TIDMRIO
RNS Number : 9124M
Rio Tinto PLC
17 January 2023
Rio Tinto releases fourth quarter production results
17 January 2023
Rio Tinto Chief Executive Jakob Stausholm, said: "We were
fatality free for the fourth consecutive year, as we continue to
put safety at the forefront of everything we do. A number of
operational records were achieved in the second half across the
Pilbara iron ore mine and rail system. Deployment of our Safe
Production System resulted in improved performance at those sites
and overall production was higher versus 2021 across all
commodities, with the exception of aluminium and alumina.
"The acquisition of Turquoise Hill Resources strengthens our
copper portfolio and demonstrates our ability to allocate capital
with discipline to grow in materials the world needs for the energy
transition and delivering long-term value for our shareholders.
Copper guidance has been increased accordingly. We continue to
invest in future growth, progressing the Rincon lithium project in
Argentina and are working with our partners to progress the
Simandou project in Guinea.
"We continue to work hard to transform our culture and invest in
genuine partnerships. I am proud that we have reached new
agreements with the Yindjibarndi and Puutu Kunti Kurrama and
Pinikura peoples in Australia, and the Pekuakamiulnuatsh First
Nation in Canada.
"In line with our new purpose of finding better ways to provide
the materials the world needs, we will continue to progress our
four objectives and strategy to strengthen the business, which will
lead to profitable growth and continue to deliver attractive
shareholder returns."
vs Full
Q4 vs Q4 vs Q3 Full Year Year
Production* 2022 2021 2022 2022 2021
---------------------------- --- ------ ------ ------ ---------- -------
Pilbara iron ore shipments
(100% basis) Mt 87.3 +4% +5% 321.6 0%
Pilbara iron ore production
(100% basis) Mt 89.5 +6% +6% 324.1 +1%
Bauxite Mt 13.2 +1% -4% 54.6 +1%
Aluminium kt 783 +3% +3% 3,009 -4%
Mined copper kt 131 -1% -5% 521 +6%
Titanium dioxide slag kt 323 +42% +4% 1,200 +18%
IOC** iron ore pellets
and concentrate Mt 2.5 +1% -9% 10.3 +6%
---------------------------- --- ------ ------ ------ ---------- -------
*Rio Tinto share unless otherwise stated
**Iron Ore Company of Canada
2022 operational highlights and other key announcements
-- We continue to prioritise the safety, health and wellbeing of
our workforce and communities where we operate. We experienced our
fourth consecutive year with no fatalities at our managed
operations, and continue to work hard with our partners to achieve
the same results at our non-managed assets and marine
operations.
-- Pilbara operations produced 324.1 million tonnes (100% basis)
in 2022, 1% higher than 2021. Shipments were 321.6 million tonnes
(100% basis), in line with 2021. Performance improvements continued
across the system and we achieved record second half performance
across the mine and rail system. We expect Gudai-Darri to reach its
nameplate capacity on a sustained basis during 2023.
-- Bauxite production of 54.6 million tonnes was 1% higher than
2021, despite equipment reliability issues at Weipa and Gove in
Australia.
-- Aluminium production of 3.0 million tonnes was 4% lower than
2021 due to reduced output at our Kitimat smelter in British
Columbia, Canada and Boyne smelter in Queensland, Australia. The
rate of pot restarts at Kitimat picked up in the fourth quarter and
Boyne smelter cell recovery efforts continued. Recovery at both
smelters is progressing with full ramp-up expected to be completed
during the course of 2023. All of our other aluminium smelters
continued to demonstrate stable performance.
-- On 1 December, we commissioned the second tunnel (T2) to
carry water into the Kemano Powerhouse in British Columbia, marking
the end of the Kemano T2 hydropower project. The new, 16-kilometre
tunnel produced its first megawatt of electricity in July 2022
after construction was completed in May 2022. Both T1 and T2 are
now operating together, ensuring the long-term reliability of the
power supply for our aluminium smelter in Kitimat and neighbouring
communities.
-- Mined copper production of 521 thousand tonnes was 6% higher
than 2021 due to higher grades at Kennecott and Escondida, partly
offset by lower grades and recoveries at Oyu Tolgoi as a result of
planned mine sequencing. Unplanned maintenance was required at
Kennecott in the fourth quarter of 2022 in our anode furnaces
leading to extended downtime and continued poor anode production,
likely to result in weak cathode production in the first quarter of
2023. Refined copper production at Kennecott will continue to be
challenged due to the smelter and refinery performance, until we
undertake the largest rebuild in nine years which is planned for
the second quarter of 2023 and is expected to take approximately
three months.
-- On 16 December, we completed the acquisition of Turquoise
Hill Resources Ltd for a consideration of approximately $3.1
billion(1) , simplifying ownership of the world-class Oyu Tolgoi
mine in Mongolia, significantly strengthening Rio Tinto's copper
portfolio, and demonstrating our long-term commitment to the
project and Mongolia. We now hold a 66% direct interest in the Oyu
Tolgoi project with the remaining 34% owned by the Government of
Mongolia through Erdenes Oyu Tolgoi. Cash consideration of
approximately $2.9 billion was paid in December 2022. Oyu Tolgoi
production for 2022 remains on a 33.52% Rio Tinto share basis.
-- Titanium dioxide slag production of 1,200 thousand tonnes was
18% higher than 2021, due to community disruptions at Richards Bay
Minerals (RBM) in South Africa in 2021, and continued improved
performance of operations at Rio Tinto Fer et Titane (RTFT),
Canada. Production constraints related to nationwide electrical
power loadshedding at RBM were experienced in the fourth
quarter.
-- Iron Ore Company of Canada (IOC) production of pellets and
concentrate was 6% higher than 2021. Successful deployment of the
Rio Tinto Safe Production System (SPS) at the concentrator was
completed in the year, with record performance metrics achieved in
the year, including monthly records for concentrate production and
total material moved in the second quarter. Planning for SPS
deployment at the pellet plant commenced in December.
-- We achieved our SPS deployment target for 2022 with 30
deployments across 16 sites. Roll-outs are ongoing to continuously
improve safety, strengthen employee engagement and sustainably lift
operational performance across our global portfolio.
-- As reported in the first half, higher rates of inflation have
increased our closure liabilities with an impact to underlying
earnings. This resulted in increased charges for the year of
approximately $1.3 billion pre-tax within underlying earnings
(first half 2022: $0.4 billion) compared with 2021, including a
$1.1 billion full year increase in amortisation of discount (first
half 2022: $0.3 billion), with the remainder impacting Underlying
EBITDA.
-- As part of the agreement reached with the Australian Taxation
Office (ATO) in July, we paid the ATO additional tax of A$613
million for the period from 2010 to 2021 in August 2022.
-- The sale of a royalty on an area including the Cortez mine
operational area, a direct wholly-owned subsidiary of Royal Gold
Inc., for $525 million in cash, was settled in August. This amount
will be recorded in 'Sales of financial assets' in the group cash
flow statement and is therefore not included in Free cash flow.
-- The sale of our wholly owned Roughrider uranium development
completed in October for total consideration of $150 million,
including $80 million in cash, will be recorded in 'Disposal of
subsidiaries' in the group cash flow statement and is therefore not
included in Free cash flow.
-- On 30 November, we provided a detailed update at our Investor
Seminar on execution of our strategy and evolution of our culture,
including SPS and decarbonisation activities, to strengthen the
business, grow in a decarbonising world and continue to deliver
attractive shareholder returns. Capital expenditure to decarbonise
our assets of an estimated $7.5 billion to 2030 is being
prioritised and phased. This remains subject to Traditional Owner
and other stakeholder engagement, regulatory approvals and
technology developments. New long-term power contracts will also be
required for the aluminium business to meet targets. Our
incremental operating expenditure on building new teams and energy
efficiency initiatives remains around $200 million per annum in
addition to Research and Development investment.
-- On 19 December, we announced the appointment of Kaisa Hietala
as a non-executive director to the Rio Tinto Board, commencing 1
March 2023. Ms Hietala, a Finnish citizen, played a central role in
the commercial transformation of Neste, the world's largest and
most profitable producer of renewable products, as Executive Vice
President of Renewable Products. She serves on the Boards of Exxon
Mobil and Smurfit Kappa Group, and is Chair of the Board at
Tracegrow, a private Finnish sustainable fertilisers company.
-- 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.
(1) Based on a value of C$43.00 per share and a USD/CAD FX rate
of 1.3618 as of 15 December 2022 and includes amounts we expect to
pay in 2023.
2023 guidance
2022
Rio Tinto share, unless otherwise stated 2022 Guidance Actuals 2023
----------------------------------------- ------------- -------- --------
Pilbara iron ore (shipments, 100% basis) 320 to 320 to
(Mt) 335(1) 322 335
54 to 54 to
Bauxite (Mt) 57 55 57
Alumina (Mt) 7.6 to 7.7 to
7.8 7.5 8.0
Aluminium (Mt) 3.0 to 3.1 to
3.1 3.0 3.3
500 to 650 to
Mined copper (kt) 575 521 710(2)
190 to 180 to
Refined copper (kt) 220 209 210
Diamonds (M carats) 4.5 to 3.0 to
5.0 4.7 3.8
Titanium dioxide slag (Mt) 1.1 to 1.1 to
1.4 1.2 1.4
IOC(3) iron ore pellets and concentrate 10.0 to 10.5
(Mt) 11.0 10.3 to 11.5
Boric oxide equivalent (Mt) 0.5 0.5 0.5
----------------------------------------- ------------- -------- --------
(1) At the low end of range.
