REG - Rio Tinto - Rio Tinto third quarter production results

Rio TintoAnnouncement

16/10/2018 07:05

RNS Number : 1195E
Rio Tinto PLC
16 October 2018
 


 
Third quarter operations review
 
Rio Tinto releases third quarter production results
 
16 October 2018
 
Rio Tinto chief executive J-S Jacques said "We have delivered consistent operational performance in the third quarter, highlighted by strong production from the Group's copper assets. We made strong strategic progress with the full exit from coal, the announcement of the additional $3.2 billion of share buy-backs, and the signing of a binding conditional agreement to exit Grasberg for $3.5 billion. We continue to pursue all opportunities to improve productivity and drive enhanced cash flow generation. This, combined with the disciplined allocation of capital, will ensure we continue to deliver superior returns to our shareholders in the short, medium and long-term."
 




 


 


Q3 2018


vs Q3 2017


vs Q2 2018


9 mths
2018


vs 9 mths
2017




Pilbara iron ore shipments (100% basis)


Mt


81.9


-5%


-7%


250.7


+4%




Pilbara iron ore production (100% basis)


Mt


82.5


-3%


-3%


251.2


+4%




Bauxite


kt


12,700


-1%


-4%


38,631


+4%




Aluminium


kt


880


-1%


+3%


2,584


-3%




Mined copper


kt


159.7


+32%


+2%


455.8


+38%




Titanium dioxide slag


kt


297


-9%


+28%


822


-16%




IOC iron ore pellets and concentrate


Mt


2.9


-9%


+231%


6.1


-27%




 




Key points




•


On 15 August 2018, a truck operator was fatally injured at the Paraburdoo Iron Ore mine. An investigation is in progress.




•


On 9 July 2018, a serious incident occurred at Richards Bay Minerals (RBM) mining operation, resulting in the fatality of a security contractor. The incident remains the subject of a police investigation.




•


Pilbara iron ore shipments of 81.9 million tonnes (100 per cent basis) in the third quarter were five per cent lower than the third quarter of 2017, due to planned maintenance cycles and safety pauses across all operations following the fatality.




•


Bauxite production of 12.7 million tonnes was one per cent lower than the corresponding quarter of 2017, with strong production at Weipa offset by lower production at the non-managed Sangaredi and Porto Trombetas (MRN) mines. Third party shipments increased by two per cent to 8.4 million tonnes, reflecting firm demand.




•


Aluminium production of 0.9 million tonnes was one per cent lower than the third quarter of 2017 due primarily to ongoing labour disruptions at the non-managed Becancour smelter in Canada. Full year guidance has been revised to between 3.4 and 3.5 million tonnes (previously 3.5 to 3.7 million tonnes).




•


Mined copper production of 159.7 thousand tonnes was 32 per cent higher than the corresponding quarter of 2017, primarily reflecting increased production from Rio Tinto Kennecott due to higher grades.




•


Titanium dioxide slag production was nine per cent lower than the third quarter of 2017, but 28 per cent higher than the previous quarter as production at Rio Tinto Fer et Titane and RBM ramped up following disruptions in the second quarter.




•


Production at Iron Ore Company of Canada was nine per cent lower than the third quarter of 2017, however significantly higher than the previous quarter as operations ramped up to normal production rates following a labour dispute in the previous quarter.




•


The major growth projects continue to progress. First bauxite shipment from Amrun is now expected in the fourth quarter of 2018 with full ramp-up in 2019. Following an annual re-forecast of the Oyu Tolgoi underground development schedule and costs, capital costs remain in line with the overall $5.3 billion budget and construction of the first draw bell is still expected in mid-2020. The preliminary re-forecast assessment indicates ground conditions and shaft sinking challenges that are ultimately expected to result in a revised ramp-up schedule to sustainable first production.




•


On 1 August 2018, Rio Tinto completed the sale of its remaining coal assets for $3.95 billion. This, along with the sale of the Winchester South development project in the first half of 2018, resulted in gross disposal proceeds of $4.15 billion.




•


On 20 September 2018, Rio Tinto subsequently announced the return to shareholders of the $3.2 billion post-tax coal disposal proceeds via an off-market buy-back tender in Rio Tinto Limited shares totalling $1.9 billion, and further on-market purchases of Rio Tinto plc shares of approximately $1.3 billion.




•


On 28 September 2018, Rio Tinto announced that it had signed a binding agreement to sell its entire interest in the Grasberg mine in Indonesia to PT Indonesia Asahan Aluminium (Persero) (Inalum), Indonesia's state mining company, for $3.5 billion. The transaction is subject to a number of conditions precedent being satisfied, including the receipt of regulatory approvals, with completion expected in the first half of 2019.




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)




 


Q3 2018


vs Q3 2017


vs Q2 2018


9 mths
2018


vs 9 mths
2017




Pilbara Blend Lump


20.6


-1%


-6%


63.2


+6%




Pilbara Blend Fines


29.9


-1%


-4%


90.9


+7%




Robe Valley Lump


1.5


-6%


+3%


4.5


+0%




Robe Valley Fines


2.7


-5%


+5%


8.4


+13%




Yandicoogina Fines (HIY)


14.4


-0%


+1%


42.6


+3%




Total Pilbara production


69.1


 


 


209.7


 




Total Pilbara production (100% basis)


82.5


 


 


251.2


 




 
Pilbara operations
On 15 August 2018, a truck operator was fatally injured at the Paraburdoo Iron Ore mine. An investigation is in progress.
 
Pilbara operations produced 251.2 million tonnes (Rio Tinto share 209.7 million tonnes) in the first nine months of 2018, four per cent higher than the same period of 2017 due to favourable weather conditions in the first half, a continued improvement in mine and rail capacity as Silvergrass ramps up and ongoing productivity improvements across the integrated system.
 
Third quarter production of 82.5 million tonnes (Rio Tinto share 69.1 million tonnes) was three per cent lower than the third quarter of 2017, due to planned maintenance cycles and safety pauses across all operations following the fatality at Paraburdoo operations.
 
Year to date sales of 250.7 million tonnes (Rio Tinto share 208.1 million tonnes) were four per cent higher than the corresponding period of 2017, with third quarter sales of 81.9 million tonnes (Rio Tinto share 68.0 million tonnes) five per cent lower than the same period of last year.
 
Approximately 17 per cent of sales in the quarter 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 33 per cent of sales in the quarter were made free on board (FOB), with the remainder sold including freight.
 
Pilbara projects
The automation of the Pilbara train system (AutoHaulTM) is in ramp-up, with a steady increase in the number of trains in autonomous mode over the third quarter. Autonomous mode operations have increased to an average of 34 trains per day, equating to 290,000 kilometres (or 45 per cent of daily kilometres) completed in this mode. Full implementation of AutoHaulTM is expected by the end of 2018.
 
