TIDMRIO
RNS Number : 9615V
Rio Tinto PLC
20 April 2021
20 April 2021
-------------
Rio Tinto releases first quarter production results
Rio Tinto Chief Executive Jakob Stausholm, said: "We achieved an
overall solid operating performance in the first quarter. We have
maintained guidance ranges in all our products, with site teams
successfully managing the effects of significant rainfall, in
particular at our Australian iron ore assets.
"It has been a period of deep reflection for the company, and I
have personally spent a significant amount of time listening,
learning and taking actions, in particular to better manage
Traditional Owner partnerships and cultural heritage. I have
appointed a new leadership team and the transition is progressing
well. We have set out clear priorities to develop a stronger Rio
Tinto. Our focus is to become the best operator, strive for
impeccable ESG credentials, excel in development and secure a
strong social licence. This ambition will enable us to continue to
deliver superior returns to shareholders, invest in sustaining and
growing our portfolio, and make a broader contribution to
society."
Q1 vs Q1 vs Q4
Production* 2021 2020 2020
---------------------------- --- ----- --------
Pilbara iron ore shipments
(100% basis) Mt 77.8 +7% -12%
Pilbara iron ore production
(100% basis) Mt 76.4 -2% -11%
Bauxite Mt 13.6 -2% +2%
Aluminium kt 803 +3% -1%
Mined copper kt 120.5 -9% -9%
Titanium dioxide slag kt 279 -5% +3%
IOC iron ore pellets and
concentrate Mt 2.3 -8% -14%
============================ === ===== === ====
*Rio Tinto share unless otherwise stated
Q1 Operational update
-- Health, safety and well-being remains our top priority. Our
all injury frequency rate (AIFR) of 0.35 improved versus the first
quarter of 2020 (0.40). However, we recognise there is no room for
complacency and continue to focus on providing strong support for
our employees, contractors and host communities, while maintaining
critical COVID-19 controls.
-- Pilbara iron ore shipments of 77.8 million tonnes (100%
basis) were 7% higher than the first quarter of 2020. Production of
76.4 million tonnes (100% basis) was 2% lower, driven by above
average wet weather in the mines through February and fixed plant
reliability. Labour resource availability and weather challenges
disrupted maintenance. Tropical Cyclone Seroja impacted mine and
port operations in April. Full year iron ore guidance remains
unchanged.
-- Bauxite production of 13.6 million tonnes was 2% lower than
the first quarter of 2020 due to wet weather in Eastern Australia.
The port at the Amrun mine closed for 14 days due to large swells
and cyclones. Full year bauxite guidance remains unchanged.
-- Aluminium production of 0.8 million tonnes was 3% higher than
the first quarter of 2020, with the Becancour smelter, Quebec
operating at full capacity and Kitimat, British Columbia nearing
the end of its pot relining cycle.
-- Mined copper production of 120.5 thousand tonnes was 9% lower
than 2020, with lower recoveries and throughput at Escondida and
Kennecott partly offset by the anticipated higher grade from the
Oyu Tolgoi open pit. Kennecott saw a marginal increase in head
grade as it begins the transition into higher grades from the south
wall ore, with grades expected to gradually increase through 2021.
Oyu Tolgoi shipments have been affected by Chinese border
restrictions due to increased cases of COVID-19 in Mongolia. We
continue to work closely with authorities and our customers to
manage the risk of supply chain disruptions.
-- Titanium dioxide slag production of 279 thousand tonnes was
5% lower than 2020 due to a planned furnace rebuild at the Rio
Tinto Fer et Titane (RTFT) metallurgical complex in Quebec
resulting in operation of 8 out of 9 furnaces.
-- Production of pellets and concentrate at Iron Ore Company of
Canada (IOC) was 8% lower than 2020 due to the impacts of weather,
loading unit availability on mine feed and reduced concentrator
mill availability. There was a fire at one of the two reclaimers at
the port on 31 March. Full year production guidance remains
unchanged.
-- On 8 April, we released Taxes P aid : O ur E conom ic C
ontribution 2020 , showing that we made a total direct economic
contribution of $47 billion in the countries and communities where
we operate, including $8.4 billion of taxes and royalties.
-- As part of our Climate Strategy, in the first quarter of this
year, we entered into two partnerships to progress our work to
decarbonise our value chain. Together with Paul Wurth S.A. and
SHS-Stahl-Holding-Saar GmbH & Co., we are exploring the
viability of transforming iron ore pellets into low-carbon hot
briquetted iron, a low-carbon steel feedstock, using green hydrogen
generated from hydro-electricity in Canada. At our Boron site in
California, we are exploring the deployment of Heliogen's
breakthrough solar technology which will use heat from the sun to
generate and store carbon-free energy to power the mine's
industrial processes. Further details in the Climate change and our
value chain section below.
-- Production guidance
Rio Tinto share, unless Q1 2021 2021
otherwise stated 2020 Actuals Actuals Unchanged
Pilbara iron ore (shipments,
100% basis) (Mt) 331 77.8 325 to 340
----------------------------- ------------ --------
Bauxite (Mt) 56 13.6 56 to 59
----------------------------- ------------ --------
Alumina (Mt) 8.0 2.0 7.8 to 8.2
----------------------------- ------------ --------
Aluminium (Mt) 3.2 0.8 3.1 to 3.3
----------------------------- ------------ --------
Mined copper (kt) 528 120.5 500 to 550
----------------------------- ------------ --------
Refined copper (kt) 155 59.2 210 to 250
----------------------------- ------------ --------
Diamonds (M carats) (1) 3.7 1.0 3.0 to 3.8
----------------------------- ------------ --------
Titanium dioxide slag
(Mt) 1.1 0.3 1.1 to 1.3
----------------------------- ------------ --------
IOC iron ore pellets
and concentrate (Mt) 10.4 2.3 10.5 to 12.0
----------------------------- ------------ --------
Boric oxide equivalent
(Mt) 0.5 0.1 0.5
----------------------------- ------------ --------
(1) Diamonds 2021 guidance and actuals are for Diavik only for
comparability, following Argyle closure in 2020. Unadjusted
Diamonds production for 2020 was 14.7 million carats, including
both Diavik and Argyle operations.
-- We will continue to monitor and adjust production levels and
product mix to meet customer requirements in line with our value
over volume strategy, government-imposed restrictions related to
COVID-19 and any other potential COVID-19 related disruptions.
-- Iron ore shipments and bauxite production guidance remain
subject to weather and market conditions. Iron ore guidance remains
subject to risks associated with tying in approximately 90 million
tonnes of replacement mine capacity at existing hubs in Robe
Valley, West Angelas and Western Turner Syncline Phase 2 as well as
the start-up of Gudai-Darri.
-- The future impact on our Pilbara iron ore operations, mine
developments and heritage approach from the reform of the
Aboriginal Heritage Act 1972 (WA) remains unknown. We will maintain
a high level of engagement with Traditional Owners regarding
current and proposed plans for mining activities. We continue to
work through scenarios in an iterative manner as cultural
assessments and mine designs progress, with a broad range of
options subject to heritage and environmental approvals, given the
flexibility in our Pilbara network.
Operating costs
-- Pilbara iron ore 2021 unit cost guidance of $16.7-$17.7 per
tonne remains unchanged. Operating cost guidance is based on A$:US$
exchange rate of 0.77.
-- Copper C1 unit cost guidance in 2021 is unchanged at 60-75 US cents/lb.
