TIDMRIO
RNS Number : 6732I
Rio Tinto PLC
20 April 2022
Rio Tinto releases first quarter production results
20 April 2022
Rio Tinto Chief Executive Jakob Stausholm, said: "We made
notable progress during the quarter with the commencement of
underground mining at Oyu Tolgoi following a comprehensive
agreement reached with the Government of Mongolia, completed the
acquisition of the Rincon lithium project in Argentina, and signed
a framework agreement at the Simandou iron ore project in Guinea.
These projects are all aligned with our strategy of growing in
materials essential to a decarbonising world.
"Production in the first quarter was challenging as expected,
re-emphasising a need to lift our operational performance. We
launched seven more deployments of the Rio Tinto Safe Production
System, building on the achievements from the previous rollouts. As
we ramp up Gudai-Darri, our iron ore business will have greater
production capacity and be better placed to produce additional
tonnes of Pilbara Blend in the second half.
"We released an independent report on our workplace culture and
are implementing all 26 recommendations to make positive and
lasting changes. We also announced an agreement with the
Yinhawangka Aboriginal Corporation on a new co-designed management
plan to ensure the protection of significant social and cultural
heritage values.
"These actions will ensure we continue to deliver attractive
returns to shareholders, as we invest in sustaining and growing our
portfolio, be a partner and employer of choice and progress our
ambition to achieve net-zero carbon emissions."
Q1 vs Q1 vs Q4
Production* 2022 2021 2021
Pilbara iron ore shipments
(100% basis) Mt 71.5 -8 % -15 %
Pilbara iron ore production
(100% basis) Mt 71.7 -6 % -15 %
Bauxite Mt 13.6 0 % +4 %
Aluminium kt 736 -8 % -3 %
Mined copper kt 125 +4 % -5 %
Titanium dioxide slag kt 273 -2 % +20 %
IOC iron ore pellets
and concentrate Mt 2.4 +3 % -4 %
*Rio Tinto share unless otherwise stated
Q1 2022 operational highlights and other key announcements
-- The safety, health and wellbeing of our workforce and the
communities in which we operate are key priorities for our
business. Our all injury frequency rate of 0.33 is an improvement
from the first quarter of 2021 (0.36), and an improvement against
the prior quarter (0.41). We experienced increased COVID-19 cases
on-site in the Pilbara following the Western Australian border
opening and spikes in cases across our other operations. We
continue to monitor new variants and will remain vigilant.
-- Pilbara operations had a challenging first quarter, as
expected. We produced 71.7 million tonnes (100% basis), 6% lower
than the first quarter of 2021. Pilbara shipments in the first
quarter were 71.5 million tonnes (100% basis), 8% lower than the
first quarter of 2021. We expect increased production volumes and
improved product mix in the second half with the commissioning and
ramp up of Gudai-Darri, commissioning of the Robe Valley wet plant
and improved mine pit health. Full year shipments guidance remains
unchanged.
-- Bauxite production of 13.6 million tonnes was in line with
the first quarter of 2021 with similar wet weather disruptions as
the corresponding period.
-- Aluminium production of 0.7 million tonnes was 8% lower than
the first quarter of 2021 due to reduced capacity at our Kitimat
smelter in British Columbia following the strike which commenced in
July 2021. Preparations continue for the Kitimat smelter to
progressively restart from June 2022 with full ramp up expected by
the end of the year. All of our other smelters continued to have
stable performance, despite considerable challenges related to
unplanned employee absences due to COVID-19.
-- Mined copper production of 125 thousand tonnes was 4% higher
than the first quarter of 2021 due to higher recoveries and grades
at Kennecott, partly offset by lower grades at Oyu Tolgoi and lower
throughput at Escondida. On 1 April, we announced a new five-year
Collective Bargaining Agreement had been reached with unions
representing approximately 1,300 employees at the Kennecott
operation.
-- On 25 January, we announced we had reached agreement with
Turquoise Hill Resources and the Government of Mongolia to move the
Oyu Tolgoi project forward, resetting the relationship between the
partners and increasing the value the project delivers for
Mongolia. This step unlocks the most valuable part of the mine,
with first sustainable production expected in the first half of
2023.
-- On 14 March, we announced we had made a non-binding proposal
to the Turquoise Hill Board to acquire the approximately 49% of the
issued and outstanding shares of Turquoise Hill that Rio Tinto does
not currently own. The proposed acquisition price is C$34 per share
which values Turquoise Hill minority shareholdings at US$2.7
billion.
-- Titanium dioxide slag production of 273 thousand tonnes was
2% lower than the first quarter of 2021 as a result of equipment
reliability issues at Rio Tinto Fer et Titane (RTFT), Canada,
partly offset by continuing ramp up at Richards Bay Minerals (RBM)
in South Africa. On 18 March, we announced the lifting of force
majeure on customer contracts at RBM, that had been in place since
30 June 2021.
-- Production of pellets and concentrate at Iron Ore Company of
Canada (IOC) was 3% higher than the first quarter of 2021, which
was impacted by mine feed constraints. There is good progress on
the initiation of Rio Tinto Safe Production System (RTSPS) at the
concentrator.
-- In the first quarter, we initiated seven more deployments of
the RTSPS at five sites focusing on sustainably unlocking capacity
across the Rio Tinto system. We are already seeing promising
results for example at West Angelas achieving the best effective
utilisation of its production drills across Pilbara iron ore.
-- On 29 March, we announced the completion of the acquisition
of the Rincon lithium project for $825 million, following approval
from Australia's Foreign Investment Review Board. Rincon is a large
undeveloped lithium brine project located in Argentina - the heart
of the Latin American lithium triangle.
-- In the first quarter, we entered into partnerships and
progressed initiatives to accelerate decarbonising our own business
and the value chains we operate. These include an agreement with
the Tasmanian Government to jointly investigate how the Bell Bay
smelter can help support the development of new industries, and
with the US Department of Energy who have provided funding for a
Rio Tinto-led team to explore carbon storage potential at the
Tamarack nickel joint venture in central Minnesota.
-- On 8 April, we released Taxes Paid: Our Economic Contribution
2021, showing that we made a total direct economic contribution of
$66.6 billion in the countries and communities where we operate and
paid $13.3 billion of taxes and royalties.
-- On 24 February, we announced that Hinda Gharbi is stepping
down as a non-executive director at the conclusion of the Rio Tinto
plc AGM on 8 April 2022 to join Bureau Veritas, initially as Chief
Operating Officer and transitioning in 2023 to the position of
Chief Executive Officer.
-- On 6 March, we announced that we had reached a settlement
with the Australian Securities and Investment Commission (ASIC)
regarding the disclosure of the impairment of Rio Tinto Coal
Mozambique, which was reflected in Rio Tinto's 2012 year-end
accounts. As part of this court approved settlement between ASIC
and Rio Tinto, there were no findings of fraud or any systemic or
widespread failure by Rio Tinto.
-- We continue to offer support to our team members of Ukrainian
and Russian heritage and we have committed $5 million to
humanitarian agencies. We are in the process of terminating
commercial relationships with Russian businesses, while also
ensuring the well being of our people, our contribution to
communities, and the continued safe operation of our businesses. As
a result of the Australian Government's sanction measures, we have
taken on 100% of the capacity and governance of Queensland Alumina
Limited (QAL) until further notice. QAL is 80% owned by Rio Tinto
and 20% owned by Rusal. Our focus remains on ensuring the continued
safe operation of QAL, as a significant employer and contributor to
the local Gladstone and Queensland economies.
-- 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.
