TIDMRIO

RNS Number : 8118U

Rio Tinto PLC

16 July 2018

Rio Tinto releases second quarter production results

17 July 2018

Rio Tinto chief executive J-S Jacques said "Operational performance was solid across most commodities, rounding out a strong first half performance for the Group. Our increasingly flexible Pilbara iron ore system continued to perform well. Our bauxite and copper businesses also delivered strong operating results, demonstrating the success of our ongoing mine-to-market productivity programme, which is increasingly important in an environment of rising cost inflation. Our sustained focus on cash generation, combined with disciplined capital allocation, will ensure we continue to deliver superior returns to our shareholders across the short, medium and long term."

 
                                   Q2 2018  vs Q2  vs Q1  H1 2018  vs H1 
                                             2017   2018            2017 
----------------------------  --- 
Pilbara iron ore shipments 
 (100% basis)                 Mt      88.5   +14%   +10%    168.8    +9% 
Pilbara iron ore production 
 (100% basis)                 Mt      85.5    +7%    +3%    168.7    +7% 
Bauxite                       kt    13,279    +3%    +5%   25,931    +7% 
Aluminium                     kt       858    -3%    +1%    1,704    -4% 
Mined copper                  kt     156.8   +26%   +13%    296.1   +42% 
Hard coking coal              kt     2,174   +40%   +97%    3,276    +4% 
Titanium dioxide slag         kt       232   -27%   -21%      525   -19% 
IOC iron ore pellets and 
 concentrate                  Mt       0.9   -68%   -63%      3.2   -39% 
                              ---  -------  -----  -----  -------  ----- 
 
 
 Key points 
 
    *    Pilbara iron ore shipments of 88.5 million tonnes 
         (100 per cent basis) in the second quarter were 14 
         per cent higher than the second quarter of 2017, 
         benefiting from better weather and reflecting 
         improved productivity across the system. Shipments in 
         2018 are expected to be at the upper end of the 
         existing guidance range of 330 to 340 million tonnes 
         (100 per cent basis). 
 
 
    *    Bauxite production of 13.3 million tonnes was three 
         per cent higher than the corresponding quarter of 
         2017, due to continued operational improvements. 
         Third party shipments increased by ten per cent to 
         8.7 million tonnes due to firm demand. 
 
 
    *    Aluminium production of 0.9 million tonnes was three 
         per cent lower than the second quarter of 2017 due 
         primarily to labour disruptions at the non-managed 
         Becancour smelter in Canada and a power interruption 
         at the Dunkerque smelter in France. 
 
 
    *    Mined copper production of 156.8 thousand tonnes was 
         26 per cent higher than the corresponding quarter of 
         2017, reflecting strong production at Escondida 
         following a labour union strike in the first half of 
         last year. 
 
 
    *    Hard coking coal production was 40 per cent higher 
         than the corresponding quarter of 2017 due primarily 
         to the impact of Cyclone Debbie last year. 
 
 
    *    Titanium dioxide slag production was 27 per cent 
         lower than the second quarter of 2017. Production was 
         suspended at Rio Tinto Fer et Titane in Sorel-Tracy 
         following a fatality on 26 April 2018. Production at 
         Richards Bay Minerals has been impacted by ongoing 
         labour disputes between contractors and their 
         employees. 
 
 
    *    Production at Iron Ore Company of Canada was 
         significantly impacted in the second quarter, where 
         operations were suspended while a new labour 
         agreement was reached. Operations returned to normal 
         production rates by the end of June 2018. 
 
 
    *    Cost inflation is being experienced, particularly in 
         the Aluminium group with higher raw material costs. 
         Disruptions during the first half have also impacted 
         unit costs at IOC and RBM. 
 
 
    *    The major growth projects remain on track, with first 
         bauxite shipment from Amrun expected in the first 
         half of 2019 and construction of the first drawbell 
         at Oyu Tolgoi Underground anticipated in mid-2020. 
 
 
    *    The AutoHaul(TM) project achieved two major 
         milestones, with regulatory approval on 18 May 2018 
         and the first loaded autonomous train journey from 
         mine to port completed on 10 July 2018. 
 
 
    *    Divestments announced in the first half of 2018 
         totalling $5.0 billion pre-tax, subject to completion 
         conditions, are all expected to complete by the end 
         of 2018, including the Dunkerque and ISAL smelter 
         sales and the Group's coking coal assets. 
 
 
    *    On 12 July 2018, Rio Tinto announced that it had 
         signed a non-binding Heads of Agreement with PT 
         Indonesia Asahan Aluminium (Persero) (Inalum), and 
         Freeport-McMoRan Inc. detailing the proposed 
         principal terms for the sale of its entire interest 
         in Grasberg to Inalum for $3.5 billion. Given the 
         terms that remain to be agreed, there is no certainty 
         the transaction will complete and any final 
         agreements will be subject to regulatory approvals. 
 

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 2017 is excluded from Rio Tinto share of production data but assets sold in 2018 remain in comparisons.

IRON ORE

Rio Tinto share of production (million tonnes)

 
                           Q2 2018  vs Q2 2017  vs Q1 2018  H1 2018  vs H1 2017 
------------------------- 
Pilbara Blend Lump            21.9        +11%         +6%     42.6         +9% 
Pilbara Blend Fines           31.2        +11%         +5%     61.0        +11% 
Robe Valley Lump               1.4         -2%        -10%      3.0         +4% 
Robe Valley Fines              2.6        +18%        -15%      5.7        +25% 
Yandicoogina Fines (HIY)      14.3         +6%         +3%     28.2         +4% 
                           ------- 
Total Pilbara production      71.5                            140.5 
                           ------- 
Total Pilbara production 
 (100% basis)                 85.5                            168.7 
                           -------  ----------  ----------  -------  ---------- 
 

Pilbara operations

Pilbara operations produced 168.7 million tonnes (Rio Tinto share 140.5 million tonnes) in the first half of 2018, seven per cent higher than the same period of 2017. Second quarter production of 85.5 million tonnes (Rio Tinto share 71.5 million tonnes) was also seven per cent higher than the second quarter of 2017, reflecting favourable weather conditions compared to last year, the ramp-up of Silvergrass and the ongoing implementation of productivity improvements across the integrated system.

Sales of 168.8 million tonnes (Rio Tinto share 140.1 million tonnes) were nine per cent higher than the first half of 2017, with second quarter sales of 88.5 million tonnes (Rio Tinto share 73.5 million tonnes) some 14 per cent higher than the same period of last year. The continued improvement in productivity and flexibility across the system enabled Rio Tinto to benefit from strong lump premiums during the first half, with record lump sales achieved in the second quarter.

Approximately 17 per cent of sales in the quarter were priced by reference to the prior quarter's average index lagged by one month. The remainder was sold either on current quarter average, current month average or on the spot market.

Approximately 31 per cent of sales in the quarter were made free on board (FOB), with the remainder sold including freight.

Achieved average pricing in the first half of 2018 was $57.9 per wet metric tonne on an FOB basis (equivalent to $63.0 per dry metric tonne). In 2017, the full year price achieved was $59.6 per wet metric tonne (equivalent to $64.8 per dry metric tonne).

Pilbara projects

The automation of the Pilbara train system (AutoHaul(TM) ) continues to advance, with approximately 65 per cent of trains at the end of the quarter having run in either a driver attended or autonomous mode and more than 3.3 million kilometres now completed in this mode of operation. AutoHaul(TM) received accreditation to run trains in autonomous mode from the National Rail Safety Regulator on 18 May 2018 and the first loaded autonomous train journey took place on 10 July 2018. Full implementation of the autonomous programme is expected by the end of 2018.