The Koodaideri feasibility study remains on track for completion in 2018. Early works funding of $146 million was approved on 1 August 2018 ahead of a final investment decision expected by the end of the year.
 
The approval of the West Angelas Deposits C and D project, and the Robe Valley sustaining project was announced by Rio Tinto and its joint venture partners on 1 October 2018 for $1.55 billion (Rio Tinto's 53 per cent share $820 million). Construction is forecast to commence in 2019, subject to final environmental and government approvals.
 
2018 guidance
Rio Tinto's Pilbara shipments in 2018 are expected to be at the upper end of the existing guidance range (330 to 340 million tonnes, 100 per cent basis).
 
 
ALUMINIUM
 
Rio Tinto share of production ('000 tonnes)




 


Q3 2018


vs Q3 2017


vs Q2 2018


9 mths
2018


vs 9 mths
2017




Rio Tinto Aluminium


 


 


 


 


 




Bauxite


12,700


-1%


-4%


38,631


+4%




Alumina


1,972


-1%


-1%


5,960


-2%




Aluminium


880


-1%


+3%


2,584


-3%




 
Bauxite
Bauxite production of 12.7 million tonnes was one per cent lower than the third quarter of 2017, with strong production at Weipa offset by lower production at the non-managed Sangaredi and Porto Trombetas (MRN) mines. Production at Sangaredi was 24 per cent lower than the third quarter of 2017 due to tie-in works required to complete expansion works, whilst production was partly curtailed at MRN as a result of the declaration of force majeure at Norsk Hydro's Alunorte alumina refinery.
 
8.4 million tonnes of bauxite were shipped to third parties in the third quarter of 2018, two per cent higher than the third quarter of 2017, reflecting firm demand.
 
Amrun
The Amrun project is ahead of schedule, with first shipment now expected in the fourth quarter of 2018 and full ramp-up in 2019. Pre-commissioning has commenced on critical infrastructure such as the reclaimer and beneficiation plant, and the shiploader was successfully transported to site and installed on the wharf facility.
 
Alumina
Alumina production for the quarter was one per cent lower than the corresponding period in 2017.
 
Aluminium
Quarterly aluminium production was one per cent lower than the corresponding period of 2017, due to an ongoing lock-out at the non-managed Becancour smelter, which began on 11 January 2018. Excluding this impact, aluminium production for the third quarter was two per cent higher than the same period of 2017, reflecting continued productivity creep.
 
On 14 September 2018, Rio Tinto was informed by Hydro that it had withdrawn its offer to acquire the ISAL smelter in Iceland, its 53.3 per cent share in the Aluchemie anode plant in the Netherlands and its 50 per cent share in the Aluminium fluoride plant in Sweden. The sale of the Aluminium Dunkerque smelter in France for $500 million is expected to complete in the fourth quarter of 2018, subject to satisfactory completion of consultations with key stakeholders and applicable regulatory clearances.
 
Market disruptions
Although Rio Tinto is broadly balanced in alumina, it is exposed to long-term legacy alumina sales contracts, which are LME linked. The negative impact on EBITDA of these legacy contracts, due to the significant escalation in the alumina index price as a result of industry supply disruptions, was $178 million in the first half of 2018 and a further $130 million in the third quarter.
 
The wind-down period for sanctions implemented by the United States Treasury Department on various Russian individuals and companies has been extended until 12 November 2018. Rio Tinto continues to monitor this situation closely and no force majeure declarations have been made to date.
 
2018 guidance
As announced on 11 October 2018, raw material cost headwinds (caustic soda, petroleum coke, green coke and tar pitch) are expected to have a $400 million negative impact on EBITDA in full year 2018 compared with 2017. In addition, higher thermal coal prices are expected to have a $100 million negative impact in 2018 for the Pacific Aluminium smelters.
 
Rio Tinto's expected share of bauxite production in 2018 has been revised to the upper end of the previous guidance range at between 50 and 51 million tonnes (previously 49 to 51 million tonnes).
 
Aluminium guidance is revised to between 3.4 and 3.5 million tonnes (previously 3.5 to 3.7 million tonnes), to reflect the impact of the ongoing lock-out at the non-managed Becancour smelter. This excludes any potential adjustment from the completion of the sale of the Aluminium Dunkerque smelter.
 
Alumina production guidance remains unchanged at 8.0 to 8.2 million tonnes.
 
 
COPPER & DIAMONDS
 
Rio Tinto share of production ('000 tonnes)




 


Q3 2018


vs Q3 2017


vs Q2 2018


9 mths
 2018


vs 9 mths
2017




Mined copper


 


 


 


 


 




Rio Tinto Kennecott


59.1


+129%


+16%


145.7


+28%




Escondida


87.4


+6%


-5%


270.7


+52%




Grasberg


0.0


N/A


N/A


0.0


N/A




Oyu Tolgoi


13.2


+7%


+0%


39.4


+5%




 


 


 


 


 


 




Refined copper


 


 


 


 


 




Rio Tinto Kennecott


54.2


+1%


+33%


130.2


+25%




Escondida


16.6


-23%


-21%


58.5


+20%




 


 


 


 


 


 




Diamonds ('000 carats)


 


 


 


 


 




Argyle


3,830


-19%


+10%


10,857


-1%




Diavik


1,066


-9%


-7%


3,280


-4%




 
Rio Tinto Kennecott
Mined copper production in the third quarter of 2018 was significantly higher than the third quarter of 2017 as mining activity continued in a higher grade area of the pit, coupled with productivity improvements and increased plant throughput. The production profile is expected to experience increased variation 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 grade increases beginning in late 2020 are expected to offset this impact over the longer term.
 
Refined copper was one per cent higher than the corresponding period of 2017, and 33 per cent above the second quarter of 2018 as better mine grades improved concentrate quality and smelting throughput.
 
Rio Tinto Kennecott continues to toll and purchase third party concentrate to optimise smelter utilisation, with 6.3 thousand tonnes of concentrate received for processing in the third quarter of 2018. Purchased and tolled copper concentrate are excluded from reported production figures.
 
The pushback of the south wall progressed during the quarter. It will extend the life of mine and remains on track for completion in 2020.
 
Escondida
Third quarter mined copper production at Escondida was six per cent higher than the same period of 2017, reflecting the ramp-up of Escondida production to nameplate capacity following commissioning of the Los Colorados concentrator, which occurred in the second half of 2017.
 
Oyu Tolgoi
Mined copper production from the open pit in the third quarter of 2018 was seven per cent higher than the corresponding period of 2017, with higher grades partly offset by lower plant throughput due to the processing of harder ore.
 
Oyu Tolgoi Underground Project
The project workforce reached 8,800 at the end of September, with an 89 per cent participation rate of Mongolian nationals. A ground breaking ceremony was held at site to mark the commencement of shaft three and shaft four earthworks. Work continues on shaft two equipping and on the conveyor to surface decline.
 