2022 production guidance
2021 Q1 2022 2022
Rio Tinto share, unless otherwise stated Actuals Actuals Unchanged
Pilbara iron ore(1) (shipments, 100% basis) 320 to
(Mt) 322 71.5 335
54 to
Bauxite (Mt) 54 14 57
8.0 to
Alumina (Mt) 7.9 1.9 8.4
3.1 to
Aluminium (Mt) 3.2 0.7 3.2
500 to
Mined copper (kt) 494 125 575
230 to
Refined copper (kt) 202 55 290
5.0 to
Diamonds(2) (M carats) 3.8 1.0 6.0
1.1 to
Titanium dioxide slag (Mt) 1.0 0.3 1.4
10.0 to
IOC(3) iron ore pellets and concentrate (Mt) 9.7 2.4 11.0
Boric oxide equivalent (Mt) 0.5 0.1 0.5
(1) Pilbara shipments guidance remains subject to risks around
commissioning and ramp-up of new mines and management of cultural
heritage.
(2) Reflects 100% ownership of Diavik (previously 60%) from 1st
November 2021.
(3) Iron Ore Company of Canada.
-- Iron ore shipments and bauxite production guidance remain
subject to weather and market conditions.
-- Our guidance assumes development of the pandemic does not
lead to government-imposed restrictions and widespread protracted
cases related to new highly contagious variants with high severity,
which could result in a significant number of our production
critical workforce and contractor base being unable to work due to
illness and/or isolation requirements. This risk extends to
prolonged interruption of service from a key partner or supplier
which could lead to severely constrained operational activity of a
key asset or project. This risk is exacerbated globally by tight
labour markets and supply chain delays.
-- Pilbara shipments guidance remains subject to commissioning
and ramp up of Gudai-Darri and the Robe Valley wet plant, and
management of cultural heritage, including any impacts from the
Aboriginal Cultural Heritage Act 2021. Given the quality of our
resource, we retain a range of development options in the Pilbara,
subject to heritage and environmental approvals.
Operating costs
-- Pilbara iron ore 2022 unit cost guidance of $19.5-$21.0 per
tonne remains unchanged. Operating cost guidance is based on A$:US$
exchange rate of 0.75 and exclude any additional COVID-19 response
costs.
-- Copper C1 unit cost guidance in 2022 is unchanged at 130-150 US cents/lb.
Investments, growth and development projects
-- We continue to proactively manage COVID-19 and prioritise
work across critical projects. Capital expenditure for 2022 for our
existing operations remains unchanged at around $8.0 billion,
excluding any impact of the Rincon acquisition. The 2022 estimate
takes into account potential increases of around 15% for the
Pilbara replacement projects, as previously guided in the full year
financial release. Capital expenditure for 2023 and 2024 is still
expected to be between $9.0 and $10.0 billion, which includes the
ambition to invest up to $3.0 billion in growth per year, depending
on opportunities.
-- Exploration and evaluation expense in the first quarter of
2022 was $168 million, $10 million (7%) higher than the first
quarter of 2021, with continued ramp up of activities in Guinea and
Australia.
Pilbara mine projects
-- Commissioning and ramp up of Pilbara growth and brownfield
mine replacement projects has continued to be impacted by resource
shortages and supply chain quality issues including steel
fabrication quality at Gudai-Darri and early commissioning failures
at Robe Valley, compounded by COVID-19 and isolation requirements
as cases in Western Australia increased following the easing of
border restrictions in March.
-- At Gudai-Darri, improved project performance during the
quarter has seen a number of facilities progressed through to
construction completion and in to commissioning stages. First ore
via the main plant is still forecast in the second quarter of
2022.
-- At Robe Valley, ongoing wet plant commissioning challenges
continues to impact production ramp up. The wet plant at Mesa A is
operating at reduced capacity ahead of some planned component
replacement in the third quarter.
Oyu Tolgoi underground project(1)
Technical progress
-- Commencement of undercut operations was achieved in January
following Oyu Tolgoi Board approval to commence underground mining
operations. Construction progress continued to be impacted by
COVID-19 during the quarter with an increase in on-site COVID-19
cases in January reducing workforce availability to approximately
55% of planned requirements. Workforce levels have since improved
to between 70% and 90% of planned requirements. The impact on
project costs of the additional restrictions related to COVID-19 to
the end of March is estimated to be $195 million ($20 million in
the first quarter). Commissioning of the Materials Handling System
1 was completed in February.
-- At the end of March, shaft 4 sinking recommenced with sinking
advancement now at 181 metres below ground level and shaft 3
sinking commenced. The delay to the commissioning of shafts 3 and 4
is still expected to be approximately nine months per prior
guidance based on known COVID-19 impacts to date. This delay has no
impact on Panel 0 sustainable production with Panels 1 and 2 study
work underway.
Other updates
-- On 25 January, we announced we had reached agreement with
Turquoise Hill Resources and the Government of Mongolia to move the
Oyu Tolgoi project forward, resetting the relationship between the
partners and increasing the value the project delivers for
Mongolia. This step unlocks the most valuable part of the mine,
with first sustainable production expected in the first half of
2023.
-- A reforecast is underway to determine a revised cost and
schedule estimate that will reflect: any further COVID-19 impacts;
any additional time-based impacts and market price escalation
arising from resequencing due to 2021 budget constraints (as a
result of the Oyu Tolgoi Board not approving the capital budget
uplift at the time the Definitive Estimate was finalised); and
updated risk ranging reflecting the latest project execution risks.
The market will be updated on any associated impacts in due
course.
-- The Oyu Tolgoi Board has approved the Electricity Supply
Agreement to provide Oyu Tolgoi with a long-term source of power
from the Mongolian grid, under terms already agreed with the
Government of Mongolia. An agreement in-principle has been reached
between the National Power Transmission Grid (NPTG) and the Inner
Mongolia Power International Cooperation Company (IMPIC) for an
extension of current power import arrangements from China. This is
for a three-year fixed term extension to 2026, followed by an
extension to up to 2030, if required (the current agreement expires
in July 2023). Outstanding commercial terms are in the process of
being finalised.
-- On 14 March, we announced we had made a non-binding proposal
to the Turquoise Hill Board to acquire the approximately 49% of the
issued and outstanding shares of Turquoise Hill that Rio Tinto does
not currently own. This proposal values the Turquoise Hill minority
share capital at approximately US$2.7 billion.
-- Rio Tinto and Oyu Tolgoi continue to work closely with the
Technical Working Group established by the Government to progress
the feasibility study.
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, the tunnel boring machine has been dismantled and removed
from the tunnel. The project has seen a reduction in on-site
COVID-19 cases during the quarter and project completion remains on
schedule for the second half of 2022.
-- At the Resolution Copper project in Arizona, we continue to
work with the US Forest Service to ensure republication of the
Final Environmental Impact Statement (EIS). We continue to engage
with Native American Tribes and local communities, and mine studies
have progressed in parallel.
-- At the Winu project in Western Australia, planned drilling,
fieldwork and study activities continue. We are working through the
environmental and cultural heritage aspects of the project in
advance of submitting the necessary regulatory request. We remain
focused on building transparent, credible and trusting
relationships with our Traditional Owner partners. Timelines to
sanction and first production will be disclosed on completion of
relevant agreements and permitting processes.
-- At the Simandou iron ore project in Guinea, a framework
agreement setting out co-development of port and rail
infrastructure was signed by Simfer S.A (the joint venture through
which Rio Tinto has a 45% interest in the project) on 25 March with
Winning Consortium Simandou (WCS) and the Government of Guinea. In
May, the Rio Tinto Board provided in-principle approval of this
path forward and we continue to progress jointly with WCS to
deliver a definitive agreement within 60 days of the framework
agreement. We remain committed to delivering Simandou in accordance
with international ESG standards, ensuring that the project results
in sustainable benefits to Guinea and its people, along with our
shareholders and customers.