The Koodaideri feasibility study is on track for completion in 2018.

2018 guidance

As a result of the strong performance in the first half, Rio Tinto's Pilbara shipments in 2018 are expected to be at the upper end of the existing guidance range (330 to 340 million tonnes, 100 per cent basis). For the current year, shipments are expected to be more evenly distributed between the first and second halves compared to prior years, when shipments have typically been skewed to the second half following seasonal disruption in the first half.

ALUMINIUM

Rio Tinto share of production ('000 tonnes)

 
                      Q2 2018  vs Q2 2017  vs Q1 2018  H1 2018  vs H1 2017 
-------------------- 
Rio Tinto Aluminium 
Bauxite                13,279         +3%         +5%   25,931         +7% 
Alumina                 1,999         -1%         +0%    3,988         -2% 
Aluminium                 858         -3%         +1%    1,704         -4% 
                      -------  ----------  ----------  -------  ---------- 
 

Bauxite

Bauxite production of 13.3 million tonnes was three per cent higher than the second quarter of 2017, reflecting the continued implementation of operational improvements. Gove production was 18 per cent higher due to the continued debottlenecking of the materials handling system, whilst stronger production was also achieved at Weipa.

8.7 million tonnes of bauxite were shipped to third parties in the second quarter of 2018, ten per cent higher than the second quarter of 2017 due to firm demand.

Amrun

The Amrun project remains on schedule for first shipment in the first half of 2019. The stacker and reclaimer have been transported to site following completion of fabrication, whilst the shiploader assembly is also nearing completion.

Alumina

Alumina production for the quarter was one per cent lower than the corresponding period in 2017.

Although Rio Tinto is broadly balanced in alumina, it is exposed to long-term legacy alumina sales contracts, which are LME linked. The significant escalation in the alumina index price during the second quarter, as a result of industry supply disruptions, has considerably increased the financial impact of these legacy contracts.

Aluminium

Quarterly aluminium production was three per cent lower than the corresponding period last year, mainly due to an ongoing lock-out at the non-managed Becancour smelter, which began on 11 January 2018, as well as a power interruption at the Dunkerque smelter which occurred on 6 February 2018. Dunkerque has been progressively ramping up towards full production during the second quarter. Excluding these assets, aluminium production for the second quarter was one per cent higher than the second quarter of 2017, reflecting continued productivity creep.

Average realised aluminium prices in the first half of 2018 were $2,547 per tonne (H1 2017: $2,151 per tonne). This includes premiums for value-added products (VAP), which represented 58 per cent of primary metal sold in the first half of 2018 (H1 2017: 57 per cent) and generated attractive product premiums averaging $222 per tonne of VAP sold (H1 2017: $217 per tonne) on top of the physical market premiums. The mid-west premium increased from $209 per tonne in the second half of 2017 to $463 per tonne in the first half of 2018, partly reflecting the announcement on 1 March 2018 of a ten per cent tariff on aluminium imports into the United States under Section 232. The tariffs were effective from 1 June 2018 for Canada, with only Australia and Argentina remaining exempt.

As previously guided, significant raw material cost headwinds have been experienced by the Aluminium business, with the impact during the first half of 2018 already considerably exceeding the full year 2017 impact. This is expected to continue into the second half of 2018.

Furthermore, additional costs have been incurred as a result of the Becancour lock-out, whilst higher than expected power costs have been experienced in Australia due to higher coal prices impacting power contracts.

Following the announcement by the United States Treasury Department on 6 April 2018, that it was implementing sanctions on various Russian individuals and companies, Rio Tinto announced on 13 April 2018 that it had reviewed arrangements it had with impacted entities and was in the process of declaring force majeure on certain contracts. However, the wind-down period was extended until 23 October 2018 and no force majeure declarations have been made to date. Rio Tinto continues to monitor this situation closely.

Binding offers for the sale of the Aluminium Dunkerque smelter in France for $500 million and the ISAL aluminium smelter in Iceland for $345 million were announced in the first quarter of 2018. The sales are expected to complete in the third quarter of 2018, subject to satisfactory completion of consultations with key stakeholders and applicable regulatory clearances.

2018 guidance

Rio Tinto's expected share of production in 2018 remains unchanged at between 49 and 51 million tonnes of bauxite and 8.0 to 8.2 million tonnes of alumina. Aluminium guidance of 3.5 to 3.7 million tonnes will be adjusted following completion of the sale of the Aluminium Dunkerque and ISAL smelters.

COPPER & DIAMONDS

Rio Tinto share of production ('000 tonnes)

 
                         Q2 2018  vs Q2 2017  vs Q1 2018  H1 2018  vs H1 2017 
----------------------- 
Mined copper 
Rio Tinto Kennecott         51.2        +16%        +44%     86.6         -2% 
Escondida                   92.4        +35%         +2%    183.3        +92% 
Grasberg                     0.0         N/A         N/A      0.0         N/A 
Oyu Tolgoi                  13.2         +6%         +2%     26.2         +4% 
 
Refined copper 
Rio Tinto Kennecott         40.7       +100%        +15%     76.0        +52% 
Escondida                   21.0        +12%         +1%     41.9        +55% 
 
Diamonds ('000 carats) 
Argyle                     3,476         +8%         -2%    7,027        +13% 
Diavik                     1,150         +3%         +8%    2,214         -2% 
                         -------  ----------  ----------  -------  ---------- 
 

Rio Tinto Kennecott

Mined copper production in the second quarter of 2018 was 16 per cent higher than the second quarter of 2017 as mining activity moved into a higher grade area of the pit. Refined copper was significantly higher than the corresponding period of 2017, which was affected by a 27 day smelter shutdown, with a continued draw-down in concentrate inventories. Improved productivity of the mining fleet resulted in a significant improvement in material movement compared with the corresponding period of 2017.

Rio Tinto Kennecott continues to toll and purchase third party concentrate to optimise smelter utilisation, with 31.3 thousand tonnes of concentrate received for processing in the second quarter of 2018. Purchased and tolled copper concentrate are excluded from reported production figures.

The pushback of the south wall progressed during the quarter. It will extend the life of mine and remains on track for completion in 2020.

Escondida

Second quarter mined copper production at Escondida was 35 per cent higher than the same period of 2017, with first half production being 92 per cent higher than the first half of last year, which was impacted by a labour union strike. This performance also reflects the ramp-up of Escondida production to nameplate capacity following commissioning of the Los Colorados concentrator in the second half of 2017. Escondida's current labour agreement expires on 1 August 2018, and negotiations for a new agreement are in progress.

Oyu Tolgoi

Mined copper production from the open pit in the second quarter of 2018 was six per cent higher than the corresponding period of 2017 due to higher plant throughput.

Oyu Tolgoi Underground Project

Contractor numbers are approaching their peak, with a project workforce of over 7,500 at the end of June 2018, of which 89 per cent are Mongolian nationals. Shaft two equipping and headframe fit-out is in progress, and the shaft five ventilation system has been fully commissioned and is now operational. Construction of the first drawbell is still expected in mid-2020.

In February 2018 the Southern Region Power Sector Co-operation Agreement under which Oyu Tolgoi was committed to working with the Government of Mongolia on a Tavan Tolgoi Independent Power Provider project was cancelled. As a result the Government of Mongolia expects Oyu Tolgoi to deliver a domestic power source for the operation within four years (by February 2022).

Oyu Tolgoi is progressing studies and preparations for suitable power solutions and continues to discuss the provision of domestic power with the Government of Mongolia.