Following an annual re-forecast of the underground development schedule and costs, capital costs remain in line with the overall $5.3 billion budget and construction of the first draw bell is still expected in mid-2020. The preliminary re-forecast assessment indicates ground conditions and shaft sinking challenges that are ultimately expected to result in a revised ramp-up schedule to sustainable first production.
 
In February 2018, the Southern Region Power Sector Co-operation Agreement under which Oyu Tolgoi was committed to working with the Government of Mongolia on a Tavan Tolgoi Independent Power Provider project was cancelled. As a result the Government of Mongolia expects Oyu Tolgoi to deliver a domestic power source for the operation within four years (by February 2022).
 
Oyu Tolgoi is progressing studies and preparations for suitable power solutions and continues to discuss the provision of domestic power with the Government of Mongolia.
 
On 15 October 2018, a loader caught fire while operating in the Oyu Tolgoi underground mine. All employees working underground at the time were evacuated safely.
 
Grasberg
On 28 September 2018, Rio Tinto signed a binding agreement to sell its entire interest in the Grasberg mine in Indonesia to PT Indonesia Asahan Aluminium (Persero) (Inalum), Indonesia's state mining company, for $3.5 billion. Separately, Inalum signed a binding agreement with Freeport-McMoRan Inc. (FCX) in relation to the future ownership and operation of the Grasberg mine.
 
The transaction and the Inalum/FCX transaction (which are inter-conditional) are each subject to a number of conditions precedent being satisfied, including the receipt of regulatory approvals. Subject to these conditions being met, completion of both transactions is expected to occur in the first half of 2019.
The proceeds of the sale are to be paid in cash to Rio Tinto at closing, with the funds to be used for general corporate purposes.
 
Rio Tinto is reporting its metal share for the third quarter as zero.
 
Diamonds
At Argyle, carat production was 19 per cent lower than the third quarter of 2017, when production was enhanced by the processing of higher grade alluvial tailings.
 
At Diavik, carats recovered in the third quarter of 2018 were nine per cent lower than the corresponding period in 2017 due to lower grades. The A21 project successfully mined first ore in March 2018 and is expected to reach commercial production during the fourth quarter of 2018. This fourth diamond pipe was officially opened on 20 August 2018.
 
2018 guidance
Rio Tinto's expected share of mined copper production for 2018 is expected to be at the upper end of the previously published range of between 510 and 610 thousand tonnes. Refined copper production is expected to be between 225 to 265 thousand tonnes.
 
Diamond production guidance for 2018 is between 17 and 20 million carats.
 
 
ENERGY & MINERALS
 
Rio Tinto share of production




 


Q3 2018


vs Q3 2017


vs Q2 2018


9 mths
 2018


vs 9 mths
2017




Coal ('000 tonnes)


 


 


 


 


 




Hard coking coal


712


-68%


-67%


3,988


-26%




Thermal coal (a)


397


-63%


-61%


2,527


-18%




 


 


 


 


 


 




Iron ore pellets and concentrate (million tonnes)


 


 


 


 


 




IOC


2.9


-9%


+231%


6.1


-27%




 


 


 


 


 


 




Minerals ('000 tonnes)


 


 


 


 


 




Borates - B2O3 content


137


-2%


+4%


394


-1%




Salt


1,481


+21%


-11%


4,657


+31%




Titanium dioxide slag


297


-9%


+28%


822


-16%




 


 


 


 


 


 




Uranium ('000 lbs)


 


 


 


 


 




Energy Resources of Australia


820


-15%


+36%


2,090


-18%




Rössing


994


+31%


+7%


2,771


+21%




(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
Production of coal attributable to Rio Tinto ceased following the completion of the sale of Rio Tinto's interests in Kestrel and Hail Creek on 1 August 2018. 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)
Following a labour dispute in the second quarter of 2018, IOC achieved a safe and successful re-start and ramp-up of operations to normal production rates by the end of June 2018. Third quarter pellet production was 3.0 million tonnes (Rio Tinto share 1.7 million tonnes) and concentrate production for sale was 1.9 million tonnes (Rio Tinto share 1.1 million tonnes). Total third quarter production was nine per cent lower than the corresponding quarter in 2017, due to maintenance and the commissioning of a productivity improvement project on the spiral plant, which temporarily restricted throughput.
 
Resulting sales achieved for the quarter were 5.4 million tonnes (Rio Tinto share 3.2 million tonnes) of concentrate and pellets.
 
Borates
Borates production was comparable to the previous quarter and the third quarter of 2017, with production aligned to customer demand.
 
Iron and Titanium (RTIT)
Titanium dioxide slag production for the quarter was nine per cent lower compared to the third quarter of 2017.
 
During the quarter, slag production at Richards Bay Minerals (RBM) continued to be impacted by ongoing labour disputes between contractors and their employees. On 9 July 2018, a serious incident occurred at RBM's mining operation, resulting in the fatality of a security contractor. The incident remains the subject of a police investigation. With Rio Tinto's highest priority being the safety of its people, operations at RBM were temporarily suspended, and a safe, optimised re-start was achieved. The force majeure on deliveries from RBM has now been lifted.
 
Following a deflagration of a furnace at Rio Tinto Fer et Titane Sorel-Tracy (RTFT) on 23 July 2018, 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 the third quarter of 2018 was 21 per cent higher than the same quarter of 2017 to align to demand.
 
Uranium
Energy Resources of Australia continues to process existing low grade stockpiles. Third quarter production was 15 per cent lower than the same period of 2017 due to declining grades and completion of laterite processing.
 
Production at Rössing in the third quarter of 2018 was 31 per cent higher than the corresponding quarter of 2017 due to higher mill grades.
 
2018 guidance
Coal production for 2018 is 4.0 million tonnes of hard coking coal and 2.5 million tonnes of thermal coal, reflecting the completion of the asset disposals.
 
At IOC, guidance for 2018 production remains at 9.0 to 10.0 million tonnes of iron ore pellets and concentrates.
 
Guidance for Rio Tinto's expected share of titanium dioxide slag production in 2018 remains at 1.1 to 1.2 million tonnes. 
 
Guidance for Rio Tinto's expected share of boric oxide equivalent production in 2018 is unchanged at 0.5 million tonnes and guidance for uranium production in 2018 is unchanged at 6.2 to 7.2 million pounds.
 
 
EXPLORATION AND EVALUATION
 
Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in the first nine months of 2018 was $341 million, compared with $297 million in the first nine months of 2017. Approximately 46 per cent of this expenditure was incurred by central exploration, 37 per cent by Copper & Diamonds, eight per cent by Energy & Minerals and the remainder by Iron Ore and Aluminium.
 
