REG - Rio Tinto - Investing for a stronger, diversified portfolio

Rio TintoAnnouncement

04/12/2024 07:00

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RNS Number : 7544O  Rio Tinto PLC  04 December 2024

 

Notice to ASX/LSE
 
 

 

Rio Tinto investing for a stronger, more diversified portfolio

4 December 2024

 

Rio Tinto will today hold its 2024 Investor Seminar in London, where it will
provide updates on its strategy of investing for a stronger, more diversified
and growing portfolio to ensure the long-term delivery of attractive
shareholder returns.

 

Rio Tinto Chief Executive Jakob Stausholm said: "We have all the building
blocks we need to become a global leader in energy transition materials, and
we have a clear plan for a decade of profitable growth.

 

"We remain focused on our four objectives which ensure our progress is aligned
with societies' interests. We are moving the dial on impeccable ESG, our
ability to excel in development and we continue to deepen our social licence,
while we intensify our efforts to become Best Operator to ensure we can
deliver growth safely, efficiently and profitably for our stakeholders.

 

"As we ramp up the Oyu Tolgoi underground copper mine, deliver the Simandou
high-grade iron ore project in Guinea, and build out our lithium business
through the proposed acquisition of Arcadium(1), we are underwriting a decade
of profitable growth. We plan to utilise our strong balance sheet to unlock
and accelerate Arcadium's tier one projects, timed to meet future demand
growth.

 

"We have reached a new era in our decarbonisation journey. This year we have
committed to carbon abatement projects representing more than 3 million tonnes
of annual emissions, accelerating our progress toward our targets while also
investing for the necessary net zero breakthroughs.

 

"We are executing our strategy of delivering a stronger, more diversified, and
growing business, underpinned by our belief in the demand for materials which
are essential for the global energy transition. With improved performance we
can afford both growth and our decarbonisation, and continue our dividend
policy and practice while preserving a strong balance sheet."

 

Executives will detail progress made in 2024 and outline their ambition for a
period of sustained growth over three time horizons until 2033, with an
expected Compound Annual Growth Rate of ~3%.

 

Progress in shaping Rio Tinto's portfolio for the future includes:

·      Iron Ore: Driving a system wide improvement at our cornerstone
Pilbara business to achieve Best Operator. Our Safe Production System has been
rolled out across all iron ore operating assets and is on track to deliver a
further 5 million tonne year-on-year uplift in 2024 and 2025, a cumulative 15
million tonne uplift over three years.

·      Aluminium: We have stabilised our assets and have a clear pathway
to deliver greater returns through growth and decarbonisation.

·      Copper: Targeting annual production of 1 million tonnes of copper
by the end of this decade underpinned by an increase in output from Oyu Tolgoi
in Mongolia where production is expected to increase more than 50% next year.

·      Minerals:

·      Potential to accelerate investment in near-term production assets
of Arcadium in Argentina and Canada following completion of the transaction.

·      Advancing the Rincon 3000 starter project in Argentina which
delivered first lithium(2) last week ahead of a final investment decision for
the full 60,000 tonne per annum(3) Rincon project expected by year-end.

·      Simandou: Significant progress in construction of mine, port and
rail infrastructure at Simandou in Guinea, which remains on-track for first
ore next year and to reach full capacity by 2028.

·      Decarbonisation: Substantial progress has been made toward meeting
our targets(4). Guidance of capital spending on decarbonisation projects to
2030 is maintained at $5 to $6 billion (lower end).

Production guidance across Rio Tinto's portfolio is being released for 2025.

 

 Production guidance - Rio Tinto share unless otherwise stated  2024           2025
 Pilbara iron ore(5) (shipments, 100% basis) (Mt)               323 - 338      323 - 338
 Copper                                                         660 - 720      780 - 850(7)

 Mined copper(6) (consolidated basis) (kt)
 Aluminium                                                      53 - 56        57 - 59

 Bauxite (Mt)                                                   7.0 - 7.3      7.4 - 7.8

 Alumina (Mt)                                                   3.2 - 3.4      3.25 - 3.45

 Aluminium (Mt)
 Minerals

 Titanium dioxide slag (Mt)                                     0.9 - 1.1      1.0 - 1.2

IOC pellets and concentrate(8) (Mt)

Boric acid equivalent (Mt)                                    9.8 - 11.5     9.7 - 11.4

                                                                ~0.5           ~0.5

 

 Capex guidance  2024     2025      Mid-term (per year)

 Total Group     ~$9.5bn  ~$11.0bn  ~$10-11.0bn

 

The presentation slides and the live webcast, which begins at 0800 GMT | 1900
AEDT, can be accessed at https://www.riotinto.com/en/invest/investor-seminars
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.riotinto.com%2Fen%2Finvest%2Finvestor-seminars&esheet=53866719&newsitemid=20231205267112&lan=en-US&anchor=https%3A%2F%2Fwww.riotinto.com%2Fen%2Finvest%2Finvestor-seminars&index=1&md5=ec19f59183b395e56ba8f87ea2ded0d3)
.

 

1.     Rio Tinto's acquisition of Arcadium Lithium plc is conditional upon
approval by Arcadium Lithium shareholders and the Royal Court of Jersey and
customary regulatory approvals and other closing conditions. Closing is
expected in mid-2025.

2.     First battery grade lithium production expected in 2025.

3.     Subject to the receipt of permits. Capacity of 60ktpa is comprised of
3ktpa starter plant, 50ktpa full scale plant and 7ktpa additional
optimisation.

4.     Reduction of Scope 1 and 2 emissions of 50% by 2030 and net zero
emissions by 2050.

5.     Pilbara shipments guidance remains subject to weather, market
conditions and management of cultural heritage.

6.     Includes Oyu Tolgoi on a 100% consolidated basis and continues to
reflect our 30% share of Escondida.

7.     For 2025, we are updating our methodology to report copper production
as a single metric.

8.     Iron Ore Company of Canada.

 

 

LEI: 213800YOEO5OQ72G2R82

 

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

 

 

 

 Media Relations,        Media Relations,               Media Relations,

 United Kingdom          Australia                      Canada

 David Outhwaite         Matt Chambers                  Simon Letendre

 M +44 7787 597 493      M +61 433 525 739              M +1 514 796 4973

                         Michelle Lee                   Malika Cherry

                         M +61 458 609 322              M +1 418 592 7293

                         Rachel Pupazzoni               Vanessa Damha

                         M +61 438 875 469              M +1 514 715 2152

                                                        Media Relations,

                                                        US

                                                        Jesse Riseborough

                                                        M +1 202 394 9480

 Investor Relations,     Investor Relations,

 United Kingdom          Australia

 David Ovington          Tom Gallop

 M +44 7920 010 978      M +61 439 353 948

 Laura Brooks            Amar Jambaa

 M +44 7826 942 797      M +61 472 865 948

 Wei Wei Hu

 M +44 7825 907 230

 Rio Tinto plc           Rio Tinto Limited

 6 St James's Square     Level 43, 120 Collins Street

 London SW1Y 4AD         Melbourne 3000

 United Kingdom          Australia

 T +44 20 7781 2000      T +61 3 9283 3333

 Registered in England   Registered in Australia

 No. 719885              ABN 96 004 458 404

This announcement is authorised for release to the market by Andy Hodges, Rio
Tinto's Group Company Secretary.

 

 

riotinto.com

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