RIO Rio Tinto Limited

   By Rhiannon Hoyle 
 

SYDNEY--Rio Tinto PLC (RIO.LN), one of the world's largest mining companies, published an operational report for 2018. The miner reported a 2% rise in iron-ore shipments from its Australian operations and forecast a further rise in 2019. Here are some remarks from the report.

On iron-ore production:

"Pilbara operations produced 337.8 million [metric] tons (Rio Tinto share 281.8 million tons) in 2018, 2% higher than 2017, at the upper end of guidance. The production performance is attributable to the ramp-up of expanded mines and minimal weather events. Rio Tinto's Pilbara shipments in 2019 are expected to be between 338 and 350 million tons, (100% basis), subject to weather and market conditions. Following a plant fire at the port of Cape Lambert A on Jan. 10, 2019, Rio Tinto expects limited disruption to Robe Valley lump and fines shipments, which is reflected in the above guidance."

On iron-ore prices:

"Approximately 17% of sales in 2018 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. Achieved average pricing in 2018 was $57.6 per wet metric ton on an FOB basis (equivalent to $62.5 per dry metric ton). In 2017, the full year price achieved was $59.6 per wet metric ton (equivalent to $64.8 per dry metric ton)."

On bauxite output:

"Bauxite production in 2018 of 50.4 million tons was 1% lower than 2017 and at the upper end of guidance. Strong production at Gove and the Andoom mining area in Weipa was offset by lower production at two non-managed operations. The CBG mine in Guinea was impacted by planned tie-in works as part of the commissioning of the expansion project, and MRN in Brazil was affected by the Alunorte refinery outage."

On newest bauxite mine:

"The Amrun project achieved first shipment six weeks ahead of schedule, with a total of nine ships loading 600,000 tons before the end of 2018."

On Kennecott copper mine:

"Mined copper production in 2018 was 37% higher than 2017 as mining activity continued in a higher grade area of the pit, coupled with productivity improvements and increased plant throughput. In 2019, the production profile will see increased variability in grade as operations mine in lower levels of the pit, together with waste stripping related to the south wall pushback expansion. Anticipated south wall pushback grades begin to increase in late-2020 and are expected to offset this variability over the longer term."

On Oyu Tolgoi operation:

"Work continues on the critical shaft two equipping activities, central heating plant, mine infrastructure, underground materials handling systems and on priority underground development. Overall progress continues to track in-line with the re-forecast undertaken in the third quarter of 2018. The project workforce has now reached peak levels of around 9,400, whilst maintaining a high (88%) participation rate of Mongolian nationals."

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

January 17, 2019 17:49 ET (22:49 GMT)

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