(2) Oyu Tolgoi production for 2022 remains on a 33.52% Rio Tinto
share basis. Subsequent to Rio Tinto's acquisition of Turquoise
Hill Resources which completed on 16 December, 2023 mined copper
guidance now includes Oyu Tolgoi on a 100% consolidated basis and
continues to reflect our 30% share of Escondida.
(3) Iron Ore Company of Canada continues to be reported at Rio
Tinto share.
-- 2023 production guidance is unchanged since November 2022
with the exception of mined copper. On a Rio Tinto share basis,
mined copper production guidance changed from 550 to 600 thousand
tonnes to 600 to 655 thousand tonnes. This reflects our increased
ownership in Oyu Tolgoi from 33% to 66%. Our headline production
guidance of 650 to 710 thousand tonnes now includes 100% of Oyu
Tolgoi, in line with the consolidation of Oyu Tolgoi in
Consolidated sales revenue and Underlying EBITDA in our group
financial statements.
-- Iron ore shipments and bauxite production guidance remain
subject to weather and market conditions. Pilbara shipments
guidance remains subject to progressing the ramp-up of shipments
from new mines and management of cultural heritage.
Operating costs
-- Our 2022 Pilbara iron ore unit cash costs are likely to end
up slightly above the top end of our $19.5-21.0 per tonne guidance
range, primarily due to inflation, diesel prices and labour
costs.
-- Guidance for 2023 Pilbara iron ore unit cash costs is
unchanged at $21.0 to $22.5 per tonne, based on A$:US$ exchange
rate of 0.70.
-- Guidance for 2023 copper C1 unit costs is unchanged at 160 to 180 US cents/lb.
-- Working capital has stabilised but remains somewhat elevated
with commodity price volatility, higher raw material prices and
global supply chain pressures.
Aluminium modelling
As reported in the first half of 2022, to assist with modelling
of aluminium operating costs during a volatile price environment
for raw materials we provide the following breakdown and
sensitivities for the alumina and aluminium metal segments (Primary
Metal and Pacific Aluminium). This excludes the effect of intra and
inter segment eliminations on group profit. Higher raw material
prices are also increasing inventory balances.
Alumina refining
Production FY H1 H2 FY
cash cost (%) 21 22 22 22
--------------- --- --- --- ---
Bauxite 39 32 30 31
Conversion 34 33 32 32
Caustic 14 22 24 23
Energy 13 13 14 14
--------------- --- --- --- ---
Total 100 100 100 100
FY 22
Annual cost
sensitivity
Input costs H1 21 H2 21 H1 22 H2 22 impact on underlying
(nominal) Index price Index price Index price Index price EBITDA
------------------ ------------ ------------ ------------ ------------ ---------------------
Caustic soda(1)
($/t) 274 535 675 595 $10m per $10/t
Natural gas(2)
($/mmbtu) 2.85 4.59 6.02 7.01 $4m per $0.10/GJ
Brent oil ($/bbl) 64.6 76.3 105.9 93.8 $2m per $10/bbl
------------------ ------------ ------------ ------------ ------------ ---------------------
(1) North East Asia FOB | (2) Henry Hub
Aluminum smelting
Production FY H1 H2 FY
cash cost (%) 21 22 22 22
--------------- --- --- --- ---
Alumina 41 42 39 41
Power 21 20 19 19
Conversion 21 17 17 17
Carbon 15 19 23 21
Materials 2 2 2 2
--------------- --- --- --- ---
Total 100 100 100 100
FY 22
Annual cost
sensitivity
impact on
Input costs H1 21 H2 21 H1 22 H2 22 underlying
(nominal) Index price Index price Index price Index price EBITDA
----------------- ------------ ------------ -------------------------- -------------------------- ---------------
Alumina(1)
($/t) 288 369 395 328 $64m per $10/t
Petroleum
coke(2) ($/t) 373 491 695 719 $11m per $10/t
Coal tar pitch(3)
($/t) 748 818 1,103 1,476 $2m per $10/t
----------------- ------------ ------------ -------------------------- -------------------------- ---------------
(1) LME Australia | (2) US Gulf FOB | (3) North America FOB
Investments, growth and development projects
-- Exploration and evaluation expense in 2022 was $897 million,
$171 million (24%) higher than 2021, with continued ramp-up of
activities in Guinea, Argentina and Australia. Our annual budget
for greenfield exploration remains around $250 million, mainly
focused on copper, with a growing battery minerals programme.
Pilbara mine projects
-- We have safely completed required works and demobilised from
our recently commissioned Pilbara mine replacement projects during
the period. We expect Gudai-Darri to reach its nameplate capacity
on a sustained basis during 2023.
-- At Robe Valley, the Mesa A wet plant performance verification
was successfully completed during the quarter and construction
resources have demobilised from site.
-- We have now received all primary environmental and Australian
government approvals for the Western Range Iron Ore project
(Greater Paraburdoo), a joint venture between Rio Tinto (54 per
cent) and China Baowu Steel Group Co. Ltd (46 per cent). The joint
venture remains subject to Chinese regulatory approvals. Rio Tinto
commenced early works site mobilisation and major contracts for
bulk earthworks and Civil, Structural, Mechanical, Piping,
Electrical and Instrumentation have been awarded. Heritage
surveying continued with final surveys planned for the first
quarter of 2023.
-- In addition, we continue to progress our next tranche of
Pilbara mine projects including Hope Downs 1 Sustaining (Hope Downs
2 and Bedded Hilltop) and Brockman 4 Sustaining (Brockman Syncline
1). We expect to complete the Rhodes Ridge order of magnitude study
in 2023.
Oyu Tolgoi underground project
-- At the end of the quarter, a total of 19 drawbells had been
fired. Drawbell progression accelerated as a result of improvement
initiatives implemented by the Oyu Tolgoi teams, bringing projected
first sustainable production from Panel 0 forward to the first
quarter of 2023 (previously first half of 2023).
-- At the end of December, shafts 3 and 4 sinking reached 378
metres and 507 metres below ground level, respectively. Operational
safety sinking pauses have caused some delays against the 2022
reforecast(1) to shaft sinking across the fourth quarter. Final
depths required for shafts 3 and 4 are 1,148 and 1,149 metres below
ground level, respectively. Construction of conveyor to surface
works continued during the quarter with civil scope of works
completed and other contractors mobilised to site.
-- Study work for Panels 1 and 2 (which are required to support
the ramp-up to 95,000 tonnes of ore per day) remains on track to be
completed in the first half of 2023. It will incorporate any
ventilation impacts due to the shaft 3 and 4 delays as a result of
COVID-19 restrictions and reprioritisation of the mobilised
workforce over the course of 2022, as previously reported.
-- During the quarter, Rio Tinto and the Government of Mongolia
continued to focus on supporting Oyu Tolgoi to reach the
sustainable production milestone and continuing progress on the
remaining measures contained in Mongolian Parliamentary Resolution
103 which enabled the agreement to reset the relationship and
commence underground mining operations in January 2022.
-- Rio Tinto now has a 66% direct interest in Oyu Tolgoi
following the successful completion of the acquisition of Turquoise
Hill Resources Ltd. This is allowing Rio Tinto to focus fully on
strengthening its relationship with the Government of Mongolia and
moving the project forward with a simpler and more efficient
ownership and governance structure.
Other key projects and exploration and evaluation
-- At the Resolution Copper project in Arizona, the US Forest
Service continued work to progress the Final Environmental Impact
Statement (FEIS) and complete actions necessary for the land
exchange. We continued to advance partnership discussions with
several federally-recognised Native American Tribes who are part of
the formal consultation process. We note the US Ninth Circuit Court
of Appeals' decision in November to re-hear the appeal before the
entire bench of judges. This same court of appeal previously upheld
the lower court's ruling, which denied Apache Stronghold's request
for injunctive relief. While there is significant local support for
the project, we respect the views of groups who oppose it and will
continue our efforts to address and mitigate these concerns. Costs
attributable to the Resolution project in 2022 were $122 million(3)
.
-- At the Winu copper-gold project in Western Australia, we
continued to strengthen our relationships and advanced agreement
making over the quarter with our host Traditional Owners, the Martu
and Nyangumarta groups. Planned drilling, fieldwork and study
activities continued over the period strengthening the development
pathway ahead of applications for regulatory and other required
approvals. Costs attributable to the Winu project in 2022 were $56
million(3) .
