TIDMRIO
RNS Number : 0969A
Rio Tinto PLC
17 January 2020
Rio Tinto releases fourth quarter production results
17 January 2020
Rio Tinto chief executive J-S Jacques said "We finished the year
with good momentum, particularly in our Pilbara iron ore operations
and in bauxite, despite having experienced some operational
challenges in 2019. We are increasing our investment, with $2.25
billion of high-return projects in iron ore and copper approved in
the fourth quarter. We also boosted our exploration and evaluation
expenditure to $624 million in 2019, further strengthening our
pipeline of opportunities.
"We have the platform and performance to maintain our delivery
of superior returns to shareholders over the short, medium and
long-term, driven by our strong value over volume approach and
ongoing disciplined allocation of capital."
Q4 2019 vs Q4 vs Q3 2019 vs 2018
2018 2019
---------------------------- ---
Pilbara iron ore shipments
(100% basis) Mt 86.8 -1% +1% 327.4 -3%
Pilbara iron ore production
(100% basis) Mt 83.6 -3% -4% 326.7 -3%
Bauxite Mt 15.1 +28% +10% 55.1 +9%
Aluminium kt 783 -4% -1% 3,171 -2%
Mined copper kt 138.7 -9% -12% 577.4 -5%
Titanium dioxide slag kt 286 -3% -11% 1,206 +8%
IOC iron ore pellets and
concentrate Mt 2.6 -10% -13% 10.5 +18%
--- ------- ----- ----- ----- -------
Operational update
-- Pilbara iron ore shipments of 327 million tonnes (100% basis)
were 3% lower than 2018, primarily impacted by weather and
operational challenges in the first half of 2019 and our active
decision to protect the quality of the Pilbara Blend. In addition
to direct sales from Australia, we commenced trials of portside
trading in October 2019.
-- On 27 November 2019, we announced a $749 million investment
in the Greater Tom Price operations (Western Turner Syncline
Phase 2) in the Pilbara region of Western Australia, to sustain
production capacity.
-- Bauxite production of 55 million tonnes was 9% higher than
2018, underpinned by the successful ramp-up of the Amrun mine
in Queensland, Australia. Third party shipments of 40 million
tonnes were 21% higher than 2018.
-- Aluminium production of 3.2 million tonnes was 2% lower than
2018, primarily reflecting a preventive safety shutdown of
one of the three pot-lines at ISAL in Iceland and earlier
than planned pot relining at Kitimat in British Columbia,
Canada in the second half.
-- On 23 October 2019, we announced a strategic review of our
interest in the Tiwai Point aluminium smelter in New Zealand,
to be completed in the first quarter of 2020.
-- On 3 December 2019, we announced the approval of a $1.5 billion
investment at Kennecott in the US, phase two of the south
wall pushback project, extending operations to 2032.
-- Mined copper production of 577 thousand tonnes was 5% lower
than 2018, reflecting lower copper grades, partially offset
by higher throughput. Lower copper grades at Kennecott impacted
the fourth quarter in particular: this is expected to persist
until we access higher grades from the end of 2020, resulting
from phase one of the south wall pushback project.
-- Following the signing of renewable power agreements in Chile,
Escondida has raised a provision related to the cancellation
of existing coal contracts. We have recognised a charge of
approximately $200 million against 2019 underlying EBITDA.
-- At the Oyu Tolgoi underground project in Mongolia, we completed
the primary production shaft (shaft 2) in October. Work continued
on the mine design and, overall, we remain within the cost
and schedule ranges as announced in July 2019. We continue
to expect to complete the mine design in the first half of
2020 and the Definitive Estimate of cost and schedule in the
second half of 2020.
-- Titanium dioxide slag production of 1.2 million tonnes was
8% higher than 2018, reflecting continued operational improvement
and the restart of furnaces in line with market conditions.
Fourth quarter production was impacted by the curtailment
of operations at Richards Bay Minerals (RBM) in South Africa,
following an escalation in violence in the surrounding communities.
A phased restart commenced at the end of December.
-- Production of pellets and concentrate at the Iron Ore Company
of Canada (IOC) was 18% higher than 2018, when strike action
occurred. Fourth quarter production was 10% lower than the
same quarter of 2018 due to unplanned equipment-related downtime.
-- On 18 November 2019, we announced that we would support Energy
Resources of Australia Limited's (ERA) plans for a renounceable
entitlement offer to raise $324 million for the rehabilitation
of the Ranger Project Area in Australia's Northern Territory.
-- Exploration and evaluation spend in 2019 was $624 million,
28% higher than 2018, primarily reflecting increased activity
at Resolution Copper in the US and on the Winu and Falcon
advanced projects in Australia and Canada. We achieved a major
permitting milestone at Resolution with the release of an
independently prepared Draft Environmental Impact Statement
in August 2019.
-- In 2019, we repurchased approximately $1.6 billion of Rio
Tinto plc shares (28.4 million) on-market.
Average realised prices
2019 vs 2018
Pilbara iron
ore $/wmt, FOB 79.0 +37%
$/t (including VAP, mid-west
Aluminium premium) 2,132 -14%
Copper US cents per lb 274.5 -7%
----------------------------- ----- -------
2020 production guidance (Rio Tinto share, unless otherwise
stated)
2019 actual 2020 guidance
------------ -----------------
Pilbara iron ore (shipments, 327.4 Mt 330 to 343 Mt
100% basis)
Bauxite 55.1Mt 55 to 58 Mt
Alumina 7.7 Mt 7.8 to 8.2 Mt
Aluminium 3.2 Mt 3.1 to 3.3 Mt
Mined copper 577 kt 530 to 570 kt
Refined copper 260 kt 205 to 235 kt
Diamonds 17 M carats 12 to 14 M carats
Titanium dioxide slag 1.2 Mt 1.2 to 1.4 Mt
IOC pellets and concentrate 10.5 Mt 10.5 to 12.0 Mt
Boric oxide equivalent 0.5 Mt 0.5 Mt
------------ -----------------
-- Our guidance is framed by expectations of general stability
in global GDP growth in 2020, tempered by negative risks,
including geopolitical tensions and oil price volatility.
In this environment, we will continue to monitor and adjust
production levels and product mix to meet customer requirements
in 2020, in line with our value over volume strategy.
-- Iron ore shipments and bauxite production guidance are subject
to weather and market conditions.
-- Aluminium guidance reflects a continued focus on capacity
creep, offset by earlier than planned pot relining at Kitimat.
-- Mined copper guidance reflects lower grades at Kennecott as
mining transitions from the east to south wall. We expect
to access higher, more consistent grade ore from late 2020.
-- Diamonds guidance reflects the expected closure of Argyle
in the fourth quarter of 2020 and lower grades at Diavik.
-- Titanium dioxide slag guidance assumes return to normal operations
at RBM in early 2020.
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. To allow production
numbers to be compared on a like-for-like basis, production from
asset divestments completed in 2018 is excluded from Rio Tinto
share of production data.