Grasberg

On 12 July 2018, Rio Tinto announced that it had signed a non-binding agreement with PT Indonesia Asahan Aluminium (Persero) (Inalum), and Freeport-McMoRan Inc. (FCX) in relation to the future ownership of the Grasberg mine in Indonesia. The Heads of Agreement details the proposed principal terms for the sale of Rio Tinto's entire interest pursuant to a joint venture agreement with PT Freeport Indonesia (PT-FI) in Grasberg to Inalum, Indonesia's state mining company, for $3.5 billion.

Separately, the agreement sets out a proposed transaction between FCX and Inalum for the latter to buy an additional stake in Grasberg as well as additional terms relating to the future ownership and operation of Grasberg. All parties have committed to work towards agreeing and signing binding agreements before the end of the second half of 2018. Given the terms that remain to be agreed, there is no certainty that a transaction will be completed. Any final agreements will be subject to applicable government and regulatory approvals.

As part of the joint venture agreement, Rio Tinto is presently entitled to a 40 per cent share of production above an agreed threshold until the end of 2021 and 40 per cent of all production thereafter. Rio Tinto's full participation has been delayed due to the application of force majeure provisions in the joint venture agreement. The first full year in which Rio Tinto would participate to the full extent of 40 per cent of production is expected to be 2023.

In February 2018, PT-FI received an extension of its export permit to February 2019, with a temporary Mining Licence renewed on a short-term basis while PT-FI continues to engage with the Indonesian Government on matters pertaining to in-country processing, environmental regulation, share divestment strategy and the basis upon which operations at Grasberg will continue beyond 2021 with regard to the rights conferred by its Contract of Work.

Rio Tinto is reporting its metal share for the second quarter as zero and expects its metal share for 2018 to be zero.

Provisional pricing

At 30 June 2018, the Group had an estimated 264 million pounds of copper sales that were provisionally priced at 312 cents per pound. The final price of these sales will be determined during the second half of 2018. This compares with 250 million pounds of open shipments at 31 December 2017, provisionally priced at 304 cents per pound.

Diamonds

At Argyle, carat production was eight per cent higher than the second quarter of 2017 due to an increase in tonnes processed following improved plant availability.

At Diavik, carats recovered in the second quarter of 2018 were three per cent higher than the corresponding period in 2017 due to higher plant throughput. Development of the A21 project is ahead of schedule with first ore uncovered in March and the mine is expected to be at full production capacity during the fourth quarter of 2018.

2018 guidance

Rio Tinto's expected share of mined copper production for 2018 is unchanged at between 510 and 610 thousand tonnes. Refined copper production is expected to be between 225 to 265 thousand tonnes.

Diamond production guidance for 2018 is between 17 and 20 million carats.

ENERGY & MINERALS

Rio Tinto share of production

 
                         Q2 2018  vs Q2 2017  vs Q1 2018  H1 2018  vs H1 2017 
----------------------- 
Coal ('000 tonnes) 
Hard coking coal           2,174        +40%        +97%    3,276         +4% 
Thermal coal (a)           1,011         -1%        -10%    2,130         +5% 
 
Iron ore pellets and 
 concentrate (million 
 tonnes) 
IOC                          0.9        -68%        -63%      3.2        -39% 
 
Minerals ('000 tonnes) 
Borates - B(2) O(3) 
 content                     132         -1%         +7%      256         +0% 
Salt                       1,662        +13%        +10%    3,176        +36% 
Titanium dioxide slag        232        -27%        -21%      525        -19% 
 
Uranium ('000 lbs) 
Energy Resources of 
 Australia                   603        -11%        -10%    1,270        -20% 
Rössing                 928         +8%         +9%    1,776        +16% 
                         -------  ----------  ----------  -------  ---------- 
 

(a) Production from Coal & Allied of 9.9 million tonnes (Rio Tinto share) prior to divestment on 1 September 2017 has been excluded from the comparisons above.

Coal

Quarterly hard coking coal production was 40 per cent higher than the second quarter of 2017 due to the impact of Cyclone Debbie at Hail Creek in 2017, and 97 per cent above the prior quarter production due to mine resequencing at Hail Creek and the longwall changeover and maintenance works at Kestrel in the previous quarter.

Second quarter thermal coal production was one per cent lower than the corresponding quarter of 2017.

Thermal coal production for 2017 has been restated for comparability excluding production of 9.9 million tonnes (Rio Tinto share) from the now divested Coal & Allied assets.

On 1 June 2018, Rio Tinto announced it completed the sale of its 75 per cent interest in the Winchester South coal development project in Queensland, Australia, to Whitehaven Coal Limited. Total consideration of $200 million is comprised of $150 million in cash received on the date of completion and an unconditional cash payment of $50 million due 12 months from the date of completion.

The sale of Rio Tinto's interests in the Kestrel and Hail Creek coal mines and Valeria coal development project are expected to complete during the second half of 2018, subject to satisfaction of completion conditions, with gross proceeds of $3.95 billion.

Iron Ore Company of Canada (IOC)

Operations were suspended on 27 March 2018 whilst collective bargaining negotiations took place with the local union workforce. During the second quarter, a new labour agreement was reached, the workforce returned to work on 28 May 2018, and IOC achieved a safe and successful restart and ramp-up of operations to normal production rates by the end of June 2018.

During the period of suspended operations there was no production, with focus placed on asset care and maintenance and planning for the safe restart of operations. Over this period, IOC continued to incur costs associated with maintaining the mine and plant assets and infrastructure, resulting in higher unit costs in the first half of 2018.

Production was significantly impacted in the second quarter, with pellet production of 0.5 million tonnes (Rio Tinto share 0.3 million tonnes) and concentrate production for sale of 1.0 million tonnes (Rio Tinto share 0.6 million tonnes). Sales were also significantly lower, with 0.4 million tonnes (Rio Tinto share 0.3 million tonnes) of concentrate and pellets sold during the quarter.

Borates

Borates production was one per cent lower than the second quarter of 2017, with production aligned to customer demand.

Iron and Titanium (RTIT)

Titanium dioxide slag production for the quarter was 27 per cent lower compared to the second quarter of 2017.

On 26 April 2018 an employee suffered fatal injuries during an incident at the Rio Tinto Fer et Titane (RTFT) facility at Sorel-Tracy, Quebec, Canada. As a result, operations were suspended for a period of ten days while the incident was investigated and operations were confirmed to be safe to recommence. The safe restart and ramp-up to normal operations was achieved by 2 July 2018.

Slag production at Richard's Bay Minerals (RBM) continues to be impacted by ongoing labour disputes between contractors and their employees. Following a suspension in the first quarter, mine and smelter operations restarted on 11 April 2018, but due to equipment damage the mine will reach full capacity later this year. RBM declared force majeure on deliveries to its titanium dioxide feedstock customers, which will be lifted once the operation returns to normal capacity.

On 9 July 2018, a serious incident occurred at RBM's mining operation, resulting in the fatality of a security contractor. The incident is now the subject of a police investigation. Rio Tinto's highest priority is the safety of its people, and operations at RBM were temporarily suspended.

Two of nine furnaces at RTFT remain idle, one of which is currently being rebuilt, along with one of four furnaces at RBM. The focus remains on maximising the productivity of the furnaces currently in operation, and a decision to restart idle furnaces will be based on maximising value over volume.

Salt

Salt production in the second quarter of 2018 was 13 per cent higher than the same quarter of 2017.

Uranium

Energy Resources of Australia continues to process existing low grade stockpiles. 2018 second quarter production was 11 per cent lower than the same period of 2017 due to a planned plant shutdown and declining grades as laterite stocks are largely exhausted.

Production at Rössing in the second quarter of 2018 was eight per cent higher than the corresponding quarter of 2017 due to higher mill grades which were partially offset by lower throughput due to water supply interruptions.