-- At the Simandou iron ore project in Guinea, negotiations
towards the co-development of project infrastructure progressed
with the December signing of a non-binding term sheet between Rio
Tinto joint venture Simfer, Baowu Resources, Winning Consortium
(WCS) and the Government of Guinea(2) . The term sheet further
establishes the co-development principles following the
incorporation of La Compagnie du TransGuinéen on 27 July 2022, and
is a pivotal next step towards securing the shareholder agreement,
cost estimates and regulatory authority approvals necessary to
progress the co-development of rail and port facilities. Progress
was also made on enabling works at Rio Tinto Simfer blocks 3 and 4
and the projected rail spur connection line. We also progressed
land access agreements with communities and upgrade works to camp
facilities. The award of contracts for key work packages continued
in the quarter, including the major package tender evaluations for
bulk earthworks and mine process plant equipment. Costs
attributable to the Simandou project in 2022 were $189 million(3)
.
-- We continue to believe that the Jadar lithium-borate project
in Serbia has the potential to be a world-class asset, that will
support the development of other future industries in Serbia,
acting as a catalyst for tens of thousands of jobs for current and
future generations, and sustainably produce materials critical to
the energy transition. We are focused on consultation with all
stakeholders to explore all options related to the project's
future.
-- At the Rincon lithium project in Argentina, development of
the three thousand tonne per annum lithium carbonate starter plant
progressed. To optimise the process and recoveries, we continue to
produce battery-grade lithium carbonate from raw brine from the
existing pilot plant operating at site. Early works construction
activities progressed on phase one camp facilities with rooms for
250 persons completed. In the period, airstrip permits were
received and contractors mobilised. Detailed studies for the full
scale operation were advanced, and the exploration campaign
progressed to further understand Rincon's basin and brine
reservoir. We continue to engage with communities, the province of
Salta and the Government of Argentina to ensure an open and
transparent dialogue with stakeholders about the works
underway.
-- Costs attributable to Battery Materials were $161 million (3) .
(1) A cost and schedule reforecast was performed in June 2022
and estimates that $7.06 billion is required to complete the Hugo
North 1 project (an increase of $0.3 billion beyond the 2020
Definitive Estimate). The 2022 Reforecast excludes impacts of
COVID-19 restrictions arising after June 2022. The 2022 reforecast
remains subject to Oyu Tolgoi Board approval.
(2) This followed notification to Rio Tinto and the Government
of Guinea, of Baowu's earlier entry into a term sheet agreement
with WCS in respect of an investment into WCS InfraCo and WCS
MineCo (blocks 1 and 2) - an agreement welcomed by Rio Tinto. Baowu
Resources Co. is a member of China Baowu Steel Group Corporation
Limited.
(3) Costs are included in the total 2022 exploration and
evaluation expense. Excludes amounts capitalised in the period.
Sustainability highlights
We are implementing the 26 recommendations of the Everyday
Respect report in line with the management team's commitment to a
safe, respectful and inclusive Rio Tinto. We are creating an open
and transparent environment which will make positive and lasting
change and strengthen our workplace culture for the long term. We
exceeded our leadership training target of 80% by the end of the
year, achieving 91% completion. On 15 November, we announced the
launch of an innovative pilot programme, 'Building Safe and
Respectful Workplaces', with BHP and Fortescue, aimed at helping to
eliminate disrespectful behaviour in the resources industry
including sexual harassment, bullying and racism. The three
companies have worked together with leading experts to design and
develop the industry-first program aimed at educating new entrants
to the sector.
On 30 October, we announced a partnership agreement with BHP to
accelerate the development of technology that could significantly
increase water recovery from mine tailings, and in turn reduce
potential safety risks and environmental footprints associated with
tailings storage facilities. The first project will involve testing
the application of an innovative large-volume filter unit at a BHP
copper mine in Chile, which would remove up to 80% of the water in
the tailings stream before it is deposited in a storage
facility.
On 6 December, we announced a collaboration with Oz Minerals and
Boliden to unlock new and innovative technologies for managing
tailings, helping the mining industry to further reduce risk while
extracting the materials the world needs for the energy transition
from what was previously regarded as 'waste'. The collaboration
will support innovators by providing materials, funding, technical
guidance and the potential for field trials at mine operations.
Innovators will retain ownership of their intellectual property
rights, with a licence to use those rights granted to the companies
that support them.
Communities & Social Performance (CSP)
On 3 November, we announced an investment of A$5.6 million over
five years into the Pilbara Cultural Land Management Project
(PCLMP) that enables Pilbara Traditional Owners to work together to
preserve their Country and culture and keep their people strong.
The PCLMP has continued to evolve over the past two years as its
members drive the design and development of a program to support
cultural and conservation management across their native title
determinations. On 21 November, we announced a A$250 million
commitment to the State Government's new Resources Community
Investment Initiative. An initial pipeline of projects has already
been identified. We will work with Western Australian Government to
further define the projects that we will contribute funding towards
over the next 10 years.
On 27 November, the Puutu Kunti Kurrama and Pinikura Aboriginal
Corporation and Rio Tinto agreed to create the Juukan Gorge Legacy
Foundation after signing a remedy agreement regarding the tragic
destruction of two rock shelters at Juukan Gorge in May 2020.
Financial support will be provided to the Traditional Owner-led
foundation to progress major cultural and social projects including
a new keeping place for storage of important cultural materials.
The agreement forms part of our commitment to remedying and
rebuilding the relationship with the Puutu Kunti Kurrama and
Pinikura people.
On 9 November 2022, we signed an updated agreement with
Yindjibarndi Aboriginal Corporation. This agreement will deliver
social and economic outcomes for future generations, and reflects
our commitment to create more opportunities for Yindjibarndi people
to participate in our operations.
On 15 December, Pekuakamiulnuatsh First Nation and Rio Tinto
signed their first agreement named Kuessilueu, which means "the
wind is turning" in Nelueun. This new agreement marks the beginning
of a new era and sets the foundation for an innovative and
sustainable partnership. Multidisciplinary teams will identify
opportunities for collaboration and establish recommendations in
six shared priorities areas - employment and training, business
opportunities, cultural heritage and environment, partnerships,
energy transition and governance. The goal is to finalise a
long-term partnership agreement within 18 months to provide
long-term shared benefits across the Saguenay-Lac-Saint-Jean region
in Quebec.
In December, we released our revised Human Rights policy . The
Policy has been developed to advance our human rights performance
in line with our business objectives, values, emerging regulatory
requirements and stakeholder expectations. Building on our existing
commitments, the revised Policy aims to strengthen our position to
respect the rights of affected stakeholders and prevent and address
our involvement in adverse impacts through our activities and value
chain.
Key highlights from the quarter are outlined above, with further
information available on our website .
Climate change, product stewardship and our value chain
On 30 November, we provided an update at our Investor Seminar on
execution of our strategy and evolution of our culture, including
Safe Production System (SPS) and decarbonisation activities, to
strengthen the business, grow in a decarbonising world and continue
to deliver attractive shareholder returns. Details were provided on
projects underway to meet challenging decarbonisation targets to
halve our Scope 1 and 2 emissions by 2030. Six large emissions
abatement programmes are focused on renewable power, process heat,
diesel and the ELYSIS(TM) zero carbon aluminium smelting technology
to drive the transition to net zero by 2050, supported by
high-quality nature based solutions. Capital expenditure to
decarbonise our assets of an estimated $7.5 billion to 2030 is
being prioritised and phased. This remains subject to Traditional
Owner and other stakeholder engagement, regulatory approvals and
technology developments. New long-term power contracts will also be
required for the aluminium business to meet targets. Our
incremental operating expenditure on building new teams and energy
efficiency initiatives remains around $200 million in addition to
Research and Development investment.
In the fourth quarter, we progressed initiatives to decarbonise
our business and actively develop
technologies to decarbonise our value chains.
-- On 22 November, we announced that we had proved the
effectiveness of our low-carbon iron-making process using ores from
our mines in Australia in a small-scale pilot plant in Germany. We
are now planning a larger-scale pilot plant to further assess its
potential to help decarbonise the steel value chain. The process,
known as BioIron(TM), uses raw biomass instead of metallurgical
coal as a reductant and microwave energy to convert Pilbara iron
ore to metallic iron in the steelmaking process. BioIron(TM) has
the potential to support near-zero CO(2) steel-making, and can
result in net negative emissions if linked with carbon capture and
storage.
-- On 30 November, we announced an intention to invest a further
$600 million in renewable energy assets in the Pilbara as part of
our efforts to decarbonise our Western Australian iron ore
operations. The investment is intended to fund the construction of
two 100MW solar power facilities as well as 200MWh of on-grid
battery storage in the Pilbara by 2026. This is in addition to the
34MW of solar power installed at the recently commissioned
Gudai-Darri iron ore mine.
-- In November, during the China International Import Expo in
Shanghai, Rio Tinto and other industry participants signed various
Memorandum of Understandings (MoUs) with the China Mineral
Resources Group. Our MoU highlights areas we plan to collaborate
which includes steel decarbonisation cooperation, creating
long-term sustainable and efficient value chains, and mineral
resource supply development including cooperation on international
resource identification and development.
-- In December, we signed a MoU with Mitsui & Co. to explore
ways to reduce emissions across supply chains - from steel
decarbonisation to alternative fuels for mining vehicles and
shipping.
Our markets
Commodity prices found some support during the fourth quarter of
2022. The global economy continues to slow, but some external
pressures have eased, with the change in China's stance on COVID
controls, the fall in energy prices alleviating cost pressures, and
markets anticipating a slower pace of interest rate hikes. Global
supply chain pressures have also improved and freight rate
pressures have eased. However, the Russia-Ukraine war continues to
pose energy and food security risks, while fears of recession in
the US and Europe remain.