IRON ORE
Million tonnes Q4 2019 vs Q4 2018 vs Q3 2019 2019 vs 2018
------------------------------
Rio Tinto share of production
Pilbara Blend and SP10
Lump(1) 19.9 -8% -5% 80.8 -5%
Pilbara Blend and SP10
Fines(1) 30.3 -4% -4% 119.3 -3%
Robe Valley Lump 1.6 +12% -5% 5.1 -14%
Robe Valley Fines 2.8 +7% -9% 9.2 -16%
Yandicoogina Fines (HIY) 14.2 -4% -3% 56.3 -2%
-------
Total Pilbara production 68.8 -5% -5% 270.7 -4%
-------
Total Pilbara production
(100% basis) 83.6 -3% -4% 326.7 -3%
------- ---------- ---------- ----- -------
Million tonnes Q4 2019 vs Q4 2018 vs Q3 2019 2019 vs 2018
----------------------------------
Rio Tinto share of shipments
Pilbara Blend Lump 16.2 -12% +1% 65.9 -11%
Pilbara Blend Fines 31.2 -6% +4% 120.2 -7%
Robe Valley Lump 1.2 +2% -3% 4.0 -17%
Robe Valley Fines 3.3 +9% -3% 10.5 -13%
Yandicoogina Fines (HIY) 15.3 +3% +7% 57.1 -1%
SP10 Lump(1) 2.1 n/a -23% 5.4 n/a
SP10 Fines(1) 2.1 +12% -49% 9.4 +180%
-------
Total Pilbara shipments 71.3 -2% -1% 272.5 -3%
-------
Total Pilbara shipments
(100% basis) 86.8 -1% +1% 327.4 -3%
---------------------------------- ------- ---------- ---------- ----- -------
Total Pilbara sales (Rio
Tinto share)(2) 70.0 -4% -2% 271.1 -3%
---------------------------------- ------- ---------- ---------- ----- -------
Total Pilbara sales (100%
basis)(2) 85.5 -2% -0% 326.0 -4%
---------------------------------- ------- ---------- ---------- ----- -------
Total Pilbara sales (consolidated
basis)(2, 3) 72.2 -3% -2% 278.6 -3%
------- ---------- ---------- ----- -------
(1) SP10 includes some lower grade products.
(2) Differences between shipments and sales reflect tonnes held
for portside trading and material purchased from IOC and sold.
(3) While Rio Tinto has a 53% net beneficial interest in Robe
River Iron Associates, it recognises 65% of the assets,
liabilities, sales revenues and expenses in its accounts (as 30% is
held through a 60% owned subsidiary and 35% is held through a 100%
owned subsidiary). The consolidated basis sales reported here
include Robe River Iron Associates on a 65% basis to enable
comparison with revenue reported in the financial statements.
Pilbara operations
Pilbara operations produced 326.7 million tonnes (Rio Tinto
share 270.7 million tonnes) in 2019, 3% lower than 2018. Fourth
quarter production of 83.6 million tonnes (Rio Tinto share 68.8
million tonnes) was 3% lower than the same quarter of 2018 and 4%
lower than the previous quarter due to normal maintenance cycles
and mine sequencing. Overall material moved in 2019 was the highest
on record. Our increased focus on waste material movement and pit
development will continue in 2020 to improve mine performance and
pit sequencing.
2019 shipments of 327.4 million tonnes (Rio Tinto share 272.5
million tonnes) were 3% lower than 2018. In the first half of 2019,
shipments were impacted by significant weather disruptions, a fire
at the Cape Lambert A port facility and operational challenges.
Fourth quarter shipments of 86.8 million tonnes (Rio Tinto share
71.3 million tonnes) were 1% below the same quarter of 2018.
Performance in the second half of 2019 was strong, with both
production and shipments exceeding the same period in 2018 despite
the extended rail maintenance shut limiting rail capacity for 12
days. In October 2019 we commenced trials of portside trading. The
operation maintains some inventory at Chinese ports and can also
handle material from third parties and from IOC. Reported Pilbara
sales in the table above therefore reflect the timing differences
that may occur between shipments from the Pilbara and sales to
external customers.
We price the majority of our iron ore sales (76%) by reference
to the average index price for the month of shipment. In 2019, we
priced approximately 16% of sales by reference to the prior
quarter's average index lagged by one month, with the remainder
sold either on current quarter average, current month average or on
the spot market.
In 2019, approximately 22% of sales were made on a cost and
freight (CFR) basis, 46% were made on a cost, freight and insurance
(CIF) basis and 32% were made on a free on board (FOB) basis.
In 2019, we achieved an average iron ore price of $79.0 per wet
metric tonne on an FOB basis (equivalent to $85.9 per dry metric
tonne, based on an average moisture rate of 8%). In 2018, average
pricing was $57.8 per wet metric tonne (equivalent to $62.8 per dry
metric tonne).
Pilbara projects
The Koodaideri iron ore mine is continuing to progress, with key
construction activities on schedule. We commenced work on the major
structural foundations in the fourth quarter and expect first ore
in late 2021, consistent with previous guidance.
First ore from the Robe River Joint Venture sustaining
production projects (West Angelas C&D and Mesa B, C and H at
Robe Valley) is expected in 2021, consistent with previous
guidance. All major environmental approvals have been received with
the exception of the Mesa H approval. Procurement and construction
activities are progressing, with concrete pouring commencing at
West Angelas and Robe Valley civil contractors mobilising to
site.
On 27 November 2019, we announced the approval of a $749 million
(A$1 billion) investment in the Greater Tom Price operations to
help sustain production capacity. This investment in the Western
Turner Syncline Phase 2 mine will facilitate mining of existing and
new deposits and includes construction of a new crusher as well as
a 13-kilometre conveyor. Pending final government approvals,
construction will start in the first quarter of 2020 with first ore
from the crusher expected in 2021.
ALUMINIUM
Rio Tinto share of production ('000 tonnes)
Q4 2019 vs Q4 2018 vs Q3 2019 2019 vs 2018
--------------------
Bauxite 15,137 +28% +10% 55,105 +9%
Bauxite third party
shipments 10,968 +48% +6% 39,648 +21%
Alumina 2,032 +1% +11% 7,744 -3%
Aluminium 783 -4% -1% 3,171 -2%
------- ---------- ---------- ------ -------
Bauxite
Bauxite production of 55.1 million tonnes was 9% higher than
2018. In Australia, production at the Pacific managed mines was 11%
above prior year underpinned by the successful ramp-up of Amrun,
which achieved its design capacity rates in the fourth quarter of
2019, replacing the depleting Weipa mines. Production at the
non-managed JVs (CBG in Guinea and MRN in Brazil) was 1% higher
than 2018, but was constrained by a slower than planned ramp-up of
the expansion project at CBG.
Fourth quarter bauxite production was 28% higher than the same
period of 2018. Production at the Pacific managed mines was 34%
higher than the same period last year, partly offset by lower
production at non-managed JVs (CBG and MRN).
Third party bauxite shipments were 39.6 million tonnes in 2019,
which was 21% higher than 2018 reflecting increased volumes from
Amrun. Fourth quarter shipments were 48% higher than the same
period in 2018.
Alumina
Alumina production of 7.7 million tonnes was 3% lower than 2018,
primarily due to major maintenance activities at the Pacific
refineries including a planned five-year maintenance shutdown to
service the cogeneration plant at Yarwun.
Fourth quarter alumina production was 1% higher than the same
period of 2018. Our share of production from the Pacific refineries
was 17% higher than the third quarter, ramping up after completion
of major maintenance activities. Yarwun achieved a production
record for the fourth quarter.
Aluminium
Aluminium production of 3.2 million tonnes in 2019 was 2% lower
than 2018, primarily due to lower volumes from ISAL from a pot-line
outage in the third quarter and at Kitimat, due to earlier than
planned pot-lining replacement. Excluding the non-managed Becancour
operation where a lock-out constrained operations, the Quebec and
Pacific smelters performed well, with aluminium production for 2019
1% higher than 2018, reflecting continued productivity improvement.
The restart of Becancour is progressing well, with full ramp-up
expected by mid-2020.
Fourth quarter aluminium production of 0.8 million tonnes was 4%
lower than the same period of 2018. Production at the Quebec and
Pacific smelters for the fourth quarter was 1% higher than the same
period last year. Following the preventive pot-line shutdown, the
ISAL smelter was ramped back up and maintained at about 85% of
capacity, optimised for value over volume. Production at the
Kitimat smelter continues to be impacted by earlier than planned
pot-lining replacement, with actions underway to minimise
production impacts. The estimated impact on 2020 production is
reflected in our guidance.
The aluminium industry continues to face challenging conditions
in global markets and policy uncertainty, reflected in low industry
profitability. We continue to actively work on enhancing the
competitiveness of our smelters, including discussions with
stakeholders on energy pricing, to ensure the sustainability and
global competitiveness of our Pacific smelters.
On 23 October 2019, we announced a strategic review of our
interest in the Tiwai Point aluminium smelter in New Zealand, to
determine the operation's ongoing viability and competitive
position. The strategic review will consider all options, including
curtailment and closure and is expected be complete in the first
quarter of 2020.