2018 guidance

Coal production guidance remains at 7.5 to 8.5 million tonnes of hard coking coal and 3.8 to 4.5 million tonnes of thermal coal. This assumes continued ownership of the coal assets until the end of 2018, and will be adjusted following completion of the asset disposals.

At IOC, the revised guidance for 2018 production is 9.0 to 10.0 million tonnes of iron ore pellets and concentrates (previously 10.3 to 11.3 million tonnes) to take into consideration the full impact of the extension of the strike and associated suspension of operations in the second quarter.

Guidance for Rio Tinto's expected share of titanium dioxide slag production in 2018 is revised to 1.1 to 1.2 million tonnes (previously 1.1 to 1.3 million tonnes), to reflect the operational and labour disruptions encountered in the first half. Guidance may be further updated to reflect the ongoing disruptions mentioned above.

Guidance for Rio Tinto's expected share of boric oxide equivalent production in 2018 is unchanged at 0.5 million tonnes and guidance for uranium production in 2018 is unchanged at 6.2 to 7.2 million pounds.

EXPLORATION AND EVALUATION

Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in the first half of 2018 was $232 million, compared with $175 million in the first half of 2017, driven primarily by increased activity at Resolution. Approximately 44 per cent of this expenditure was incurred by central exploration, 34 per cent by Copper & Diamonds, 13 per cent by Energy & Minerals and the remainder by Iron Ore and Aluminium.

There were no significant divestments of central exploration properties in the first half of 2018.

Exploration highlights

Rio Tinto has a strong portfolio of projects with activity in 17 countries across some eight commodities. The bulk of the exploration expenditure in this quarter was focused on copper targets in Australia, Botswana, Canada, Chile, Kazakhstan, Mongolia, Namibia, Papua New Guinea, Peru, Serbia, Uganda, United States and Zambia. Mine-lease exploration continued at a number of Rio Tinto managed businesses including Pilbara Iron, RTIT in Canada, Oyu Tolgoi and Weipa.

A summary of activity for the quarter is as follows:

 
Product Group      Evaluation              Advanced               Greenfield 
                    projects                projects               programmes 
Aluminium          Cape York, Australia   Amargosa, Brazil       Australia, Laos 
                   ---------------------  ---------------------  --------------------- 
Copper & Diamonds  Copper/molybdenum:     Nickel: Tamarack,      Copper: Australia, 
                    Resolution, US         US                     Botswana, Chile, 
                    Copper: La Granja,     Diamonds: FalCon[1],   China, Kazakhstan, 
                    Peru                   Canada                 Mongolia, Namibia, 
                    Copper/gold: Oyu                              Papua New Guinea, 
                    Tolgoi, Mongolia                              Peru, Serbia, US, 
                                                                  Zambia 
                                                                  Nickel: Canada, 
                                                                  Uganda 
                                                                  Diamonds: Canada 
                   ---------------------  ---------------------  --------------------- 
Energy & Minerals  Lithium borates:       Potash: KP405, Canada  Uranium: Canada 
                    Jadar, Serbia                                 Heavy mineral sands: 
                    Heavy mineral sands:                          Tanzania 
                    Mutamba, Mozambique 
                    and Zulti South, 
                    South Africa 
                    Uranium: Roughrider, 
                    Canada 
                   ---------------------  ---------------------  --------------------- 
Iron Ore           Pilbara, Australia     Pilbara, Australia 
                   ---------------------  ---------------------  --------------------- 
 

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

media.enquiries@riotinto.com

www.riotinto.com

Follow @riotinto on Twitter

 
Media Relations, United Kingdom     Media Relations, Australia 
 Illtud Harri                        Jonathan Rose 
 T +44 20 7781 1152                  T +61 3 9283 3088 
 M +44 7920 503 600                  M +61 447 028 913 
 
 David Outhwaite                     Media Relations, Canada 
 T +44 20 7781 1623                  Matthew Klar 
 M +44 7787 597 493                  +1 514 608 4429 
 
 
 
 
 
 Investor Relations, EMEA/Americas   Investor Relations, Australia/Asia 
 John Smelt                          Natalie Worley 
 T +44 20 7781 1654                  T +61 3 9283 3063 
 M +44 7879 642 675                  M +61 409 210 462 
 
 David Ovington                      Rachel Storrs 
 T +44 20 7781 2051                  T +61 3 9283 3628 
 M +44 7920 010 978                  M +61 417 401 018 
 
 Nick Parkinson 
 T +44 20 7781 1552 
 M +44 7810 657 556 
 
 
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 
 
 
Rio Tinto production summary 
 
Rio Tinto share of production 
 
                                                   Quarter               Half Year               % Change 
                                           2017     2018     2018      2017      2018     Q2 18    Q2 18    H1 18 
                                             Q2       Q1       Q2       H1        H1        vs       vs       vs 
                                                                                          Q2 17    Q1 18    H1 17 
                                          -------  -------  -------  --------  --------  -------  -------  ------- 
Principal Commodities 
                                                                     -------- 
Alumina                         ('000 t)    2,024    1,990    1,999     4,070     3,988      -1%       0%      -2% 
Aluminium                       ('000 t)      888      846      858     1,777     1,704      -3%       1%      -4% 
Bauxite                         ('000 t)   12,865   12,653   13,279    24,167    25,931       3%       5%       7% 
Borates                         ('000 t)      133      124      132       256       256      -1%       7%       0% 
Coal - hard coking              ('000 t)    1,555    1,102    2,174     3,138     3,276      40%      97%       4% 
Coal - thermal                  ('000 t)    1,022    1,119    1,011     2,022     2,130      -1%     -10%       5% 
Copper - mined                  ('000 t)    124.7    139.3    156.8     208.9     296.1      26%      13%      42% 
Copper - refined                ('000 t)     39.1     56.1     61.7      77.1     117.9      58%      10%      53% 
Diamonds                      ('000 cts)    4,335    4,616    4,626     8,487     9,241       7%       0%       9% 
Iron Ore                        ('000 t)   67,699   71,436   72,336   133,925   143,773       7%       1%       7% 
Titanium dioxide slag           ('000 t)      316      294      232       647       525     -27%     -21%     -19% 
Uranium                       ('000 lbs)    1,538    1,515    1,531     3,111     3,046       0%       1%      -2% 
                                          -------  -------  -------  --------  --------  -------  -------  ------- 
Other Metals & Minerals 
Gold - mined                   ('000 oz)     72.5     69.4     82.8     138.3     152.2      14%      19%      10% 
Gold - refined                 ('000 oz)     43.0     40.8     48.4      94.2      89.2      12%      19%      -5% 
Molybdenum                      ('000 t)      0.8      1.5      0.7       1.6       2.2      -6%     -51%      33% 
Salt                            ('000 t)    1,476    1,514    1,662     2,327     3,176      13%      10%      36% 
Silver - mined                 ('000 oz)    1,118    1,237    1,448     2,064     2,686      30%      17%      30% 
Silver - refined               ('000 oz)      729      867      461     1,131     1,328     -37%     -47%      17% 
                                          -------  -------  -------  --------  --------  -------  -------  ------- 
 