There were no significant divestments of central exploration properties in the first half 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, Uganda, United States and Zambia. Mine-lease exploration continued at a number of Rio Tinto managed businesses including Pilbara Iron, RTFT, Oyu Tolgoi and Weipa.
 
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: FalCon (1), Canada


Copper: Australia, Chile, China, Kazakhstan, Mongolia, Namibia, Papua New Guinea, Peru, Serbia, US, Zambia
Nickel: 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: Canada, Tanzania
 




Iron Ore


Pilbara, Australia


Pilbara, 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 plc
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Rio Tinto production summary




 


 


 


 


 


 


 


 


 


 


 


 




Rio Tinto share of production




 


 


 


 


 


 


 


 


 


 


 


 




 


 


Quarter


 


9 Months


 


% Change




 


 


2017
Q3


2018
Q2


2018
Q3


 


2017
9 MTHS


2018
9 MTHS


 


Q3 18
vs
Q3 17


Q3 18
vs
Q2 18


9 MTHS 18
vs
9 MTHS 17




Principal Commodities


 


 


 


 


 


 


 


 


 


 




Alumina


('000 t)


1,984


1,999


1,972


 


6,055


5,960


 


-1%


-1%


-2%




Aluminium


('000 t)


887


858


880


 


2,664


2,584


 


-1%


3%


-3%




Bauxite


('000 t)


12,867


13,279


12,700


 


37,034


38,631


 


-1%


-4%


4%




Borates


('000 t)


140


132


137


 


396


394


 


-2%


4%


-1%




Coal - hard coking


('000 t)


2,244


2,174


712


 


5,382


3,988


 


-68%


-67%


-26%




Coal - thermal


('000 t)


1,076


1,011


397


 


3,099


2,527


 


-63%


-61%


-18%




Copper - mined


('000 t)


120.6


156.8


159.7


 


329.5


455.8


 


32%


2%


38%




Copper - refined


('000 t)


75.2


61.7


70.8


 


152.3


188.6


 


-6%


15%


24%




Diamonds


('000 cts)


5,933


4,626


4,896


 


14,420


14,137


 


-17%


6%


-2%




Iron Ore


('000 t)


72,903


72,336


72,010


 


206,828


215,782


 


-1%


0%


4%




Titanium dioxide slag


('000 t)


327


232


297


 


975


822


 


-9%


28%


-16%




Uranium


('000 lbs)


1,718


1,531


1,814


 


4,829


4,860


 


6%


19%


1%




Other Metals & Minerals


 


 


 


 


 


 


 


 


 


 




Gold - mined


('000 oz)


59.1


82.8


101.4


 


197.5


253.7


 


72%


22%


28%




Gold - refined


('000 oz)


54.1


48.4


50.3


 


148.3


139.5


 


-7%


4%


-6%




Molybdenum


('000 t)


1.4


0.7


1.4


 


3.0


3.5


 


-4%


90%


16%




Salt


('000 t)


1,227


1,662


1,481


 


3,555


4,657


 


21%


-11%


31%




Silver - mined


('000 oz)


959


1,448


1,384


 


3,022


4,070


 


44%


-4%


35%




Silver - refined


('000 oz)


731


461


730


 


1,861


2,058


 


0%


58%


11%




 


 


 


 


 


 


 


 


 


 


 


 




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

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




ALUMINA


 


 


 


 


 


 


 


 




Production ('000 tonnes)


 


 


 


 


 


 


 


 




Jonquière (Vaudreuil)


100%


351


365


362


365


363


1,083


1,090




Jonquière (Vaudreuil) specialty Alumina plant


100%


30


29


31


32


31


93


95




Queensland Alumina


80%


720


773


717


752


748


2,216


2,216




São Luis (Alumar)


10%


94


93


87


87


85


276


259




Yarwun


100%


790


816


793


763


744


2,387


2,300




Rio Tinto total alumina production


 


1,984


2,077


1,990


1,999


1,972


6,055


5,960




 


 


 


 


 


 


 


 


 




ALUMINIUM


 


 


 


 


 


 


 


 




Production ('000 tonnes)


 


 


 


 


 


 


 


 




Australia - Bell Bay


100%


48


47


47


47


48


140


141




Australia - Boyne Island


59%


74


74


72


74


75


228


221




Australia - Tomago


52%


77


77


75


76


78


228


228




Canada - six wholly owned


100%


401


405


398


402


407


1,192


1,208




Canada - Alouette (Sept-Îles)


40%


60


60


58


58


59


179


175




Canada - Bécancour


25%


28


27


10


9


8


83


26




France - Dunkerque (a)


100%


71


72


51


52


66


212


170




Iceland - ISAL (Reykjavik)


100%


53


54


52


53


53


158


158




New Zealand - Tiwai Point


79%


67


67


66


67


68


200


200




Oman - Sohar


20%


7


5


17


19


20


45


56




Rio Tinto total aluminium production


 


887


887


846


858


880


2,664


2,584




(a) On 10 January 2018, Rio Tinto announced a binding offer to sell its 100% interest in the Dunkerque smelter.




 


 


 


 


 


 


 


 


 




BAUXITE


 


 


 


 


 


 


 


 




Production ('000 tonnes) (a)


 


 


 


 


 


 


 


 




Gove


100%


2,809


3,224


3,124


3,274


2,893


7,977


9,290




Porto Trombetas


12%


492


426


353


393


342


1,338


1,087




Sangaredi


   (b)


1,670


1,809


1,745


1,657


1,261


5,125


4,664




Weipa


100%


7,895


8,304


7,431


7,955


8,204


22,594


23,590




Rio Tinto total bauxite production


12,867


13,762


12,653


13,279


12,700


37,034


38,631




(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

interest


Q3
2017


Q4
2017


Q1
2018


Q2
2018


Q3
2018


9 MTHS
2017


9 MTHS
2018




 


 


 


 


 


 


 


 


 




BORATES


 


 


 


 


 


 


 


 




Production ('000 tonnes B2O3 content)


 


 


 


 


 


 


 


 




Rio Tinto Borates - borates


100%


140


120


124


132


137


396


394




 


 


 


 


 


 


 


 


 




COAL - hard coking


 


 


 


 


 


 


 


 




Rio Tinto Coal Australia ('000 tonnes)


 


 


 


 


 


 


 


 




Hail Creek Coal (a) (c)


0%


1,276


1,275


758


1,131


325


3,028


2,214




Kestrel Coal (b) (c)


0%


968


1,048


344


1,043


387


2,354


1,774




Rio Tinto total hard coking coal production


2,244


2,322


1,102


2,174


712


5,382


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%


851


785


1,060


835


368


2,605


2,264




Kestrel Coal (b) (c)