Average realised aluminium prices were $2,132 per tonne (2018:
$2,470 per tonne). This includes premiums for value-added products
(VAP), which represented 51% of primary metal sold (2018: 54%,
excluding the divested Dunkerque smelter) and generated attractive
product premiums averaging $234 per tonne of VAP sold (2018: $227
per tonne) on top of the physical market premiums. The mid-west
premium decreased from $419 per tonne in 2018 to $320 per tonne in
2019. A 10% tariff on Canadian aluminium imports into the United
States under Section 232 was paid until the tariff was removed on
19 May 2019.
Kemano
At the Kemano hydropower facility at Kitimat, British Columbia,
tunnel boring continues to progress with 2,731 metres excavated at
the end of 2019. Tunnel boring machine productivity has been lower
than expected with completion now expected in 2021 (previously late
2020).
COPPER & DIAMONDS
Rio Tinto share of production ('000 tonnes)
Q4 2019 vs Q4 2018 vs Q3 2019 2019 vs 2018
-----------------------
Mined copper
Rio Tinto Kennecott 35.4 -39% -39% 186.8 -8%
Escondida 92.3 +16% +2% 341.6 -3%
Oyu Tolgoi 11.0 -21% +16% 49.1 -8%
Refined copper
Rio Tinto Kennecott 51.4 -20% +27% 184.6 -5%
Escondida 20.5 -5% +22% 75.0 -6%
Diamonds ('000 carats)
Argyle 3,363 +5% -5% 12,999 -8%
Diavik 840 -22% -15% 4,031 -8%
------- ---------- ---------- ------ -------
Rio Tinto Kennecott
Mined copper production was 8% lower than 2018, primarily due to
increased grade variability, with grades on average 11% lower. This
grade impact was partially offset by a 4% year on year improvement
in ore processed. Copper grades of 0.35% achieved in the final
quarter of 2019 compare to 0.59% in the same quarter of 2018.
Grades will continue to be lower through 2020 before increasing
from the first quarter of 2021, with the transition from east wall
to south wall mining.
Refined copper production was 5% lower than 2018, reflecting
reduced copper concentrate availability, a planned smelter shutdown
in July and additional unplanned maintenance impacting furnace
online time.
We continue to toll and purchase third party concentrate to
optimise smelter utilisation, with 92 thousand tonnes of
concentrate received for processing in 2019, compared with 100
thousand tonnes in 2018. Purchased and tolled copper concentrate
are excluded from reported production figures.
A 45-day maintenance shut is planned at the smelter during the
second quarter of 2020. This is a standard rebuild, which is
undertaken approximately every three years.
Molybdenum production more than doubled in 2019 (from 5.8kt to
11.2kt), as a result of both higher grades and plant capacity and
productivity improvements.
On 3 December 2019, we announced the approval of a $1.5 billion
investment at Rio Tinto Kennecott, extending operations to 2032.
The investment will further extend strip waste rock mining and
support additional infrastructure development in the second phase
of the south wall pushback project, to allow mining to continue
into a new area of the ore body between 2026 and 2032.
Escondida
Copper production at Escondida was 3% lower than 2018, mainly
due to grade declines, which were 8% lower than last year, partly
offset by higher throughput. Fourth quarter production was 16%
higher than the same quarter of 2018 due to higher throughput,
offsetting production losses from stoppages associated with the
social unrest in Chile.
Following the signing of renewable power agreements, Escondida
has raised a provision related to the cancellation of existing coal
contracts. We have recognised a charge of approximately $200
million against 2019 underlying EBITDA.
Oyu Tolgoi
As anticipated, mined copper production from the open pit was 8%
lower than 2018 as mining activity moved to lower grade areas.
Grades were 11% lower for the year and especially reflected in the
21% decline in fourth quarter production, partly offset by
productivity improvements.
Oyu Tolgoi Underground Project
During the fourth quarter, we took the decision to remove two of
the three mid-access drives. We will retain one mid-access drive on
the apex level of the mine design of Panel 0. The removal of these
mid-access drives has an unfavourable impact on schedule, however,
overall, the underground project remains within the range announced
in July 2019 of a 16 to 30 month(1) delay in schedule and an
increase of $1.2 to $1.9 billion(1) in development capital
costs.
We continue the detailed work on mine design, which we still
expect to complete in the first half of the year, with a Definitive
Estimate in the second half of 2020, as previously disclosed. This
will include the estimate of development capital costs and schedule
for the underground project based on the updated design of Panel
0.
Decisions on other key underground design elements such as the
location of the ore handling system and options for panel
sequencing will be taken in the first half of 2020. These will take
into consideration the consequential impacts on cost, schedule and
other key variables such as Ore Reserves, project ramp-up profile
and peak production, together with improvements in
productivity.
These productivity improvements resulted in increased
underground lateral development during the fourth quarter, to an
average monthly rate of 1,607 equivalent metres (eqm) compared to
1,214 eqm in the third quarter.
Completion of shaft 2, a key milestone, occurred in October
2019. Construction is progressing on shafts 3 and 4 to enable
commencement of main sinking operations for both shafts during the
first half of 2020.
Resolution Copper
Deepening of the existing shaft 9 continues, as well as work on
the underground characterisation study to increase ore body
knowledge.
Permitting and studies are progressing well, following the
release of the independently prepared Draft Environmental Impact
Statement for the project in August 2019. A plan is in place with
the US Forest Service to address comments received on the study to
maintain schedule on the Final Environmental Impact Study in
2020.
In April 2019, we approved $302 million ($166 million our share)
of additional expenditure for Resolution, to fund additional
drilling, ore-body studies, infrastructure improvements and
permitting activities, as we progress the project to the final
stage of the permitting phase.
Provisional pricing
At 31 December 2019, the Group had an estimated 220 million
pounds of copper sales that were provisionally priced at 271 cents
per pound. The final price of these sales will be determined during
the first half of 2020. This compares with 240 million pounds of
open shipments at 31 December 2018, provisionally priced at 277
cents per pound.
Diamonds
At Argyle, carat production was 8% lower than 2018 due to lower
recovered grade, partially offset by stronger mining and processing
rates.
At Diavik, carats recovered in 2019 were 8% lower than 2018 due
to lower ore availability and grade from the underground
operations, partly offset by higher tonnes and grade from the A21
open pit.
(1) As described above, the level of accuracy of these estimates
is preliminary in nature and subject to a range of variables, in
line with previous guidance. The confidence level of these
estimates is at a level associated with a Conceptual or Order of
Magnitude Study, and further work is required between now and the
second half of 2020 to refine the mine design options and study
them to a level of confidence and accuracy associated with
Feasibility Study quality estimates.
ENERGY & MINERALS
Rio Tinto share of production
Q4 2019 vs Q4 2018 vs Q3 2019 2019 vs 2018
-----------------------
Iron ore pellets and
concentrate (million
tonnes)
IOC 2.6 -10% -13% 10.5 +18%
Minerals ('000 tonnes)
Borates - B(2) O(3)
content 128 +8% -7% 520 +2%
Titanium dioxide slag 286 -3% -11% 1,206 +8%
Uranium ('000 lbs)
Energy Resources of
Australia 642 -31% +10% 2,640 -12%
Rössing - - - 2,114 -
------- ---------- ---------- ----- -------
Iron Ore Company of Canada (IOC)
Iron ore pellets and concentrate production available for sale
at IOC was 18% higher than 2018 when operations were impacted by a
two-month strike. It was 10% lower than the fourth quarter of 2018,
attributable to unplanned equipment-related downtime.
Borates
Borates production was in line with 2018 and aligned with market
conditions. We will base any decision to increase refinery
utilisation rates to match market demand.
Iron and Titanium
Titanium dioxide feedstock production was 8% higher than 2018,
reflecting improved operational performance and the restart of
furnaces.
Fourth quarter production was impacted by the curtailment of
operations at Richards Bay Minerals (RBM) in South Africa.