Throughout this report, figures in italics indicate adjustments made since the figure was 
 previously quoted on the equivalent page. 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      Q2      Q3      Q4      Q1      Q2      H1      H1 
                                                      interest    2017    2017    2017    2018    2018    2017    2018 
--------------------------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
ALUMINA 
Production ('000 tonnes) 
  Jonquière (Vaudreuil)                              100%     365     351     365     362     365     732     727 
  Jonquière (Vaudreuil) specialty Alumina 
   plant                                                  100%      32      30      29      31      32      63      64 
  Queensland Alumina                                       80%     756     720     773     717     752   1,496   1,469 
  São Luis (Alumar)                                   10%      93      94      93      87      87     183     174 
  Yarwun                                                  100%     778     790     816     793     763   1,597   1,556 
                                                                ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total alumina production                               2,024   1,984   2,077   1,990   1,999   4,070   3,988 
--------------------------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
ALUMINIUM 
Production ('000 tonnes) 
  Australia - Bell Bay                                    100%      47      48      47      47      47      91      94 
  Australia - Boyne Island                                 59%      73      74      74      72      74     154     146 
  Australia - Tomago                                       52%      76      77      77      75      76     151     151 
  Canada - six wholly owned                               100%     397     401     405     398     402     791     800 
  Canada - Alouette (Sept-Îles)                       40%      60      60      60      58      58     119     116 
  Canada - Bécancour                                  25%      26      28      27      10       9      55      19 
  France - Dunkerque (a)                                  100%      71      71      72      51      52     141     104 
  Iceland - ISAL (Reykjavik) (b)                          100%      53      53      54      52      53     104     105 
  New Zealand - Tiwai Point                                79%      67      67      67      66      67     133     133 
  Oman - Sohar                                             20%      19       7       5      17      19      38      37 
                                                                ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total aluminium production                               888     887     887     846     858   1,777   1,704 
--------------------------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
BAUXITE 
Production ('000 tonnes) (c) 
  Gove                                                    100%   2,780   2,809   3,224   3,124   3,274   5,168   6,398 
  Porto Trombetas                                          12%     489     492     426     353     393     845     745 
  Sangaredi                                                (d)   1,791   1,670   1,809   1,745   1,657   3,455   3,403 
  Weipa                                                   100%   7,805   7,895   8,304   7,431   7,955  14,699  15,386 
Rio Tinto total bauxite production                              12,865  12,867  13,762  12,653  13,279  24,167  25,931 
--------------------------------------------------------------  ------  ------  ------  ------  ------  ------  ------ 
 
 
Rio Tinto share of production 
 
                                              Rio Tinto      Q2      Q3      Q4      Q1      Q2      H1      H1 
                                               interest    2017    2017    2017    2018    2018    2017    2018 
-------------------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
BORATES 
Production ('000 tonnes B(2) O(3) content) 
  Rio Tinto Borates - borates                      100%     133     140     120     124     132     256     256 
-------------------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
COAL - hard coking 
Rio Tinto Coal Australia ('000 tonnes) 
  Hail Creek Coal (e) (g)                           82%     822   1,276   1,275     758   1,131   1,752   1,889 
  Kestrel Coal (f) (g)                              80%     733     968   1,048     344   1,043   1,386   1,387 
                                                         ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total hard coking coal production               1,555   2,244   2,322   1,102   2,174   3,138   3,276 
-------------------------------------------------------  ------  ------  ------  ------  ------  ------  ------ 
 
COAL - thermal 
Rio Tinto Coal Australia ('000 tonnes) 
  Hail Creek Coal (e) (g)                           82%     881     851     785   1,060     835   1,754   1,895 
  Kestrel Coal (f) (g)                              80%     141     226     180      59     176     268     235 
                                                         ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total thermal coal production                   1,022   1,076     966   1,119   1,011   2,022   2,130 
-------------------------------------------------------  ------  ------  ------  ------  ------  ------  ------ 
 
 
Rio Tinto share of production 
 
                                      Rio Tinto      Q2      Q3      Q4      Q1      Q2      H1      H1 
                                       interest    2017    2017    2017    2018    2018    2017    2018 
-----------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
COPPER 
Mine production ('000 tonnes) (c) 
  Bingham Canyon                           100%    44.0    25.8    34.8    35.4    51.2    88.2    86.6 
  Escondida                                 30%    68.3    82.5    92.9    90.9    92.4    95.5   183.3 
  Grasberg - Joint Venture (h)              40%     0.0     0.0     5.7     0.0     0.0     0.0     0.0 
  Oyu Tolgoi (i)                            34%    12.5    12.4    15.2    13.0    13.2    25.2    26.2 
                                                 ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total mine production                   124.7   120.6   148.6   139.3   156.8   208.9   296.1 
                                                 ------  ------  ------  ------  ------  ------  ------ 
Refined production ('000 tonnes) 
  Escondida                                 30%    18.8    21.6    22.8    20.8    21.0    27.0    41.9 
  Rio Tinto Kennecott                      100%    20.3    53.6    22.1    35.3    40.7    50.1    76.0 
                                                 ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total refined production                 39.1    75.2    44.9    56.1    61.7    77.1   117.9 
-----------------------------------------------  ------  ------  ------  ------  ------  ------  ------ 
 
DIAMONDS 
Production ('000 carats) 
  Argyle                                   100%   3,216   4,757   6,146   3,551   3,476   6,232   7,027 
  Diavik                                    60%   1,119   1,177   1,060   1,065   1,150   2,255   2,214 
                                                 ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total diamond production                4,335   5,933   7,207   4,616   4,626   8,487   9,241 
-----------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
GOLD 
Mine production ('000 ounces) (c) 
  Bingham Canyon                           100%    54.3    33.6    35.9    37.4    45.6   108.4    83.0 
  Escondida                                 30%    10.2    15.2    15.1    18.0    20.5    13.6    38.5 
  Grasberg - Joint Venture (h)              40%     0.0     0.0     0.0     0.0     0.0     0.0     0.0 
  Oyu Tolgoi (i)                            34%     8.0    10.4    11.7    14.0    16.8    16.3    30.8 
                                                 ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total mine production                    72.5    59.1    62.6    69.4    82.8   138.3   152.2 
                                                 ------  ------  ------  ------  ------  ------  ------ 
Refined production ('000 ounces) 
  Rio Tinto Kennecott                      100%    43.0    54.1    55.4    40.8    48.4    94.2    89.2 
-----------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
 
Rio Tinto share of production 
 
                                               Rio Tinto      Q2      Q3      Q4      Q1      Q2       H1       H1 
                                                interest    2017    2017    2017    2018    2018     2017     2018 
--------------------------------------------  ----------  ------  ------  ------  ------  ------  -------  ------- 
 