0%


226


180


59


176


28


494


263




Rio Tinto total thermal coal production


1,076


966


1,119


1,011


397


3,099


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

interest


Q3
2017


Q4
2017


Q1
2018


Q2
2018


Q3
2018


9 MTHS
2017


9 MTHS
2018




 


 


 


 


 


 


 


 


 




COPPER


 


 


 


 


 


 


 


 




Mine production ('000 tonnes) (a)


 


 


 


 


 


 


 


 




Bingham Canyon


100%


25.8


34.8


35.4


51.2


59.1


114.0


145.7




Escondida


30%


82.5


92.9


90.9


92.4


87.4


177.9


270.7




Grasberg - Joint Venture (b)


40%


0.0


5.7


0.0


0.0


0.0


0.0


0.0




Oyu Tolgoi (c)


34%


12.4


15.2


13.0


13.2


13.2


37.6


39.4




Rio Tinto total mine production


 


120.6


148.6


139.3


156.8


159.7


329.5


455.8




Refined production ('000 tonnes)


 


 


 


 


 


 


 




Escondida


30%


21.6


22.8


20.8


21.0


16.6


48.6


58.5




Rio Tinto Kennecott


100%


53.6


22.1


35.3


40.7


54.2


103.7


130.2




Rio Tinto total refined production


75.2


44.9


56.1


61.7


70.8


152.3


188.6




(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 28 September 2018, Rio Tinto signed a binding agreement to sell its entire interest in the Grasberg mine in Indonesia to PT Indonesia Asahan Aluminium (Persero) (Inalum).




(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%


4,757


6,146


3,551


3,476


3,830


10,988


10,857




Diavik


60%


1,177


1,060


1,065


1,150


1,066


3,432


3,280




Rio Tinto total diamond production


 


5,933


7,207


4,616


4,626


4,896


14,420


14,137




 


 


 


 


 


 


 


 


 




GOLD


 


 


 


 


 


 


 


 




Mine production ('000 ounces) (a)


 


 


 


 


 


 


 


 




Bingham Canyon


100%


33.6


35.9


37.4


45.6


56.6


142.1


139.6




Escondida


30%


15.2


15.1


18.0


20.5


19.1


28.8


57.6




Grasberg - Joint Venture (b)


40%


0.0


0.0


0.0


0.0


0.0


0.0


0.0




Oyu Tolgoi (c)


34%


10.4


11.7


14.0


16.8


25.8


26.7


56.6




Rio Tinto total mine production


 


59.1


62.6


69.4


82.8


101.4


197.5


253.7




Refined production ('000 ounces)


 


 


 


 


 


 


 




Rio Tinto Kennecott


100%


54.1


55.4


40.8


48.4


50.3


148.3


139.5




(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 28 September 2018, Rio Tinto signed a binding agreement to sell its entire interest in the Grasberg mine in Indonesia to PT Indonesia Asahan Aluminium (Persero) (Inalum).




(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

interest


Q3
2017


Q4
2017


Q1
2018


Q2
2018


Q3
2018


9 MTHS
2017


9 MTHS
2018




 


 


 


 


 


 


 


 


 




IRON ORE


 


 


 


 


 


 


 


 




Production ('000 tonnes) (a)


 


 


 


 


 


 


 




Hamersley mines


   (b)


52,921


56,501


53,631


56,034


54,583


150,259


164,248




Hamersley - Channar


60%


1,596


1,345


1,136


1,227


604


5,134


2,967




Hope Downs


50%


5,978


5,987


5,342


5,783


5,713


17,483


16,839




Iron Ore Company of Canada


59%


3,171


2,733


2,364


871


2,880


8,433


6,116




Robe River - Pannawonica (Mesas J and A)


53%


4,461


4,580


4,672


4,048


4,208


11,946


12,928




Robe River - West Angelas


53%


4,776


4,509


4,290


4,373


4,021


13,573


12,685




Rio Tinto iron ore production ('000 tonnes)


 


72,903


75,656


71,436


72,336


72,010


206,828


215,782




Breakdown of Production:


 


 


 


 


 


 


 


 




Pilbara Blend Lump


 


20,700


21,082


20,714


21,901


20,554


59,687


63,169




Pilbara Blend Fines


 


30,113


31,172


29,769


31,239


29,921


85,187


90,930




Robe Valley Lump


 


1,570


1,646


1,587


1,431


1,470


4,482


4,488




Robe Valley Fines


 


2,891


2,934


3,086


2,617


2,738


7,465


8,441




Yandicoogina Fines (HIY)


 


14,458


16,088


13,916


14,277


14,446


41,575


42,639




Pilbara iron ore production ('000 tonnes)


 


69,732


72,922


69,072


71,465


69,129


198,395


209,666




IOC Concentrate


 


1,450


1,163


799


572


1,131


3,858


2,501




IOC Pellets


 


1,722


1,571


1,566


299


1,750


4,576


3,615




IOC iron ore production ('000 tonnes)


 


3,171


2,733


2,364


871


2,880


8,433


6,116




Breakdown of Sales:


 


 


 


 


 


 


 


 




Pilbara Blend Lump


 


18,044


18,861


18,062


19,424


17,967


52,295


55,453




Pilbara Blend Fines


 


32,421


35,575


30,746


35,158


31,432


91,697


97,336




Robe Valley Lump


 


1,391


1,388


1,223


1,264


1,174


3,829


3,661




Robe Valley Fines


 


3,174


3,287


2,996


3,255


2,839


7,917


9,089




Yandicoogina Fines (HIY)


 


14,963


15,731


13,578


14,388


14,583


41,454


42,549




Pilbara iron ore sales ('000 tonnes)


 


69,993


74,843


66,604


73,489


67,995


197,191


208,088




IOC Concentrate


 


1,362


1,559


746


62


1,521


3,494


2,329




IOC Pellets


 


1,590


1,615


1,574


202


1,659


4,493


3,435




IOC Iron ore sales ('000 tonnes)


 


2,952


3,173


2,320


263


3,180


7,987


5,763




Rio Tinto iron ore sales ('000 tonnes)


72,944


78,016


68,925


73,752


71,175


205,179


213,851




(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

interest


Q3
2017


Q4
2017


Q1
2018


Q2
2018


Q3
2018


9 MTHS
2017


9 MTHS
2018




 


 


 


 


 


 


 


 


 




MOLYBDENUM


 


 


 


 


 


 


 


 




Mine production ('000 tonnes) (a)


 


 


 


 


 


 


 




Bingham Canyon


100%


1.4


1.9


1.5


0.7


1.4


3.0


3.5




(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%


1,227


1,535


1,514


1,662


1,481


3,555


4,657




 


 


 


 


 


 


 


 


 




SILVER


 


 


 


 


 


 


 


 




Mine production ('000 ounces) (a)


 


 


 


 


 


 


 




Bingham Canyon


100%


357


418


461


615


708


1,737


1,784




Escondida


30%


521


658


702


758


599


1,054


2,059




Grasberg - Joint Venture (b)


40%


0


0


0


0


0


0


0




Oyu Tolgoi (c)


34%


80


96


74


75


77


231


227




Rio Tinto total mine production


 


959


1,172


1,237


1,448


1,384


3,022


4,070




Refined production ('000 ounces)


 


 


 


 


 


 


 




Rio Tinto Kennecott


100%


731


516


867


461


730


1,861


2,058




(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 28 September 2018, Rio Tinto signed a binding agreement to sell its entire interest in the Grasberg mine in Indonesia to PT Indonesia Asahan Aluminium (Persero) (Inalum).