Operations were impacted in mid-November, following an escalation
in violence in the communities surrounding the operations, and a
full curtailment commenced at the beginning of December. A phased
restart commenced at the end of December. While RBM continues to
monitor the security situation closely, a return to full operations
and resumption of normalised production is expected in early
2020.
All nine furnaces at Rio Tinto Fer et Titane (RTFT) are
currently in operation, with three of four furnaces in operation at
RBM. This compares with six out of nine furnaces in operation at
RTFT and three out of four at RBM in the fourth quarter of 2018. We
will base our decision to re-start the remaining idled furnace to
match market demand.
Zulti South project
Construction of the $463 million Zulti South project at RBM
remains on hold post a suspension of operations following a number
of security incidents that impacted operations. We will review the
restart of the Zulti South project after normalisation of
operations at RBM.
Uranium
Energy Resources of Australia (ERA) continues to process
existing stockpiles. Production was 12% lower than 2018, reflecting
lower grades.
On 18 November 2019, we announced that we would support ERA's
plans for a renounceable entitlement offer to raise $324 million
for the rehabilitation of the Ranger Project Area in Australia's
Northern Territory.
As announced by the Takeovers Panel on 12 December 2019, we have
applied to the Takeovers Panel for a review of its decision of 11
December 2019, relating to ERA's renounceable entitlement offer. We
remain committed to fully subscribe for our entitlement and to
underwrite the entitlement offer in the absence of any other
commercially viable solution being available to ERA for the
rehabilitation of the Ranger Project Area.
Production from Rössing Uranium is reported up to the date of
completion of divestment on 16 July 2019.
EXPLORATION AND EVALUATION
Pre-tax and pre-divestment expenditure on exploration and
evaluation charged to the profit and loss account in 2019 was $624
million, compared with $488 million in 2018, with increased spend
at Resolution Copper in the US and on the Winu and Falcon Order of
Magnitude studies in Australia and Canada. Approximately 52% of
this expenditure was incurred by central exploration, 33% by Copper
& Diamonds, 9% by Energy & Minerals and the remainder by
Iron Ore and Aluminium.
There were no significant divestments of central exploration
properties in 2019.
Exploration highlights
We have a strong portfolio of projects with activity in 17
countries across some seven commodities. The bulk of the
exploration expenditure in this quarter was focused on copper in
Australia, Brazil, Canada, Chile, Colombia, Kazakhstan, Mongolia,
Peru, Serbia, United States, Zambia and diamonds projects in
Canada. Mine-lease exploration continued at a number of our managed
businesses including Pilbara Iron in Australia, Oyu Tolgoi in
Mongolia, Diavik in Canada, and Resolution and Boron in the US. A
summary of activity for the quarter is as follows:
Commodities Studies Stage Advanced Greenfield/Brownfield
projects programmes
Bauxite Cape York, Australia Amargosa, Brazil*; Cape York, Australia
Sanxai, Laos*
----------------------- ------------------ ----------------------
Base Metals Copper/molybdenum: La Granja, Peru Copper Greenfield:
Resolution, US; Winu, Nickel: Tamarack, Australia, Brazil,
Australia US (third party Canada, Chile, China,
operated) Colombia, Kazakhstan,
Mongolia, Peru,
Serbia, US, Zambia
Copper Brownfield:
Resolution, US;
Bingham, US; Oyu
Tolgoi, Mongolia
Nickel Greenfield:
Canada, Uganda,
Finland
----------------------- ------------------ ----------------------
Diamonds Falcon, Canada Greenfield: Canada
Brownfield: Diavik,
Canada
----------------------- ------------------ ----------------------
Minerals Lithium borates: Heavy mineral sands:
Jadar, Serbia Tanzania
Heavy mineral sands: Industrial Minerals:
Mutamba, Mozambique Serbia
(third party operated) Industrial minerals
brownfield: Boron
----------------------- ------------------ ----------------------
Iron Ore Pilbara, Australia Pilbara, Australia Brownfield: Pilbara,
Australia
----------------------- ------------------ ----------------------
* Limited activity during the quarter
Forward-looking statements
This announcement may include "forward-looking statements"
within the meaning of the US 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 production forecast or guidance,
financial position, business strategy, plans and objectives of
management for future operations (including development plans and
objectives relating to Rio Tinto's products and reserve and
resource positions), are forward-looking statements. The words
"intend", "aim", "project", "anticipate", "estimate", "plan",
"believes", "expects", "may", "should", "will", "target", "set to",
"assumes" 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
production, performance or results of Rio Tinto to be materially
different from any future production, performance or results
expressed or implied by such forward-looking statements. Such
forward-looking statements could be influenced by such risk factors
as 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. Forward-looking statements should, therefore, be
construed in light of such risk factors and undue reliance should
not be placed on forward-looking statements. 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
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
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Grant Donald
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===================================== ================================
Investor Relations, United Kingdom Investor Relations, Australia
Menno Sanderse Natalie Worley
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David Ovington Amar Jambaa
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===================================== ================================
Group Company Secretary Joint Company Secretary
Steve Allen Tim Paine
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 Rio
Tinto's Group Company Secretary.
LEI: 213800YOEO5OQ72G2R82
Classification: 3.1 Additional regulated information required to
be disclosed under the laws of a Member State
Rio Tinto production summary
Rio Tinto share of production
Quarter Full Year % Change
2018 2019 2019 2018 2019 Q4 Q4 2019
Q4 Q3 Q4 19 19 vs
vs vs 2018
Q4 Q3
18 19
------- -------------- ------ ------------ ------- -------- ---- ---------
Principal Commodities
------------
('000
Alumina t) 2,020 1,826 2,032 7,980 7,744 1% 11% -3%
('000
Aluminium t) 817 789 783 3,231 3,171 -4% -1% -2%
('000
Bauxite t) 11,790 13,796 15,137 50,421 55,105 28% 10% 9%
('000
Borates t) 118 138 128 512 520 8% -7% 2%
('000
Copper - mined t) 151.9 157.9 138.7 607.6 577.4 -9% -12% -5%
('000
Copper - refined t) 86.1 57.1 71.9 274.8 259.6 -17% 26% -6%
('000
Diamonds cts) 4,290 4,551 4,203 18,427 17,030 -2% -8% -8%
('000
Iron Ore t) 75,018 75,117 71,352 290,800 281,192 -5% -5% -3%
Titanium dioxide ('000
slag t) 294 321 286 1,116 1,206 -3% -11% 8%
('000
Uranium lbs) 1,904 755 642 6,764 4,754 -66% -15% -30%
------- -------------- ------ ------------ ------- -------- ---- ---------
Other Metals & Minerals
('000
Gold - mined oz) 118.4 87.8 75.0 372.1 389.7 -37% -15% 5%
('000
Gold - refined oz) 58.6 60.8 63.3 198.0 218.7 8% 4% 10%
('000
Molybdenum t) 2.2 2.1 4.7 5.8 11.2 110% 119% 95%
('000
Salt t) 1,496 1,392 1,450 6,153 5,422 -3% 4% -12%
('000
Silver - mined oz) 1,586 1,320 1,209 5,656 5,412 -24% -8% -4%
('000
Silver - refined oz) 807 664 839 2,865 2,853 4% 26% 0%
------- -------------- ------ ------------ ------- -------- ---- ---------
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
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Full Year
Year
interest 2018 2019 2019 2019 2019 2018 2019
