tonnes)
Australia - Bell Bay
100
%
47
48
48
47
49
92
96
Australia - Boyne Island
59
%
75
75
74
75
75
147
150
Australia - Tomago
52
%
76
77
76
75
76
150
151
Canada - six wholly owned
100
%
400
399
383
375
370
800
744
Canada - Alouette (Sept-Îles)
40
%
60
61
62
61
62
118
123
Canada - Bécancour
25
%
4
4
7
18
26
8
44
Iceland - ISAL (Reykjavik)
100
%
52
36
43
45
44
105
89
New Zealand - Tiwai Point
79
%
69
70
69
67
65
140
131
Oman - Sohar
20
%
19
20
20
20
20
39
39
Rio Tinto total aluminium production
803
789
783
783
785
1,599
1,568
BAUXITE
Production ('000 tonnes) (a)
Gove
100
%
2,957
2,968
3,273
2,876
3,186
5,960
6,062
Porto Trombetas
12
%
287
385
371
338
270
572
608
Sangaredi
(b)
1,630
1,749
1,227
1,879
1,742
3,189
3,621
Weipa
100
%
8,533
8,695
10,267
8,720
9,362
16,450
18,082
Rio Tinto total bauxite production
13,407
13,796
15,137
13,813
14,560
26,171
28,373
(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
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
BORATES
Production ('000 tonnes B2O3 content)
Rio Tinto Borates - borates
100
%
138
138
128
126
132
253
258
COPPER
Mine production ('000 tonnes) (a)
Bingham Canyon
100
%
41.1
57.8
35.4
35.0
36.5
93.7
71.5
Escondida
30
%
82.7
90.5
92.3
86.2
84.0
158.7
170.2
Oyu Tolgoi (b)
34
%
13.1
9.5
11.0
11.8
12.2
28.5
24.0
Rio Tinto total mine production
136.9
157.9
138.7
133.0
132.8
280.8
265.7
Refined production ('000 tonnes)
Escondida
30
%
19.0
16.8
20.5
20.9
19.7
37.7
40.5
Rio Tinto Kennecott
100
%
63.3
40.3
51.4
26.4
7.2
92.8
33.6
Rio Tinto total refined production
82.3
57.1
71.9
47.2
26.9
130.6
74.1
(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 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
%
3,292
3,558
3,363
2,578
3,271
6,079
5,849
Diavik
60
%
1,188
994
840
857
963
2,198
1,820
Rio Tinto total diamond production
4,481
4,551
4,203
3,434
4,235
8,277
7,669
GOLD
Mine production ('000 ounces) (a)
Bingham Canyon
100
%
65.1
64.6
52.0
41.9
40.2
118.0
82.1
Escondida
30
%
22.4
14.6
14.8
10.8
13.0
44.6
23.8
Oyu Tolgoi (b)
34
%
24.1
8.6
8.2
8.8
10.4
64.3
19.2
Rio Tinto total mine production
111.6
87.8
75.0
61.5
63.6
227.0
125.1
Refined production ('000 ounces)
Rio Tinto Kennecott
100
%
52.9
60.8
63.3
44.8
30.1
94.6
74.9
(a) Mine production figures for metals refer to the total quantity of metal produced in concentrates, leach liquor or doré bullion irrespective of whether these products are then refined onsite, except for the data for bauxite and iron ore which represent production of marketable quantities of ore plus concentrates and pellets.