EBITDA Sensitivities: previously published for 2020, next update
on 28 July 2021
($m) impact on full
year 2020 underlying
Average price/rate EBITDA of 10% price/rate
for 2020 change
----------------- ------------------- -------------------------
Copper 281c/lb 370
----------------- -------------------
Aluminium $1,702/t 577
----------------- -------------------
Gold $1,770/oz 62
----------------- -------------------
Pilbara iron ore
(FOB)* $98.9/dmt 2,318
----------------- -------------------
A$ 0.69US$ 617
----------------- -------------------
C$ 0.75US$ 201
----------------- -------------------
Oil (Brent) $42/bbl 85
----------------- ------------------- -------------------------
*FOB based on monthly freight-adjusted 62% iron fines CFR
Note: The sensitivities give the estimated effect on underlying
EBITDA, assuming that each individual price or exchange rate moved
in isolation. The relationship between currencies and commodity
prices is a complex one and movements in exchange rates can affect
movements in commodity prices and vice versa. The exchange rate
sensitivities include the effect on operating costs but exclude the
effect of revaluation of foreign currency working capital. Please
use them with care.
Investments, growth and development projects
-- We have proactively managed COVID-19 challenges as well as
some wet weather impacts in Australia, and overall project delivery
is satisfactory. Uncertainty continues to exist around local
situations, border access, availability and movement of people and
goods. Capital expenditure remains unchanged at around $7.5 billion
each year from 2021 to 2023.
-- Exploration and evaluation operating expense in the first
quarter of 2021 was $157 million, $13 million higher than the first
quarter of 2020, with continued progress in Australia, and ramp-up
of activities in Europe and Central Asia following easing of
COVID-19 restrictions.
Pilbara replacement projects
-- Gudai-Darri progress continues with production ramp-up on track for early 2022.
-- 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, consistent with previous
guidance.
-- Construction continues to progress at Western Turner Syncline
Phase 2, with the project maintaining first ore in 2021.
Oyu Tolgoi underground project
Technical progress
-- Work on the underground Material Handling System 1 advanced
in line with the definitive estimate(1) outlined in December, with
sustainable production expected in October 2022 and development
capital of $6.75 billion. Progress on shafts 3 and 4, and other
planned works, have however been significantly affected by
COVID-19. We will provide an update on panels 1 and 2 ramp-up,
which shafts 3 and 4 support, when the work to understand any
potential impact is complete.
-- In addition to ongoing flight restrictions and government
imposed lockdowns - including an "all-out readiness state" declared
by the Mongolian State Emergency Commission in November 2020 and
again in April 2021 - Oyu Tolgoi imposed a site-wide quarantine
period and all underground construction was temporarily halted for
two weeks in March following the detection of two positive cases of
COVID-19 on site. The impact of these additional restrictions is
ongoing and still to be determined.
-- Underground access has resumed, but work on shafts 3 and 4
will remain shut-down throughout April, and pending easing of
restrictions. Site resourcing has been limited due to COVID-19
constraints, with travel restrictions, quarantine and fatigue
management likely to continue through May. In addition,
international border controls will continue to limit the
availability of skilled shaft sinking resources resulting in delays
to the progress of shafts 3 and 4.
-- Site-wide COVID-19 testing is in place and preparations for a
vaccination programme are progressing.
Other updates
-- On 9 April, we announced we had entered into a binding Heads
of Agreement with Turquoise Hill Resources (TRQ) for an updated
funding plan for the completion of the Oyu Tolgoi underground
project. The funding plan addresses the estimated remaining funding
requirement of approximately $2.3 billion, building on and
replacing the arrangements established in the Memorandum of
Understanding that Rio Tinto and TRQ previously entered into on 9
September 2020. Rio Tinto and TRQ have agreed to jointly obtain an
order dismissing the current arbitration on a without prejudice
basis, including an order vacating the interim measures order.
-- The Mongolian Tax Authority required payment from Oyu Tolgoi
for the full amount of the 2018 assessment (2013-2015 years) and
2020 assessment (2016-2018 years) - a total of approximately $356m
in respect of all of the disputed items. In line with Mongolian
legislation, Oyu Tolgoi has paid these amounts in full. However,
Oyu Tolgoi continues to dispute them through arbitration.
Other key projects and exploration and evaluation
-- The Zulti South project in South Africa remains on full suspension.
-- At the Kemano hydropower tunnel project in British Columbia,
Canada, site activities were significantly reduced from December
2020 due to a COVID-19 outbreak in the region. The majority of
construction work has resumed from March 2021, but the COVID-19
situation in British Columbia continues to impact the return to a
full restart.
-- At the Resolution project in Arizona, we are reviewing the
impact of the US Department of Agriculture's announcement directing
the US Forest Service to withdraw the Notice of Availability and
rescind the Final Environmental Impact Statement (EIS) and draft
Record of Decision. We are committed to ongoing stakeholder
engagement in our effort to seek consent to progress the project
consistent with the International Council on Mining and Metals
(ICMM) Statement on Indigenous Peoples and Mining.
-- At the Winu project in Western Australia, drilling and
fieldwork activities continue. First ore is expected in 2024,
subject to regulatory approvals, Traditional Owner and other
consents and COVID-19 restrictions. We continue to further develop
our ground holdings in the Paterson region with an expanded 2021
exploration programme planned for the Citadel project, where we now
hold a 65% interest.
-- At the Simandou iron ore project in Guinea, preliminary
results from the first phase of the technical optimisation of the
infrastructure components are now being received from Chinese
design institutes. Activity at the mine is ramping up, with a focus
on identifying opportunities to optimise costs and construction
schedule. Social and Environmental Impact Assessment (SEIA)
implementation continues.
-- The feasibility study at the Jadar lithium-borate project in
Serbia is progressing to plan. An investment decision is scheduled
for later this year, subject to permitting and other approvals, and
granting of an exploitation license.
1 The level of accuracy of the remaining capital and schedule
within the definitive estimate is at a better level than
feasibility study. The 2020 estimate assumed COVID-19 restrictions
in 2021 that were no more stringent than those experienced in
September 2020 and noted that should COVID-19 constraints continue
beyond 2021 or should the COVID-19 situation escalate further in
2021 leading to tougher restrictions, additional costs and schedule
impacts will arise.
Since the definitive estimate, Mongolia has implemented
additional restrictions in response to community transmission
cases, and in March 2021 the first cases of COVID-19 were
identified at Oyu Tolgoi resulting in temporary site shutdown,
quarantine measures and further travel and movement restrictions.
The impact of these additional restrictions, which are beyond those
experienced in September 2020, is ongoing and still to be
determined.
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.
Sustainability highlights
We continue to advance our sustainability agenda. In February,
we enhanced our disclosures via a suite of materials that
accompanied our 2020 Annual Report including: Climate Change report
, Scope 1, 2 and 3 emissions calculation methodology , Industry
Association Disclosure , and Sustainability Fact Book .
A key change to our Remuneration Policy in 2021 has been the
introduction of environmental, social, governance (ESG) measures
into the Short Term Incentive Plans (STIP). These targets (page 173
of our Annu al Report ) - which now make up 15% of total STIP - are
related to our climate change initiatives towards the achievement
of our 2030 targets and scope 3 goals, diversity and inclusion and
governance of our cultural heritage. Our 2021 ESG incentives
approach is set out on page 145 of our Annual Report.
Communities & Social Performance (CSP)
To help strengthen our relationship with host communities around
the world, including Traditional Owners in Australia, we are taking
a number of actions globally as highlighted in our CSP Seminar
focused on cultural heritage - materials can be found here .
Key highlights from the quarter are outlined below, with further
information available on our website .
Cultural heritage
In the Pilbara, we have now reviewed more than 1,300 sites, with
54 million dry tonnes of iron ore removed from Reserves. Our iron
ore reserves totalled 3 billion tonnes at the end of 2020 across
the Pilbara. We are further integrating heritage considerations
into mine planning and development studies and embedding the
lessons learned in Western Australia to relevant operations
globally.