---------------------------------------------- ---------- ------ -------- ------ ------- -------- -------- ---------
ALUMINA
Production ('000 tonnes)
Jonquière (Vaudreuil) 100% 354 373 336 360 345 1,444 1,413
Jonquière (Vaudreuil) specialty Alumina
plant 100% 29 25 31 28 24 124 109
Queensland Alumina 80% 742 711 668 669 716 2,958 2,763
São Luis (Alumar) 10% 92 86 86 99 97 351 368
Yarwun 100% 803 813 757 671 850 3,103 3,091
------ -------- ------ ------- -------- -------- ---------
Rio Tinto total alumina production 2,020 2,008 1,878 1,826 2,032 7,980 7,744
---------------------------------------------- ---------- ------ -------- ------ ------- -------- -------- ---------
ALUMINIUM
Production ('000 tonnes)
Australia - Bell Bay 100% 48 45 47 48 48 189 189
Australia - Boyne Island 59% 74 73 75 75 74 295 296
Australia - Tomago 52% 77 74 76 77 76 305 303
Canada - six wholly owned 100% 408 400 400 399 383 1,616 1,582
Canada - Alouette (Sept-Îles) 40% 58 58 60 61 62 234 241
Canada - Bécancour 25% 8 4 4 4 7 34 19
Iceland - ISAL (Reykjavik) 100% 54 52 52 36 43 212 184
New Zealand - Tiwai Point 79% 70 71 69 70 69 270 279
Oman - Sohar 20% 20 19 19 20 20 76 78
------ -------- ------ ------- -------- -------- ---------
Rio Tinto total aluminium production 817 796 803 789 783 3,231 3,171
BAUXITE
Production ('000 tonnes) (a)
Gove 100% 3,250 3,004 2,957 2,968 3,273 12,540 12,201
Porto Trombetas 12% 489 285 287 385 371 1,576 1,327
Sangaredi (b) 1,204 1,558 1,630 1,749 1,227 5,868 6,165
Weipa 100% 6,847 7,917 8,533 8,695 10,267 30,437 35,411
------ -------- ------ ------- -------- -------- ---------
Rio Tinto total bauxite production 11,790 12,763 13,407 13,796 15,137 50,421 55,105
(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 Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
interest 2018 2019 2019 2019 2019 2018 2019
-------------------------------------------- ---------- ------ ------ ------ ------ ------ --------- ---------
BORATES
Production ('000 tonnes B(2) O(3) content)
Rio Tinto Borates - borates 100% 118 115 138 138 128 512 520
-------------------------------------------- ---------- ------ ------ ------ ------ ------ --------- ---------
COPPER
Mine production ('000 tonnes) (a)
Bingham Canyon 100% 58.3 52.5 41.1 57.8 35.4 203.9 186.8
Escondida 30% 79.7 76.0 82.7 90.5 92.3 350.4 341.6
Oyu Tolgoi (b) 34% 13.9 15.4 13.1 9.5 11.0 53.3 49.1
------ ------ ------ ------ ------ --------- ---------
Rio Tinto total mine production 151.9 143.9 136.9 157.9 138.7 607.6 577.4
------ ------ ------ ------ ------ --------- ---------
Refined production ('000 tonnes)
Escondida 30% 21.6 18.7 19.0 16.8 20.5 80.0 75.0
Rio Tinto Kennecott 100% 64.6 29.6 63.3 40.3 51.4 194.7 184.6
------ ------ ------ ------ ------ --------- ---------
Rio Tinto total refined production 86.1 48.3 82.3 57.1 71.9 274.8 259.6
(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.
(b) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in
Turquoise Hill Resources Ltd.
----------------------------------------------------------------------------------------------------------------------
DIAMONDS
Production ('000 carats)
Argyle 100% 3,211 2,786 3,292 3,558 3,363 14,069 12,999
Diavik 60% 1,078 1,010 1,188 994 840 4,358 4,031
------ ------ ------ ------ ------ --------- ---------
Rio Tinto total diamond production 4,290 3,796 4,481 4,551 4,203 18,427 17,030
-------------------------------------------- ---------- ------ ------ ------ ------ ------ --------- ---------
GOLD
Mine production ('000 ounces) (a)
Bingham Canyon 100% 57.1 53.0 65.1 64.6 52.0 196.7 234.7
Escondida 30% 22.1 22.2 22.4 14.6 14.8 79.7 74.0
Oyu Tolgoi (b) 34% 39.1 40.2 24.1 8.6 8.2 95.7 81.1
------ ------ ------ ------ ------ --------- ---------
Rio Tinto total mine production 118.4 115.4 111.6 87.8 75.0 372.1 389.7
------ ------ ------ ------ ------ --------- ---------
Refined production ('000 ounces)
Rio Tinto Kennecott 100% 58.6 41.7 52.9 60.8 63.3 198.0 218.7
(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 Q4 Q1 Q2 Q3 Q4 Full Year Full
Year
interest 2018 2019 2019 2019 2019 2018 2019
-------------------------------------------- ------------ ------ ------ ------ ------ ------ --------- -------
IRON ORE
Production ('000 tonnes) (a)
Hamersley mines (b) 56,364 51,218 50,087 55,567 52,521 220,612 209,392
Hamersley - Channar 60% 1,337 931 1,451 947 1,452 4,304 4,782
Hope Downs 50% 5,845 5,957 6,051 6,077 6,047 22,684 24,132
Iron Ore Company of Canada 59% 2,836 2,481 2,532 2,960 2,564 8,952 10,536
Robe River - Pannawonica (Mesas J and A) 53% 4,004 1,870 3,329 4,725 4,360 16,932 14,284
Robe River - West Angelas 53% 4,631 4,125 4,692 4,840 4,409 17,316 18,066
------ ------ ------ ------ ------ --------- -------
Rio Tinto iron ore production ('000 tonnes) 75,018 66,581 68,141 75,117 71,352 290,800 281,192
------ ------ ------ ------ ------ --------- -------
Breakdown of Production:
Pilbara Blend and SP10 Lump (c) 21,674 19,978 19,842 21,015 19,930 84,843 80,766
Pilbara Blend and SP10 Fines (c) 31,652 28,779 28,463 31,713 30,304 122,582 119,260
Robe Valley Lump 1,409 635 1,201 1,650 1,574 5,897 5,060
Robe Valley Fines 2,595 1,235 2,128 3,075 2,786 11,035 9,224
Yandicoogina Fines (HIY) 14,852 13,473 13,975 14,704 14,194 57,491 56,346
------ ------ ------ ------ ------ --------- -------
Pilbara iron ore production ('000 tonnes) 72,182 64,101 65,610 72,156 68,788 281,848 270,655
IOC Concentrate 1,433 890 1,193 1,400 1,146 3,934 4,629
IOC Pellets 1,403 1,590 1,339 1,560 1,418 5,018 5,908
------ ------ ------ ------ ------ --------- -------
IOC iron ore production ('000 tonnes) 2,836 2,481 2,532 2,960 2,564 8,952 10,536
------ ------ ------ ------ ------ --------- -------
Breakdown of Shipments:
Pilbara Blend Lump (d) 18,439 15,772 18,009 15,948 16,176 73,892 65,906
Pilbara Blend Fines (d) 33,342 26,864 32,165 30,032 31,182 129,177 120,243
Robe Valley Lump 1,219 457 1,037 1,290 1,246 4,881 4,030
Robe Valley Fines 2,996 1,308 2,577 3,349 3,259 12,085 10,493
Yandicoogina Fines (HIY) 14,831 12,294 15,212 14,286 15,260 57,380 57,052
SP10 Lump (c) 0 0 635 2,685 2,072 0 5,391
SP10 Fines (c) 1,863 1,542 1,747 4,057 2,081 3,364 9,427
------ ------ ------ ------ ------ --------- -------
Pilbara iron ore shipments ('000 tonnes) 72,690 58,236 71,382 71,646 71,277 280,778 272,540
IOC Iron ore shipments ('000 tonnes) 3,073 2,092 2,738 2,654 2,636 8,837 10,120
------ ------ ------ ------ ------ --------- -------
Rio Tinto iron ore shipments ('000 tonnes) 75,763 60,328 74,119 74,300 73,913 289,614 282,660
------ ------ ------ ------ ------ --------- -------
Breakdown of Sales:
Pilbara Blend Lump (d) 18,439 15,772 18,009 15,948 16,176 73,892 65,906
Pilbara Blend Fines (d) 33,342 26,864 32,165 30,032 31,182 129,177 120,243
Robe Valley Lump 1,219 457 1,037 1,290 1,246 4,881 4,030
Robe Valley Fines 2,996 1,308 2,577 3,349 3,259 12,085 10,493
Yandicoogina Fines (HIY) 14,831 12,294 15,212 14,286 15,260 57,380 57,052
SP10 Lump (c) 0 0 635 2,611 1,733 0 4,979
SP10 Fines (c) 1,863 1,542 1,747 3,962 1,185 3,364 8,437
------ ------ ------ ------ ------ --------- -------
Pilbara iron ore sales ('000 tonnes) (e) 72,690 58,236 71,382 71,478 70,043 280,778 271,139
Pilbara iron ore sales - consolidated basis ('000 tonnes)
(e) (f) 74,711 59,541 73,230 73,619 72,166 288,610 278,557
IOC Concentrate 1,558 516 1,315 1,425 1,223 3,887 4,479
IOC Pellets 1,516 1,576 1,423 1,229 1,413 4,950 5,641
------ ------ ------ ------ ------ --------- -------
IOC Iron ore sales ('000 tonnes) 3,073 2,092 2,738 2,654 2,636 8,837 10,120
(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,
Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass and the
Eastern Range mines. Whilst Rio Tinto owns 54% of the Eastern
Range mine, under the terms of the joint venture agreement, Hamersley
Iron manages the operation and is obliged to purchase all mine
production from the joint venture and therefore all of the production
is included in Rio Tinto's share of production.