(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%


327


341


294


232


297


975


822




(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%


962


919


667


603


820


2,539


2,090




Rössing


69%


757


902


848


928


994


2,290


2,771




Rio Tinto total uranium production


1,718


1,821


1,515


1,531


1,814


4,829


4,860




(a) ERA and Rössing production reported are drummed U3O8.




 


 


 


 


 


 


 


 


 




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 September 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

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




ALUMINA


 


 


 


 


 


 


 


 




Smelter Grade Alumina - Aluminium Group


 


 


 


 


 


 


 




Alumina production ('000 tonnes)


 


 


 


 


 


 


 


 




Australia


 


 


 


 


 


 


 


 




Queensland Alumina Refinery - Queensland


80.0%


900


966


896


940


935


2,769


2,770




Yarwun refinery - Queensland


100.0%


790


816


793


763


744


2,387


2,300




Brazil


 


 


 


 


 


 


 


 




São Luis (Alumar) refinery


10.0%


937


934


871


869


851


2,763


2,592




Canada


 


 


 


 


 


 


 


 




Jonquière (Vaudreuil) refinery - Quebec (a)


100.0%


351


365


362


365


363


1,083


1,090




(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%


30


29


31


32


31


93


95




Rio Tinto percentage interest shown above is at 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




ALUMINIUM


 


 


 


 


 


 


 


 




Primary Aluminium


 


 


 


 


 


 


 


 




Primary aluminium production ('000 tonnes)


 


 


 


 


 


 


 




Australia


 


 


 


 


 


 


 


 




Bell Bay smelter - Tasmania


100.0%


48


47


47


47


48


140


141




Boyne Island smelter - Queensland


59.4%


125


124


122


124


126


384


371




Tomago smelter - New South Wales


51.6%


149


149


145


148


151


441


443




Canada


 


 


 


 


 


 


 


 




Alma smelter - Quebec


100.0%


115


116


115


116


117


341


347




Alouette (Sept-Îles) smelter - Quebec


40.0%


150


150


144


146


148


448


438




Arvida smelter - Quebec


100.0%


43


44


43


43


43


127


129




Arvida AP60 smelter - Quebec


100.0%


14


14


13


13


13


44


39




Bécancour smelter - Quebec


25.1%


113


108


39


35


32


331


105




Grande-Baie smelter - Quebec


100.0%


58


58


57


58


59


172


174




Kitimat smelter - British Columbia


100.0%


108


110


108


109


110


323


327




Laterrière smelter - Quebec


100.0%


63


64


63


64


65


185


191




France


 


 


 


 


 


 


 


 




Dunkerque smelter (a)


100.0%


71


72


51


52


66


212


170




Iceland


 


 


 


 


 


 


 


 




ISAL (Reykjavik) smelter


100.0%


53


54


52


53


53


158


158




New Zealand


 


 


 


 


 


 


 


 




Tiwai Point smelter


79.4%


84


85


83


84


85


252


252




Oman


 


 


 


 


 


 


 


 




Sohar smelter


20.0%


35


27


87


97


98


226


281




(a) On 10 January 2018, Rio Tinto announced a binding offer to sell its 100% interest in the Dunkerque smelter.




Rio Tinto percentage interest shown above is at 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




BAUXITE


 


 


 


 


 


 


 


 




Bauxite production ('000 tonnes)


 


 


 


 


 


 


 


 




Australia


 


 


 


 


 


 


 


 




Gove mine - Northern Territory


100.0%


2,809


3,224


3,124


3,274


2,893


7,977


9,290




Weipa mine - Queensland


100.0%


7,895


8,304


7,431


7,955


8,204


22,594


23,590




Brazil


 


 


 


 


 


 


 


 




Porto Trombetas (MRN) mine


12.0%


4,103


3,550


2,939


3,273


2,848


11,148


9,061




Guinea


 


 


 


 


 


 


 


 




Sangaredi mine (a)


23.0%


3,711


4,020


3,878


3,683


2,803


11,390


10,364




 


 


 


 


 


 


 


 


 




Rio Tinto share of bauxite shipments


 


 


 


 


 


 


 




Share of total bauxite shipments ('000 tonnes)


12,913


13,557


12,551


12,936


12,427


36,683


37,914




Share of third party bauxite shipments ('000 tonnes)


8,250


9,164


8,248


8,738


8,441


23,140


25,427




 


 


 


 


 


 


 


 


 




(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 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




BORATES


 


 


 


 


 


 


 


 




Rio Tinto Borates - borates


100.0%


 


 


 


 


 


 


 




US


 


 


 


 


 


 


 


 




Borates ('000 tonnes) (a)


 


140


120


124


132


137


396


394




(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)


 


1,556


1,555


924


1,380


396


3,692


2,700




Thermal coal ('000 tonnes)


 


1,037


958


1,293


1,018


449


3,177


2,760




Hunter Valley Operations (b)


0.0%


 


 


 


 


 


 


 




New South Wales


 


 


 


 


 


 


 


 




Semi-soft coking coal ('000 tonnes)


 


445


         -


         -


          -


         -


1,529


           -




Thermal coal ('000 tonnes)


 


2,112


         -


         -


          -


         -


8,502


           -




Kestrel Coal mine (c)


0.0%


 


 


 


 


 


 


 




Queensland


 


 


 


 


 


 


 


 




Hard coking coal ('000 tonnes)


 


1,210


1,309


430


1,303


484


2,943


2,217




Thermal coal ('000 tonnes)


 


282


226


74


220


35


617


329




Mount Thorley Operations (b)


0.0%


 


 


 


 


 


 


 




New South Wales


 


 


 


 


 


 


 


 




Semi-soft coking coal ('000 tonnes)


 


149


         -


         -


          -


         -


876


           -




Thermal coal ('000 tonnes)


 


703


         -


         -


          -


         -


2,011


           -




Rio Tinto percentage interest shown above is at 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




COAL (continued)


 


 


 


 


 


 


 


 




Warkworth mine (b)


0.0%


 


 


 


 


 


 


 




New South Wales


 


 


 


 


 


 


 


 




Semi-soft coking coal ('000 tonnes)


 