IRON ORE 
Production ('000 tonnes) (c) 
  Hamersley mines                                    (j)  48,674  52,921  56,501  53,631  56,034   97,338  109,665 
  Hamersley - Channar                                60%   1,903   1,596   1,345   1,136   1,227    3,538    2,363 
  Hope Downs                                         50%   6,287   5,978   5,987   5,342   5,783   11,505   11,126 
  Iron Ore Company of Canada                         59%   2,683   3,171   2,733   2,364     871    5,262    3,236 
  Robe River - Pannawonica (Mesas J and A)           53%   3,676   4,461   4,580   4,672   4,048    7,486    8,720 
  Robe River - West Angelas                          53%   4,475   4,776   4,509   4,290   4,373    8,797    8,663 
                                                          ------  ------  ------  ------  ------  -------  ------- 
Rio Tinto iron ore production ('000 tonnes)               67,699  72,903  75,656  71,436  72,336  133,925  143,773 
                                                          ------  ------  ------  ------  ------  -------  ------- 
Breakdown of Production: 
  Pilbara Blend Lump                                      19,780  20,700  21,082  20,714  21,901   38,987   42,615 
  Pilbara Blend Fines                                     28,049  30,113  31,172  29,769  31,239   55,074   61,009 
  Robe Valley Lump                                         1,459   1,570   1,646   1,587   1,431    2,912    3,017 
  Robe Valley Fines                                        2,217   2,891   2,934   3,086   2,617    4,574    5,703 
  Yandicoogina Fines (HIY)                                13,512  14,458  16,088  13,916  14,277   27,116   28,193 
                                                          ------  ------  ------  ------  ------  -------  ------- 
Pilbara iron ore production ('000 tonnes)                 65,016  69,732  72,922  69,072  71,465  128,663  140,537 
  IOC Concentrate                                          1,299   1,450   1,163     799     572    2,408    1,370 
  IOC Pellets                                              1,384   1,722   1,571   1,566     299    2,854    1,865 
                                                          ------  ------  ------  ------  ------  -------  ------- 
IOC iron ore production ('000 tonnes)                      2,683   3,171   2,733   2,364     871    5,262    3,236 
Breakdown of Sales: 
  Pilbara Blend Lump                                      18,218  18,044  18,861  18,062  19,424   34,251   37,485 
  Pilbara Blend Fines                                     28,779  32,421  35,575  30,746  35,158   59,276   65,904 
  Robe Valley Lump                                         1,262   1,391   1,388   1,223   1,264    2,438    2,487 
  Robe Valley Fines                                        2,370   3,174   3,287   2,996   3,255    4,743    6,250 
  Yandicoogina Fines (HIY)                                13,371  14,963  15,731  13,578  14,388   26,491   27,966 
                                                          ------  ------  ------  ------  ------  -------  ------- 
Pilbara iron ore sales ('000 tonnes)                      64,000  69,993  74,843  66,604  73,489  127,199  140,093 
  IOC Concentrate                                            939   1,362   1,559     746      62    2,132      808 
  IOC Pellets                                              1,489   1,590   1,615   1,574     202    2,904    1,776 
                                                          ------  ------  ------  ------  ------  -------  ------- 
IOC Iron ore sales ('000 tonnes)                           2,428   2,952   3,173   2,320     263    5,036    2,584 
Rio Tinto iron ore sales ('000 tonnes)                    66,428  72,944  78,016  68,925  73,752  132,234  142,677 
--------------------------------------------------------  ------  ------  ------  ------  ------  -------  ------- 
 
 
Rio Tinto share of production 
 
                                   Rio Tinto      Q2      Q3      Q4      Q1      Q2      H1      H1 
                                    interest    2017    2017    2017    2018    2018    2017    2018 
--------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
MOLYBDENUM 
Mine production ('000 tonnes) (c) 
  Bingham Canyon                        100%     0.8     1.4     1.9     1.5     0.7     1.6     2.2 
--------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
SALT 
Production ('000 tonnes) 
  Dampier Salt                           68%   1,476   1,227   1,535   1,514   1,662   2,327   3,176 
--------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
SILVER 
Mine production ('000 ounces) (c) 
  Bingham Canyon                        100%     669     357     418     461     615   1,380   1,076 
  Escondida                              30%     370     521     658     702     758     533   1,460 
  Grasberg - Joint Venture (h)           40%       0       0       0       0       0       0       0 
  Oyu Tolgoi (i)                         34%      79      80      96      74      75     151     149 
                                              ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total mine production                1,118     959   1,172   1,237   1,448   2,064   2,686 
                                              ------  ------  ------  ------  ------  ------  ------ 
Refined production ('000 ounces) 
  Rio Tinto Kennecott                   100%     729     731     516     867     461   1,131   1,328 
--------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
TITANIUM DIOXIDE SLAG 
Production ('000 tonnes) 
  Rio Tinto Iron & Titanium (k)         100%     316     327     341     294     232     647     525 
--------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
URANIUM 
Production ('000 lbs U(3) O(8) ) (l) 
  Energy Resources of Australia          68%     678     962     919     667     603   1,577   1,270 
  Rössing                           69%     860     757     902     848     928   1,534   1,776 
                                              ------  ------  ------  ------  ------  ------  ------ 
Rio Tinto total uranium production             1,538   1,718   1,821   1,515   1,531   3,111   3,046 
--------------------------------------------  ------  ------  ------  ------  ------  ------  ------ 
 
 
 
Production data notes: 
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. 
 
(a) On 10 January 2018, Rio Tinto announced a binding offer to sell its 100% interest in the 
 Dunkerque smelter. 
 (b) On 26 February 2018, Rio Tinto announced a binding offer to sell its 100% interest in 
 the ISAL smelter. 
(c) 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. 
(d) Rio Tinto has a 22.95% shareholding in the Sangaredi mine but benefits from 45.0% of 
production. 
(e) On 20 March 2018, Rio Tinto announced a binding offer to sell its 82% interest in the 
 Hail Creek mine. 
 (f) On 27 March 2018, Rio Tinto announced a binding offer to sell its 80% interest in the 
 Kestrel mine. 
 (g) Kestrel and Hail Creek produce hard coking coal and thermal coal through their mining 
 operations. Both mines may blend coal types at ports. 
(h) 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. 
(i) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in 
 Turquoise Hill Resources Ltd. 
(j) 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. 
(k) Quantities comprise 100% of Rio Tinto Fer et Titane and Rio Tinto's 74% interest in Richards 
 Bay Minerals (RBM). 
(l) ERA and Rössing production reported are drummed U(3) O(8) . 
 
The Rio Tinto percentage shown above is at 30 June 2018. 
 
Rio Tinto's interest in the Coal and Allied mines were sold in 2017. No data for these operations 
 are included in the Share of production table. 
 
 
Rio Tinto operational data 
 
                                                     Rio Tinto      Q2      Q3      Q4      Q1      Q2      H1      H1 
                                                      interest    2017    2017    2017    2018    2018    2017    2018 
 
ALUMINA 
Smelter Grade Alumina - Aluminium Group 
Alumina production ('000 tonnes) 
Australia 
  Queensland Alumina Refinery - Queensland               80.0%     946     900     966     896     940   1,870   1,836 
  Yarwun refinery - Queensland                          100.0%     778     790     816     793     763   1,597   1,556 
Brazil 
  São Luis (Alumar) refinery                        10.0%     931     937     934     871     869   1,826   1,740 
Canada 
  Jonquière (Vaudreuil) refinery - Quebec (a)      100.0%     365     351     365     362     365     732     727 
                                                                ------  ------  ------  ------  ------  ------  ------ 
(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%      32      30      29      31      32      63      64 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                                                Rio Tinto      Q2      Q3      Q4      Q1      Q2      H1      H1 
                                                 interest    2017    2017    2017    2018    2018    2017    2018 
---------------------------------------------  ----------  ------  ------  ------  ------  ------  ------  ------ 
 
ALUMINIUM 
Primary Aluminium 
Primary aluminium production ('000 tonnes) 
Australia 
  Bell Bay smelter - Tasmania                      100.0%      47      48      47      47      47      91      94 
  Boyne Island smelter - Queensland                 59.4%     124     125     124     122     124     259     246 
  Tomago smelter - New South Wales                  51.6%     147     149     149     145     148     292     293 
Canada 
  Alma smelter - Quebec                            100.0%     112     115     116     115     116     226     231 
  Alouette (Sept-Îles) smelter - Quebec        40.0%     149     150     150     144     146     298     290 
  Arvida smelter - Quebec                          100.0%      43      43      44      43      43      84      86 
  Arvida AP60 smelter - Quebec                     100.0%      15      14      14      13      13      29      26 
  Bécancour smelter - Quebec                   25.1%     106     113     108      39      35     218      74 
  Grande-Baie smelter - Quebec                     100.0%      57      58      58      57      58     114     115 
  Kitimat smelter - British Columbia               100.0%     109     108     110     108     109     216     217 
  Laterrière smelter - Quebec                 100.0%      61      63      64      63      64     122     127 
France 
  Dunkerque smelter (a)                            100.0%      71      71      72      51      52     141     104 
Iceland 
  ISAL (Reykjavik) smelter (b)                     100.0%      53      53      54      52      53     104     105 
New Zealand 
  Tiwai Point smelter                               79.4%      84      84      85      83      84     168     167 
Oman 
  Sohar smelter                                     20.0%      95      35      27      87      97     191     183 
(a) On 10 January 2018, Rio Tinto announced a binding offer to sell its 100% interest in the 
 Dunkerque smelter. 
 (b) On 26 February 2018, Rio Tinto announced a binding offer to sell its 100% interest in 
 the ISAL smelter. 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                                                  Rio Tinto       Q2       Q3      Q4      Q1      Q2      H1      H1 
                                                   interest     2017     2017    2017    2018    2018    2017    2018 
--------------------------------------------  -------------  -------  -------  ------  ------  ------  ------  ------ 
 