(c) SP10 includes some lower grade products. SP10 fines sales
also include IOC product that is further blended and sold at port
in China.
(d) Restatement due to separately reporting SP10 lump and SP10
fines products that include other lower grade products.
(e) Differences between shipments and sales reflect tonnes held
for portside trading and material purchased from IOC and 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 Tinto Q4 Q1 Q2 Q3 Q4 Full Year Full Year
interest 2018 2019 2019 2019 2019 2018 2019
------------------------------------ ----------- ------- ------- ------- ------- --------- --------- ---------
MOLYBDENUM
Mine production ('000 tonnes) (a)
Bingham Canyon 100% 2.2 1.9 2.6 2.1 4.7 5.8 11.2
(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.
----------------------------------------------------------------------------------------------------------------------
SALT
Production ('000 tonnes)
Dampier Salt 68% 1,496 1,310 1,269 1,392 1,450 6,153 5,422
------------------------------------ ----------- ------- ------- ------- ------- --------- --------- ---------
SILVER
Mine production ('000 ounces) (a)
Bingham Canyon 100% 736 741 700 768 605 2,520 2,815
Escondida 30% 771 657 622 488 539 2,830 2,306
Oyu Tolgoi (b) 34% 80 83 80 64 64 306 290
------- ------- ------- ------- --------- --------- ---------
Rio Tinto total mine production 1,586 1,481 1,403 1,320 1,209 5,656 5,412
------- ------- ------- ------- --------- --------- ---------
Refined production ('000 ounces)
Rio Tinto Kennecott 100% 807 617 734 664 839 2,865 2,853
(a) Mine production figures for metals refer to the total quantity of metal produced in concentrates,
leach liquor or doré bullion irrespective of whether these products are then refined
onsite, except for the data for bauxite and iron ore which represent production of marketable
quantities of ore plus concentrates and pellets.
(b) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in
Turquoise Hill Resources Ltd.
----------------------------------------------------------------------------------------------------------------------
TITANIUM DIOXIDE SLAG
Production ('000 tonnes)
Rio Tinto Iron & Titanium (a) 100% 294 296 303 321 286 1,116 1,206
(a) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio Tinto's 74% interest in Richards
Bay Minerals (RBM).
----------------------------------------------------------------------------------------------------------------------
URANIUM
Production ('000 lbs U(3) O(8) ) (a)
Energy Resources of Australia 68% 924 793 620 585 642 3,014 2,640
Rössing (b) 0% 979 802 1,142 170 - 3,750 2,114
------- ------- ------- ------- --------- --------- ---------
Rio Tinto total uranium production 1,904 1,595 1,762 755 642 6,764 4,754
------------------------------------------------- ------- ------- ------- ------- --------- --------- ---------
(a) ERA and Rössing production reported are drummed U(3) O(8) .
(b) On 16 July 2019, Rio Tinto completed the sale of its entire 68.62% interest in the Rössing
mine in Namibia to China National Uranium Corporation Limited. Production is reported up to
the date of completion.
Production figures are sometimes more precise than the rounded numbers shown, hence small
differences may result between the total of the quarter figures and the year to date figures.
The Rio Tinto percentage shown above is at 31 December 2019.
Rio Tinto's interest in the Kestrel, Hail Creek, Dunkerque and Grasberg operations were sold
in 2018. No data for these operations are included in the Share of production table.
Rio Tinto operational data
Rio Q4 Q1 Q2 Q3 Q4 Full Full
Tinto Year Year
interest 2018 2019 2019 2019 2019 2018 2019
ALUMINA
Smelter Grade Alumina - Aluminium
Group
Alumina production ('000
tonnes)
Australia
Queensland Alumina Refinery
- Queensland 80.0% 927 888 834 836 895 3,697 3,454
Yarwun refinery - Queensland 100.0% 803 813 757 671 850 3,103 3,091
Brazil
São Luis (Alumar)
refinery 10.0% 918 859 864 989 966 3,509 3,679
Canada
Jonquière (Vaudreuil)
refinery - Quebec (a) 100.0% 354 373 336 360 345 1,444 1,413
------ ------ ------ ------ ------ ------ ------
(a) Jonquière's (Vaudreuil's) production shows smelter grade
alumina only and excludes hydrate produced and used for specialty
alumina.
Specialty Alumina - Aluminium
Group
Specialty alumina production
('000 tonnes)
Canada
Jonquière (Vaudreuil)
plant - Quebec 100.0% 29 25 31 28 24 124 109
Rio Tinto percentage interest shown above is at 31 December 2019.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Q4 Q1 Q2 Q3 Q4 Full Full
Tinto Year Year
interest 2018 2019 2019 2019 2019 2018 2019
------------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
ALUMINIUM
Primary Aluminium
Primary aluminium production
('000 tonnes)
Australia
Bell Bay smelter - Tasmania 100.0% 48 45 47 48 48 189 189
Boyne Island smelter -
Queensland 59.4% 125 122 126 125 125 497 499
Tomago smelter - New South
Wales 51.6% 149 144 147 149 148 592 588
Canada
Alma smelter - Quebec 100.0% 118 115 118 119 119 465 472
Alouette (Sept-Îles)
smelter - Quebec 40.0% 146 144 150 153 155 584 602
Arvida smelter - Quebec 100.0% 44 43 44 45 44 173 175
Arvida AP60 smelter - Quebec 100.0% 13 14 15 15 15 52 60
Bécancour smelter
- Quebec 25.1% 30 17 16 16 28 136 77
Grande-Baie smelter - Quebec 100.0% 59 58 58 59 59 233 233
Kitimat smelter - British
Columbia 100.0% 109 106 102 96 81 436 385
Laterrière smelter
- Quebec 100.0% 65 64 64 65 65 257 257
France
Dunkerque smelter (a) 0.0% 57 - - - - 227 -
Iceland
ISAL (Reykjavik) smelter 100.0% 54 52 52 36 43 212 184
New Zealand
Tiwai Point smelter 79.4% 88 89 87 88 87 341 351
Oman
Sohar smelter 20.0% 99 97 97 98 98 380 391
(a) On 14 December 2018, Rio Tinto completed the sale of its 100%
interest in the Dunkerque smelter. Production is reported up to
the date of completion.