-- At the Jadar lithium-borate project in Serbia, we remain
committed to exploring all options and are reviewing the
implications for our activities and our people in Serbia. We
acknowledge the concerns from local communities and are committed
to meaningful engagement to explore ways to address these.
-- On 2 February, we note d Energy Resources of Australia Ltd
(ERA) release of the preliminary findings from its reforecast of
the cost and schedule for the Ranger rehabilitation project in
Australia's Northern Territory, which have been subject to
independent review (www.energyres.com.au). Rio Tinto is reviewing
the preliminary findings of this reforecast and has advised ERA
that it is committed to ensure the rehabilitation of the Ranger
Project Area is successfully achieved to a standard that will
establish an environment similar to the adjacent Kakadu National
Park.
(1) Project baseline reporting is against the 2020 Definitive
Estimate. Oyu Tolgoi LLC's updated Mongolian Feasibility Study
incorporating the Definitive Estimate schedule, costs and refined
Panel 0 mine design is subject to review and approval pursuant to
Mongolian regulatory requirements. The definitive 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 would arise. Since the
definitive estimate, at the end of 2020, Mongolia 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 and other additional restrictions, which have
continued throughout this period and are beyond those experienced
in September 2020, is ongoing. To date, the impact on project costs
of the additional restrictions experienced to 31 March 2022 is
estimated to be $195 million. Additional costs and schedule impacts
continue to be incurred and the final impact is still to be
determined. A revised schedule forecast is in progress to assess
the overall impact of additional COVID-19 restrictions and the
re-sequencing of procurement and construction works arising from
restricted budgets in 2021.
Sustainability highlights
We continue to focus on becoming a more outward-looking and
humane company, ensuring that everyone at Rio Tinto can count on a
safe, respectful and inclusive workplace. On 1 February, we p
ublished a comprehensive external review of our workplace culture,
commissioned as part of our commitment to ensure sustained cultural
change across our global operations. The review, which was carried
out by former Australian Sex Discrimination Commissioner Elizabeth
Broderick, is part of the work being undertaken by Rio Tinto's
Everyday Respect task force, which was launched in March 2021 to
better understand, prevent and respond to harmful behaviours in the
workplace.
As part of our commitment to fostering a more inclusive,
fulfilling and diverse workplace, on 10 March, we announced
improvements to our minimum global paid parental leave standards
for employees, by removing distinctions between primary and
secondary carers so that all new parents are eligible for 18 weeks
paid parental leave. The benefits will be rolled out over the
course of 2022/2023 and will be adjusted according to local
regulations, customs and context.
Communities & Social Performance (CSP)
We have established an internal global Indigenous Coordination
Committee (ICC) to advance, align and promote the company's
approach and strategy for Indigenous and other land connected
peoples. The ICC meets monthly and comprises senior representatives
from CSP, Indigenous Affairs Australia, External Affairs and Legal
in addition to the Product Groups and Business Units. Examples of
ICC topics include: aligning North American and Australian
Indigenous strategies, sharing good practices in different
geographies i.e. ranger and tribal monitoring programs; social
cultural heritage management plans and monitoring external
activities i.e. reconciliation in Canada and Australia.
On 7 March, we announced a donation of A$1.5 million to disaster
relief and recovery efforts supporting people affected by
widespread floods in Queensland and New South Wales. We are also
offering immediate financial support to employees directly impacted
by the floods, as well as providing staff involved in recovery
efforts with full paid leave. In addition to this, the company will
match any staff donations to flood relief causes.
Key highlights in Australia from the quarter are outlined below,
with further information available on our website .
Cultural heritage management
On 14 February, we announced an agreement with the Yinhawangka
Aboriginal Corporation on a new co-designed management plan to
ensure the protection of significant social and cultural heritage
values as part of our proposed development of the Western Range
iron ore project in the Pilbara region of Western Australia. The
Social, Cultural Heritage Management Plan is the result of strong
collaboration over the past year between the Yinhawangka people and
Rio Tinto.
We continue work to improve our approach to social and cultural
heritage management with Traditional Owners in the Pilbara and we
are engaging with other Traditional Owner groups to develop similar
plans.
On April 8, we welcomed the findings of an archaeological
excavation led by Traditional Owners on a site at the Channar
operation in the Pilbara which affirmed the presence of the
Yinhawangka People in the region for more than 50,000 years. Rio
Tinto acknowledges the significance of the Yirra site and is
committed to working in partnership with the Yinhawangka People to
ensure it is preserved for future generations. We are planning to
fund further Traditional Owner-led cultural research and
archaeological excavations.
On 14 March, we welcomed the release of a joint Commonwealth
Government and First Nations Heritage Protection Alliance
Discussion Paper designed to strengthen state and federal cultural
heritage protection laws. These reforms must ensure that Aboriginal
and Torres Strait Islander peoples are placed at the centre of
decision-making on matters relating to protection of their cultural
heritage.
Australian Advisory Group (AAG)
We have established an AAG to provide guidance on current and
emerging issues, and better manage policies and positions that are
important to both Australian communities and our broader business.
We have confirmed the inaugural Chairperson as Professor Peter Yu,
and other members include Michelle Deshong, Nyadol Nyuon, Yarlalu
Thomas, Djawa Yunupingu, Cris Parker and Shona Reid. The first AAG
meeting was held in March.
Climate change and our value chain
We progressed initiatives in the first quarter in line with our
pathway to decarbonise our business and actively develop
technologies that will enable our customers and our customers'
customers to decarbonise.
-- We continue to develop a phased plan for roll out of the 1GW
of renewables to support our Pilbara operations. We are working on
the schedule for deployment of distributed renewables (mix of wind
and solar), completing detailed design on the preferred sites for
the first phase, progressing engineering studies to integrate
variable renewable capacity and storage with our existing gas fired
generation and engaging with Traditional Owners, Western Australian
Government and other key stakeholders to progress final site
selection and appropriate approvals.
-- In the quarter, we established a small team to identify
opportunities to invest in nature-based solutions on or near our
landholdings. We will look for high quality, high integrity
projects that could deliver carbon offsets with biodiversity and
community benefits. While we are undertaking the urgent and
immediate action required to decarbonise our operations, we know
this action alone will not be enough to meet our climate
commitments aligned with the Paris agreement. Our work to progress
nature-based solutions will complement our wider investment in
decarbonisation and is not a substitute for achieving emissions
reductions at our mines and smelters.
-- Research work on the Low Carbon Research Project announced in
October 2021 is continuing. We are investigating iron making with
Pilbara iron ore fines using sustainable raw biomass as a coking
coal replacement, and microwaves as a highly efficient
supplementary energy source. Initial testing at a plant has
resulted in the successful production of highly metallised directly
reduced iron with targeted levels of carbon, from the biomass.
These results have enabled us to progress the design of a larger
scale continuous pilot plant to further our research and
development and assess the potential of the process at commercial
scale. In parallel, we continue to progress the other five focus
areas for iron and steel decarbonisation.
-- On 20 February, we announced a partnership with the Tasmanian
Government to jointly investigate how Bell Bay Aluminum's smelting
manufacturing capacity and electricity demand can help support the
development of new industries and more renewable energy supply in
the region. We also committed to explore how we could further
decarbonise the smelter and investigate options for future
investment to secure the competitiveness of the smelter.
-- On 14 February, we announ ced that the US Department of
Energy has awarded $2.2 million to a Rio Tinto led team to explore
carbon storage potential at the Tamarack nickel joint venture in
central Minnesota. We have assembled a team of climate innovation
and research leaders to explore new approaches in carbon
mineralisation technology as a way to safely and permanently store
carbon as rock. We will contribute $4 million in funding for the
3-year project, in addition to the funding from the Department of
Energy.