(b) 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
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines
(b)
50,087
55,567
52,521
49,327
53,187
101,304
102,514
Hamersley - Channar
60
%
1,451
947
1,452
1,160
1,334
2,382
2,494
Hope Downs
50
%
6,051
6,077
6,047
5,667
5,659
12,007
11,326
Iron Ore Company of Canada
59
%
2,532
2,960
2,564
2,560
2,762
5,012
5,322
Robe River - Pannawonica (Mesas J and A)
53
%
3,329
4,725
4,360
3,880
4,307
5,200
8,187
Robe River - West Angelas
53
%
4,692
4,840
4,409
4,193
4,440
8,817
8,634
Rio Tinto iron ore production ('000 tonnes)
68,141
75,117
71,352
66,787
71,689
134,723
138,477
Breakdown of Production:
Pilbara Blend and SP10 Lump (c)
19,842
21,015
19,930
18,504
18,970
39,821
37,474
Pilbara Blend and SP10 Fines (c)
28,463
31,713
30,304
27,734
30,866
57,242
58,600
Robe Valley Lump
1,201
1,650
1,574
1,472
1,326
1,836
2,798
Robe Valley Fines
2,128
3,075
2,786
2,407
2,981
3,363
5,388
Yandicoogina Fines (HIY)
13,975
14,704
14,194
14,110
14,784
27,448
28,893
Pilbara iron ore production ('000 tonnes)
65,610
72,156
68,788
64,227
68,927
129,711
133,154
IOC Concentrate
1,193
1,400
1,146
923
1,523
2,083
2,446
IOC Pellets
1,339
1,560
1,418
1,637
1,240
2,929
2,877
IOC iron ore production ('000 tonnes)
2,532
2,960
2,564
2,560
2,762
5,012
5,322
Breakdown of Shipments:
Pilbara Blend Lump
18,009
15,948
16,176
14,385
16,700
33,781
31,085
Pilbara Blend Fines
32,165
30,032
31,182
26,692
33,036
59,029
59,728
Robe Valley Lump
1,037
1,290
1,246
1,132
1,118
1,494
2,250
Robe Valley Fines
2,577
3,349
3,259
2,688
2,999
3,885
5,687
Yandicoogina Fines (HIY)
15,212
14,286
15,260
12,913
15,578
27,505
28,491
SP10 Lump (c)
635
2,685
2,072
1,006
1,014
635
2,020
SP10 Fines (c)
1,747
4,057
2,081
1,089
1,603
3,289
2,692
Pilbara iron ore shipments ('000 tonnes) (d)
71,382
71,646
71,277
59,903
72,048
129,618
131,951
Pilbara iron ore shipments - consolidated basis ('000 tonnes) (d) (f)
73,230
73,787
73,401
61,729
73,976
132,772
135,704
IOC Concentrate
1,315
1,425
1,223
1,006
1,410
1,830
2,416
IOC Pellets
1,423
1,229
1,413
1,769
1,320
2,999
3,089
IOC Iron ore shipments ('000 tonnes) (d)
2,738
2,654
2,636
2,775
2,731
4,830
5,506
Rio Tinto iron ore shipments ('000 tonnes) (d)
74,119
74,300
73,913
62,678
74,779
134,448
137,457
Rio Tinto iron ore sales ('000 tonnes) (e)
74,119
74,300
72,334
62,433
74,808
134,448
137,241
(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. (c) SP10 include 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) The difference between Rio Tinto sales and shipments represents volumes 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
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
MOLYBDENUM
Mine production ('000 tonnes) (a)
Bingham Canyon
100
%
2.6
2.1
4.7
5.1
3.9
4.4
8.9
(a) Mine production figures for metals refer to the total quantity of metal produced in concentrates, leach liquor or doré bullion irrespective of whether these products are then refined onsite, except for the data for bauxite and iron ore which represent production of marketable quantities of ore plus concentrates and pellets.
SALT
Production ('000 tonnes)
Dampier Salt
68
%
1,269
1,392
1,450
1,044
1,425
2,579
2,469
SILVER
Mine production ('000 ounces) (a)
Bingham Canyon
100
%
700
768
605
538
526
1,442
1,064
Escondida
30
%
622
488
539
417
480
1,279
897
Oyu Tolgoi (b)
34
%
80
64
64
72
71
163
143
Rio Tinto total mine production
1,403
1,320
1,209
1,027
1,077
2,883
2,104
Refined production ('000 ounces)
Rio Tinto Kennecott
100
%
734
664
839
462
382
1,351
844
(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 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
%
303
321
286
293
262
599
555
(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
86
%
620
585
642
676
718
1,413
1,393
(a) ERA production data are drummed U3O8.
On 25 February 2020, Rio Tinto's ownership interest in ERA increased from 68.39% to 86.33%, following completion of its offer to ensure ERA has the funds it needs to meet its current rehabilitation obligations. Production is reported including this change from 1 March 2020.
Rio Tinto's interest in the Rössing operations were sold in 2019. No data for these operations are included in the Share of production table.
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 30 June 2020.