We continue to actively support the long overdue reform of the
Aboriginal Heritage Act 1972 (WA), making clear our support for a
right of appeal by Traditional Owners in relation to approvals to
impact cultural heritage sites on their country. We are also
engaging with the Chamber of Minerals and Energy in Western
Australia, the Minerals Council of Australia and the ICMM, sharing
the lessons that we have learned from Juukan Gorge.
Our communities expertise
We are currently expanding our CSP Area of Expertise. This will
enhance our technical capacity and strengthen our standards,
assurance and reporting processes.
In the first quarter, we launched internal development
initiatives to increase awareness and training on community and
heritage issues, and in the first half we will launch the first
modules of the CSP Foundations training programme conducted by the
University of Queensland's Centre for Social Responsibility in
Mining. This programme will upskill our teams on the Rio Tinto
Communities Standard requirements. In the second half of the year,
'Agreement Making' and 'Cultural Heritage' programmes will be
delivered to provide a deeper understanding of current good
practice.
With our $50 million investment to advance professional and
leadership employment opportunities and accelerate the career
development of Indigenous Australians in our business, we have been
able to double the number of Indigenous managers in our business
and increase university student applications in Australia by 60%
versus last year. We are encouraged by the number of Indigenous
candidates coming forward to be a part of this important
journey.
Indigenous Advisory Group
We have committed to establishing an Indigenous Advisory Group
(IAG) to help us to better manage policies and positions that are
important to Indigenous Australia and our business. The IAG will
provide context for our Indigenous strategy in Australia along with
coaching, mentoring and advice to senior leadership including the
Board.
Other key community initiatives in the quarter
In February we announced we had awarded contracts valued at over
$385 million to local Western Australian and Pilbara Aboriginal
businesses to support the latest development of the Greater Tom
Price Operations. Construction of the Western Turner Syncline Phase
2 expansion commenced in early 2020 and to date, more than 85% of
spending has been awarded to Western Australian and Pilbara
Aboriginal businesses.We currently employ more than 50% of workers
living in Tom Price and this latest development will support a
workforce of over 1,000 people at peak construction. We also
announced a contribution of $15 million (A$20 million) to the
Western Australian government to help fund a new hospital at Tom
Price in the Pilbara. Our contribution to replace the current
54-year old Tom Price District hospital forms part of the company's
ongoing commitment to the region.
Climate change and our value chain
Rio Tinto is committed to being part of the transition to a
low-carbon future. The commodities we produce are essential to this
transition and cannot be substituted in many important
applications. In the first quarter, we announced new scope 3 goals
and two partnerships. We also developed innovative solutions to
reduce waste, found new ways to meet demand for emerging
commodities like lithium, and enhanced the transparency of our
products, as outlined below.
As a supporter of the Task Force on Climate-related Financial
Disclosures (TCFD) recommendations, we also announced that we will
work towards disclosures consistent with the evolving CA100+
benchmark and intend to put our annual TCFD-aligned reporting to an
advisory vote at our 2022 annual general meetings.
Decarbonisation initiatives
-- On 16 February, we announced a partnership with Paul Wurth
S.A. and SHS-Stahl-Holding-Saar GmbH & Co. KGaA (SHS) to
explore the viability of transforming iron ore pellets into
low-carbon hot briquetted iron, a low-carbon steel feedstock, using
green hydrogen generated from hydro-electricity in Canada. The
feasibility study is expected to be complete in late 2021, with an
investment decision on a hydrogen based direct reduction plant at
industrial scale expected to follow.
-- On 24 March, we announced a partnership with energy
technology company, Heliogen to explore the deployment of
breakthrough solar technology at our borates mine in Boron,
California. The technology will use heat from the sun to generate
and store carbon-free energy - via steam generation combined with
the heat storage in rock salts - for the industrial processes.
Operations are planned to commence in 2022, subject to permits and
approvals. The installation at Boron will be used to evaluate the
potential deployment at other Rio Tinto operations.
-- On 1 April, we announced we had joined Japan's Green Value
Chain Platform Network (GVC Network), a collaboration established
by the Japanese Ministry of the Environment to lead transparent
decarbonisation efforts in the country. GVC Network member
companies work to set science-based targets for emissions reduction
that are economically feasible and effective for the achievement of
their Scope 1, 2 and 3 targets.
Product stewardship initiatives
-- On 3 February, we announced the launch of START(TM) - the
first sustainability label for aluminium using blockchain
technology. START is now available for aluminium purchased from our
managed operations, with 27 customers signed up to use the
technology. Additionally, we have again become the world's first
company to be re-certified against the Performance Standard by the
Aluminium Stewardship Initiative (ASI). Our Canadian operations
were the first in the world to be ASI-certified in 2018.
-- On 8 March, we announced construction of a new plant that
will recover tellurium, a critical mineral used in solar panels,
from copper refining at our integrated Kennecott operations in
Utah. We are investing $2.9 million in the plant, which will have a
capacity of approximately 20 tonnes of tellurium per year. We
expect to commence production in the fourth quarter of 2021.
-- On 10 March, we announced our first commercial sale of
high-performance aluminium-scandium alloy from our North American
operations to Amaero, a leader in metal additive manufacturing. We
will continue to deliver alloy billets made of responsibly
produced, low-carbon aluminium from our hydro-powered Canadian
smelters and high-purity scandium oxide from Rio Tinto Fer et
Titane (RTFT) metallurgical complex in Sorel-Tracy, Quebec.
-- On 7 April, we announced the successful production of
battery-grade lithium carbonate at our demonstration plant at
Boron, California. This is the next step in scaling up a
breakthrough lithium production scale plant with an initial
capacity of at least 5,000 tonnes per year, to recover the critical
mineral and extract additional value out of waste piles.
Additionally, in the quarter we launched two new products aimed at
the agricultural sector to meet growing demand for boron and zinc,
both important crop micronutrients in the fertiliser sector.
Our markets
We expect robust global economic growth in the near term,
fuelled by strong fiscal spending and monetary policy and expanding
vaccine deployment as the year progresses. We remain watchful of
risks, in particular inflationary pressures and associated
adjustments to interest rates by monetary authorities.
-- China's industrial economy continues with strong momentum.
Last year's stimulus programmes gave rise to a sustainable recovery
in property and infrastructure construction. Policy focus is now
shifting from supply (investment) to demand (consumption) - growth
is therefore expected to pivot towards consumption of goods and
services.
-- Growth in the United States has improved due to the rapid
progress of vaccinations and government policy support. Stimulus
packages combined with a re-emerging consumer are expected to
support strong growth in the near term. The prospect of an
infrastructure bill enhances the outlook further but may bring
inflationary pressures.
-- Europe's economic recovery remains subdued due to lock-downs
and a slower roll-out of vaccination programmes. However, growth is
expected to improve progressively with the roll out of the Recovery
Fund (EUR750bn over 5 years) which should support investment in
infrastructure, transport, energy and construction.
-- Steel prices in China finished the quarter at decade highs as
construction activity and steel demand in the first quarter
exceeded both 2020 and 2019. Strong steel demand and margins, at
their highest since 2018, have lifted demand for higher quality
(i.e. Pilbara Blend fines) and direct charge (i.e. Pilbara Blend
lump) iron ore products. China's renewed focus on reducing
steelmaking emissions will likely restrain steel exports in 2021,
supporting margins globally.
-- The aluminium price has rallied following a recovery in
global demand and investor inflows. Logistical constraints combined
with some inventories being tightly held has resulted in tighter
physical markets.