-- On 29 March, we announced the commissioning of a new remelt
furnace at our Laterrière Plant, adding 22,000 metric tons of
recycling capacity to our aluminium operations in the Saguenay,
Lac-Saint-Jean region of Quebec. The $8.4 million project has been
completed over two years and will enable the development of new
sustainable products combining low-carbon and recycled aluminium
for customers in the North American market. The remelt furnace is
equipped with highly efficient burners to minimise its carbon
footprint.
Our markets
Economic growth and commodity demand started positively this
year as the world continues to recover from the pandemic downturn.
However, market expectations have been revised downwards amidst
sustained high inflation, the outbreak of the Russia-Ukraine war,
and a resurgence of COVID-19 lockdowns in China. Further downside
risks include a prolonged war and other geopolitical tensions,
extended labour and supply shortages, and monetary policy
adjustments to curb inflation.
-- Commodity prices have been elevated due to actual and
expected disruptions to supply. We expect commodity demand to be
underpinned by the global energy transition which is creating new
demand for our products and near-term Chinese policies that are
becoming more growth focused. Recent input cost increases are the
largest raw material cost hike since the Oil Crisis in 1973. Rising
interest rates globally pose downside risks to economic growth.
-- China is transitioning from tightening to easing policies
following a slowdown in the second half of 2021, with mild
pro-growth measures in place to support property, infrastructure
and consumption. Economic stability remains a top priority this
year amidst significant economic headwinds, including COVID-19
restrictions. We expect China to continue to finetune its policies
to balance multiple priorities.
-- In the United States, there has been a rebound in demand
post-Omicron and the labour market is extremely tight, leading to
strong income growth. However, the Fed has started to tighten
monetary policy to combat sustained high inflation, raising
concerns of an economic slowdown if interest rates are raised too
quickly in a short period.
-- The economic recovery in the Eurozone has been dampened by
escalating conflict and further decoupling from the Russian
economy. Inflation hit record highs, up from 5.9% in February to
7.5% in March, with a strong acceleration in energy and food
components. The auto industry has also been impacted by increasing
supply chain issues arising from the war.
-- Iron ore prices have been volatile, with the Platts 62% Fe
index up 33% at the end of the first quarter ($158/dmt). Since late
February, supply concerns due to the war in Ukraine has outweighed
muted demand growth and a crackdown on speculative trading
behaviour in China. China's economy is getting a boost with
infrastructure spending, but COVID-19 lockdowns pose downside risks
to near-term construction activity.
-- The aluminium LME price was volatile ending up 25% at the end
of the first quarter, and above $3,500/t, supported by disruptions
from the Russia-Ukraine war, high energy prices and supply
tightness in Europe and China. The price hit a record high of
almost $4,000/t on 7 March as fear gripped the market that supply
from Russia will become inaccessible. Tight physical metal markets
and low inventory levels have also supported increased market
premia across US and Europe during the first quarter.
-- Copper has not experienced a price rally to the extent seen
in other base metals, although the price was up 7% at the end of
the first quarter ($4.69/lb). The global market continues to be
tight, with exchange stocks near 16-year lows, and is still
susceptible to supply disruptions. However, rising global
production later in 2022 should help to offset disruptions.
-- Prices for key battery metals have continued to increase as
strong demand outpaces supply, amidst low spodumene feedstocks.
Lithium carbonate prices have more than doubled in the first
quarter and seen a six-fold increase year on year. Nevertheless,
mine supply growth should pick up due to the ramp up of idled mine
capacity and new projects coming online, especially in
Australia.
IRON ORE
Q1 vs Q1 vs Q4
Rio Tinto share of production
(Million tonnes) 2022 2021 2021
Pilbara Blend and SP10
Lump(1) 17.1 -5 % -16 %
Pilbara Blend and SP10
Fines(1) 25.7 -9 % -20 %
Robe Valley Lump 1.1 -20 % -9 %
Robe Valley Fines 1.7 -22 % -16 %
Yandicoogina Fines (HIY) 14.5 +7 % +1 %
Total Pilbara production 60.1 -5 % -1 %
Total Pilbara production
(100% basis) 71.7 -6 % -15 %
Q1 vs Q1 vs Q4
Rio Tinto share of shipments
(Million tonnes) 2022 2021 2021
Pilbara Blend Lump 10.8 -16 % -16 %
Pilbara Blend Fines 21.7 -24 % -11 %
Robe Valley Lump 0.7 -34 % -36 %
Robe Valley Fines 1.7 -28 % -23 %
Yandicoogina Fines (HIY) 14.5 +2 % +3 %
SP10 Lump(1) 3.4 +28 % -30 %
SP10 Fines(1) 7.5 +157 % -30 %
Total Pilbara shipments(2) 60.3 -7 % -14 %
Total Pilbara shipments
(100% basis)(2) 71.5 -8 % -15 %
Total Pilbara Shipments
(consolidated basis)(2,
3) 61.8 -7 % -14 %
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 had a challenging first quarter, as expected,
as ongoing mine depletion was not offset by mine replacement
projects, with delayed commissioning of Gudai-Darri (first ore
still forecast for the second quarter of 2022) and ongoing
commissioning challenges at the Mesa A wet plant continuing to
impact production ramp up at Robe Valley. COVID-19 constraints
impacted labour supply as we experienced increased cases on-site in
the Pilbara following the Western Australian border opening in
March. First quarter shipments of 71.5 million tonnes (Rio Tinto
share 60.3 million tonnes) were 8% lower than the first quarter of
2021. We produced 71.7 million tonnes (Rio Tinto share 60.1 million
tonnes) in the first quarter, 6% lower than the corresponding
period of 2021. We expect increased production volumes and improved
product mix in the second half with the commissioning and ramp up
of Gudai-Darri, commissioning of the Robe Valley wet plant and
improved mine pit health. Full year shipments guidance remains
unchanged.
The focus on pit health and mine development activities
delivered record first quarter total material moved, with higher
waste movement (+9% year on year) and drill and blast volumes (+12%
year on year). Deployment of the Rio Tinto Safe Production System
continues and we are seeing some promising results, with improved
drill and blast performance at West Angelas and improved fixed
plant performance at Yandicoogina. We are now focused on
replicating the improvements at West Angelas and Yandicoogina and
commencing new deployments at the Tom Price and Brockman 4
operations.
Approximately 11% 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 31% of sales in
the first quarter were made on a free on board (FOB) basis, with
the remainder sold including freight.
China Portside Trading
We continue to increase our iron ore portside sales in China,
with 7.0 million tonnes of sales in the first quarter of 2022 (1.8
million tonnes in the first quarter of 2021). This included an
inventory drawdown of 31% from the higher levels at the end of 2021
due to elevated SP10 production volumes (11.4 million tonnes,
including 8.8 million tonnes of Pilbara product). At 31 March,
inventory levels are 7.9 million tonnes, including 5.3 million
tonnes of Pilbara product. We continue to develop our partnerships
with the Chinese ports and grow our product screening and blending
capabilities. In the first quarter of 2022 approximately 70% of our
portside sales were either screened or blended in Chinese
ports.
ALUMINIUM
Q1 vs Q1 vs Q4
Rio Tinto share of production
('000 tonnes) 2022 2021 2021
Bauxite 13,625 0 % +4 %
Bauxite third party
shipments 10,135 +12 % +13 %
Alumina 1,901 -7 % -1 %
Aluminium 736 -8 % -3 %
Bauxite
Bauxite production of 13.6 million tonnes was in line with the
first quarter of 2021 with similar wet weather disruptions as the
corresponding period.
We shipped 10.1 million tonnes of bauxite to third parties in
the first quarter, 12% higher than the same period of 2021 with
less direct shipping interruptions from the major weather
events.