-- China continues to provide support to its economy on various
fronts, including the infrastructure and property sectors. However,
the end to COVID controls in December and the subsequent wave of
COVID cases bring high volatility in the coming quarter, with
increased short-term risks of supply chain disruptions and labour
shortages. Although more financing is being provided, consumers
remain cautious of the property market. The country's trade balance
remains healthy, but slowing global demand poses downside risks to
exports.
-- The US economy has been more resilient than previously
envisaged despite interest rate hikes. The labour market added more
jobs compared to consensus forecasts, and the unemployment rate
remained low. The Federal Reserve continued its tightening monetary
policy with a 50 basis points hike in December, following four
consecutive 75 basis point increases, and is expected to further
tighten albeit at a slower pace until inflation rate is kept under
control. Risk of a recession remains as consumer spending will
likely be constrained by rising interest rates and depleted
savings.
-- The Eurozone economy showed signs of a downturn, as
industrial activity contracted with persistent low demand while
inflation remains high. The European Central Bank (ECB) tightened
its monetary policy with the latest 50 basis point increase in
December and is expected to continue into this year. Although the
region reduced the chances of a winter energy crisis through
rebuilding of gas inventories, uncertainty remains as the spill
over impacts of the ban on Russian crude oil and refined petroleum
set in.
-- Iron ore Platts CFR prices rebounded 22% in the quarter,
although the average price of $99/t in the fourth quarter was 4%
lower than the third quarter. Market sentiment strengthened after
Beijing released three stimulus packages in November to stabilise
the real estate market by lifting all previously applied financing
constraints on property developers. Prices trended above $110/dmt
at year-end as China began dismantling its zero-COVID policy and
gradually reopening the economy, while mills also started to
replenish in-plant inventories ahead of the Lunar New Year
holidays. Steel demand recovery hinges on the country's ability to
control the COVID outbreak.
-- The LME cash aluminium price increased 8% in the quarter,
although the average price of $2,324/t in the fourth quarter was 1%
lower than the third quarter. The market was supported by low
reported levels of inventories, and expectations of improving
Chinese demand. In North America, shipments of extrusions and
rolled products softened over the quarter, mainly on weaker
extrusion shipments into the building and construction sector.
Aluminium demand growth from renewables and Electric Vehicles (EVs)
remains firm. LME stocks are now at their lowest level in 22 years,
and Chinese warehouse stocks are at a six-year low.
-- The copper LME price rose 10% in the fourth quarter to
$3.80/lb, as market sentiment turned more positive on a series of
supply disruptions and low and declining visible stocks, which
remain at historically low levels. Price support came in the form
of Chinese government policy changes such as in the property market
and easing COVID-19 restrictions, together with demand growth in
renewables and EVs, plus the return of the investor net long
position in copper.
-- The EV market continues to experience strong growth supported
by China as lithium carbonate prices remain elevated on the back of
strong global demand in the quarter. Short-term uncertainty is
expected to remain as the global economy slows and rising interest
rates dampen consumers' discretionary spending. Nonetheless, the
long-term outlook remains favourable as governments continue their
push for EV adoption.
Average realised prices achieved for our major commodities
Units H1 2022 H2 2022 2022 2021
Pilbara
iron ore FOB, $/wmt 110.9 86.0 97.6 132.3
------------ ----------- ------- ------- -----
Pilbara
iron ore FOB, $/dmt 120.5 93.5 106.1 143.8
------------ ----------- ------- ------- -----
Aluminium* Metal $/t 3,808 2,870 3,330 2,899
------------ ----------- ------- ------- -----
Copper** US c/lb 447 362 403 424
------------ ----------- ------- ------- -----
IOC pellets FOB $/wmt 199.0 180.1 190.3 214.4
------------ ----------- ------- ------- -----
*LME plus all-in premiums (product and market).
**Average realised price for all units sold. Realised price does
not include the impact of the provisional pricing adjustments,
which negatively impacted revenues in 2022 by $175 million (2021
positive impact of $246 million).
IRON ORE
vs Full
Q4 vs Q4 vs Q3 Full Year Year
Rio Tinto share of
production (Million
tonnes) 2022 2021 2022 2022 2021
------------------------- ------ ---------- ---------- ---------- -------
Pilbara Blend and SP10
Lump(1) 21.4 +5 % +1 % 79.2 +4 %
Pilbara Blend and SP10
Fines(1) 35.1 +9 % +8 % 123.6 +3 %
Robe Valley Lump 1.6 +43 % +18 % 5.3 +3 %
Robe Valley Fines 2.5 +24 % +18 % 8.3 -2 %
Yandicoogina Fines (HIY) 15.2 +5 % +12 % 56.6 -1 %
------------------------- ------ ---------- ---------- ---------- -------
Total Pilbara production 75.9 +8 % +7 % 272.9 +2 %
------------------------- ------ ---------- ---------- ---------- -------
Total Pilbara production
(100% basis) 89.5 +6 % +6 % 324.1 +1 %
------------------------- ------ ---------- ---------- ---------- -------
vs Full
Q4 vs Q4 vs Q3 Full Year Year
Rio Tinto share of
shipments (Million tonnes) 2022 2021 2022 2022 2021
---------------------------- ------ ---------- ---------- ---------- ----------
Pilbara Blend Lump 15.1 +18 % -1 % 53.9 +5 %
Pilbara Blend Fines 32.7 +34 % +3 % 111.1 +1 %
Robe Valley Lump 1.2 +17 % -3 % 4.2 +5 %
Robe Valley Fines 2.9 +29 % +21 % 9.3 -1 %
Yandicoogina Fines (HIY) 14.7 +4 % +8 % 56.9 0 %
SP10 Lump(1) 2.8 -42 % +71 % 12.8 -21 %
SP10 Fines(1) 5.1 -53 % +34 % 22.7 +11 %
Total Pilbara shipments(2) 74.4 +6 % +7 % 270.8 +1 %
---------------------------- ------ ---------- ---------- ---------- ----------
Total Pilbara shipments
(100% basis)(2) 87.3 +4 % +5 % 321.6 0 %
---------------------------- ------ ---------- ---------- ---------- ----------
Total Pilbara Shipments
(consolidated basis)(2,
3) 76.3 +6 % +7 % 277.6 +1 %
---------------------------- ------ ---------- ---------- ---------- ----------
(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
We produced 89.5 million tonnes (Rio Tinto share 75.9 million
tonnes) in the fourth quarter, 6% higher than the corresponding
period of 2021, and 6% higher than the prior quarter.
Fourth quarter shipments of 87.3 million tonnes (Rio Tinto share
74.4 million tonnes) were 4% higher than the fourth quarter of
2021, and 5% higher than the prior quarter.
Performance improvements continued across the system during the
quarter and we achieved record second half performance across the
mine and rail system. We expect Gudai-Darri to reach its nameplate
capacity on a sustained basis during 2023. System inventories at
the end of December are healthy including strong blasted stocks,
mine and port stocks.
Approximately 10% of sales in 2022 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, average of two months, forward month or on the spot
market. Approximately 25% of sales in the fourth quarter were made
on a free on board (FOB) basis, with the remainder sold including
freight.
Achieved realised pricing in 2022 was $97.6 per wet metric tonne
on an FOB basis, equivalent to $106.1 per dry metric tonne, at 8%
moisture assumption. This compares to the monthly average Platts
index for
62% fines converted to an FOB basis of $109.8 per dry metric
tonne. In 2021, average realised pricing was
$132.3 per wet metric tonne ($143.8 per dry metric tonne).
In October, representatives of the Robe River Joint Venture
partners, Rio Tinto, Mitsui and Nippon Steel, gathered in Perth to
celebrate the 50-year anniversary of the venture's first shipment
of iron ore from the Pilbara to Japan. Since 1972, the Robe River
Joint Venture has shipped more than 1.7 billion tonnes of iron
ore.
China Portside Trading
Our iron ore portside sales in China were 4.8 million tonnes in
the fourth quarter of 2022 (5.1 million tonnes in the fourth
quarter of 2021), leading to a total of 24.3 million tonnes in 2022
(14.0 million tonnes in 2021). At the end of the December,
inventory levels were 7.8 million tonnes, including 5.5 million
tonnes of Pilbara product. In 2022 approximately 80% of our
portside sales were either screened or blended in Chinese
ports.
ALUMINIUM
vs Full
Q4 vs Q4 vs Q3 Full Year Year
Rio Tinto share of
production ('000 tonnes) 2022 2021 2022 2022 2021
-------------------------- ------------------- ------- ------- ------------------ -------
Bauxite 13,181 +1 % -4 % 54,618 +1 %
Bauxite third party
shipments 9,233 +3 % +2 % 38,016 +1 %
Alumina 1,941 +2 % +6 % 7,544 -4 %
Aluminium 783 +3 % +3 % 3,009 -4 %
-------------------------- ------------------- ------- ------- ------------------ -------
Bauxite
Bauxite production of 13.2 million tonnes was 1% higher than the
fourth quarter of 2021, despite being 4% lower than the prior
quarter due to equipment downtime at Amrun and Gove in Australia as
well as lower production from Compagnie des Bauxites de Guinée
(CBG).