44


         -


         -


          -


         -


514


           -




Thermal coal ('000 tonnes)


 


1,305


         -


         -


          -


         -


4,521


           -




Total hard coking coal production ('000 tonnes)


2,766


2,864


1,354


2,683


880


6,635


4,917




Total semi-soft coking coal production ('000 tonnes)


639


         -


         -


          -


         -


2,919


           -




Total thermal coal production ('000 tonnes)


5,439


1,183


1,367


1,238


485


18,827


3,089




Total coal production ('000 tonnes)


 


8,844


4,047


2,721


3,921


1,365


28,382


8,007




 


 


 


 


 


 


 


 


 




Total coal sales ('000 tonnes)


 


9,298


4,092


3,050


3,717


1,725


27,962


8,492




Rio Tinto Coal Australia share (d)


 


 


 


 


 


 


 


 




Share of hard coking coal sales ('000 tonnes)


2,511


2,429


1,368


2,228


650


5,753


4,246




Share of semi-soft coal sales ('000 tonnes) (e)


485


         -


         -


          -


         -


2,010


           -




Share of thermal coal sales ('000 tonnes) (e)


3,804


896


1,119


791


754


12,289


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 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




COPPER & GOLD


 


 


 


 


 


 


 


 




Escondida


30.0%


 


 


 


 


 


 


 




Chile


 


 


 


 


 


 


 


 




Sulphide ore to concentrator ('000 tonnes)


24,080


30,260


32,203


31,732


30,513


50,911


94,449




Average copper grade (%)


 


1.06


0.98


0.96


0.96


0.94


1.06


0.95




Mill production (metals in concentrates):


 


 


 


 


 


 


 


 




Contained copper ('000 tonnes)


 


204.1


245.7


252.6


253.6


241.9


438.8


748.1




Contained gold ('000 ounces)


 


51


50


60


68


64


96


192




Contained silver ('000 ounces)


 


1,737


2,193


2,339


2,527


1,997


3,514


6,863




Recoverable copper in ore stacked for leaching ('000 tonnes) (a)


70.8


63.9


50.4


54.4


49.4


154.3


154.2




Refined production from leach plants:


 


 


 


 


 


 


 


 




Copper cathode production ('000 tonnes)


 


71.9


76.1


69.4


70.1


55.4


161.9


194.9




(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)


 


15,791


16,381


15,625


17,101


17,647


34,881


50,372




Average mill head grades:


 


 


 


 


 


 


 


 




Copper (%)


 


0.91


1.03


1.12


1.06


0.94


1.00


1.03




Gold (g/t)


 


0.98


1.28


1.63


1.77


1.59


1.08


1.67




Silver (g/t)


 


3.96


4.36


4.68


5.09


2.50


4.29


4.05




Production of metals in concentrates:


 


 


 


 


 


 


 


 




Copper in concentrates ('000 tonnes)


 


130.1


153.2


159.9


165.7


146.6


315.0


472.1




Gold in concentrates ('000 ounces)


 


417


579


693


842


769


1,023


2,304




Silver in concentrates ('000 ounces)


 


1,016


1,293


1,513


1,548


839


2,583


3,900




Sales of payable metals in concentrates: (c)


 


 


 


 


 


 


 




Copper in concentrates ('000 tonnes)


 


109.6


154.3


157.4


145.3


156.1


295.9


458.8




Gold in concentrates ('000 ounces)


 


343


584


676


740


821


956


2,238




Silver in concentrates ('000 ounces)


 


666


1,044


1,184


1,098


754


1,920


3,036




(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 Q3 2018 results show the forecast from FCX's most recent five-year plan, because FCX is not releasing its actual 100% operating data for Q3 2018 until the release of its 2018 third-quarter results on 24 October 2018. On 28 September 2018, Rio Tinto signed a binding agreement to sell 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 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




COPPER & GOLD (continued)


 


 


 


 


 


 


 


 




Rio Tinto Kennecott


 


 


 


 


 


 


 


 




Bingham Canyon mine


100.0%


 


 


 


 


 


 


 




Utah, US


 


 


 


 


 


 


 


 




Ore treated ('000 tonnes)


 


10,092


9,074


9,260


8,974


11,173


30,309


29,407




Average ore grade:


 


 


 


 


 


 


 


 




Copper (%)


 


0.29


0.43


0.43


0.63


0.58


0.42


0.55




Gold (g/t)


 


0.18


0.21


0.23


0.26


0.26


0.26


0.25




Silver (g/t)


 


1.51


1.89


2.25


2.73


2.62


2.46


2.53




Molybdenum (%)


 


0.032


0.036


0.025


0.025


0.030


0.028


0.027




Copper concentrates produced ('000 tonnes)


148


162


171


194


233


542


598




Average concentrate grade (% Cu)


 


17.3


21.5


20.7


26.4


25.3


21.0


24.3




Production of metals in copper concentrates:


 


 


 


 


 


 


 




Copper ('000 tonnes) (a)


 


25.8


34.8


35.4


51.2


59.1


114.0


145.7




Gold ('000 ounces)


 


34


36


37


46


57


142


140




Silver ('000 ounces)


 


357


418


461


615


708


1,737


1,784




Molybdenum concentrates produced ('000 tonnes):


2.8


3.8


2.8


1.5


2.8


6.0


7.0




Molybdenum in concentrates ('000 tonnes)


 


1.4


1.9


1.5


0.7


1.4


3.0


3.5




 




Kennecott smelter & refinery


100.0%


 


 


 


 


 


 


 




Copper concentrates smelted ('000 tonnes)


258


90


200


224


246


554


670




Copper anodes produced ('000 tonnes) (b)


50.6


12.1


42.4


44.4


58.1


117.0


144.9




Production of refined metal:


 


 


 


 


 


 


 


 




Copper ('000 tonnes)


 


53.6


22.1


35.3


40.7


54.2


103.7


130.2




Gold ('000 ounces) (c)


 


54.1


55.4


40.8


48.4


50.3


148.3


139.5




Silver ('000 ounces) (c)


 


731


516


867


461


730


1,861


2,058




(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 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




COPPER & GOLD (continued)


 


 


 


 


 


 


 


 




Turquoise Hill Resources


 


 


 


 


 


 


 


 




Oyu Tolgoi mine (a)


33.5%


 


 


 


 


 


 


 




Mongolia


 


 


 


 


 


 


 


 




Ore Treated ('000 tonnes)


 


10,615


10,838


9,561


10,164


9,652


30,339


29,377




Average mill head grades:


 


 


 


 


 


 


 


 




Copper (%)


 


0.48


0.53


0.51


0.48


0.51


0.50


0.50




Gold (g/t)


 


0.18


0.20


0.25


0.26


0.38


0.16


0.29




Silver (g/t)


 


1.34


1.54


1.32


1.17


1.19


1.34


1.22




Copper concentrates produced ('000 tonnes)