BAUXITE 
Bauxite production ('000 tonnes) 
Australia 
  Gove mine - Northern Territory                     100.0%    2,780    2,809   3,224   3,124   3,274   5,168   6,398 
  Weipa mine - Queensland                            100.0%    7,805    7,895   8,304   7,431   7,955  14,699  15,386 
Brazil 
  Porto Trombetas (MRN) mine                          12.0%    4,071    4,103   3,550   2,939   3,273   7,045   6,212 
Guinea 
  Sangaredi mine (a)                                  23.0%    3,979    3,711   4,020   3,878   3,683   7,678   7,561 
 
Rio Tinto share of bauxite shipments 
Share of total bauxite shipments ('000 tonnes)                12,164   12,913  13,557  12,551  12,936  23,769  25,487 
Share of third party bauxite shipments ('000 tonnes)           7,962    8,250   9,164   8,248   8,738  14,890  16,986 
                                                             -------  -------  ------  ------  ------  ------  ------ 
 
(a) Rio Tinto has a 22.95% shareholding in the Sangaredi mine but benefits from 45.0% of production. 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                   Rio Tinto      Q2      Q3                 Q4                 Q1                 Q2      H1                 H1 
                    interest    2017    2017               2017               2018               2018    2017               2018 
----------------  ----------  ------  ------  -----------------  -----------------  -----------------  ------  ----------------- 
 
BORATES 
Rio Tinto 
 Borates - 
 borates              100.0% 
US 
  Borates ('000 
   tonnes) (a)                   133     140                120                124                132     256                256 
(a) Production is expressed as B(2) O(3) content. 
-------------------------------------------------------------------------------------------------------------------------------- 
 
COAL 
Rio Tinto Coal 
Australia 
Hail Creek Coal 
 mine (a)              82.0% 
Queensland 
  Hard coking 
   coal ('000 
   tonnes)                     1,002   1,556              1,555                924              1,380   2,136              2,304 
  Thermal coal 
   ('000 tonnes)               1,074   1,037                958              1,293              1,018   2,139              2,311 
Hunter Valley 
 Operations (b)         0.0% 
New South Wales 
  Semi-soft 
   coking coal 
   ('000 tonnes)                 284     445                  -                  -                  -   1,084                  - 
  Thermal coal 
   ('000 tonnes)               3,539   2,112                  -                  -                  -   6,390                  - 
Kestrel Coal 
 mine (c)              80.0% 
Queensland 
  Hard coking 
   coal ('000 
   tonnes)                       916   1,210              1,309                430              1,303   1,732              1,733 
  Thermal coal 
   ('000 tonnes)                 177     282                226                 74                220     335                293 
Mount Thorley 
 Operations (b)         0.0% 
New South Wales 
  Semi-soft 
   coking coal 
   ('000 tonnes)                 389     149                  -                  -                  -     726                  - 
  Thermal coal 
   ('000 tonnes)                 746     703                  -                  -                  -   1,308                  - 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                   Rio Tinto      Q2      Q3                 Q4                 Q1                 Q2      H1                 H1 
                    interest    2017    2017               2017               2018               2018    2017               2018 
----------------  ----------  ------  ------  -----------------  -----------------  -----------------  ------  ----------------- 
 
COAL (continued) 
Warkworth mine 
 (b)                    0.0% 
New South Wales 
  Semi-soft 
   coking coal 
   ('000 tonnes)                 202      44                  -                  -                  -     470                  - 
  Thermal coal 
   ('000 tonnes)               1,696   1,305                  -                  -                  -   3,216                  - 
                              ------  ------  -----------------  -----------------  -----------------  ------  ----------------- 
Total hard coking coal 
 production ('000 tonnes)      1,918   2,766              2,864              1,354              2,683   3,869              4,037 
Total semi-soft coking coal 
 production ('000 tonnes)        875     639                  -                  -                  -   2,280                  - 
Total thermal coal 
 production ('000 tonnes)      7,232   5,439              1,183              1,367              1,238  13,388              2,605 
Total coal 
 production 
 ('000 tonnes)                10,026   8,844              4,047              2,721              3,921  19,538              6,642 
                              ------  ------  -----------------  -----------------  -----------------  ------  ----------------- 
 
Total coal sales 
 ('000 tonnes)                 9,871   9,298              4,092              3,050              3,717  18,664              6,767 
                              ------  ------  -----------------  -----------------  -----------------  ------  ----------------- 
Rio Tinto Coal 
Australia share 
(d) 
Share of hard coking coal 
 sales ('000 tonnes)           1,717   2,511              2,429              1,368              2,228   3,241              3,596 
Share of semi-soft coal 
 sales ('000 tonnes) (e)         759     485                  -                  -                  -   1,525                  - 
Share of thermal coal sales 
 ('000 tonnes) (e)             4,539   3,804                896              1,119                791   8,486              1,910 
 
(a) On 20 March 2018, Rio Tinto announced a binding offer to sell its 82% interest in the 
 Hail Creek mine. 
 (b) On 1 September 2017, Rio Tinto completed the sale of Coal & Allied, a wholly owned subsidiary 
 of Rio Tinto Coal Australia (RTCA) and production from these assets is included to this date. 
 This included Coal & Allied's 67.6% interest in the Hunter Valley Operations mine, 80% interest 
 in the Mount Thorley mine and 55.6% interest in the Warkworth mine. In an earlier restructuring 
 of the Coal & Allied group completed on 3 February 2016, Rio Tinto had obtained 100% of Coal 
 & Allied and retained a 67.6% interest in the newly created Hunter Valley Operations joint 
 venture. Prior to restructuring, Rio Tinto's interest in the Hunter Valley Operations, Mount 
 Thorley and Warkworth mines was 80%, 64% and 44.46% respectively. 
 (c) On 27 March 2018, Rio Tinto announced a binding offer to sell its 80% interest in the 
 Kestrel mine. 
 (d) Kestrel and Hail Creek produce hard coking coal and thermal coal through their mining 
 operations. Both mines may blend coal types at ports. 
 (e) Sales relate only to coal mined by the operations and exclude traded coal. 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                                                     Rio Tinto      Q2      Q3      Q4      Q1      Q2      H1      H1 
                                                      interest    2017    2017    2017    2018    2018    2017    2018 
------------------------------------------------  ------------  ------  ------  ------  ------  ------  ------  ------ 
 