We shipped 9.2 million tonnes of bauxite to third parties in the
fourth quarter, 3% higher than the same period of 2021.
Alumina
Alumina production of 1.9 million tonnes was 2% higher than the
fourth quarter of 2021, and 6% higher than the prior quarter, as a
result of the timing of shutdowns and improved processing
performance at Yarwun in Queensland, partly offset by plant
reliability and unplanned outages at Queensland Alumina Limited
(QAL). Production at the Vaudreuil refinery in Quebec, Canada
remained stable year on year.
As the result of QAL activation of a step-in process following
sanction measures by the Australian Government, Rio Tinto has taken
on 100% of capacity for as long as the step-in continues. This
results in use of Rusal's 20% share of capacity by Rio Tinto under
the tolling arrangement with QAL. This additional output is
excluded from the production tables in this report as QAL remains
80% owned by Rio Tinto and 20% owned by Rusal.
Aluminium
Aluminium production of 0.8 million tonnes was 3% higher than
the fourth quarter of 2021, and 3% higher than the prior quarter,
as the rate of pot restarts at Kitimat picked up in the fourth
quarter and Boyne smelter cell recovery efforts continued. Recovery
at both smelters is progressing with full ramp-up expected to be
completed during the course of 2023. All of our other smelters
continued to demonstrate stable performance.
Average realised aluminium prices including both product and
market premiums for value-added products
(VAP) and remelt increased by 15% to $3,330 per tonne in 2022
(2021: $2,899 per tonne). This is despite weakened pricing in the
second half of 2022 with average realised pricing $2,870 per tonne
versus $3,808 in the first half of 2022. The LME price increased by
9% to $2,703 per tonne (2021: $2,480 per tonne), whilst the
mid-west premium duty paid increased by 12% to $655 per tonne in
2022 (2021: $584 per tonne). Our VAP sales comprised 50% of primary
metal sold in 2022 (2021: 50%). Product premiums for VAP sales
averaged $431 per tonne of VAP sold (2021: $230 per tonne).
The coal contracts for the Gladstone Power Station supplying
power to the Boyne smelter in Australia were renewed in late 2022.
We continue to support the potential development of multiple new
wind and solar power projects that can, in parallel with firming
solutions, start supplying power to our Gladstone assets through
the Queensland grid by 2030.
COPPER
vs Full
Q4 vs Q4 vs Q3 Full Year Year
Rio Tinto share of
production ('000 tonnes) 2022 2021 2022 2022 2021
-------------------------- ------ ---------- --------- ---------- ----------
Mined copper
-------------------------- ------ ---------- --------- ---------- ----------
Kennecott 47.5 -4 % -6 % 179.2 +12 %
Escondida 73.0 +5 % -3 % 298.6 +7 %
Oyu Tolgoi 10.8 -17 % -11 % 43.4 -21 %
-------------------------- ------ ---------- --------- ---------- ----------
Refined copper
-------------------------- ------ ---------- --------- ---------- ----------
Kennecott 36.1 +42 % -8 % 148.3 +3 %
Escondida 14.9 +3 % 0 % 60.9 +4 %
-------------------------- ------ ---------- --------- ---------- ----------
Kennecott
Mined copper production was 4% lower than the fourth quarter of
2021 due to mine sequencing in an area of the pit with lower head
grade.
Refined copper production was 42% higher than the fourth quarter
of 2021 due to the furnace failure in September 2021 which led to
the smelter being offline until the end of October. Unplanned
maintenance was required in the fourth quarter of 2022 in our anode
furnaces leading to extended downtime and continued poor anode
production, likely to result in weak cathode production in the
first quarter of 2023. Refined copper production will continue to
be challenged at Kennecott due to the smelter and refinery
performance, until we undertake the largest rebuild in nine years
which is planned for the second quarter of 2023 and is expected to
take approximately three months.
Escondida
Mined copper production was 5% higher than the fourth quarter of
2021 due to 7% higher concentrator feed grade in line with mine
sequencing in the higher grade area of the pit, partly offset by
lower throughput and the impact of road blockades in Northern
Chile. Mined copper production was 7% higher than 2021 due to 9%
higher concentrator feed grade and 18% higher copper recoverable
from ore stacked for leaching due to higher volume of material
stacked in both oxide and sulphide leach pads.
Oyu Tolgoi
Mined copper production from the open pit was 17% lower than the
fourth quarter of 2021 due to lower copper grades and recoveries as
a result of planned mine sequencing. Gold grades were significantly
lower than the fourth quarter of the prior year (0.21g/t vs
0.38g/t), due to the mine sequence.
Provisional pricing
At 31 December 2022, the Group had approximately 221 million
pounds of copper sales that were
provisionally priced at 368 cents per pound. The final price of
these sales will be determined during the first
half of 2023. This compares with 201 million pounds of open
shipments at 31 December 2021, provisionally
priced at 436 cents per pound. Provisional pricing adjustments
negatively impacted revenues in 2022 by $175 million (2021 positive
impact of $246 million).
Nuton(TM)
In December, Rio Tinto made a $15 million investment in Regulus
Resources Inc. through its copper leaching technology venture,
Nuton. Regulus and Nuton will jointly undertake copper sulphide
leach testing utilising Nuton technologies with samples from the
AntaKori copper-gold-silver project in northern Peru.
MINERALS
vs Full
Q4 vs Q4 vs Q3 Full Year Year
Rio Tinto share of
production (million
tonnes) 2022 2021 2022 2022 2021
-------------------------- ------------------ ---------- ---------- ------------------ ----------
Iron ore pellets and
concentrate
-------------------------- ------------------ ---------- ---------- ------------------ ----------
IOC 2.5 +1 % -9 % 10.3 +6 %
-------------------------- ------------------ ---------- ---------- ------------------ ----------
vs Full
Q4 vs Q4 vs Q3 Full Year Year
Rio Tinto share of
production ('000 tonnes) 2022 2021 2022 2022 2021
-------------------------- ------------------ ---------- ---------- ------------------ ----------
Minerals
-------------------------- ------------------ ---------- ---------- ------------------ ----------
Borates - B(2) O(3)
content 141 +20 % +9 % 532 +9 %
Titanium dioxide slag 323 +42 % +4 % 1,200 +18 %
-------------------------- ------------------ ---------- ---------- ------------------ ----------
vs Full
Q4 vs Q4 vs Q3 Full Year Year
Rio Tinto share of
production ('000 carats) 2022 2021 2022 2022 2021
-------------------------- ------------------ ---------- ---------- ------------------ ----------
Diavik(1) 1,319 +14 % +11 % 4,651 +21 %
-------------------------- ------------------ ---------- ---------- ------------------ ----------
(1) Reflects 100% ownership of Diavik (previously 60%) from 1st
November 2021.
Iron Ore Company of Canada (IOC)
Iron ore production was 1% higher than the fourth quarter of
2021, despite the fourth quarter being 9% lower than the previous
quarter, due to equipment availability at the loadout. Successful
deployment of the Rio Tinto Safe Production System (SPS) at the
concentrator was completed in the year, with record performance
metrics achieved in the year, including monthly records for
concentrate production and total material moved in the second
quarter. Planning for SPS deployment at the pellet plant commenced
in December.
Borates
Borates production in the fourth quarter was 20% higher than the
corresponding period of 2021 with strong production rates and
higher grades as well as improved equipment reliability versus the
same period in 2021. There was some easing of supply chain
constraints in the fourth quarter, enabling the business to achieve
more than a 10% increase in container and rail shipments compared
to 2021 levels. Production in 2022 was 9% higher than 2021, at its
highest annual level in more than a decade.
Iron and Titanium
Titanium dioxide production was 42% higher than the fourth
quarter of 2021 due to community disruptions at Richards Bay
Minerals in South Africa in 2021, and continued improved
performance of operations at Rio Tinto Fer et Titane, Canada.
Production constraints related to nationwide electrical power
loadshedding at RBM were experienced in the fourth quarter.
Diamonds
At Diavik, our share of carats was 14% higher than the fourth
quarter of 2021 due to the benefit of our increased share of
production since taking 100% ownership of Diavik from November
2021, partly offset by lower carats recovered due to lower
throughput.
EXPLORATION AND EVALUATION
Pre-tax and pre-divestment expenditure on exploration and
evaluation charged to the profit and loss account in 2022 was $897
million, compared with $726 million in 2021. Approximately 45% of
this expenditure was incurred by Copper (includes Simandou), 28% by
central exploration, 19% by Minerals, 7% by Iron Ore and 1% by
Aluminium.
Our annual budget for greenfield exploration remains around $250
million, mainly focused on copper, with a growing battery minerals
programme.
Exploration highlights
Rio Tinto has a strong portfolio of projects with activity in 18
countries across seven commodities in early exploration and studies
stages. The bulk of the exploration expenditure in the fourth
quarter of 2022 focused on copper in Australia, Colombia, Namibia,
Peru, United States and Zambia diamonds in Angola and heavy mineral
sands projects in Australia and South Africa. Exploration is
ongoing for nickel in Canada and Finland and in lithium across all
regions, with opportunities emerging in the United States and
Africa. Mine-lease exploration continued at Rio Tinto managed
businesses including Pilbara Iron in Australia, Diavik in Canada
and Cape York in Australia.