-- Copper prices in the first quarter are up over 50% versus the
same time last year, having reached a nine-year high in the
quarter. The rally came on the back of strong demand in China,
recovering demand elsewhere and ongoing disruptions to mine and
scrap supply, all amplified by strong investor interest.
COVID-19
Our absolute priority remains to provide significant levels of
support and care for our employees, contractors, and host
communities, as we continue to prioritise controls including health
questionnaires and temperature screening. We have kept all our
operations running throughout the pandemic with rapid
implementation of health and hygiene controls from the outset,
working in close collaboration with governments. Although the
vaccine rollout brings some optimism, we have experienced a
resurgence of the virus in some regions where we operate including
Mongolia, the Americas, South Africa and Europe. We are supporting
government vaccination campaigns, including the deployment of
vaccination clinics in some regions.
-- At Oyu Tolgoi, we continue to work closely with the
Government of Mongolia and health authorities, and apply the
strictest measures, including quarantine and testing for all
employees before access to site, as the Mongolia State Emergency
Commission has declared an all-out readiness state in April. A
site-wide lockdown was enforced in March for two weeks due to two
positive COVID-19 cases. During this period, the entire workforce
was tested (10,000 negative PCR tests). This event required quick
mobilisation to set up the camp for self-isolation controls.
Preparations for a vaccination programme are progressing.
-- In Canada, we are supporting government vaccination efforts
in the Saguenay-Lac-Saint-Jean region, at our Diavik operation in
the Northwest Territories and at our operation in Kitimat, British
Columbia.
-- In the US, at our Boron site in California, we have provided
access to daily testing to all site personnel, while strict
controls remain in place to mitigate transmission risk and protect
our employees. We are also supporting government efforts on
vaccination implementation in Kern county and for local communities
to ensure that our employees can easily access vaccination if they
choose to do so. At our Kennecott operations in Utah and Resolution
Copper project in Arizona, vaccination plans are progressing well
in line with the government rollout.
-- With the outbreaks in the eastern states of Australia, we are
closely monitoring State border closures and applying site access
controls and travel management protocols. At our iron ore and salt
assets in the Pilbara, Western Australia, our frontline port and
health workers have been made eligible to receive the vaccination
should they choose to do so. The remainder of the workforce will be
offered the vaccination in line with the Western Australian
Government rollout.
-- We are actively managing the risks to seafarers from
restrictions on crew changeovers due to COVID-19 measures in place
across various countries. We continue to work with the industry,
our shipowner partners, and regulators to facilitate crew changes
and protect crew welfare.
Full details of initiatives taken to date can be found on our
website .
IRON ORE
Q1 vs Q1 vs Q4
Rio Tinto share of production
(Million tonnes) 2021 2020 2020
Pilbara Blend and SP10
Lump(1) 18.1 -2% -17%
Pilbara Blend and SP10
Fines(1) 28.2 +2% -9%
Robe Valley Lump 1.3 -11% -4%
Robe Valley Fines 2.2 -9% -16%
Yandicoogina Fines (HIY) 13.5 -4% -5%
------------------------------ ----- ---- ----
Total Pilbara production 63.3 -1% -11%
------------------------------ ----- ---- ----
Total Pilbara production
(100% basis) 76.4 -2% -11%
------------------------------ ----- ---- ----
Q1 vs Q1 vs Q4
Rio Tinto share of shipments
(Million tonnes) 2021 2020 2020
Pilbara Blend Lump 12.8 -11% -21%
Pilbara Blend Fines 28.6 +7% -19%
Robe Valley Lump 1.0 -9% -18%
Robe Valley Fines 2.4 -11% -22%
Yandicoogina Fines (HIY) 14.2 +10% -6%
SP10 Lump(1) 2.7 +165% +157%
SP10 Fines(1) 2.9 +168% +65%
----------------------------- ----- ---- ----
Total Pilbara shipments(2) 64.6 +8% -12%
----------------------------- ----- ---- ----
Total Pilbara shipments
(100% basis)(2) 77.8 +7% -12%
----------------------------- ----- ---- ----
Total Pilbara Shipments
(consolidated basis)(2,
3) 66.4 +8% -12%
----------------------------- ----- ---- ----
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 by
the group 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 76.4 million tonnes (Rio Tinto share
63.3 million tonnes) in the first quarter, 2% lower than 2020 due
to fixed plant reliability and above average wet weather in the
mines. In the first quarter, labour resource availability and
weather challenges disrupted maintenance in the mine processing
facilities which will be prioritised for the rest of the year.
Full year iron ore shipments guidance remains unchanged. It
remains subject to risks associated with tying in approximately 90
million tonnes of replacement mine capacity at existing hubs in
Robe Valley, West Angelas and Western Turner Syncline Phase 2 as
well as the start-up of Gudai-Darri.
First quarter shipments of 77.8 million tonnes (Rio Tinto share
64.6 million tonnes) were 7% higher than 2020, due to solid
operating performance and sufficient inventory available in the
quarter. We shipped 5.6 million tonnes of SP10 during the first
quarter.
Approximately 13% of sales in the first 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 29% of sales in
the first quarter were made on a free on board (FOB) basis, with
the remainder sold including freight.
On 19 February, we announced a new commercial freight shipping
service connecting Western Australia's Pilbara region to Singapore.
We expect the service to reduce the lead-time for goods by six to
ten days compared with freight via Fremantle, and potentially
provide opportunities for local Pilbara businesses. Additionally,
the new service is expected to provide an annual saving of around
three million litres of diesel fuel by reducing road travel from
Perth by more than 3.8 million kilometres.
China Portside Trading
We continue to ramp up our port sales in China, with 1.8 million
tonnes of sales in the first quarter. Since the commencement of our
portside business we have supplied more than 60 new steel mill
customers, and we are present at 12 ports in China. Our portside
operation handles product from our operations in the Pilbara and in
Canada as well as third party product, and provides blending and
screening capabilities.
ALUMINIUM
Q1 vs Q1 vs Q4
Rio Tinto share of production
('000 tonnes) 2021 2020 2020
------------------------------ ------ --------
Bauxite 13,566 -2% +2%
Bauxite third party
shipments 9,024 -5% -1%
Alumina 2,034 +1% -2%
Aluminium 803 +3% -1%
============================== ====== === ===
Bauxite
First quarter bauxite production of 13.6 million tonnes was 2%
higher than the fourth quarter of 2020 following a train failure at
the Andoom mine at Weipa last year, however, slightly lower than
the same period of 2020 as a result of wet weather on the East
coast of Australia impacting our Weipa operations. The port at the
Amrun mine closed for 14 days due to large swells and cyclones in
the first quarter.
We shipped 9.0 million tonnes of bauxite to third parties in the
first quarter, 5% lower than the same period of 2020 due to the
major weather events causing shipment delays.
Alumina
Alumina production in the first quarter of 2.0 million tonnes
was 1% higher than the corresponding period of 2020, as a result of
stable operations at both our Pacific refineries.
Aluminium
First quarter aluminium production of 0.8 million tonnes was 3%
higher than the same period of 2020 with the Becancour smelter,
Quebec operating at full capacity and Kitimat, British Columbia
nearing the end of its pot relining cycle. Good production
stability and operational performance was achieved across the
remaining smelter portfolio.
We are seeing improved demand in automotive, packaging and more
recently construction and electronics. Value-added product volumes
have returned to pre-COVID-19 levels at 51% of primary metal sold
(2019 full year: 51%).
On 15 February, we announced an agreement had been reached on an
amended power contract that will allow the ISAL smelter in Iceland
to continue operating with an improved competitive position.