Alumina
Alumina production of 1.9 million tonnes was 7% lower than the
first quarter of 2021, as a result of unplanned outages at our
refineries.
As a result of the Australian Government's sanction measures, we
have taken on 100% of the capacity and governance of Queensland
Alumina Limited (QAL) until further notice. QAL is 80% owned by Rio
Tinto and 20% owned by Rusal. Our focus remains on ensuring the
continued safe operation of QAL, as a significant employer and
contributor to the local Gladstone and Queensland economies.
Aluminium
Aluminium production of 0.7 million tonnes was 8% lower than the
first quarter of 2021 due to reduced capacity at our Kitimat
smelter in British Columbia following the strike which commenced in
July 2021. The reduced capacity has been partly offset by the
continued stable performance across all remaining smelters, despite
considerable challenges related to unplanned employee absences due
to COVID-19.
Agreement with the labour union and employees was reached in
October and preparations continue for the Kitimat smelter to
progressively restart from June 2022 with full ramp up expected by
the end of the year.
COPPER
Q1 vs Q1 vs Q4
Rio Tinto share of production
('000 tonnes) 2022 2021 2021
Mined copper
Kennecott 47.1 +42 % -5 %
Escondida 68.2 -5 % -2 %
Oyu Tolgoi 10.2 -33 % -22 %
Refined copper
Kennecott 40.2 -11 % +58 %
Escondida 14.4 +3 % -1 %
Kennecott
Mined copper production was 42% higher than the first quarter of
2021, with higher grades (+35%) and recoveries due to mining higher
grade ores following the transition into the south wall which was
completed in 2021.
Refined copper production was 11% lower than the first quarter
of 2021 due to significant COVID-19 workforce impacts at the
smelter. Refined copper production was 58% higher than the prior
quarter due to challenges with the furnace failure and associated
recovery last year.
On 1 April, we announced a new Collective Bargaining Agreement
had been reached with unions representing approximately 1,300
employees at the Kennecott operation. The new five-year agreement
was ratified through a vote by union members held on 31 March 2022,
following seven weeks of constructive negotiations. This agreement,
effective 1 April 2022, delivers fair and competitive wages and
enhanced benefits for all represented Kennecott employees, and new
pathways to career progression.
Escondida
Mined copper production was 5% lower than the first quarter of
2021 mainly due to 7% lower throughput as a result of COVID-19
workforce impacts, public road blockades associated with social
unrest and extension of ball mill planned maintenance.
Oyu Tolgoi
Mined copper production from the open pit was 33% lower than the
first quarter of 2021 due to lower copper grades and recoveries as
a result of planned mine sequencing. A planned concentrator
shutdown in February was completed safely and successfully on
schedule.
We continue to work closely with the Mongolian and Chinese
authorities and our customers to manage the risk of supply chain
disruptions. Cross-border concentrate shipments into China have
resumed with measures in place to transport greater volumes in a
safe and efficient manner, however uncertainty continues to exist
with the rate of COVID-19 cases in Mongolia. The force majeure
declared on shipments from 30 March 2021 remains in place.
MINERALS
Q1 vs Q1 vs Q4
Rio Tinto share of production
(million tonnes) 2022 2021 2021
Iron ore pellets and
concentrate
IOC 2.4 +3 % -4 %
Q1 vs Q1 vs Q4
Rio Tinto share of production
('000 tonnes) 2022 2021 2021
Minerals
Borates - B(2) O(3)
content 123 +1 % +5 %
Titanium dioxide slag 273 -2 % +20 %
Q1 vs Q1 vs Q4
Rio Tinto share of production
('000 carats) 2022 2021 2021
Diavik(1) 991 -2 % -14 %
(1) Reflects 100% ownership of Diavik (previously 60%) from 1st
November 2021.
Iron Ore Company of Canada (IOC)
Iron ore production was 3% higher than the first quarter of
2021, which was impacted by mine feed constraints. There is good
progress on the initiation of Rio Tinto Safe Production System at
the concentrator.
Borates
Borates production in the first quarter was 1% higher than the
corresponding period of 2021 with stable refinery operating rates
following the successful implementation of productivity initiatives
supporting system stability. We expect logistical challenges to
continue with elevated congestion at the Port of Los Angeles and
shipping rate escalation. Labour availability is also posing a
threat to supply chain stability.
Iron and Titanium
Titanium dioxide production was 2% lower than the first quarter
of 2021, but 20% higher than the prior quarter as a result of the
restart at Richards Bay Minerals (RBM) in South Africa and improved
stability of operations at Rio Tinto Fer et Titane (RTFT), Canada.
RBM has continued its path to stable operations following last
year's disruptions and RTFT has made progress addressing the
equipment reliability issues in 2021. On 18 March, we announced the
lifting of force majeure on customer contracts at RBM, that had
been in place since 30 June 2021.
The province of KwaZulu-Natal in South Africa, where our RBM
operation is located, has experienced devastating floods in the
past weeks. While the Richards Bay area has been largely spared and
our people are safe, our local teams have set aside funds which
will be used to support our partners in managing this unfolding
humanitarian crisis. Engagement with the relevant authorities are
underway to understand needs and priorities.
Diamonds
At Diavik, carats recovered in the first quarter were 2% lower
than the first quarter of 2021 due to lower availability of ore
driven by significant impacts from COVID-19 including unplanned
employee absences, offset by an increased share of production from
November 2021. Processing throughput was also impacted by an
unplanned outage in the first quarter.
EXPLORATION AND EVALUATION
Pre-tax and pre-divestment expenditure on exploration and
evaluation charged to the income statement in the first quarter of
2022 was $168 million, compared with $157 million in the first
quarter of 2021. Approximately 41% of this expenditure was incurred
by Copper (includes Simandou), 34% by central exploration, 15% by
Minerals and 10% by Iron Ore.
There were no significant divestments of central exploration
properties in the first quarter of 2022.
Exploration highlights
Rio Tinto has a strong portfolio of projects with activity in 18
countries across seven 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, Chile, Colombia,
Peru and Zambia, diamonds projects in Canada, and nickel projects
in Finland and Canada. Mine-lease exploration continued at Rio
Tinto managed businesses including Pilbara Iron in Australia and
Diavik in Canada. Activities on the ground at the Falcon diamonds
project in Saskatchewan, Canada are limited to care and maintenance
while Rio Tinto continues to carry out studies and review
information acquired in previous programmes.
A summary
of activity
for the quarter
is as follows: Greenfield/ Brownfield
Commodities Studies Stage Advanced projects programmes
Melville Island,
Amargosa, Brazil*, Australia
Bauxite Sanxai, Laos* Cape York, Australia
Lithium: Rincon,
Lithium borates: Nickel Greenfield:
Jadar, Serbia Canada, Finland
Nickel: Tamarack, Lithium Greenfield:
Battery Materials US (3rd party operated) US, Australia
Copper Greenfield:
Australia, Brazil,
Canada, Chile,
Copper: La Granja, China, Colombia,
Copper/molybdenum: Peru, Pribrezhniy, Finland, Kazakhstan,
Resolution, US Kazakhstan Namibia, Nicaragua,
Copper/Gold: Winu, Calibre-Magnum, Peru, Serbia, US,
Copper Australia Australia Zambia
Diamonds Greenfield:
Canada, Angola
Diamonds Brownfield:
Diamonds Falcon, Canada* Diavik
Greenfield and
Pilbara, Australia Brownfield: Pilbara,
Iron Ore Simandou, Guinea Pilbara, Australia Australia
Potash: KL262, Canada Heavy mineral sands
Heavy mineral sands: Greenfield: South
Minerals Mutamba, Mozambique Africa
*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 Please direct all enquiries to
media.enquiries@riotinto.com
Media Relations, UK Media Relations, Australia
Illtud Harri Jonathan Rose
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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
Investor Relations, UK Investor Relations, Australia
Menno Sanderse Menno Sanderse
M +44 7825 195 178 M +44 7825 195 178
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.