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
----------------- ------------------------- ------------------- -----------------------
Rincon Lithium, Argentina Nickel Greenfield:
Lithium borates: Australia, Canada,
Jadar, Serbia Finland, Peru
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, Laos,
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: Australia,
Minerals Mutamba, Mozambique South Africa
----------------- ------------------------- ------------------- -----------------------
*Limited activity during the quarter. The Falcon Project in
Saskatchewan, Canada, is currently in care and maintenance whilst
Rio Tinto considers alternative commercial options, including
potential exit.
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
Matthew Klar Matt Chambers
M +44 7796 630 637 M +61 433 525 739
David Outhwaite Jesse Riseborough
M +44 7787 597 493 M +61 436 653 412
Media Relations, Americas
Simon Letendre
M +1 514 796 4973
Malika Cherry
M +1 418 592 7293
-------------------------- ------------------------------
Investor Relations, UK Investor Relations, Australia
Menno Sanderse Tom Gallop
M +44 7825 195 178 M +61 439 353 948
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 43, 120 Collins Street
London SW1Y 4AD Melbourne 3000
United Kingdom Australia
T +44 20 7781 2000 T +61 3 9283 3333
Registered in England Registered in Australia
No. 719885 ABN 96 004 458 404
-------------------------- ------------------------------
This announcement is authorised for release to the market by
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
Quarter Full Year % change
Q4 22 Q4 22 2022
2021 2022 2022 vs vs vs
Q4 Q3 Q4 2021 2022 Q4 21 Q3 22 2021
---------------------- ------ ------ ------ ------ ------- ------- ------- ------- ----------
Principal commodities
('000
Alumina t) 1,911 1,838 1,941 7,894 7,544 +2 % +6 % -4 %
('000
Aluminium t) 757 759 783 3,151 3,009 +3 % +3 % -4 %
('000
Bauxite t) 13,095 13,680 13,181 54,326 54,618 +1 % -4 % +1 %
('000
Borates t) 117 130 141 488 532 +20 % +9 % +9 %
('000
Copper - mined t) 132.3 138.0 131.3 493.5 521.1 -1 % -5 % +6 %
('000 +28
Copper - refined t) 40.0 54.1 51.0 201.9 209.2 % -6 % +4 %
('000 +14 +11
Diamonds cts) 1,155 1,192 1,319 3,847 4,651 % % +21 %
('000
Iron Ore t) 72,561 73,726 78,415 276,557 283,247 +8 % +6 % +2 %
Titanium dioxide ('000 +42
slag t) 228 310 323 1,014 1,200 % +4 % +18 %
---------------------- ------ ------ ------ ------ ------- ------- ------- ------- ----------
Other Metals &
Minerals
('000 -25
Gold - mined oz) 73.9 58.2 55.7 344.9 235.0 % -4 % -32 %
('000
Gold - refined oz) 31.5 30.5 30.3 176.4 113.9 -4 % -1 % -35 %
('000
Molybdenum t) 1.1 0.8 1.1 7.6 3.3 -1 % +33% -56 %
('000 -13
Salt t) 1,471 1,674 1,458 5,848 5,757 -1 % % -2 %
('000
Silver - mined oz) 1,108 1,040 1,042 4,148 3,940 -6 % 0 % -5 %
('000 -10
Silver - refined oz) 516 571 512 2,671 1,950 -1 % % -27 %
---------------------- ------ ------ ------ ------ ------- ------- ------- ------- ----------
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 Full
Rio Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
------------------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
ALUMINA
Production ('000 tonnes)
100
Jonquière (Vaudreuil) % 338 334 325 336 368 1,364 1,364
Jonquière (Vaudreuil) 100
specialty Alumina plant % 28 25 30 30 29 107 114
Queensland Alumina 80 % 727 704 697 662 678 2,964 2,740
São Luis (Alumar) 10 % 99 94 91 95 97 366 377
100
Yarwun % 719 745 721 715 769 3,093 2,949
Rio Tinto total alumina production 1,911 1,901 1,864 1,838 1,941 7,894 7,544
ALUMINIUM
Production ('000 tonnes)
100
Australia - Bell Bay % 48 46 44 46 48 189 185
Australia - Boyne Island 59 % 75 73 61 65 68 298 267
Australia - Tomago 52 % 78 75 75 76 76 305 302
100
Canada - six wholly owned % 325 318 323 341 360 1,444 1,341
Canada - Alouette (Sept-Îles) 40 % 63 62 63 64 63 251 251
Canada - Bécancour 25 % 30 28 29 29 29 116 115
100
Iceland - ISAL (Reykjavik) % 52 50 50 51 52 203 202
New Zealand - Tiwai Point 79 % 67 66 66 67 68 264 267
Oman - Sohar 20 % 20 19 20 20 20 79 79
Rio Tinto total aluminium
production 757 736 731 759 783 3,151 3,009
BAUXITE
Production ('000 tonnes)
(a)
100
Gove % 2,787 3,093 2,637 2,905 2,874 11,763 11,510
Porto Trombetas 12 % 416 240 308 393 391 1,366 1,332
Sangaredi (b) 1,704 1,765 1,946 1,953 1,588 7,109 7,252
100
Weipa % 8,188 8,527 9,240 8,429 8,328 34,088 34,525
Rio Tinto total bauxite production 13,095 13,625 14,131 13,680 13,181 54,326 54,618
------------------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
(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 Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
--------------- ---------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
BORATES
Production
('000 tonnes
B(2) O(3)
content)
Rio Tinto
Borates - 100
borates % 117 123 137 130 141 488 532
--------------- ---------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
COPPER
Mine production
('000
tonnes) (a)
Bingham 100
Canyon % 49.7 47.1 33.9 50.7 47.5 159.4 179.2
Escondida 30 % 69.6 68.2 82.3 75.1 73.0 279.5 298.6
Oyu Tolgoi
(b) 66 % 13.0 10.2 10.2 12.2 10.8 54.6 43.4
Rio Tinto total
mine
production 132.3 125.5 126.4 138.0 131.3 493.5 521.1
Refined
production
('000
tonnes)
Escondida 30 % 14.5 14.4 16.7 14.9 14.9 58.6 60.9
Rio Tinto
Kennecott 100
(c) % 25.5 40.2 32.7 39.2 36.1 143.3 148.3
Rio Tinto total
refined
production 40.0 54.7 49.4 54.1 51.0 201.9 209.2
--------------- ---------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(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) Production data in the table represent 33.52% ownership in
Oyu Tolgoi. On 16 December 2022, Rio Tinto completed the
acquisition of 100% of Turquoise Hill Resources Ltd, increasing our
ownership in Oyu Tolgoi from 33.52% to 66%. From 1 January 2023,
our share of production will be updated to reflect this change. We
will also separately report production from open pit and
underground operations.
(c) We continue to process third party concentrate to optimise
smelter utilisation, including 4.8 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) % 1,155 991 1,149 1,192 1,319 3,847 4,651
(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 % 34.7 37.8 22.8 32.5 29.7 139.5 122.7
Escondida 30 % 12.9 10.9 13.7 11.5 14.5 48.5 50.6
Oyu Tolgoi (b) 66 % 26.3 19.8 16.0 14.3 11.5 156.9 61.6
Rio Tinto total mine
production 73.9 68.5 52.5 58.2 55.7 344.9 235.0
Refined production ('000
ounces)
100
Rio Tinto Kennecott % 31.5 32.2 20.9 30.5 30.3 176.4 113.9
------------------------- --------- ----- ---- ----- ----- ----- ----- -----
(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) Production data in the table represent 33.52% ownership in
Oyu Tolgoi. On 16 December 2022, Rio Tinto completed the
acquisition of 100% of Turquoise Hill Resources Ltd, increasing our
ownership in Oyu Tolgoi from 33.52% to 66%. From 1 January 2023,
our share of production will be updated to reflect this change. We
will also separately report production from open pit and
underground operations.