COPPER
Q1 vs Q1 vs Q4
Rio Tinto share of production
('000 tonnes) 2021 2020 2020
Mined copper
Kennecott 33.2 -5% -2%
Escondida 72.1 -16% -15%
Oyu Tolgoi 15.2 +29% +9%
Refined copper
Kennecott 45.2 +71% +11%
Escondida 14.0 -33% -8%
------------------------------ ----- ---- ----
Kennecott
Mined copper production was 5% lower than the same quarter of
2020, with lower recoveries at Kennecott as a result of ore type
variation, and slightly lower ore milled due to power constraints
following cold weather events in February. This was partially
offset by a marginal increase in head grade as Kennecott begins the
transition into higher grades from the south wall ore, with grades
expected to gradually increase through 2021.
Refined copper production was 71% higher than the same quarter
of 2020 driven by strong smelter performance with higher
throughput. Production in the same period of 2020 was negatively
impacted by the earthquake in March.
Escondida
Mined copper production was 16% lower than the same quarter of
2020, mainly due to 43% lower material stacked into the leach pads
and 6% lower feed grade. This was as a result of preventive
measures in response to the resurgence of COVID-19 in the region,
which has impacted workforce availability. Refined copper
production was 33% lower than the corresponding period in 2020 due
to lower material stacked.
Oyu Tolgoi
Mined copper production from the open pit was 29% higher than
the same quarter of 2020 with the anticipated move to higher grade
from the open pit, leading to higher head grade and copper
recovery. In the first quarter, pit phasing delivered higher gold
production (+457%) compared to the same period in 2020. Access to
higher copper and gold grades is expected to continue throughout
2021.
First quarter shipments have been affected by Chinese border
restrictions due to increased cases of COVID-19. We declared force
majeure on shipments from 30 March and continue to work closely
with authorities and our customers to manage the risk of supply
chain disruptions. We partially resumed cross-border concentrate
shipments into China on 15 April however, the situation is very
fluid with the COVID-19 resurgence in Mongolia.
MINERALS
Q1 vs Q1 vs Q4
Rio Tinto share of production
(million tonnes) 2021 2020 2020
Iron ore pellets and
concentrate
IOC 2.3 -8% -14%
------------------------------ ----- ---- ----
Q1 vs Q1 vs Q4
Rio Tinto share of production
('000 tonnes) 2021 2020 2020
============================== ===== ======== ========
Minerals
Borates - B(2) O(3)
content 122 -3% +23%
Titanium dioxide slag 279 -5% +3%
------------------------------ ----- ---- ----
Q1 vs Q1 vs Q4
Rio Tinto share of production
('000 carats) 2021 2020 2020
Diavik 1,007 +18% +11%
------------------------------ ----- ---- ----
Iron Ore Company of Canada (IOC)
Iron ore pellets and concentrate production was 8% lower than
the same period of 2020 due to impacts of weather and loading unit
availability on mine feed and reduced concentrator mill
availability.
On 31 March, a fire broke out at one of the two reclaimers at
our Sept-Îles port facilities, which was quickly brought under
control with no injuries. At the time of the fire, the other
reclaimer was undergoing repairs following an equipment failure,
resulting in a temporary cessation of ship loading and declaration
of force majeure. The production guidance range remains
unchanged.
Borates
Borates production in the first quarter was 23% higher than the
fourth quarter in 2020 due to improved market demand however,
slightly lower than the same period of 2020. Shipments were
affected by congestion across the supply chain and we continue to
work with customers and logistics suppliers to minimise these
disruptions to borates supply.
Iron and Titanium
Titanium dioxide production was 5% lower than same quarter of
2020 due to a planned furnace rebuild at the Rio Tinto Fer et
Titane (RTFT) metallurgical complex in Quebec resulting in the
operation of 8 out of 9 furnaces. An accelerated demand recovery in
TiO(2) pigment has been observed.
Diamonds
At Diavik, carats recovered in the first quarter were 18% higher
than the first quarter of 2020, due to plant productivity
improvements and higher ore availability from the surface mine
coupled with higher recovered grade.
EXPLORATION AND EVALUATION
Pre-tax and pre-divestment expenditure on exploration and
evaluation charged to the profit and loss account in the first
quarter of 2021 was $157 million, compared with $144 million in the
first quarter of 2020. Approximately 44% of this expenditure was
incurred by central exploration, 34% by Copper, 19% by Minerals and
3% by Iron Ore.
There were no significant divestments of central exploration
properties in the first quarter of 2021.
Exploration highlights
Rio Tinto has a strong portfolio of projects with activity in 18
countries across eight commodities in early exploration and studies
stages. All projects have followed government COVID-19 requirements
and guidelines while focusing on protecting well-being and health
of local communities. The bulk of the exploration expenditure in
the first quarter focused on copper in Australia, Canada, Chile,
Kazakhstan, 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 the Falcon diamonds project in Saskatchewan, Canada,
inspection, valuation and interpretation of the recovered diamonds
is ongoing.
A summary of activity for the quarter is as follows:
Greenfield/ Brownfield
Commodities Studies Stage Advanced projects programmes
Amargosa, Brazil*;
Bauxite Sanxai, Laos* Cape York, Australia
----------- ---------------------- ------------------------
Copper Greenfield:
Australia, Chile,
China, Kazakhstan,
Copper: La Granja, Nicaragua*, Peru,
Peru, Pribrezhniy, Serbia, US, Zambia,
Kazakhstan Brazil, Canada,
Copper/molybdenum: Nickel: Tamarack, Colombia*, Finland,
Resolution, US; US (3rd party operated) Namibia
Copper/Gold: Winu, Calibre-Magnum, Nickel Greenfield:
Base Metals Australia Australia Canada, Finland
----------- ---------------------- ------------------------
Diamonds Greenfield:
Canada
Diamonds Brownfield:
Diamonds Falcon, Canada Diavik
----------- ---------------------- ------------------------
Lithium borates:
Jadar, Serbia
Potash: KL262, Canada
Heavy mineral sands:
Mutamba, Mozambique
Minerals (3rd party operated)
----------- ---------------------- ------------------------
Iron Ore Pilbara, Australia Pilbara, Australia Brownfield: Pilbara
----------- ---------------------- ------------------------
*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
Media Relations, United Kingdom Media Relations, Australia
Illtud Harri Jonathan Rose
M +44 7920 503 600 M +61 447 028 913
David Outhwaite Matt Chambers
M +44 7787 597 493 M +61 433 525 739
Media Relations, Americas Jesse Riseborough
M +61 436 653 412
Matthew Klar
T +1 514 608 4429
Media Relations, Asia
Grant Donald
M +65 9722 6028
---------------------------------- -----------------------------
Investor Relations, United Kingdom Investor Relations, Australia
Menno Sanderse Natalie Worley
M +44 7825 195 178 M +61 409 210 462
David Ovington Amar Jambaa
M +44 7920 010 978 M +61 472 865 948
Clare Peever
M: +44 7788 967 877