riotinto.com
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
22
vs Q1 22
2021 2021 2022 Q1 vs
Q1 Q4 Q1 2021 21 Q4 21
Principal commodities
('000 -7 -1
Alumina t) 2,034 1,911 1,901 7,894 % %
('000 -8 -3
Aluminium t) 803 757 736 3,151 % %
('000 +4
Bauxite t) 13,566 13,095 13,625 54,326 0 % %
('000 +1 +5
Borates t) 122 117 123 488 % %
('000 +4 -5
Copper - mined t) 120.5 132.3 125.5 493.5 % %
('000 -8 +37
Copper - refined t) 59.2 40.0 54.7 201.9 % %
('000 -2 -14
Diamonds cts) 1,007 1,155 991 3,847 % %
('000 -5 -14
Iron Ore t) 65,681 72,561 62,465 276,557 % %
Titanium dioxide ('000 -2 +20
slag t) 279 228 273 1,014 % %
Other Metals & Minerals
('000 -29 -7
Gold - mined oz) 96.4 73.9 68.5 344.9 % %
('000 -43 +2
Gold - refined oz) 56.8 31.5 32.2 176.4 % %
('000 -79 -1
Molybdenum t) 5.0 1.1 1.1 7.6 % %
('000 +13 +8
Salt t) 1,411 1,471 1,595 5,848 % %
('000 +1 -9
Silver - mined oz) 1,005 1,108 1,012 4,148 % %
('000 -29 +12
Silver - refined oz) 812 516 577 2,671 % %
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 2021 2021 2021 2021 2022 2021
ALUMINA
Production ('000 tonnes)
100
Jonquière (Vaudreuil) % 352 349 325 338 334 1,364
Jonquière (Vaudreuil) specialty 100
Alumina plant % 22 28 29 28 25 107
Queensland Alumina 80 % 743 756 738 727 704 2,964
São Luis (Alumar) 10 % 95 97 75 99 94 366
100
Yarwun % 822 782 770 719 745 3,093
Rio Tinto total alumina production 2,034 2,012 1,937 1,911 1,901 7,894
ALUMINIUM
Production ('000 tonnes)
100
Australia - Bell Bay % 46 47 48 48 46 189
Australia - Boyne Island 59 % 74 75 75 75 73 298
Australia - Tomago 52 % 75 75 77 78 75 305
100
Canada - six wholly owned % 385 391 343 325 318 1,444
Canada - Alouette (Sept-Îles) 40 % 62 63 64 63 62 251
Canada - Bécancour 25 % 28 29 29 30 28 116
100
Iceland - ISAL (Reykjavik) % 49 51 52 52 50 203
New Zealand - Tiwai Point 79 % 65 65 67 67 66 264
Oman - Sohar 20 % 20 20 20 20 19 79
Rio Tinto total aluminium production 803 816 774 757 736 3,151
BAUXITE
Production ('000 tonnes) (a)
100
Gove % 2,879 3,030 3,067 2,787 3,093 11,763
Porto Trombetas 12 % 254 364 332 416 240 1,366
Sangaredi (b) 1,887 1,755 1,763 1,704 1,765 7,109
100
Weipa % 8,545 8,550 8,805 8,188 8,527 34,088
Rio Tinto total bauxite production 13,566 13,699 13,967 13,095 13,625 54,326
(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 2021 2021 2021 2021 2022 2021
BORATES
Production ('000 tonnes B(2)
O(3) content)
100
Rio Tinto Borates - borates % 122 126 123 117 123 488
COPPER
Mine production ('000
tonnes)
(a)
100
Bingham Canyon % 33.2 33.7 42.8 49.7 47.1 159.4
Escondida 30 % 72.1 69.5 68.4 69.6 68.2 279.5
Oyu Tolgoi (b) 34 % 15.2 12.3 14.1 13.0 10.2 54.6
Rio Tinto total mine
production 120.5 115.5 125.2 132.3 125.5 493.5
Refined production ('000
tonnes)
Escondida 30 % 14.0 15.3 14.7 14.5 14.4 58.6
100
Rio Tinto Kennecott (c) % 45.2 36.9 35.7 25.5 40.2 143.3
Rio Tinto total refined
production 59.2 52.3 50.5 40.0 54.7 201.9
(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.
(c) We continue to process third party concentrate to optimise
smelter utilisation, including 1.3 thousand tonnes of cathode
produced from purchased concentrate in year-to-date 2022. Purchased
and tolled copper concentrates are excluded from reported
production figures and production guidance. Sales of cathodes
produced from purchased concentrate are included in reported
revenues.
DIAMONDS
Production ('000 carats)
100
Diavik (a) % 1,007 851 834 1,155 991 3,847
(a) On 17 November 2021, Rio Tinto's ownership interest in Diavik
increased from 60% to 100%. Production is reported including this
change from 1 November 2021.
GOLD
Mine production ('000 ounces)
(a)
100
Bingham Canyon % 36.2 30.5 38.1 34.7 37.8 139.5
Escondida 30 % 11.4 11.7 12.6 12.9 10.9 48.5
Oyu Tolgoi (b) 34 % 48.8 37.9 43.8 26.3 19.8 156.9
Rio Tinto total mine production 96.4 80.1 94.5 73.9 68.5 344.9
Refined production ('000 ounces)
100
Rio Tinto Kennecott % 56.8 43.6 44.5 31.5 32.2 176.4
(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.
(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
Rio
Tinto Q1 Q2 Q3 Q4 Q1 Full Year
interest 2021 2021 2021 2021 2022 2021
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines (b) 49,313 50,333 55,634 55,049 47,678 210,329
Hope Downs 50 % 5,616 5,960 6,500 6,567 5,830 24,642
Iron Ore Company of Canada 59 % 2,345 2,721 2,163 2,498 2,404 9,727
Robe River - Pannawonica (Mesas
J and A) 53 % 3,506 3,090 3,721 3,196 2,774 13,514
Robe River - West Angelas 53 % 4,900 4,137 4,056 5,252 3,779 18,345
Rio Tinto iron ore production
('000 tonnes) 65,681 66,241 72,074 72,561 62,465 276,557
Breakdown of Production:
Pilbara Blend and SP10 Lump
(c) 18,050 18,265 19,742 20,374 17,081 76,431
Pilbara Blend and SP10 Fines
(c) 28,245 28,796 30,825 32,081 25,658 119,947
Robe Valley Lump 1,307 1,219 1,423 1,152 1,051 5,102
Robe Valley Fines 2,199 1,871 2,297 2,044 1,724 8,412
Yandicoogina Fines (HIY) 13,534 13,369 15,623 14,412 14,548 56,938
Pilbara iron ore production
('000 tonnes) 63,336 63,520 69,910 70,063 60,061 266,830
IOC Concentrate 871 1,154 829 1,009 962 3,863
IOC Pellets 1,474 1,567 1,335 1,489 1,442 5,864
IOC iron ore production ('000
tonnes) 2,345 2,721 2,163 2,498 2,404 9,727
Breakdown of Shipments:
Pilbara Blend Lump 12,842 12,830 13,018 12,832 10,809 51,522
Pilbara Blend Fines 28,565 27,795 28,901 24,308 21,698 109,569
Robe Valley Lump 1,025 934 962 1,061 675 3,981
Robe Valley Fines 2,402 2,190 2,567 2,237 1,731 9,395
Yandicoogina Fines (HIY) 14,222 13,640 14,906 14,121 14,487 56,889
SP10 Lump (c) 2,664 3,748 4,826 4,841 3,397 16,078
SP10 Fines (c) 2,923 2,817 4,063 10,684 7,497 20,487
Pilbara iron ore shipments
('000 tonnes) (d) 64,642 63,953 69,242 70,084 60,295 267,921
Pilbara iron ore shipments - consolidated
basis ('000 tonnes) (d) (f) 66,431 65,627 71,131 71,972 61,818 275,161
IOC Concentrate 1,019 1,048 1,054 989 600 4,110
IOC Pellets 1,477 1,303 1,374 1,711 1,412 5,865
IOC Iron ore shipments ('000
tonnes) (d) 2,496 2,352 2,428 2,700 2,012 9,976
Rio Tinto iron ore shipments
('000 tonnes) (d) 67,137 66,305 71,671 72,784 62,307 277,897
Rio Tinto iron ore sales ('000
tonnes) (e) 65,551 67,145 70,967 69,489 66,683 273,153
(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, Channar and the Eastern Range mines. Whilst
Rio Tinto owns 54% of the Eastern Range mine, under the terms of
the joint venture agreement, Hamersley Iron manages the operation
and is obliged to purchase all mine production from the joint
venture and therefore all of the production is included in Rio
Tinto's share of production. Rio Tinto'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
remains unchanged.