Rio Tinto share of production
Rio Full Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines (b) 55,049 47,678 52,636 56,650 61,339 210,329 218,304
Hope Downs 50 % 6,567 5,830 6,385 6,264 5,945 24,642 24,425
Iron Ore Company of Canada 59 % 2,498 2,404 2,603 2,776 2,530 9,727 10,312
Robe River - Pannawonica (Mesas
J and A) 53 % 3,196 2,774 3,054 3,540 4,178 13,514 13,546
Robe River - West Angelas 53 % 5,252 3,779 3,961 4,496 4,424 18,345 16,660
Rio Tinto iron ore production
('000 tonnes) 72,561 62,465 68,640 73,726 78,415 276,557 283,247
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Breakdown of Production:
Pilbara Blend and SP10 Lump
(c) 20,374 17,081 19,309 21,317 21,443 76,431 79,152
Pilbara Blend and SP10 Fines
(c) 32,081 25,658 30,240 32,592 35,097 119,947 123,587
Robe Valley Lump 1,152 1,051 1,180 1,389 1,645 5,102 5,264
Robe Valley Fines 2,044 1,724 1,874 2,151 2,533 8,412 8,281
Yandicoogina Fines (HIY) 14,412 14,548 13,433 13,501 15,168 56,938 56,650
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Pilbara iron ore production
('000 tonnes) 70,063 60,061 66,037 70,951 75,886 266,830 272,934
IOC Concentrate 1,009 962 1,282 1,237 1,186 3,863 4,667
IOC Pellets 1,489 1,442 1,321 1,539 1,343 5,864 5,646
IOC iron ore production ('000
tonnes) 2,498 2,404 2,603 2,776 2,530 9,727 10,312
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Breakdown of Shipments:
Pilbara Blend Lump 12,832 10,809 12,684 15,301 15,089 51,522 53,883
Pilbara Blend Fines 24,308 21,698 25,156 31,597 32,659 109,569 111,110
Robe Valley Lump 1,061 675 971 1,281 1,244 3,981 4,171
Robe Valley Fines 2,237 1,731 2,309 2,392 2,896 9,395 9,329
Yandicoogina Fines (HIY) 14,121 14,487 14,201 13,530 14,661 56,889 56,880
SP10 Lump (c) 4,841 3,827 4,456 1,647 2,824 16,078 12,753
SP10 Fines (c) 10,684 7,067 6,775 3,766 5,062 20,487 22,672
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Pilbara iron ore shipments
('000 tonnes) (d) 70,084 60,295 66,552 69,515 74,435 267,921 270,798
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Pilbara iron ore shipments - consolidated
basis ('000 tonnes) (d) (f) 71,972 61,818 68,114 71,379 76,303 275,161 277,613
--------------------------------------------- ------ ------ ------ ------ ------ ------- -------
IOC Concentrate 989 600 1,083 1,316 1,174 4,110 4,174
IOC Pellets 1,711 1,412 1,484 1,443 1,036 5,865 5,375
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IOC Iron ore shipments ('000
tonnes) (d) 2,700 2,012 2,567 2,759 2,210 9,976 9,548
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Rio Tinto iron ore shipments
('000 tonnes) (d) 72,784 62,307 69,119 72,274 76,645 277,897 280,346
Rio Tinto iron ore sales ('000
tonnes) (e) 69,489 66,683 71,263 74,587 75,337 273,153 287,871
---------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
(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, Gudai-Darri 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.
(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 Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
---------------------- --------- ----- ----- ----- ----- ------ ------ ------
MOLYBDENUM
Mine production ('000
tonnes) (a)
100
Bingham Canyon % 1.1 1.1 0.4 0.8 1.1 7.6 3.3
---------------------- --------- ----- ----- ----- ----- ------ ------ ------
(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 % 1,471 1,595 1,030 1,674 1,458 5,848 5,757
-------------------------------- ----- ----- ----- ----- ----- ----- ----- -----
SILVER
Mine production ('000
ounces) (a)
100
Bingham Canyon % 589 561 385 591 521 2,228 2,057
Escondida 30 % 439 381 393 363 453 1,591 1,590
Oyu Tolgoi (b) 66 % 80 71 67 86 68 328 292
-------------------------------- ----- ----- ----- ----- ----- ----- ----- -----
Rio Tinto total mine production 1,108 1,012 846 1,040 1,042 4,148 3,940
-------------------------------- ----- ----- ----- ----- ----- ----- ----- -----
Refined production ('000
ounces)
100
Rio Tinto Kennecott % 516 577 290 571 512 2,671 1,950
-------------------------------- ----- ----- ----- ----- ----- ----- ----- -----
(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) Production data in the table represent 33.52% ownership in
Oyu Tolgoi. On 16 December 2022, Rio Tinto completed the
acquisition of 100% of Turquoise Hill Resources Ltd, increasing our
ownership in Oyu Tolgoi from 33.52% to 66%. From 1 January 2023,
our share of production will be updated to reflect this change. We
will also separately report production from open pit and
underground operations.
TITANIUM DIOXIDE SLAG
Production ('000 tonnes)
Rio Tinto Iron & Titanium 100
(a) % 228 273 293 310 323 1,014 1,200
---------------------------- ---- --- --- --- --- --- ----- -----
(a) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio
Tinto's 74% interest in Richards Bay Minerals (RBM).
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 December
2022.
Rio Tinto operational data
Rio Full Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
------------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
ALUMINA
Smelter Grade Alumina
- Aluminium Group
Alumina production ('000
tonnes)
Australia
Queensland Alumina Refinery
- Queensland 80 % 909 880 871 827 847 3,705 3,425
100
Yarwun refinery - Queensland % 719 745 721 715 769 3,093 2,949
Brazil
São Luis (Alumar)
refinery 10 % 993 940 910 946 975 3,662 3,771
Canada
Jonquière (Vaudreuil) 100
refinery - Quebec (a) % 338 334 325 336 368 1,364 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 % 28 25 30 30 29 107 114
Rio Tinto percentage interest shown above is at 31 December
2022. The data represents production and sales on a 100% basis
unless otherwise stated.
Rio Tinto operational data
Full Full
Rio Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
------------------------------- --------- ----- ----- ----- ----- ------ ------ ------
ALUMINIUM
Primary Aluminium
Primary aluminium production
('000 tonnes)
Australia
Bell Bay smelter - Tasmania 100 % 48 46 44 46 48 189 185
Boyne Island smelter -
Queensland 59 % 126 123 103 110 114 502 450
Tomago smelter - New South
Wales 52 % 150 145 145 148 147 592 586
Canada
Alma smelter - Quebec 100 % 119 117 121 122 122 471 482
Alouette (Sept-Îles)
smelter - Quebec 40 % 157 154 157 159 158 629 628
Arvida smelter - Quebec 100 % 43 42 42 43 44 168 171
Arvida AP60 smelter - Quebec 100 % 15 14 14 15 15 60 58
Bécancour smelter
- Quebec 25 % 119 111 117 116 116 463 459
Grande-Baie smelter - Quebec 100 % 58 57 58 59 58 230 232
Kitimat smelter - British
Columbia 100 % 25 25 26 38 57 263 145
Laterrière smelter
- Quebec 100 % 64 63 63 64 64 252 253
Iceland
ISAL (Reykjavik) smelter 100 % 52 50 50 51 52 203 202
New Zealand
Tiwai Point smelter 79 % 85 83 83 85 85 333 336
Oman
Sohar smelter 20 % 100 97 98 100 100 395 395
Rio Tinto percentage interest shown above is at 31 December
2022. The data represents production and sales on a 100% basis
unless otherwise stated.
Rio Tinto operational data
Rio Full Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
--------------------------------- --------- ------ ------ ------ ------ ------ ------ ------
BAUXITE
Bauxite production ('000 tonnes)
Australia
100
Gove mine - Northern Territory % 2,787 3,093 2,637 2,905 2,874 11,763 11,510
100
Weipa mine - Queensland % 8,188 8,527 9,240 8,429 8,328 34,088 34,525
Brazil
Porto Trombetas (MRN) mine 12 % 3,469 2,000 2,569 3,275 3,256 11,383 11,100
Guinea
Sangaredi mine (a) 23 % 3,786 3,922 4,323 4,339 3,530 15,797 16,115
Rio Tinto share of bauxite
shipments
Share of total bauxite shipments
('000 tonnes) 13,031 13,876 14,054 13,294 13,561 54,278 54,784
Share of third party bauxite shipments
('000 tonnes) 8,988 10,135 9,599 9,049 9,233 37,596 38,016
(a) Rio Tinto has a 22.95% shareholding in the Sangaredi mine
but benefits from 45.0% of production.
Rio Full Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
---------------------------- ---------- -------- -------- -------- -------- -------- ------------ ------------
BORATES
100
Rio Tinto Borates - borates %
US
Borates ('000 tonnes) (a) 117 123 137 130 141 488 532
(a) Production is expressed as B(2) O(3) content.
Rio Full Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
------------------------------- --------- -------- -------- -------- -------- -------- ----------- -----------
COPPER & GOLD
Escondida 30 %
Chile
Sulphide ore to concentrator
('000 tonnes) 35,787 30,235 34,318 32,894 33,911 133,872 131,358
Average copper grade (%) 0.71 0.81 0.87 0.83 0.76 0.75 0.82
Mill production (metals in
concentrates):
Contained copper ('000
tonnes) 203.6 191.5 239.5 214.6 212.8 815.5 858.4
Contained gold ('000 ounces) 42.9 36.3 45.8 38.2 48.4 161.7 168.7
Contained silver ('000
ounces) 1,462 1,270 1,311 1,210 1,510 5,305 5,301
Recoverable copper in ore stacked
for leaching ('000 tonnes) (a) 28.4 35.9 34.8 35.8 30.4 116.3 136.9
Refined production from leach
plants:
Copper cathode production
('000 tonnes) 48.4 48.1 55.7 49.6 49.7 195.3 203.1
(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 December
2022. The data represents production and sales on a 100% basis
unless otherwise stated.