================================== =============================
Rio Tinto plc Rio Tinto Limited
6 St James's Square Level 7, 360 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
Steve Allen, 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
Full
Quarter Year % change
Q1 21 Q1 21
2020 2020 2021 vs vs
Q1 Q4 Q1 2020 Q1 20 Q4 20
------ ------ ------ ------- -------- --------
Principal commodities
------ ------ ------ ------- ======== ========
('000
Alumina t) 2,010 2,085 2,034 8,039 +1% -2%
('000
Aluminium t) 783 815 803 3,180 +3% -1%
('000
Bauxite t) 13,813 13,299 13,566 56,131 -2% +2%
('000
Borates t) 126 100 122 480 -3% +23%
('000
Copper - mined t) 133.0 132.5 120.5 527.9 -9% -9%
('000
Copper - refined t) 47.2 56.1 59.2 155.0 +25% +5%
('000
Diamonds cts) 857 910 1,007 3,731 +18% +11%
('000
Iron Ore t) 66,787 73,749 65,681 285,932 -2% -11%
('000
Titanium dioxide slag t) 293 272 279 1,120 -5% +3%
------ ------ ------ ------- ---- ----
Other Metals & Minerals
------ ------ ------ ------- -------- --------
('000
Gold - mined oz) 62 89 96 283 +57% +8%
('000
Gold - refined oz) 44.8 38.9 56.8 117.5 +27% +46%
('000
Molybdenum t) 5.1 6.4 5.0 20.4 -1% -21%
('000
Uranium lbs) 676 742 65 2,870 -90% -91%
('000
Salt t) 1,044 1,113 1,411 4,861 +35% +27%
('000
Silver - mined oz) 1,027 1,120 1,005 4,357 -2% -10%
('000
Silver - refined oz) 462 449 812 1,363 +76% +81%
------ ------ ------ ------- ==== ====
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
Full
Rio Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
--------------------------------------- ------------ ------ ------ ------ ------ ------ ------
ALUMINA
Production ('000 tonnes)
Jonquière (Vaudreuil) 100% 373 340 347 364 352 1,424
Jonquière (Vaudreuil) specialty
Alumina plant 100% 24 25 22 24 22 94
Queensland Alumina 80% 713 711 763 774 743 2,961
São Luis (Alumar) 10% 94 95 98 99 95 385
Yarwun 100% 806 820 725 823 822 3,175
Rio Tinto total alumina production 2,010 1,990 1,954 2,085 2,034 8,039
ALUMINIUM
Production ('000 tonnes)
Australia - Bell Bay 100% 47 49 48 48 46 192
Australia - Boyne Island 59% 75 75 76 77 74 303
Australia - Tomago 52% 75 76 77 77 75 305
Canada - six wholly owned 100% 375 370 375 387 385 1,506
Canada - Alouette (Sept-Îles) 40% 61 62 63 63 62 249
Canada - Bécancour 25% 18 26 26 29 28 98
Iceland - ISAL (Reykjavik) 100% 45 44 46 48 49 183
New Zealand - Tiwai Point 79% 67 65 66 67 65 265
Oman - Sohar 20% 20 20 20 20 20 79
Rio Tinto total aluminium production 783 785 797 815 803 3,180
BAUXITE
Production ('000 tonnes) (a)
Gove 100% 2,876 3,186 3,147 3,090 2,879 12,299
Porto Trombetas 12% 338 270 396 392 254 1,395
Sangaredi (b) 1,879 1,742 1,920 1,887 1,887 7,428
Weipa 100% 8,720 9,362 8,997 7,929 8,545 35,009
Rio Tinto total bauxite production 13,813 14,560 14,459 13,299 13,566 56,131
(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 Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
----------------------------------- ------------ ------ ------ ------ ------ ------ --------
BORATES
Production ('000 tonnes B(2)
O(3) content)
Rio Tinto Borates - borates 100% 126 132 123 100 122 480
----------------------------------- ------ --- ------ ------ ------ ------ ------ ------
COPPER
Mine production ('000 tonnes)
(a)
Bingham Canyon 100% 35.0 36.5 34.7 33.8 33.2 140.0
Escondida 30% 86.2 84.0 82.8 84.8 72.1 337.8
Oyu Tolgoi (b) 34% 11.8 12.2 12.2 14.0 15.2 50.2
Rio Tinto total mine production 133.0 132.8 129.6 132.5 120.5 527.9
Refined production ('000 tonnes)
Escondida 30% 20.9 19.7 14.4 15.2 14.0 70.2
Rio Tinto Kennecott 100% 26.4 7.2 10.4 40.9 45.2 84.8
Rio Tinto total refined production 47.2 26.9 24.8 56.1 59.2 155.0
(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)
Diavik 60% 857 963 1,001 910 1,007 3,731
GOLD
Mine production ('000 ounces)
(a)
Bingham Canyon 100% 41.9 40.2 43.7 45.3 36.2 171.2
Escondida 30% 10.8 13.0 12.7 14.3 11.4 50.9
Oyu Tolgoi (b) 34% 8.8 10.4 12.3 29.4 48.8 61.0
Rio Tinto total mine production 61.5 63.6 68.7 89.1 96.4 283.0
Refined production ('000 ounces)
Rio Tinto Kennecott 100% 44.8 30.1 3.7 38.9 56.8 117.5
(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) 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
Full
Rio Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
--------------------------------------- ----------- ------ ------ ------ ------ ------ -------
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines (b) 49,327 53,187 54,852 53,316 47,063 210,682
Hamersley - Channar (c) 100% 1,160 1,334 1,710 1,935 2,250 6,139
Hope Downs 50% 5,667 5,659 6,625 6,571 5,616 24,522
Iron Ore Company of Canada 59% 2,560 2,762 2,340 2,740 2,345 10,402
Robe River - Pannawonica (Mesas J
and A) 53% 3,880 4,307 3,882 3,988 3,506 16,056
Robe River - West Angelas 53% 4,193 4,440 4,298 5,199 4,900 18,131
Rio Tinto iron ore production ('000
tonnes) 66,787 71,689 73,707 73,749 65,681 285,932
------ ------ ------ ------ ------ -------
Breakdown of Production:
Pilbara Blend and SP10 Lump (d) 18,504 18,970 18,253 21,666 18,050 77,393
Pilbara Blend and SP10 Fines (d) 27,734 30,866 33,570 31,122 28,245 123,292
Robe Valley Lump 1,472 1,326 1,399 1,364 1,307 5,561
Robe Valley Fines 2,407 2,981 2,483 2,624 2,199 10,496
Yandicoogina Fines (HIY) 14,110 14,784 15,662 14,233 13,534 58,789
------ ------ ------ ------ ------ -------
Pilbara iron ore production ('000
tonnes) 64,227 68,927 71,366 71,009 63,336 275,530
IOC Concentrate 923 1,523 1,038 1,297 871 4,781
IOC Pellets 1,637 1,240 1,302 1,443 1,474 5,622
IOC iron ore production ('000 tonnes) 2,560 2,762 2,340 2,740 2,345 10,402
------ ------ ------ ------ ------ -------
Breakdown of Shipments:
Pilbara Blend Lump 14,385 16,700 15,514 16,280 12,842 62,878
Pilbara Blend Fines 26,692 33,036 31,710 35,140 28,565 126,578
Robe Valley Lump 1,132 1,118 1,112 1,246 1,025 4,608
Robe Valley Fines 2,688 2,999 2,724 3,062 2,402 11,473
Yandicoogina Fines (HIY) 12,913 15,578 14,203 15,055 14,222 57,749
SP10 Lump (d) 1,006 1,014 822 1,037 2,664 3,879
SP10 Fines (d) 1,089 1,603 1,488 1,771 2,923 5,951
------ ------ ------ ------ ------ -------
Pilbara iron ore shipments ('000
tonnes) (e) 59,903 72,048 67,574 73,590 64,642 273,115
------ ------ ------ ------ ------ -------
Pilbara iron ore shipments - consolidated
basis ('000 tonnes) (e) (g) 61,729 73,976 69,496 75,630 66,431 280,831
IOC Concentrate 1,006 1,410 1,355 1,157 1,019 4,928
IOC Pellets 1,769 1,320 1,378 1,539 1,477 6,006
------ ------ ------ ------ ------ -------
IOC Iron ore shipments ('000 tonnes)
(e) 2,775 2,731 2,733 2,696 2,496 10,934
------ ------ ------ ------ ------ -------
Rio Tinto iron ore shipments ('000
tonnes) (e) 62,678 74,779 70,307 76,286 67,137 284,050
------ ------ ------ ------ ------ -------
Rio Tinto iron ore sales ('000 tonnes)
(f) 62,433 74,808 69,993 75,765 65,415 282,998
(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,
Western Turner Syncline, 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) Rio Tinto's ownership interest in Channar mine increased
from 60% to 100%, following conclusion of its joint venture with
Sinosteel Corporation upon reaching planned 290 million tonnes
production on 22 October 2020. Production is reported at 100% from
this date onward. Historic data is unchanged.