(c) SP10 includes 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) Represents the difference between amounts shipped to
portside trading and onward sales from portside trading, and third
party volumes sold.
(f) 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 2021 2021 2021 2021 2022 2021
MOLYBDENUM
Mine production ('000 tonnes)
(a)
100
Bingham Canyon % 5.0 1.1 0.4 1.1 1.1 7.6
(a) Mine production figures for metals refer to the total
quantity of metal produced in concentrates, leach liquor or doré
bullion irrespective of whether these products are then refined
onsite, except for the data for bauxite and iron ore which
represent production of marketable quantities of ore plus
concentrates and pellets.
SALT
Production ('000 tonnes)
Dampier Salt 68 % 1,411 1,458 1,508 1,471 1,595 5,848
SILVER
Mine production ('000 ounces)
(a)
100
Bingham Canyon % 524 476 639 589 561 2,228
Escondida 30 % 395 370 387 439 381 1,591
Oyu Tolgoi (b) 34 % 85 79 84 80 71 328
Rio Tinto total mine production 1,005 925 1,110 1,108 1,012 4,148
Refined production ('000
ounces)
100
Rio Tinto Kennecott % 812 609 733 516 577 2,671
(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 100
(a) % 279 298 209 228 273 1,014
(a) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio
Tinto's 74% interest in Richards Bay Minerals (RBM).
ERA ceased processing operations on 8 January 2021, as required
by the Ranger Authority. 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.
Rio Tinto percentage interest shown above is at 31 March
2022.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2021 2021 2021 2021 2022 2021
ALUMINA
Smelter Grade Alumina -
Aluminium Group
Alumina production ('000
tonnes)
Australia
Queensland Alumina Refinery
- Queensland 80 % 929 945 922 909 880 3,705
100
Yarwun refinery - Queensland % 822 782 770 719 745 3,093
Brazil
São Luis (Alumar)
refinery 10 % 953 968 748 993 940 3,662
Canada
Jonquière (Vaudreuil) 100
refinery - Quebec (a) % 352 349 325 338 334 1,364
(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) 100
plant - Quebec % 22 28 29 28 25 107
Rio Tinto percentage interest shown above is at 31 March 2022.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2021 2021 2021 2021 2022 2021
ALUMINIUM
Primary Aluminium
Primary aluminium production
('000 tonnes)
Australia
100
Bell Bay smelter - Tasmania % 46 47 48 48 46 189
Boyne Island smelter - 59
Queensland % 124 127 125 126 123 502
Tomago smelter - New South 52
Wales % 145 146 150 150 145 592
Canada
100
Alma smelter - Quebec % 117 117 119 119 117 471
Alouette (Sept-Îles) 40
smelter - Quebec % 155 157 159 157 154 629
100
Arvida smelter - Quebec % 40 42 42 43 42 168
100
Arvida AP60 smelter - Quebec % 15 15 15 15 14 60
Bécancour smelter 25
- Quebec % 112 117 115 119 111 463
100
Grande-Baie smelter - Quebec % 56 57 58 58 57 230
Kitimat smelter - British 100
Columbia % 95 97 46 25 25 263
Laterrière smelter 100
- Quebec % 62 63 63 64 63 252
Iceland
100
ISAL (Reykjavik) smelter % 49 51 52 52 50 203
New Zealand
79
Tiwai Point smelter % 82 82 84 85 83 333
Oman
20
Sohar smelter % 98 99 100 100 97 395
Rio Tinto percentage interest shown above is at 31 March 2022.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2021 2021 2021 2021 2022 2021
BAUXITE
Bauxite production ('000 tonnes)
Australia
100
Gove mine - Northern Territory % 2,879 3,030 3,067 2,787 3,093 11,763
100
Weipa mine - Queensland % 8,545 8,550 8,805 8,188 8,527 34,088
Brazil
Porto Trombetas (MRN) mine 12 % 2,117 3,033 2,764 3,469 2,000 11,383
Guinea
Sangaredi mine (a) 23 % 4,194 3,899 3,919 3,786 3,922 15,797
Rio Tinto share of bauxite
shipments
Share of total bauxite shipments
('000 tonnes) 13,444 13,602 14,201 13,031 13,876 54,278
Share of third party bauxite shipments
('000 tonnes) 9,024 9,493 10,091 8,988 10,135 37,596
(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 2021 2021 2021 2021 2022 2021
BORATES
100
Rio Tinto Borates - borates %
US
Borates ('000 tonnes) (a) 122 126 123 117 123 488
(a) Production is expressed as B(2) O(3) content.
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2021 2021 2021 2021 2022 2021
COPPER & GOLD
Escondida 30 %
Chile
Sulphide ore to concentrator
('000 tonnes) 32,654 31,903 33,528 35,787 30,235 133,872
Average copper grade (%) 0.78 0.78 0.73 0.71 0.81 0.75
Mill production (metals in
concentrates):
Contained copper ('000 tonnes) 207.8 202.8 201.2 203.6 191.5 815.5
Contained gold ('000 ounces) 38.0 38.9 42.0 42.9 36.3 161.7
Contained silver ('000 ounces) 1,318 1,234 1,291 1,462 1,270 5,305
Recoverable copper in ore stacked
for leaching ('000 tonnes) (a) 32.5 28.7 26.7 28.4 35.9 116.3
Refined production from leach
plants:
Copper cathode production
('000 tonnes) 46.6 51.1 49.0 48.4 48.1 195.3
(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 2022.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2021 2021 2021 2021 2022 2021
COPPER & GOLD (continued)
Rio Tinto Kennecott
100
Bingham Canyon mine %
Utah, US
Ore treated ('000 tonnes) 10,054 7,918 9,995 9,809 10,130 37,776
Average ore grade:
Copper (%) 0.38 0.48 0.47 0.55 0.51 0.47
Gold (g/t) 0.21 0.21 0.22 0.21 0.19 0.21
Silver (g/t) 2.30 2.64 2.80 2.55 2.36 2.57
Molybdenum (%) 0.058 0.021 0.017 0.020 0.021 0.029
Copper concentrates produced
('000 tonnes) 140 141 180 187 176 648
Average concentrate grade
(% Cu) 23.7 23.9 23.7 26.3 26.8 24.5
Production of metals in copper
concentrates:
Copper ('000 tonnes) (a) 33.2 33.7 42.8 49.7 47.1 159.4
Gold ('000 ounces) 36.2 30.5 38.1 34.7 37.8 139.5
Silver ('000 ounces) 524 476 639 589 561 2,228
Molybdenum concentrates produced
('000 tonnes): 9.4 2.2 1.0 2.2 2.1 14.8
Molybdenum in concentrates
('000 tonnes) 5.0 1.1 0.4 1.1 1.1 7.6
100
Kennecott smelter & refinery %
Copper concentrates smelted
('000 tonnes) 240 103 165 157 213 665
Copper anodes produced ('000
tonnes) (b) 50.5 23.5 35.7 32.9 45.8 142.5
Production of refined metal:
Copper ('000 tonnes) (c) 45.2 36.9 35.7 25.5 40.2 143.3
Gold ('000 ounces) (d) 56.8 43.6 44.5 31.5 32.2 176.4
Silver ('000 ounces) (d) 812 609 733 516 577 2,671
(a) Includes a small amount of copper in precipitates.