Rio Tinto percentage interest shown above is at 31 December 2019.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Q4 Q1 Q2 Q3 Q4 Full Full
Tinto Year Year
interest 2018 2019 2019 2019 2019 2018 2019
--------------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
BAUXITE
Bauxite production ('000
tonnes)
Australia
Gove mine - Northern Territory 100.0% 3,250 3,004 2,957 2,968 3,273 12,540 12,201
Weipa mine - Queensland 100.0% 6,847 7,917 8,533 8,695 10,267 30,437 35,411
Brazil
Porto Trombetas (MRN) mine 12.0% 4,073 2,372 2,393 3,205 3,090 13,134 11,060
Guinea
Sangaredi mine (a) 23.0% 2,675 3,463 3,623 3,887 2,727 13,039 13,701
Rio Tinto share of bauxite shipments
Share of total bauxite shipments
('000 tonnes) 11,622 12,725 13,122 13,912 14,849 49,536 54,607
Share of third party bauxite
shipments ('000 tonnes) 7,387 8,842 9,477 10,361 10,968 32,813 39,648
------ ------ ------ ------ ------ ------ ------
(a) Rio Tinto has a 22.95% shareholding in the Sangaredi mine
but benefits from 45.0% of production.
BORATES
Rio Tinto Borates - borates 100.0%
US
Borates ('000 tonnes) (a) 118 115 138 138 128 512 520
(a) Production is expressed as B(2) O(3) content.
Rio Tinto percentage interest shown above is at 31 December 2019.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Tinto Q4 Q1 Q2 Q3 Q4 Full Full
Year Year
interest 2018 2019 2019 2019 2019 2018 2019
--------------------------------- ---------- ------ ------ ------ ------ ------ ------- -------
COPPER & GOLD
Escondida 30.0%
Chile
Sulphide ore to concentrator ('000
tonnes) 30,507 32,027 32,519 33,956 33,659 124,956 132,161
Average copper grade (%) 0.87 0.82 0.86 0.86 0.87 0.93 0.85
Mill production (metals
in concentrates):
Contained copper ('000 tonnes) 219.9 216.9 230.9 245.0 246.1 968.0 938.9
Contained gold ('000 ounces) 74 74 75 49 49 266 247
Contained silver ('000 ounces) 2,570 2,189 2,074 1,626 1,798 9,433 7,687
Recoverable copper in ore stacked
for leaching ('000 tonnes) (a) 45.7 36.5 44.7 56.8 61.7 199.9 199.7
Refined production from
leach plants:
Copper cathode production
('000 tonnes) 71.9 62.4 63.5 55.9 68.4 266.8 250.2
(a) The calculation of copper in material mined for leaching is
based on ore stacked at the leach pad.
Freeport-McMoRan
0.0%
Grasberg mine (a) (b)
Papua, Indonesia
Ore treated ('000 tonnes) 14,049 - - - - 64,310 -
Average mill head grades:
Copper (%) 0.73 - - - - 0.99 -
Gold (g/t) 1.08 - - - - 1.59 -
Silver (g/t) 2.09 - - - - 4.17 -
Production of metals in
concentrates:
Copper in concentrates ('000
tonnes) 85.4 - - - - 569.7 -
Gold in concentrates ('000
ounces) 402 - - - - 2,779 -
Silver in concentrates ('000
ounces) 545 - - - - 5,045 -
Sales of payable metals in concentrates:
(c)
Copper in concentrates ('000
tonnes) 82.7 - - - - 556.0 -
Gold in concentrates ('000
ounces) 399 - - - - 2,719 -
Silver in concentrates ('000
ounces) 426 - - - - 3,928 -
(a) Through a joint venture agreement with Freeport-McMoRan (FCX),
Rio Tinto is entitled to 40% of additional material mined as a
consequence of expansions and developments of the Grasberg facilities
since 1998. The Q4 2018 results show the forecast from FCX's most
recent five-year plan. On 21 December 2018, Rio Tinto completed
the sale of its entire interest in the Grasberg mine in Indonesia
to PT Indonesia Asahan Aluminium (Persero) (Inalum). Production
is reported up to the date of completion.
(b) Rio Tinto share of Grasberg production is 40% of the expansion.
(c) Net of smelter deduction
Rio Tinto percentage interest shown above is at 31 December 2019.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Q4 Q1 Q2 Q3 Q4 Full Full
Tinto Year Year
interest 2018 2019 2019 2019 2019 2018 2019
----------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
COPPER & GOLD (continued)
Rio Tinto Kennecott
Bingham Canyon mine 100.0%
Utah, US
Ore treated ('000 tonnes) 10,853 10,685 10,123 10,084 11,141 40,260 42,033
Average ore grade:
Copper (%) 0.59 0.55 0.46 0.64 0.36 0.56 0.50
Gold (g/t) 0.26 0.25 0.33 0.30 0.23 0.25 0.28
Silver (g/t) 2.76 2.76 2.84 2.74 2.09 2.60 2.60
Molybdenum (%) 0.032 0.032 0.039 0.039 0.061 0.028 0.043
Copper concentrates produced
('000 tonnes) 222 207 161 207 156 820 731
Average concentrate grade
(% Cu) 26.0 25.3 25.5 27.8 22.6 24.8 25.5
Production of metals in copper
concentrates:
Copper ('000 tonnes) (a) 58.3 52.5 41.1 57.8 35.4 203.9 186.8
Gold ('000 ounces) 57 53 65 65 52 197 235
Silver ('000 ounces) 736 741 700 768 605 2,520 2,815
Molybdenum concentrates produced
('000 tonnes): 4.5 3.8 5.0 4.3 9.4 11.6 22.4
Molybdenum in concentrates
('000 tonnes) 2.2 1.9 2.6 2.1 4.7 5.8 11.2
Kennecott smelter & refinery 100.0%
Copper concentrates smelted
('000 tonnes) 262 204 207 160 216 932 787
Copper anodes produced ('000
tonnes) (b) 62.4 33.3 60.3 39.3 53.7 207.3 186.6
Production of refined metal:
Copper ('000 tonnes) 64.6 29.6 63.3 40.3 51.4 194.7 184.6
Gold ('000 ounces) (c) 58.6 41.7 52.9 60.8 63.3 198.0 218.7
Silver ('000 ounces) (c) 807 617 734 664 839 2,865 2,853
(a) Includes a small amount of copper in precipitates.
(b) New metal excluding recycled material.
(c) Includes gold and silver in intermediate products.
Rio Tinto percentage interest shown above is at 31 December 2019.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Q4 Q1 Q2 Q3 Q4 Full Full
Tinto Year Year
interest 2018 2019 2019 2019 2019 2018 2019
--------------------------------- ---------- ------ ------ ------ ------ ------ ------ ------
COPPER & GOLD (continued)
Turquoise Hill Resources
Oyu Tolgoi mine (a) 33.5%
Mongolia
Ore Treated ('000 tonnes) 9,361 9,255 10,394 10,040 11,088 38,738 40,777
Average mill head grades:
Copper (%) 0.55 0.57 0.46 0.37 0.42 0.51 0.45
Gold (g/t) 0.56 0.58 0.31 0.14 0.15 0.36 0.29
Silver (g/t) 1.22 1.25 1.20 1.03 1.06 1.22 1.13
Copper concentrates produced
('000 tonnes) 189.0 210.1 180.6 131.3 152.6 724.9 674.6
Average concentrate grade
(% Cu) 21.9 21.8 21.7 21.7 21.6 21.9 21.7
Production of metals in
concentrates:
Copper in concentrates
('000 tonnes) 41.5 45.8 39.2 28.4 32.9 159.1 146.3
Gold in concentrates ('000
ounces) 116.7 120.1 71.8 25.6 24.3 285.4 241.8
Silver in concentrates
('000 ounces) 238 247 239 191 190 914 867
Sales of metals in concentrates:
Copper in concentrates
('000 tonnes) 40.2 38.5 46.6 32.5 32.3 156.7 149.9
Gold in concentrates ('000
ounces) 111 98 116 35 25 248 274
Silver in concentrates
('000 ounces) 216 200 245 207 244 873 896
(a) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through
its 50.79% interest in Turquoise Hill Resources.