Rio Tinto operational data
Rio Full Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
---------------------- --------- --------- --------- --------- --------- --------- ------------- -------------
COPPER & GOLD
(continued)
Rio Tinto Kennecott
100
Bingham Canyon mine %
Utah, US
Ore treated ('000
tonnes) 9,809 10,130 6,862 10,125 10,449 37,776 37,565
Average ore grade:
Copper (%) 0.55 0.51 0.55 0.56 0.52 0.47 0.53
Gold (g/t) 0.21 0.19 0.17 0.16 0.14 0.21 0.16
Silver (g/t) 2.55 2.36 2.39 2.50 2.20 2.57 2.36
Molybdenum (%) 0.020 0.021 0.017 0.021 0.020 0.029 0.020
Copper concentrates
produced
('000 tonnes) 187 176 136 192 184 648 688
Average concentrate
grade
(% Cu) 26.3 26.8 24.9 26.2 25.6 24.5 26.0
Production of metals
in copper
concentrates:
Copper ('000 tonnes)
(a) 49.7 47.1 33.9 50.7 47.5 159.4 179.2
Gold ('000 ounces) 34.7 37.8 22.8 32.5 29.7 139.5 122.7
Silver ('000 ounces) 589 561 385 591 521 2,228 2,057
Molybdenum
concentrates produced
('000 tonnes): 2.2 2.1 0.9 1.8 2.0 14.8 6.8
Molybdenum in
concentrates
('000 tonnes) 1.1 1.1 0.4 0.8 1.1 7.6 3.3
Kennecott smelter & 100
refinery %
Copper concentrates
smelted
('000 tonnes) 157 213 152 166 194 665 725
Copper anodes produced
('000
tonnes) (b) 32.9 45.8 27.9 46.2 24.5 142.5 144.5
Production of refined
metal:
Copper ('000 tonnes)
(c) 25.5 40.2 32.7 39.2 36.1 143.3 148.3
Gold ('000 ounces)
(d) 31.5 32.2 20.9 30.5 30.3 176.4 113.9
Silver ('000 ounces)
(d) 516 577 290 571 512 2,671 1,950
(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 4.8 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 December
2022. The data represents production and sales on a 100% basis
unless otherwise stated.
Rio Tinto operational data
Rio Full Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
------------------- --------- ---------- ---------- ---------- ---------- ---------- ------------ ------------
COPPER & GOLD
(continued)
Turquoise Hill
Resources
Oyu Tolgoi mine (a) 66 %
Mongolia
Ore Treated ('000
tonnes) 10,573 9,581 9,685 10,685 9,411 39,124 39,361
Average mill head
grades:
Copper (%) 0.46 0.40 0.40 0.42 0.45 0.50 0.42
Gold (g/t) 0.38 0.32 0.26 0.22 0.21 0.54 0.25
Silver (g/t) 1.27 1.25 1.15 1.32 1.21 1.26 1.24
Copper concentrates
produced
('000 tonnes) 182.7 144.3 146.0 173.6 151.9 749.6 615.8
Average
concentrate
grade
(% Cu) 21.3 21.0 20.9 20.9 21.3 21.7 21.0
Production of
metals in
concentrates:
Copper in
concentrates
('000 tonnes) 38.9 30.3 30.6 36.3 32.3 163.0 129.5
Gold in
concentrates
('000
ounces) 78.6 59.2 47.6 42.7 34.2 468.1 183.8
Silver in
concentrates
('000 ounces) 239 211 201 256 204 977 871
Sales of metals in
concentrates:
Copper in
concentrates
('000 tonnes) 34.4 29.9 35.3 41.8 25.3 139.4 132.3
Gold in
concentrates
('000
ounces) 102.2 57.4 67.9 56.0 26.2 434.7 207.5
Silver in
concentrates
('000 ounces) 192 179 224 282 152 783 836
(a) Production data in the table represent 33.52% ownership in
Oyu Tolgoi. On 16 December 2022, Rio Tinto completed the
acquisition of 100% of Turquoise Hill Resources Ltd, increasing our
ownership in Oyu Tolgoi from 33.52% to 66%. From 1 January 2023,
our share of production will be updated to reflect this change. We
will also separately report production from open pit and
underground operations.
Rio Full Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
--------------------- --------- ---------- ---------- ---------- ---------- ---------- ----------- -----------
DIAMONDS
100
Diavik Diamonds (a) %
--------------------- --------- ---------- ---------- ---------- ---------- ---------- ----------- -----------
Northwest
Territories,
Canada
Ore processed ('000
tonnes) 596 496 537 590 535 2,540 2,158
Diamonds recovered
('000
carats) 1,356 991 1,149 1,192 1,319 5,843 4,651
(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 December
2022. The data represents production and sales on a 100% basis
unless otherwise stated.
Rio Tinto operational data
Full Full
Rio Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production
('000 tonnes)
Hamersley mines (a) 55,049 47,678 52,636 56,650 61,339 210,329 218,304
Hope Downs 50 % 13,133 11,660 12,771 12,529 11,891 49,284 48,850
Robe River - Pannawonica
(Mesas J and A) 53 % 6,031 5,234 5,762 6,679 7,882 25,497 25,558
Robe River - West Angelas 53 % 9,909 7,130 7,474 8,484 8,347 34,613 31,435
Total production ('000 tonnes) 84,122 71,703 78,643 84,342 89,458 319,724 324,146
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Breakdown of total production:
Pilbara Blend and SP10 Lump
(b) 24,998 20,827 23,228 25,452 25,251 92,463 94,758
Pilbara Blend and SP10 Fines
(b) 38,681 31,094 36,220 38,709 41,158 144,826 147,180
Robe Valley Lump 2,173 1,982 2,226 2,621 3,103 9,626 9,932
Robe Valley Fines 3,857 3,252 3,536 4,058 4,779 15,871 15,625
Yandicoogina Fines (HIY) 14,412 14,548 13,433 13,501 15,168 56,938 56,650
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Breakdown of total shipments:
Pilbara Blend Lump 16,616 13,626 16,043 18,860 18,153 64,697 66,682
Pilbara Blend Fines 31,620 27,915 32,243 38,186 38,835 138,203 137,179
Robe Valley Lump 2,001 1,273 1,832 2,417 2,348 7,512 7,870
Robe Valley Fines 4,221 3,266 4,357 4,514 5,464 17,727 17,602
Yandicoogina Fines (HIY) 14,121 14,487 14,201 13,530 14,661 56,889 56,880
SP10 Lump (b) 4,841 3,827 4,456 1,647 2,824 16,078 12,753
SP10 Fines (b) 10,684 7,067 6,775 3,766 5,062 20,487 22,672
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Total shipments ('000 tonnes)
(c) 84,104 71,462 79,907 82,920 87,347 321,592 321,636
Full Full
Rio Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Iron Ore Company of Canada 59 %
Newfoundland & Labrador and Quebec
in Canada
Saleable iron ore production:
Concentrates ('000 tonnes) 1,718 1,638 2,183 2,106 2,020 6,578 7,947
Pellets ('000 tonnes) 2,535 2,456 2,250 2,621 2,288 9,986 9,615
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IOC Total production ('000
tonnes) 4,254 4,094 4,433 4,727 4,308 16,564 17,562
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
Shipments:
Concentrates ('000 tonnes) 1,684 1,022 1,845 2,241 1,999 7,000 7,108
Pellets ('000 tonnes) 2,914 2,405 2,527 2,457 1,764 9,988 9,153
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
IOC Total Shipments ('000
tonnes) (c) 4,598 3,427 4,372 4,699 3,763 16,989 16,261
Global Iron Ore Totals
Iron Ore Production ('000
tonnes) 88,375 75,797 83,076 89,069 93,766 336,288 341,708
Iron Ore Shipments ('000
tonnes) 88,702 74,889 84,279 87,619 91,110 338,581 337,897
Iron Ore Sales ('000 tonnes)
(d) 85,256 79,194 86,108 89,689 89,650 333,185 344,641
------------------------------- --------- ------ ------ ------ ------ ------ ------- -------
(a) Includes 100% of production from Paraburdoo, Mt Tom Price,
Western Turner Syncline, Marandoo, Yandicoogina, Brockman,
Nammuldi, Silvergrass, Channar, Gudai-Darri 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.
(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 December
2022. The data represents production and sales on a 100% basis
unless otherwise stated.
Rio Tinto operational data
Rio Full Full
Tinto Q4 Q1 Q2 Q3 Q4 Year Year
interest 2021 2022 2022 2022 2022 2021 2022
SALT
Dampier Salt 68 %
Western Australia
Salt production
('000 tonnes) 2,152 2,333 1,507 2,449 2,133 8,555 8,422
--------------------- --------- ---------- ---------- ---------- ---------- ---------- ----------- -----------
TITANIUM DIOXIDE SLAG
Rio Tinto Iron & 100
Titanium %
Canada and South
Africa
(Rio Tinto share)
(a)
Titanium dioxide
slag ('000
tonnes) 228 273 293 310 323 1,014 1,200
--------------------- --------- ---------- ---------- ---------- ---------- ---------- ----------- -----------
(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 December
2022. The data represents production and sales on a 100% basis
unless otherwise stated.
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END
DRLSFWSSWEDSEFF
(END) Dow Jones Newswires
January 17, 2023 02:00 ET (07:00 GMT)
Rio Tinto (LSE:RIO)
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