(d) SP10 include other lower grade products.
(e) Shipments includes material shipped to our portside trading
facility in China which may not be sold onwards in the same
period.
(f) Represents the difference between amounts shipped to
portside trading and onward sales from portside trading, and third
party volumes sold.
(g) 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 Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
------------------------------ ----------- ----- ----- ----- ----- ----- -----
MOLYBDENUM
Mine production ('000 tonnes)
(a)
Bingham Canyon 100% 5.1 3.9 5.1 6.4 5.0 20.4
(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% 1,044 1,425 1,279 1,113 1,411 4,861
--------------------------------- --- ----- ----- ----- ----- ----- -----
SILVER
Mine production ('000 ounces)
(a)
Bingham Canyon 100% 538 526 586 555 524 2,205
Escondida 30% 417 480 474 488 395 1,859
Oyu Tolgoi (b) 34% 72 71 73 77 85 293
----- ----- ----- ----- ----- -----
Rio Tinto total mine production 1,027 1,077 1,133 1,120 1,005 4,357
----- ----- ----- ----- ----- -----
Refined production ('000 ounces)
Rio Tinto Kennecott 100% 462 382 70 449 812 1,363
(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% 293 262 293 272 279 1,120
(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 U(3) O(8)
) (a)
Energy Resources of Australia 86% 676 718 735 742 65 2,870
(a) ERA production data are drummed U(3) O(8) .
ERA ceased processing operations on 8 January 2021, as required
by the Ranger Authority.
Rio Tinto's Argyle operations were closed in 2020. 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 31 March 2021.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
-------------------------------------- ------------ ------ ------ ------ ------ ------ ------
ALUMINA
Smelter Grade Alumina - Aluminium
Group
Alumina production ('000 tonnes)
Australia
Queensland Alumina Refinery -
Queensland 80.0% 891 889 953 968 929 3,701
Yarwun refinery - Queensland 100.0% 806 820 725 823 822 3,175
Brazil
São Luis (Alumar) refinery 10.0% 936 945 976 990 953 3,848
Canada
Jonquière (Vaudreuil) refinery
- Quebec (a) 100.0% 373 340 347 364 352 1,424
(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% 24 25 22 24 22 94
Rio Tinto percentage interest shown above is at 31 March 2021.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
------------------------------------- ----------- ----- ----- ----- ----- ----- ------
ALUMINIUM
Primary Aluminium
Primary aluminium production
('000 tonnes)
Australia
Bell Bay smelter - Tasmania 100.0% 47 49 48 48 46 192
Boyne Island smelter - Queensland 59.4% 126 126 128 129 124 510
Tomago smelter - New South Wales 51.6% 145 148 150 149 145 592
Canada
Alma smelter - Quebec 100.0% 118 118 118 119 117 473
Alouette (Sept-Îles) smelter
- Quebec 40.0% 153 155 156 158 155 623
Arvida smelter - Quebec 100.0% 44 42 41 41 40 169
Arvida AP60 smelter - Quebec 100.0% 15 15 15 15 15 60
Bécancour smelter - Quebec 25.1% 72 102 104 115 112 393
Grande-Baie smelter - Quebec 100.0% 58 55 55 57 56 225
Kitimat smelter - British Columbia 100.0% 76 78 84 91 95 329
Laterrière smelter - Quebec 100.0% 64 62 62 63 62 250
Iceland
ISAL (Reykjavik) smelter 100.0% 45 44 46 48 49 183
New Zealand
Tiwai Point smelter 79.4% 84 82 84 84 82 333
Oman
Sohar smelter 20.0% 99 99 100 100 98 397
Rio Tinto percentage interest shown above is at 31 March 2021.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
------------------------------------- ----------- ------ ------ ------ ------ ------ ------
BAUXITE
Bauxite production ('000 tonnes)
Australia
Gove mine - Northern Territory 100.0% 2,876 3,186 3,147 3,090 2,879 12,299
Weipa mine - Queensland 100.0% 8,720 9,362 8,997 7,929 8,545 35,009
Brazil
Porto Trombetas (MRN) mine 12.0% 2,814 2,251 3,296 3,268 2,117 11,629
Guinea
Sangaredi mine (a) 23.0% 4,175 3,871 4,267 4,193 4,194 16,506
Rio Tinto share of bauxite shipments
Share of total bauxite shipments
('000 tonnes) 13,567 14,668 14,117 12,993 13,444 55,345
Share of third party bauxite shipments
('000 tonnes) 9,469 10,721 10,064 9,104 9,024 39,357
(a) Rio Tinto has a 22.95% shareholding in the Sangaredi mine
but benefits from 45.0% of production.
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
---------------------------- ------------ ------ ------ ------ ------ ------ --------
BORATES
Rio Tinto Borates - borates 100.0%
US
Borates ('000 tonnes) (a) 126 132 123 100 122 480
(a) Production is expressed as B(2) O(3) content.
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
------------------------------------------ ----------- ------ ------ ------ ------ ------ ---------
COPPER & GOLD
Escondida 30.0%
Chile
Sulphide ore to concentrator ('000
tonnes) 33,440 34,755 34,733 36,303 32,654 139,230
Average copper grade (%) 0.82 0.81 0.85 0.83 0.78 0.83
Mill production (metals in concentrates):
Contained copper ('000 tonnes) 230.0 236.8 243.9 246.1 207.8 956.8
Contained gold ('000 ounces) 36.0 43.4 42.3 47.8 38.0 169.5
Contained silver ('000 ounces) 1,390 1,599 1,580 1,627 1,318 6,196
Recoverable copper in ore stacked for
leaching ('000 tonnes) (a) 57.2 43.3 32.1 36.5 32.5 169.1
Refined production from leach plants:
Copper cathode production ('000
tonnes) 69.6 65.5 47.9 50.8 46.6 233.9
(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 31 March 2021.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
------------------------------------- ----------- ------ ------ ------ ------ ------ --------
COPPER & GOLD (continued)
Rio Tinto Kennecott
Bingham Canyon mine 100.0%
Utah, US
Ore treated ('000 tonnes) 10,315 10,083 12,860 11,418 10,054 44,676
Average ore grade:
Copper (%) 0.37 0.41 0.32 0.34 0.38 0.36
Gold (g/t) 0.22 0.23 0.21 0.22 0.21 0.22
Silver (g/t) 2.16 2.14 2.00 2.07 2.30 2.08
Molybdenum (%) 0.058 0.056 0.053 0.068 0.058 0.059
Copper concentrates produced ('000
tonnes) 148 135 140 138 140 561
Average concentrate grade (% Cu) 23.7 26.6 24.7 24.2 23.7 24.8
Production of metals in copper
concentrates:
Copper ('000 tonnes) (a) 35.0 36.5 34.7 33.8 33.2 140.0
Gold ('000 ounces) 41.9 40.2 43.7 45.3 36.2 171.2
Silver ('000 ounces) 538 526 586 555 524 2,205
Molybdenum concentrates produced
('000 tonnes): 10.4 7.8 10.3 12.2 9.4 40.7
Molybdenum in concentrates ('000
tonnes) 5.1 3.9 5.1 6.4 5.0 20.4
Kennecott smelter & refinery 100.0%
Copper concentrates smelted ('000
tonnes) 161 51 1 234 240 448
Copper anodes produced ('000 tonnes)
(b) 24.0 (2.1) 20.2 44.8 50.5 86.9
Production of refined metal:
Copper ('000 tonnes) 26.4 7.2 10.4 40.9 45.2 84.8
Gold ('000 ounces) (c) 44.8 30.1 3.7 38.9 56.8 117.5
Silver ('000 ounces) (c) 462 382 70 449 812 1,363
(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 31 March 2021.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
-------------------------------------- ----------- ------ ----- ------ ----- ----- --------
COPPER & GOLD (continued)
Turquoise Hill Resources
Oyu Tolgoi mine (a) 33.5%
Mongolia
Ore Treated ('000 tonnes) 10,889 9,645 10,072 9,594 9,813 40,200
Average mill head grades:
Copper (%) 0.42 0.47 0.45 0.50 0.56 0.46
Gold (g/t) 0.15 0.19 0.21 0.41 0.68 0.24
Silver (g/t) 1.14 1.22 1.22 1.16 1.29 1.18
Copper concentrates produced
('000 tonnes) 164.5 169.9 168.5 190.2 201.9 693.1
Average concentrate grade (%
Cu) 21.4 21.5 21.5 21.9 22.5 21.6
Production of metals in concentrates:
Copper in concentrates ('000
tonnes) 35.2 36.5 36.3 41.6 45.4 149.6
Gold in concentrates ('000 ounces) 26.2 31.1 36.7 87.8 145.7 181.9
Silver in concentrates ('000
ounces) 214 212 219 231 255 876
Sales of metals in concentrates:
Copper in concentrates ('000
tonnes) 25.8 39.7 34.4 37.9 39.0 137.8
Gold in concentrates ('000 ounces) 19.7 30.8 33.6 65.8 110.9 150.0
Silver in concentrates ('000
ounces) 146 220 201 194 207 760
(a) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi
through its 50.79% interest in Turquoise Hill Resources.