Rio Tinto operational data
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
ALUMINA
Smelter Grade Alumina - Aluminium Group
Alumina production ('000 tonnes)
Australia
Queensland Alumina Refinery - Queensland
80.0
%
834
836
895
891
889
1,723
1,780
Yarwun refinery - Queensland
100.0
%
757
671
850
806
820
1,570
1,626
Brazil
São Luis (Alumar) refinery
10.0
%
864
989
966
936
945
1,723
1,882
Canada
Jonquière (Vaudreuil) refinery - Quebec (a)
100.0
%
336
360
345
373
340
709
713
(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
100.0
%
31
28
24
24
25
57
49
Rio Tinto percentage interest shown above is at 30 June 2020. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
ALUMINIUM
Primary Aluminium
Primary aluminium production ('000 tonnes)
Australia
Bell Bay smelter - Tasmania
100.0
%
47
48
48
47
49
92
96
Boyne Island smelter - Queensland
59.4
%
126
125
125
126
126
248
252
Tomago smelter - New South Wales
51.6
%
147
149
148
145
148
292
293
Canada
Alma smelter - Quebec
100.0
%
118
119
119
118
118
233
236
Alouette (Sept-Îles) smelter - Quebec
40.0
%
150
153
155
153
155
294
308
Arvida smelter - Quebec
100.0
%
44
45
44
44
42
86
86
Arvida AP60 smelter - Quebec
100.0
%
15
15
15
15
15
29
30
Bécancour smelter - Quebec
25.1
%
16
16
28
72
102
33
174
Grande-Baie smelter - Quebec
100.0
%
58
59
59
58
55
116
113
Kitimat smelter - British Columbia
100.0
%
102
96
81
76
78
208
154
Laterrière smelter - Quebec
100.0
%
64
65
65
64
62
128
125
Iceland
ISAL (Reykjavik) smelter
100.0
%
52
36
43
45
44
105
89
New Zealand
Tiwai Point smelter
79.4
%
87
88
87
84
82
176
165
Oman
Sohar smelter
20.0
%
97
98
98
99
99
194
197
Rio Tinto percentage interest shown above is at 30 June 2020. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
BAUXITE
Bauxite production ('000 tonnes)
Australia
Gove mine - Northern Territory
100.0
%
2,957
2,968
3,273
2,876
3,186
5,960
6,062
Weipa mine - Queensland
100.0
%
8,533
8,695
10,267
8,720
9,362
16,450
18,082
Brazil
Porto Trombetas (MRN) mine
12.0
%
2,393
3,205
3,090
2,814
2,251
4,765
5,065
Guinea
Sangaredi mine (a)
23.0
%
3,623
3,887
2,727
4,175
3,871
7,087
8,046
Rio Tinto share of bauxite shipments
Share of total bauxite shipments ('000 tonnes)
13,122
13,912
14,849
13,567
14,668
25,847
28,235
Share of third party bauxite shipments ('000 tonnes)
9,477
10,361
10,968
9,469
10,721
18,318
20,190
(a) Rio Tinto has a 22.95% shareholding in the Sangaredi mine but benefits from 45.0% of production.
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020BORATES
Rio Tinto Borates - borates
100.0
%
US
Borates ('000 tonnes) (a)
138
138
128
126
132
253
258
(a) Production is expressed as B2O3 content.
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
COPPER & GOLD
Escondida
30.0
%
Chile
Sulphide ore to concentrator ('000 tonnes)
32,519
33,956
33,659
33,440
34,755
64,546
68,194
Average copper grade (%)
0.86
0.86
0.87
0.82
0.81
0.84
0.81
Mill production (metals in concentrates):
Contained copper ('000 tonnes)
230.9
245.0
246.1
230.0
236.8
447.8
466.8
Contained gold ('000 ounces)
74.7
48.8
49.2
36.0
43.4
148.7
79.4
Contained silver ('000 ounces)
2,074
1,626
1,798
1,390
1,599
4,263
2,989
Recoverable copper in ore stacked for leaching ('000 tonnes) (a)
44.7
56.8
61.7
57.2
43.3
81.2
100.5
Refined production from leach plants:
Copper cathode production ('000 tonnes)
63.5
55.9
68.4
69.6
65.5
125.8
135.2
(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 30 June 2020. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
COPPER & GOLD (continued)
Rio Tinto Kennecott
Bingham Canyon mine