(b) New metal excluding recycled material.
(c) We continue to process third party concentrate to optimise
smelter utilisation, including 1.3 thousand tonnes of cathode
produced from purchased concentrate in year-to-date 2022. Purchased
and tolled copper concentrates are excluded from reported
production figures and production guidance. Sales of cathodes
produced from purchased concentrate are included in reported
revenues.
(d) Includes gold and silver in intermediate products.
Rio Tinto percentage interest shown above is at 31 March 2022.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2021 2021 2021 2021 2022 2021
COPPER & GOLD (continued)
Turquoise Hill Resources
Oyu Tolgoi mine (a) 34 %
Mongolia
Ore Treated ('000 tonnes) 9,813 9,401 9,336 10,573 9,581 39,124
Average mill head grades:
Copper (%) 0.56 0.47 0.53 0.46 0.40 0.50
Gold (g/t) 0.68 0.50 0.63 0.38 0.32 0.54
Silver (g/t) 1.29 1.19 1.29 1.27 1.25 1.26
Copper concentrates produced
('000 tonnes) 201.9 173.2 191.9 182.7 144.3 749.6
Average concentrate grade
(% Cu) 22.5 21.2 21.9 21.3 21.0 21.7
Production of metals in
concentrates:
Copper in concentrates
('000 tonnes) 45.4 36.7 41.9 38.9 30.3 163.0
Gold in concentrates ('000
ounces) 145.7 113.1 130.8 78.6 59.2 468.1
Silver in concentrates
('000 ounces) 255 235 249 239 211 977
Sales of metals in concentrates:
Copper in concentrates
('000 tonnes) 39.0 19.6 46.4 34.4 29.9 139.4
Gold in concentrates ('000
ounces) 110.9 72.6 149.1 102.2 57.4 434.7
Silver in concentrates
('000 ounces) 207 106 278 192 179 783
(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 2021 2021 2021 2021 2022 2021
DIAMONDS
100
Diavik Diamonds (a) %
Northwest Territories,
Canada
Ore processed ('000 tonnes) 632 669 643 596 496 2,540
Diamonds recovered ('000
carats) 1,678 1,418 1,390 1,356 991 5,843
(a) On 17 November 2021, Rio Tinto's ownership interest in
Diavik increased from 60% to 100%. Production is reported including
this change from 1 November 2021.
Rio Tinto percentage interest shown above is at 31 March 2022.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Full
Rio Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2021 2021 2021 2021 2022 2021
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production
('000 tonnes)
Hamersley mines (a) 49,313 50,333 55,634 55,049 47,678 210,329
Hope Downs 50 % 11,232 11,920 13,000 13,133 11,660 49,284
Robe River - Pannawonica
(Mesas J and A) 53 % 6,616 5,830 7,021 6,031 5,234 25,497
Robe River - West Angelas 53 % 9,246 7,806 7,652 9,909 7,130 34,613
Total production ('000 tonnes) 76,406 75,889 83,306 84,122 71,703 319,724
Breakdown of total production:
Pilbara Blend and SP10 Lump
(b) 21,901 21,946 23,617 24,998 20,827 92,463
Pilbara Blend and SP10 Fines
(b) 34,356 34,743 37,046 38,681 31,094 144,826
Robe Valley Lump 2,467 2,300 2,686 2,173 1,982 9,626
Robe Valley Fines 4,149 3,530 4,335 3,857 3,252 15,871
Yandicoogina Fines (HIY) 13,534 13,369 15,623 14,412 14,548 56,938
Breakdown of total shipments:
Pilbara Blend Lump 15,740 15,631 16,710 16,616 13,626 64,697
Pilbara Blend Fines 35,777 34,607 36,199 31,620 27,915 138,203
Robe Valley Lump 1,934 1,762 1,814 2,001 1,273 7,512
Robe Valley Fines 4,532 4,131 4,843 4,221 3,266 17,727
Yandicoogina Fines (HIY) 14,222 13,640 14,906 14,121 14,487 56,889
SP10 Lump (b) 2,664 3,748 4,826 4,841 3,397 16,078
SP10 Fines (b) 2,923 2,817 4,063 10,684 7,497 20,487
Total shipments ('000 tonnes)
(c) 77,791 76,336 83,360 84,104 71,462 321,592
Full
Rio Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2021 2021 2021 2021 2022 2021
Iron Ore Company of Canada 59 %
Newfoundland & Labrador and Quebec
in Canada
Saleable iron ore production:
Concentrates ('000 tonnes) 1,484 1,965 1,411 1,718 1,638 6,578
Pellets ('000 tonnes) 2,510 2,669 2,273 2,535 2,456 9,986
IOC Total production ('000
tonnes) 3,993 4,634 3,684 4,254 4,094 16,564
Shipments:
Concentrates ('000 tonnes) 1,735 1,785 1,795 1,684 1,022 7,000
Pellets ('000 tonnes) 2,515 2,220 2,340 2,914 2,405 9,988
IOC Total Shipments ('000
tonnes) (c) 4,250 4,005 4,136 4,598 3,427 16,989
Global Iron Ore Totals
Iron Ore Production ('000
tonnes) 80,400 80,523 86,990 88,375 75,797 336,288
Iron Ore Shipments ('000
tonnes) 82,041 80,341 87,496 88,702 74,889 338,581
Iron Ore Sales ('000 tonnes)
(d) 80,291 81,097 86,542 85,256 79,194 333,185
(a) Includes 100% of production from Paraburdoo, Mt Tom Price,
Western Turner Syncline, Marandoo, Yandicoogina, Brockman,
Nammuldi, Silvergrass, Channar and the Eastern Range mines. Whilst
Rio Tinto owns 54% of the Eastern Range mine, under the terms of
the joint venture agreement, Hamersley Iron manages the operation
and is obliged to purchase all mine production from the joint
venture and therefore all of the production is included in Rio
Tinto's share of production. Rio Tinto'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
remains unchanged.
(b) SP10 includes other lower grade products.
(c) Shipments includes material shipped to our portside trading
facility in China which may not be sold onwards in the same
period.
(d) 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 2022.
The data represents production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Full
Tinto Q1 Q2 Q3 Q4 Q1 Year
interest 2021 2021 2021 2021 2022 2021
SALT
Dampier Salt 68 %
Western Australia
Salt production ('000 tonnes) 2,064 2,132 2,206 2,152 2,333 8,555
TITANIUM DIOXIDE SLAG
100
Rio Tinto Iron & Titanium %
Canada and South Africa
(Rio Tinto share) (a)
Titanium dioxide slag ('000
tonnes) 279 298 209 228 273 1,014
(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.
Rio Tinto percentage interest shown above is at 31 March 2022.
The data represents production and sales on a 100% basis unless
otherwise stated.
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END
DRLBKCBKNBKBPQD
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April 20, 2022 02:10 ET (06:10 GMT)
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