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
----------------------------------- ----------- ----- ----- ----- ----- ----- --------
DIAMONDS
Argyle Diamonds (a) 100.0%
Western Australia
AK1 ore processed ('000 tonnes) 1,322 1,571 1,802 1,078 - 5,773
AK1 diamonds produced ('000
carats) 2,578 3,271 3,203 1,893 - 10,945
Diavik Diamonds 60.0%
Northwest Territories, Canada
Ore processed ('000 tonnes) 571 626 679 643 632 2,518
Diamonds recovered ('000 carats) 1,428 1,606 1,668 1,517 1,678 6,218
(a) Rio Tinto's Argyle operations were closed in 2020.
Rio Tinto percentage interest shown above is at 31 March 2021.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Full
Rio Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
----------------------------------- ----------- ------ ------ ------ ------ ------ -------
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production ('000
tonnes)
Hamersley mines (a) 49,327 53,187 54,852 53,316 47,063 210,682
Hamersley - Channar (b) 100.0% 1,934 2,223 2,849 2,169 2,250 9,175
Hope Downs 50.0% 11,334 11,318 13,250 13,142 11,232 49,045
Robe River - Pannawonica (Mesas
J and A) 53.0% 7,320 8,126 7,324 7,525 6,616 30,295
Robe River - West Angelas 53.0% 7,912 8,378 8,110 9,809 9,246 34,209
Total production ('000 tonnes) 77,827 83,232 86,385 85,961 76,406 333,405
----------------------------------- ----------- ------ ------ ------ ------ ------ -------
Breakdown of total production:
Pilbara Blend and SP10 Lump (c) 22,592 23,222 22,674 25,888 21,901 94,375
Pilbara Blend and SP10 Fines (c) 33,806 37,100 40,725 38,316 34,356 149,947
Robe Valley Lump 2,778 2,502 2,639 2,574 2,467 10,492
Robe Valley Fines 4,542 5,625 4,685 4,951 4,149 19,803
Yandicoogina Fines (HIY) 14,110 14,784 15,662 14,233 13,534 58,789
----------------------------------- ----------- ------ ------ ------ ------ ------ -------
Breakdown of total shipments:
Pilbara Blend Lump 17,506 20,339 19,118 20,155 15,740 77,117
Pilbara Blend Fines 33,197 40,379 39,230 42,727 35,777 155,533
Robe Valley Lump 2,135 2,110 2,098 2,351 1,934 8,694
Robe Valley Fines 5,071 5,659 5,140 5,778 4,532 21,648
Yandicoogina Fines (HIY) 12,913 15,578 14,203 15,055 14,222 57,749
SP10 Lump (c) 1,006 1,014 822 1,037 2,664 3,879
SP10 Fines (c) 1,089 1,603 1,488 1,771 2,923 5,951
------ ------ ------ ------ ------ -------
Total shipments ('000 tonnes) (d) 72,916 86,681 82,099 88,873 77,791 330,570
Full
Rio Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
----------------------------------- ----------- ------ ------ ------ ------ ------ -------
Iron Ore Company of Canada 58.7%
Newfoundland & Labrador and Quebec in
Canada
Saleable iron ore production:
Concentrates ('000 tonnes) 1,572 2,593 1,768 2,208 1,484 8,141
Pellets ('000 tonnes) 2,788 2,112 2,217 2,457 2,510 9,574
------ ------ ------ ------ ------ -------
IOC Total production ('000 tonnes) 4,360 4,704 3,985 4,666 3,993 17,715
------ ------ ------ ------ ------ -------
Shipments:
Concentrates ('000 tonnes) 1,713 2,402 2,307 1,970 1,735 8,392
Pellets ('000 tonnes) 3,013 2,248 2,347 2,620 2,515 10,229
------ ------ ------ ------ ------ -------
IOC Total Shipments ('000 tonnes)
(d) 4,726 4,650 4,654 4,591 4,250 18,621
------ ------ ------ ------ ------ -------
Global Iron Ore Totals
Iron Ore Production ('000 tonnes) 82,187 87,936 90,370 90,627 80,400 351,121
Iron Ore Shipments ('000 tonnes) 77,642 91,332 86,753 93,464 82,041 349,190
Iron Ore Sales ('000 tonnes) (e) 77,397 91,361 86,398 92,942 80,319 348,098
(a) Includes 100% of production from Paraburdoo, Mt Tom Price,
Western Turner Syncline, 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) Rio Tinto's ownership interest in Channar mine increased
from 60% to 100%, following conclusion of its joint venture with
Sinosteel Corporation upon reaching planned 290 million tonnes
production on 22 October 2020. Historic data is unchanged.
(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) Include Pilbara and IOC sales adjusted for portside trading
movements and third party volumes sold.
Rio Tinto percentage interest shown above is at 31 March 2021.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2020 2020 2020 2020 2021 2020
SALT
Dampier Salt 68.4%
Western Australia
Salt production ('000 tonnes) 1,527 2,085 1,871 1,628 2,064 7,111
TITANIUM DIOXIDE SLAG
Rio Tinto Iron & Titanium 100.0%
Canada and South Africa
(Rio Tinto share) (a)
Titanium dioxide slag ('000
tonnes) 293 262 293 272 279 1,120
(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
U(3) O(8) Production ('000 lbs) 928 831 851 860 75 3,471
(a) ERA production data are drummed U(3) O(8) .
ERA ceased processing operations on 8 January 2021, as required
by the Ranger Authority.
Rio Tinto percentage interest shown above is at 31 March 2021.
The data represent full production and sales on a 100% basis unless
otherwise stated.
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END
DRLUKOURABUSAUR
(END) Dow Jones Newswires
April 20, 2021 02:00 ET (06:00 GMT)
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