100.0
%
Utah, US
Ore treated ('000 tonnes)
10,123
10,084
11,141
10,315
10,083
20,808
20,398
Average ore grade:
Copper (%)
0.46
0.64
0.36
0.37
0.41
0.50
0.39
Gold (g/t)
0.33
0.30
0.23
0.22
0.23
0.29
0.23
Silver (g/t)
2.84
2.74
2.09
2.16
2.14
2.80
2.15
Molybdenum (%)
0.039
0.039
0.061
0.058
0.056
0.035
0.057
Copper concentrates produced ('000 tonnes)
161
207
156
148
135
368
283
Average concentrate grade (% Cu)
25.5
27.8
22.6
23.7
26.6
25.4
25.1
Production of metals in copper concentrates:
Copper ('000 tonnes) (a)
41.1
57.8
35.4
35.0
36.5
93.7
71.5
Gold ('000 ounces)
65.1
64.6
52.0
41.9
40.2
118.0
82.1
Silver ('000 ounces)
700
768
605
538
526
1,442
1,064
Molybdenum concentrates produced ('000 tonnes):
5.0
4.3
9.4
10.4
7.8
8.7
18.2
Molybdenum in concentrates ('000 tonnes)
2.6
2.1
4.7
5.1
3.9
4.4
8.9
Kennecott smelter & refinery
100.0
%
Copper concentrates smelted ('000 tonnes)
207
160
216
161
51
411
212
Copper anodes produced ('000 tonnes) (b)
60.3
39.3
53.7
24.0
(2.1)
93.6
21.9
Production of refined metal:
Copper ('000 tonnes)
63.3
40.3
51.4
26.4
7.2
92.8
33.6
Gold ('000 ounces) (c)
52.9
60.8
63.3
44.8
30.1
94.6
74.9
Silver ('000 ounces) (c)
734
664
839
462
382
1,351
844
(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 30 June 2020. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
COPPER & GOLD (continued)
Turquoise Hill Resources
Oyu Tolgoi mine (a)
33.5
%
Mongolia
Ore Treated ('000 tonnes)
10,394
10,040
11,088
10,889
9,645
19,649
20,534
Average mill head grades:
Copper (%)
0.46
0.37
0.42
0.42
0.47
0.51
0.45
Gold (g/t)
0.31
0.14
0.15
0.15
0.19
0.44
0.17
Silver (g/t)
1.20
1.03
1.06
1.14
1.22
1.23
1.18
Copper concentrates produced ('000 tonnes)
180.6
131.3
152.6
164.5
169.9
390.7
334.4
Average concentrate grade (% Cu)
21.7
21.7
21.6
21.4
21.5
21.8
21.4
Production of metals in concentrates:
Copper in concentrates ('000 tonnes)
39.2
28.4
32.9
35.2
36.5
85.0
71.7
Gold in concentrates ('000 ounces)
71.8
25.6
24.3
26.2
31.1
191.9
57.3
Silver in concentrates ('000 ounces)
239
191
190
214
212
486
426
Sales of metals in concentrates:
Copper in concentrates ('000 tonnes)
46.6
32.5
32.3
25.8
39.7
85.1
65.5
Gold in concentrates ('000 ounces)
115.6
35.4
24.7
19.7
30.8
213.5
50.5
Silver in concentrates ('000 ounces)
245
207
244
146
220
445
365
(a) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in Turquoise Hill Resources.
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
DIAMONDS
Argyle Diamonds
100.0
%
Western Australia
AK1 ore processed ('000 tonnes)
1,427
1,716
1,977
1,322
1,571
2,674
2,893
AK1 diamonds produced ('000 carats)
3,292
3,558
3,363
2,578
3,271
6,079
5,849
Diavik Diamonds
60.0
%
Northwest Territories, Canada
Ore processed ('000 tonnes)
671
628
516
571
626
1,291
1,197
Diamonds recovered ('000 carats)
1,980
1,656
1,400
1,428
1,606
3,663
3,033
Rio Tinto percentage interest shown above is at 30 June 2020. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production ('000 tonnes)
Hamersley mines
(a)
50,087
55,567
52,521
49,327
53,187
101,304
102,514
Hamersley - Channar
60.0
%
2,419
1,579
2,420
1,934
2,223
3,971
4,157
Hope Downs
50.0
%
12,101
12,155
12,095
11,334
11,318
24,015
22,652
Robe River - Pannawonica (Mesas J and A)
53.0
%
6,282
8,914
8,225
7,320
8,126
9,811
15,446
Robe River - West Angelas
53.0
%
8,853
9,133
8,318
7,912
8,378
16,635
16,290
Total production ('000 tonnes)
79,741
87,347
83,579
77,827
83,232
155,736
161,059
Breakdown of total production:
Pilbara Blend and SP10 Lump (b)
24,291
25,434
24,326
22,592
23,222
48,359
45,813
Pilbara Blend and SP10 Fines (b)
