Rio Tinto releases third quarter production results

MELBOURNE, Australia–(BUSINESS WIRE)–Rio Tinto Chief Executive J-S Jacques said �We have delivered a good operational performance across most of our assets catching up on planned maintenance activity, particularly in iron ore, and continuing to adapt to new operating conditions as we learn to live with COVID-19. We have maintained our capex guidance and our 2020 production guidance across our key products.

“We are focused on regaining the trust of the Puutu Kunti Kurrama and Pinikura people (PKKP) with a focus on remedy. On Tuesday 13 October we wrote a letter to Traditional Owners in the Pilbara detailing that we will review all heritage disturbance in consultation with them; and shared our intention to modernise our agreements which includes modifying clauses to ensure respect, transparency and mutual benefit.

“Rio Tinto has shown great resilience through challenging conditions and will continue to prioritise the health and safety of our employees, contractors and communities. The quality of our assets, coupled with our strong focus on capital discipline and value over volume approach, mean we can continue to invest in our business, support our communities, pay taxes and royalties to host governments and continue to generate superior returns to shareholders in the short, medium and long term.”

Production*		Q3 2020	vs Q3 2019		vs Q2 2020		9 MTHS 2020	vs 9 MTHS 2019
Pilbara iron ore shipments (100% basis)	Mt	82.1	-5	%	-5	%	241.7	0	%
Pilbara iron ore production (100% basis)	Mt	86.4	-1	%	+4	%	247.4	+2	%
Bauxite	Mt	14.5	+5	%	-1	%	42.8	+7	%
Aluminium	kt	797	+1	%	+2	%	2,365	-1	%
Mined Copper	kt	129.6	-18	%	-2	%	395.4	-10	%
Titanium dioxide slag	kt	293	-9	%	+12	%	848	-8	%
IOC iron ore pellets and concentrate	Mt	2.3	-21	%	-15	%	7.7	-4	%

*Rio Tinto share unless otherwise stated

Q3 Operational update

• Our All Injury Frequency Rate (AIFR) of 0.35 has improved through 2020 versus 2019 (0.42). We have successfully adapted our assets and offices to the new operating conditions associated with COVID-19 and we continue to closely manage this risk to protect our people and communities.

• Pilbara operations are returning to more normal operating conditions with rosters back to pre-COVID-19 settings although controls to protect our employees, contractors and communities remain in place. Total material moved was a record for the quarter with Pilbara iron ore production of 86.4 million tonnes (100% basis), 1% lower than the third quarter of 2019. A recovery in planned maintenance activity in the port led to 5% lower shipments.

• Bauxite production of 14.5 million tonnes, 5% higher than the third quarter of 2019, with increased year on year production across all sites, including record quarterly production at the non-managed CBG joint venture in Guinea.

• Aluminium production of 0.8 million tonnes in the third quarter was 1% higher than the third quarter of 2019 with stable operations across our smelter portfolio.

• Third quarter mined copper was 18% lower than the same period of 2019 due to lower grade at Kennecott as a result of pit sequencing to accommodate the extended smelter shutdown. Refined copper was 57% lower, primarily due to delays in restarting the Kennecott smelter.

• On 19 August, we announced an update to our refined copper guidance following delays to the restart of the smelter at Kennecott due to unexpected issues following planned maintenance. The safe start-up of the smelter has commenced and consistent with the announcement, we expect that it will be fully operational during October. 2020 guidance for refined copper remains at 135 to 175 thousand tonnes.

• On 28 August, we noted Turquoise Hill Resources’ (TRQ) publication of its ‘2020 Oyu Tolgoi Technical Report’ (2020 OTTR) in relation to the Oyu Tolgoi (OT) project in Mongolia. All estimates are subject to potential changes once the definitive estimate is complete, which is still expected later in 2020. Preliminary indications from the definitive estimate process are that first sustainable production is trending towards the earlier months of the October 2022 to June 2023 range. The estimated development capital cost remains within the range of $6.6 to $7.1 billion, and has now been updated to include known impacts of the COVID-19 pandemic. Further information can be found in the Investments, growth and development projects section below.

• On 10 September, we announced we had entered a Memorandum of Understanding (MOU) with TRQ, that provides a pathway to progress the financing for completion of the Oyu Tolgoi Underground Project in Mongolia and address TRQ’s funding position.

• Titanium dioxide slag production of 293 thousand tonnes was 9% lower than the third quarter of 2019 due to COVID-19 restrictions in Quebec and South Africa and lower market demand.

• Production of pellets and concentrate at Iron Ore Company of Canada (IOC) was 21% lower than the same period of 2019 due to an annual maintenance shutdown deferred from June to September as a result of COVID-19 travel restrictions. A weather related power failure and mechanical issues also impacted production in the third quarter.

The full third quarter production results are available here

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

 

Contacts

media.enquiries@riotinto.com
riotinto.com

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

Category: General