Rio Tinto progresses strategy to strengthen, decarbonise and grow
November 30 2022 - 1:20AM
Business Wire
Rio Tinto is today providing an update at its Investor Seminar
on progress against its long-term strategy to strengthen the
business, grow in a decarbonising world and continue to deliver
attractive shareholder returns.
Updates will include Rio Tinto’s market outlook, with the energy
transition expected to add as much as 25% in new demand above
traditional sources on a copper equivalent basis across the Group's
key products by 2035. Rio Tinto is targeting investment of up to $3
billion per year in growth to meet this demand, including the Oyu
Tolgoi copper, Rincon lithium and Simandou iron ore projects.
There are now 30 deployments of the Rio Tinto Safe Production
System (SPS) across 16 sites. Roll-outs are ongoing to continuously
improve safety, drive employee satisfaction and lift operational
performance across Rio Tinto’s global portfolio, delivering
benefits such as up to 5 million tonnes of production uplift
expected at the Group’s Pilbara iron ore assets in 2023.
Executives will outline projects underway to meet challenging
decarbonisation targets to halve Scope 1 & 2 emissions by 2030,
on the road to net zero by 2050. Six large emissions abatement
programmes are focused on renewable power, process heat, diesel and
the ELYSISTM zero carbon aluminium smelting technology to drive the
transition to net zero by 2050, supported by high-quality nature
based solutions. Investments of around $7.5 billion are expected
between 2022 and 2030, including around $1.5 billion over the next
three years which will be back-end dated. Investments are being
prioritised and phased in the most logical way, with consideration
for near-term work around energy inputs and attractive economics.
New long-term power contracts will also be required for the
aluminium business to meet targets. Incremental operating
expenditure on building new teams and energy efficiency initiatives
remains around $200 million per year, in addition to research and
development investment.
Rio Tinto Chief Executive Jakob Stausholm said: “We are now
creating real momentum, to build a stronger Rio Tinto that is a
platform for delivering long-term value. From evolving our culture,
to operational improvements, a different approach on cultural
heritage, and technology breakthroughs to address climate change
and a changing customer environment, we are seeing early results
that give us conviction we have the right objectives, the right
team, and the right strategy. This is all captured in our newly
defined purpose: finding better ways to provide the materials the
world needs.
“Meeting the incremental demand of the energy transition and
ensuring local supplies of critical minerals globally deepens our
relevance in the world and provides new opportunities. We are
working hard to decarbonise our assets and products, as we invest
to grow in materials needed for the energy transition.
“The quality of our assets, resilience of cashflows and strength
of our balance sheet ensure we are well positioned to continue to
invest with discipline for the long term and deliver attractive
returns to our shareholders throughout the cycle.”
Production guidance is being released for 2023. Pilbara iron ore
shipments (100% basis) of 320 to 335Mt are expected in 2023, with
mid-term capacity remaining at 345 to 360Mt.
Production guidance - Rio Tinto share,
unless otherwise stated
2022
2023
Pilbara iron ore (shipments, 100% basis)
(Mt)
320 to 3351
320 to 3352
Bauxite (Mt)
54 to 57
54 to 57
Alumina (Mt)
7.6 to 7.8
7.7 to 8.0
Aluminium (Mt)
3.0 to 3.1
3.1 to 3.3
Mined copper (kt)
500 to 575
550 to 600
Refined copper (kt)
190 to 220
180 to 210
Diamonds (M carats)
4.5 to 5.0
3.0 to 3.8
Titanium dioxide slag (Mt)
1.1 to 1.4
1.1 to 1.4
IOC3 iron ore pellets and concentrate
(Mt)
10.0 to 11.0
10.5 to 11.5
Boric oxide equivalent (Mt)
~0.5
~0.5
1 At the low end of the
range.
2 Pilbara shipments guidance
remains subject to risks around commissioning and ramp-up of new
mines and management of cultural heritage.
3Iron Ore Company of Canada.
Unit cost guidance
20231
Pilbara iron ore (US$/tonne)
$21.0 - $22.5
Copper C1 (US cents/lb)
160 - 180
1 FY23 guidance is based on A$:US$
exchange rate of 0.70 and excludes COVID-19 response costs.
The presentation slides and the live webcast can be accessed at
https://www.riotinto.com/en/invest/presentations/2022/investor-seminar-london.
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto’s Group Company Secretary.
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