35,194
38,296
36,833
33,806
37,100
70,118
70,906
Robe Valley Lump
2,266
3,113
2,969
2,778
2,502
3,465
5,279
Robe Valley Fines
4,015
5,802
5,256
4,542
5,625
6,346
10,167
Yandicoogina Fines (HIY)
13,975
14,704
14,194
14,110
14,784
27,448
28,893
Breakdown of total shipments:
Pilbara Blend Lump
21,653
19,329
19,680
17,506
20,339
40,621
37,844
Pilbara Blend Fines
39,358
36,947
39,186
33,197
40,379
72,374
73,576
Robe Valley Lump
1,957
2,433
2,350
2,135
2,110
2,820
4,245
Robe Valley Fines
4,862
6,318
6,149
5,071
5,659
7,330
10,730
Yandicoogina Fines (HIY)
15,212
14,286
15,260
12,913
15,578
27,505
28,491
SP10 Lump (b)
635
2,685
2,072
1,006
1,014
635
2,020
SP10 Fines (b)
1,747
4,057
2,081
1,089
1,603
3,289
2,692
Total shipments ('000 tonnes) (c)
85,423
86,055
86,779
72,916
86,681
154,573
159,598
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
Iron Ore Company of Canada
58.7
%
Newfoundland & Labrador and Quebec in Canada
Saleable iron ore production:
Concentrates ('000 tonnes)
2,031
2,384
1,951
1,572
2,593
3,547
4,165
Pellets ('000 tonnes)
2,280
2,657
2,415
2,788
2,112
4,989
4,899
IOC Total production ('000 tonnes)
4,311
5,041
4,366
4,360
4,704
8,536
9,064
Shipments:
Concentrates ('000 tonnes)
2,239
2,427
2,083
1,713
2,402
3,117
4,115
Pellets ('000 tonnes)
2,424
2,093
2,406
3,013
2,248
5,108
5,261
IOC Total Shipments ('000 tonnes) (c)
4,663
4,520
4,490
4,726
4,650
8,225
9,376
Global Iron Ore Totals
Iron Ore Production ('000 tonnes)
84,052
92,389
87,945
82,187
87,936
164,272
170,123
Iron Ore Shipments ('000 tonnes)
90,085
90,576
91,269
77,642
91,332
162,798
168,974
Iron Ore Sales ('000 tonnes) (d)
90,085
90,576
89,690
77,397
91,361
162,798
168,758
(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) SP10 include other lower grade products. (c) Shipments includes material shipped to our portside trading facility in China which may not be sold onwards in the same period. (d) Include Pilbara and IOC sales adjusted for portside trading movements and third party volumes sold.
Rio Tinto percentage interest shown above is at 30 June 2020. The data represent full production and sales on a 100% basis unless otherwise stated.
Rio Tinto operational data
Rio Tinto
interestQ2
2019Q3
2019Q4
2019Q1
2020Q2
2020H1
2019H1
2020
SALT
Dampier Salt
68.4
%
Western Australia
Salt production ('000 tonnes)
1,856
2,036
2,121
1,527
2,085
3,773
3,612
TITANIUM DIOXIDE SLAG
Rio Tinto Iron & Titanium
100.0
%
Canada and South Africa
(Rio Tinto share) (a)
Titanium dioxide slag ('000 tonnes)
303
321
286
293
262
599
555
(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)
86.3
%
Northern Territory, Australia
U3O8 Production ('000 lbs)
906
855
939
928
831
2,066
1,760
(a) ERA production data are drummed U3O8.
On 25 February 2020, Rio Tinto's ownership interest in ERA increased from 68.39% to 86.33%, following completion of its offer to ensure ERA has the funds it needs to meet its current rehabilitation obligations. Production is reported including this change from 1 March 2020.
Rössing Uranium Ltd (a) (b)
0
%
Namibia
U3O8 Production ('000 lbs)
1,665
247
-
-
-
2,833
-
(a) Rössing production data are drummed U3O8.
(b) On 16 July 2019, Rio Tinto completed the sale of its entire 68.62% interest in the Rossing mine in Namibia to China National Uranium Corporation Limited. Production is reported up to the date of completion.
Rio Tinto percentage interest shown above is at 30 June 2020. 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.ENDDRLKKABNBBKBDOD
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