170.0


205.5


177.3


178.8


179.8


517.0


535.9




Average concentrate grade (% Cu)


 


21.7


22.0


21.9


22.0


21.9


21.7


21.9




Production of metals in concentrates:


 


 


 


 


 


 


 


 




Copper in concentrates ('000 tonnes)


 


36.9


45.3


38.8


39.4


39.4


112.1


117.6




Gold in concentrates ('000 ounces)


 


30.9


34.8


41.8


50.0


77.0


79.5


168.8




Silver in concentrates ('000 ounces)


 


239


285


221


225


230


689


676




Sales of metals in concentrates:


 


 


 


 


 


 


 


 




Copper in concentrates ('000 tonnes)


 


36.9


35.7


34.3


46.1


36.0


113.6


116.4




Gold in concentrates ('000 ounces)


 


28


27


31


51


55


84


137




Silver in concentrates ('000 ounces)


 


229


205


206


250


201


656


657




(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 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




DIAMONDS


 


 


 


 


 


 


 


 




Argyle Diamonds


100.0%


 


 


 


 


 


 


 




Western Australia


 


 


 


 


 


 


 


 




AK1 ore processed ('000 tonnes)


 


1,255


1,446


1,260


1,428


1,465


3,511


4,153




AK1 diamonds produced ('000 carats)


 


4,757


6,146


3,551


3,476


3,830


10,988


10,857




Diavik Diamonds


60.0%


 


 


 


 


 


 


 




Northwest Territories, Canada


 


 


 


 


 


 


 


 




Ore processed ('000 tonnes)


 


578


525


556


652


670


1,664


1,879




Diamonds recovered ('000 carats)


 


1,961


1,767


1,774


1,916


1,776


5,719


5,467




 




Rio Tinto percentage interest shown above is at 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




IRON ORE


 


 


 


 


 


 


 


 




Rio Tinto Iron Ore


 


 


 


 


 


 


 


 




Western Australia


 


 


 


 


 


 


 


 




Pilbara Operations


 


 


 


 


 


 


 


 




Saleable iron ore production ('000 tonnes)


 


 


 


 


 


 


 




Hamersley mines


   (a)


52,921


56,501


53,631


56,034


54,583


150,259


164,248




Hamersley - Channar


60.0%


2,661


2,241


1,893


2,045


1,007


8,557


4,945




Hope Downs


50.0%


11,956


11,975


10,685


11,567


11,426


34,966


33,677




Robe River - Pannawonica (Mesas J and A)


53.0%


8,416


8,642


8,816


7,637


7,940


22,540


24,393




Robe River - West Angelas


53.0%


9,011


8,507


8,094


8,252


7,587


25,609


23,933




Total production ('000 tonnes)


 


84,965


87,866


83,120


85,534


82,542


241,931


251,196




Breakdown of total production:


 


 


 


 


 


 


 


 




Pilbara Blend Lump


 


25,342


25,496


24,831


26,253


24,461


73,631


75,545




Pilbara Blend Fines


 


36,748


37,641


35,556


37,368


35,696


104,185


108,620




Robe Valley Lump


 


2,962


3,106


2,993


2,699


2,774


8,456


8,467




Robe Valley Fines


 


5,454


5,535


5,823


4,937


5,166


14,084


15,926




Yandicoogina Fines (HIY)


 


14,458


16,088


13,916


14,277


14,446


41,575


42,639




Breakdown of total sales:


 


 


 


 


 


 


 


 




Pilbara Blend Lump


 


21,959


22,377


21,457


22,954


21,644


63,682


66,054




Pilbara Blend Fines


 


40,305


43,039


37,320


42,638


38,100


112,856


118,058




Robe Valley Lump


 


2,624


2,619


2,307


2,386


2,215


7,224


6,908




Robe Valley Fines


 


5,989


6,202


5,652


6,141


5,356


14,938


17,149




Yandicoogina Fines (HIY)


 


14,963


15,731


13,578


14,388


14,583


41,454


42,549




Total sales ('000 tonnes) (b)


 


85,840


89,968


80,314


88,506


81,898


240,153


250,718




(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)


 


2,469


1,980


1,360


974


1,926


6,569


4,260




Pellets ('000 tonnes)


 


2,932


2,675


2,667


510


2,979


7,792


6,156




IOC Total production ('000 tonnes)


 


5,401


4,655


4,027


1,484


4,905


14,362


10,416




Sales:


 


 


 


 


 


 


 


 




Concentrates ('000 tonnes)


 


2,319


2,655


1,271


105


2,590


5,950


3,966




Pellets ('000 tonnes)


 


2,707


2,750


2,681


343


2,825


7,652


5,849




IOC Total Sales ('000 tonnes)


 


5,027


5,404


3,951


449


5,415


13,602


9,815




Global Iron Ore Totals


 


 


 


 


 


 


 


 




Iron Ore Production ('000 tonnes)


 


90,365


92,521


87,146


87,018


87,448


256,293


261,612




Iron Ore Sales ('000 tonnes)


 


90,867


95,373


84,265


88,954


87,314


253,755


260,533




Rio Tinto percentage interest shown above is at 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




Rio Tinto operational data




 


 


 


 


 


 


 


 


 




 


Rio Tinto

interest


Q3

2017


Q4

2017


Q1

2018


Q2

2018


Q3

2018


9 MTHS

2017


9 MTHS

2018




 


 


 


 


 


 


 


 


 




SALT


 


 


 


 


 


 


 


 




Dampier Salt


68.4%


 


 


 


 


 


 


 




Western Australia


 


 


 


 


 


 


 


 




Salt production ('000 tonnes)


 


1,795


2,246


2,215


2,431


2,167


5,200


6,813




 


 


 


 


 


 


 


 


 




TITANIUM DIOXIDE SLAG


 


 


 


 


 


 


 


 




Rio Tinto Iron & Titanium


100.0%


 


 


 


 


 


 


 




Canada and South Africa


 


 


 


 


 


 


 


 




(Rio Tinto share) (a)


 


 


 


 


 


 


 


 




Titanium dioxide slag ('000 tonnes)


 


327


341


294


232


297


975


822




 


 


 


 


 


 


 


 


 




(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)


 


1,407


1,343


975


881


1,199


3,713


3,056




(a) ERA production data are drummed U3O8.


 


 


 




Rössing Uranium Ltd (a)


68.6%


 


 


 


 


 


 


 




Namibia


 


 


 


 


 


 


 


 




U3O8 Production ('000 lbs)


 


1,103


1,314


1,236


1,352


1,449


3,337


4,038




(a) Rössing production data are drummed U3O8.




Rio Tinto percentage interest shown above is at 30 September 2018. The data represent full production and sales on a 100% basis unless otherwise stated.




 
 




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END
 
 
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