DIAMONDS
Argyle Diamonds 100.0%
Western Australia
AK1 ore processed ('000
tonnes) 1,292 1,248 1,427 1,716 1,977 5,444 6,367
AK1 diamonds produced ('000
carats) 3,211 2,786 3,292 3,558 3,363 14,069 12,999
Diavik Diamonds 60.0%
Northwest Territories,
Canada
Ore processed ('000 tonnes) 651 620 671 628 516 2,530 2,435
Diamonds recovered ('000
carats) 1,797 1,683 1,980 1,656 1,400 7,264 6,719
Rio Tinto percentage interest shown above is at 31 December 2019.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Q4 Q1 Q2 Q3 Q4 Full Full
Tinto Year Year
interest 2018 2019 2019 2019 2019 2018 2019
------------------------------- ---------- ------ ------ ------ ------ ------ ------- -------
IRON ORE
Rio Tinto Iron Ore
Western Australia
Pilbara Operations
Saleable iron ore production
('000 tonnes)
Hamersley mines (a) 56,364 51,218 50,087 55,567 52,521 220,612 209,392
Hamersley - Channar 60.0% 2,228 1,552 2,419 1,579 2,420 7,173 7,970
Hope Downs 50.0% 11,691 11,913 12,101 12,155 12,095 45,368 48,264
Robe River - Pannawonica
(Mesas J and A) 53.0% 7,555 3,529 6,282 8,914 8,225 31,947 26,951
Robe River - West Angelas 53.0% 8,738 7,783 8,853 9,133 8,318 32,672 34,086
------ ------ ------ ------ ------ ------- -------
Total production ('000
tonnes) 86,576 75,995 79,741 87,347 83,579 337,772 326,663
------------------------------- ---------- ------ ------ ------ ------ ------ ------- -------
Breakdown of total production:
Pilbara Blend and SP10
Lump (b) 26,084 24,068 24,291 25,434 24,326 101,629 98,119
Pilbara Blend and SP10
Fines (b) 38,085 34,924 35,194 38,296 36,833 146,705 145,247
Robe Valley Lump 2,659 1,198 2,266 3,113 2,969 11,126 9,547
Robe Valley Fines 4,896 2,331 4,015 5,802 5,256 20,821 17,404
Yandicoogina Fines (HIY) 14,852 13,473 13,975 14,704 14,194 57,491 56,346
Breakdown of total shipments:
Pilbara Blend Lump (c) 22,161 18,968 21,653 19,329 19,680 88,215 79,630
Pilbara Blend Fines (c) 40,633 33,016 39,358 36,947 39,186 157,191 148,508
Robe Valley Lump 2,301 863 1,957 2,433 2,350 9,209 7,603
Robe Valley Fines 5,652 2,468 4,862 6,318 6,149 22,801 19,797
Yandicoogina Fines (HIY) 14,831 12,294 15,212 14,286 15,260 57,380 57,052
SP10 Lump (b) 0 0 635 2,685 2,072 0 5,391
SP10 Fines (b) 1,863 1,542 1,747 4,057 2,081 3,364 9,427
------ ------ ------ ------ ------ ------- -------
Total shipments ('000 tonnes)
(d) 87,442 69,150 85,423 86,055 86,779 338,160 327,408
------------------------------- ---------- ------ ------ ------ ------ ------ ------- -------
Breakdown of total sales:
Pilbara Blend Lump (c) 22,161 18,968 21,653 19,329 19,680 88,215 79,630
Pilbara Blend Fines (c) 40,633 33,016 39,358 36,947 39,186 157,191 148,508
Robe Valley Lump 2,301 863 1,957 2,433 2,350 9,209 7,603
Robe Valley Fines 5,652 2,468 4,862 6,318 6,149 22,801 19,797
Yandicoogina Fines (HIY) 14,831 12,294 15,212 14,286 15,260 57,380 57,052
SP10 Lump (b) 0 0 635 2,611 1,733 0 4,979
SP10 Fines (b) 1,863 1,542 1,747 3,962 1,185 3,364 8,437
------ ------ ------ ------ ------ ------- -------
Total sales ('000 tonnes) 87,442 69,150 85,423 85,888 85,545 338,160 326,006
------------------------------- ---------- ------ ------ ------ ------ ------ ------- -------
(a) Includes 100% of production from Paraburdoo, Mt Tom Price,
Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass and the
Eastern Range mines. Whilst Rio Tinto owns 54% of the Eastern
Range mine, under the terms of the joint venture agreement, Hamersley
Iron manages the operation and is obliged to purchase all mine
production from the joint venture and therefore all of the production
is included in Rio Tinto's share of production.
(b) SP10 includes some lower grade products. SP10 fines sales
also include IOC product that is further blended and sold at port
in China.
(c) Restatement due to separately reporting SP10 lump and SP10
fines products that include other lower grade products.
(d) Shipments represent iron ore exported from Western Australian
ports: a portion of this material is shipped for portside trading
to be further blended and subsequently sold.
Rio Tinto percentage interest shown above is at 31 December 2019.
The data represent full production and sales on a 100% basis unless
otherwise stated.
Rio Tinto operational data
Rio Q4 Q1 Q2 Q3 Q4 Full Full
Tinto Year Year
interest 2018 2019 2019 2019 2019 2018 2019
IRON ORE (continued)
Iron Ore Company of Canada 58.7%
Newfoundland & Labrador and
Quebec in Canada
Saleable iron ore production:
Concentrates ('000 tonnes) 2,441 1,516 2,031 2,384 1,951 6,700 7,883
Pellets ('000 tonnes) 2,389 2,709 2,280 2,657 2,415 8,545 10,061
------ ------ ------ ------ ------ ------- -------
IOC Total production ('000
tonnes) 4,830 4,225 4,311 5,041 4,366 15,245 17,943
Shipments:
Concentrates ('000 tonnes) 2,653 878 2,239 2,427 2,083 6,619 7,628
Pellets ('000 tonnes) 2,581 2,684 2,424 2,093 2,406 8,430 9,607
------ ------ ------ ------ ------ ------- -------
IOC Total Shipments ('000
tonnes) 5,234 3,562 4,663 4,520 4,490 15,049 17,235
IOC Total Sales ('000 tonnes) 5,234 3,562 4,663 4,520 4,490 15,049 17,235
Global Iron Ore Totals
Iron Ore Production ('000
tonnes) 91,406 80,219 84,052 92,389 87,945 353,017 344,606
Iron Ore Shipments ('000
tonnes) 92,676 72,712 90,085 90,576 91,269 353,209 344,642
SALT
Dampier Salt 68.4%
Western Australia
Salt production ('000 tonnes) 2,188 1,917 1,856 2,036 2,121 9,001 7,931
-------------------------------- ---------- ------ ------ ------ ------ ------ ------- -------
TITANIUM DIOXIDE SLAG
Rio Tinto Iron & Titanium 100.0%
Canada and South Africa
(Rio Tinto share) (a)
Titanium dioxide slag ('000
tonnes) 294 296 303 321 286 1,116 1,206
------ ------ ------ ------ ------ ------- -------
(a) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio
Tinto's 74% interest in Richards Bay Minerals' production. Ilmenite
mined in Madagascar is being processed in Canada.
------------------------------------------------------------------------------------------------------
URANIUM
Energy Resources of Australia
Ltd
Ranger mine (a) 68.4%
Northern Territory, Australia
U(3) O(8) Production ('000
lbs) 1,351 1,160 906 855 939 4,407 3,860
(a) ERA production data are drummed U(3) O(8) .
Rössing Uranium Ltd
(a) (b) 0.0%
Namibia
U(3) O(8) Production ('000
lbs) 1,427 1,168 1,665 247 - 5,465 3,080
------ ------ ------ ------ ------ ------- -------
(a) Rössing production data are drummed U(3) O(8) .
(b) On 16 July 2019, Rio Tinto completed the sale of its entire
68.62% interest in the Rössing mine in Namibia to China National
Uranium Corporation Limited. Production is reported up to the
date of completion.
------------------------------------------------------------------------------------------------------
Rio Tinto percentage interest shown above is at 31 December 2019.
The data represent full production and sales on a 100% basis unless
otherwise stated.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLSFEEEMESSESF
(END) Dow Jones Newswires
January 17, 2020 02:00 ET (07:00 GMT)
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