COPPER & GOLD 
Escondida                                                30.0% 
Chile 
Sulphide ore to concentrator ('000 tonnes)                      18,777  24,080  30,260  32,203  31,732  26,831  63,936 
  Average copper grade (%)                                        1.07    1.06    0.98    0.96    0.96    1.05    0.96 
Mill production (metals in concentrates): 
  Contained copper ('000 tonnes)                                 167.0   204.1   245.7   252.6   253.6   234.7   506.2 
  Contained gold ('000 ounces)                                      34      51      50      60      68      45     128 
  Contained silver ('000 ounces)                                 1,234   1,737   2,193   2,339   2,527   1,777   4,866 
Recoverable copper in ore stacked for leaching ('000 tonnes) 
 (a)                                                              60.7    70.8    63.9    50.4    54.4    83.5   104.8 
Refined production from leach plants: 
  Copper cathode production ('000 tonnes)                         62.8    71.9    76.1    69.4    70.1    90.0   139.5 
(a) The calculation of copper in material mined for leaching is based on ore stacked at the 
 leach pad. 
Freeport-McMoRan 
Grasberg mine (a)                                     0.0% (b) 
Papua, Indonesia 
Ore treated ('000 tonnes)                                       11,242  15,791  16,381  15,625  17,452  19,090  33,077 
Average mill head grades: 
  Copper (%)                                                      1.03    0.91    1.03    1.12    1.04    1.08    1.08 
  Gold (g/t)                                                      1.16    0.98    1.28    1.63    1.76    1.17    1.70 
  Silver (g/t)                                                    4.09    3.96    4.36    4.68    2.57    4.57    3.57 
Production of metals in concentrates: 
  Copper in concentrates ('000 tonnes)                           103.9   130.1   153.2   159.9   164.8   184.9   324.7 
  Gold in concentrates ('000 ounces)                               358     417     579     693     845     606   1,538 
  Silver in concentrates ('000 ounces)                             900   1,016   1,293   1,513     877   1,567   2,390 
Sales of payable metals in concentrates: (c) 
  Copper in concentrates ('000 tonnes)                           124.6   109.6   154.3   157.4   160.4   186.3   317.8 
  Gold in concentrates ('000 ounces)                               429     343     584     676     825     613   1,501 
  Silver in concentrates ('000 ounces)                             851     666   1,044   1,184     698   1,255   1,882 
(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 Q2 2018 results show the forecast from FCX's most recent five-year 
 plan, because FCX is not releasing its actual 100% operating data for Q2 2018 until the release 
 of its 2018 second-quarter results on 25 July 2018. 
 (b) Rio Tinto share of Grasberg production is 40% of the expansion. 
 (c) Net of smelter deductions. 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                                                Rio Tinto      Q2      Q3      Q4      Q1      Q2      H1      H1 
                                                 interest    2017    2017    2017    2018    2018    2017    2018 
--------------------------------------------  -----------  ------  ------  ------  ------  ------  ------  ------ 
 
COPPER & GOLD (continued) 
Rio Tinto Kennecott 
Bingham Canyon mine                                100.0% 
Utah, US 
Ore treated ('000 tonnes)                                  10,709  10,092   9,074   9,260   8,974  20,216  18,234 
Average ore grade: 
  Copper (%)                                                 0.47    0.29    0.43    0.43    0.63    0.49    0.53 
  Gold (g/t)                                                 0.29    0.18    0.21    0.23    0.26    0.30    0.25 
  Silver (g/t)                                               2.66    1.51    1.89    2.25    2.73    2.93    2.49 
  Molybdenum (%)                                            0.025   0.032   0.036   0.025   0.025   0.025   0.025 
Copper concentrates produced ('000 tonnes)                    205     148     162     171     194     394     365 
  Average concentrate grade (% Cu)                           21.5    17.3    21.5    20.7    26.4    22.4    23.7 
Production of metals in copper concentrates: 
  Copper ('000 tonnes) (a)                                   44.0    25.8    34.8    35.4    51.2    88.2    86.6 
  Gold ('000 ounces)                                           54      34      36      37      46     108      83 
  Silver ('000 ounces)                                        669     357     418     461     615   1,380   1,076 
Molybdenum concentrates produced ('000 tonnes):               1.5     2.8     3.8     2.8     1.5     3.2     4.3 
  Molybdenum in concentrates ('000 tonnes)                    0.8     1.4     1.9     1.5     0.7     1.6     2.2 
 
Kennecott smelter & refinery                       100.0% 
Copper concentrates smelted ('000 tonnes)                     160     258      90     200     224     296     425 
Copper anodes produced ('000 tonnes) (b)                     32.6    50.6    12.1    42.4    44.4    66.3    86.9 
Production of refined metal: 
  Copper ('000 tonnes)                                       20.3    53.6    22.1    35.3    40.7    50.1    76.0 
  Gold ('000 ounces) (c)                                     43.0    54.1    55.4    40.8    48.4    94.2    89.2 
  Silver ('000 ounces) (c)                                    729     731     516     867     461   1,131   1,328 
(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 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                                              Rio Tinto       Q2       Q3      Q4      Q1      Q2      H1      H1 
                                               interest     2017     2017    2017    2018    2018    2017    2018 
------------------------------------------  -----------  -------  -------  ------  ------  ------  ------  ------ 
 
COPPER & GOLD (continued) 
Turquoise Hill Resources 
Oyu Tolgoi mine (a)                               33.5% 
Mongolia 
  Ore Treated ('000 tonnes)                                9,637   10,615  10,838   9,561  10,164  19,724  19,725 
Average mill head grades: 
  Copper (%)                                                0.51     0.48    0.53    0.51    0.48    0.51    0.50 
  Gold (g/t)                                                0.16     0.18    0.20    0.25    0.26    0.15    0.25 
  Silver (g/t)                                              1.38     1.34    1.54    1.32    1.17    1.34    1.24 
Copper concentrates produced ('000 tonnes)                 171.0    170.0   205.5   177.3   178.8   347.0   356.1 
  Average concentrate grade (% Cu)                          21.8     21.7    22.0    21.9    22.0    21.7    22.0 
Production of metals in concentrates: 
  Copper in concentrates ('000 tonnes)                      37.2     36.9    45.3    38.8    39.4    75.3    78.2 
  Gold in concentrates ('000 ounces)                        23.9     30.9    34.8    41.8    50.0    48.6    91.7 
  Silver in concentrates ('000 ounces)                       236      239     285     221     225     450     446 
Sales of metals in concentrates: 
  Copper in concentrates ('000 tonnes)                      37.3     36.9    35.7    34.3    46.1    76.7    80.4 
  Gold in concentrates ('000 ounces)                          23       28      27      31      51      55      82 
  Silver in concentrates ('000 ounces)                       222      229     205     206     250     427     456 
(a) Rio Tinto owns a 33.52% indirect interest in Oyu Tolgoi through its 50.79% interest in 
 Turquoise Hill Resources. 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                                             Rio Tinto       Q2       Q3       Q4      Q1      Q2      H1      H1 
                                              interest     2017     2017     2017    2018    2018    2017    2018 
-----------------------------------------  -----------  -------  -------  -------  ------  ------  ------  ------ 
 
DIAMONDS 
Argyle Diamonds                                 100.0% 
Western Australia 
  AK1 ore processed ('000 tonnes)                         1,112    1,255    1,446   1,260   1,428   2,256   2,688 
  AK1 diamonds produced ('000 carats)                     3,216    4,757    6,146   3,551   3,476   6,232   7,027 
Diavik Diamonds                                  60.0% 
Northwest Territories, Canada 
  Ore processed ('000 tonnes)                               556      578      525     556     652   1,086   1,208 
  Diamonds recovered ('000 carats)                        1,865    1,961    1,767   1,774   1,916   3,758   3,690 
 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                                               Rio Tinto      Q2      Q3      Q4      Q1      Q2       H1       H1 
                                                interest    2017    2017    2017    2018    2018     2017     2018 
--------------------------------------------  ----------  ------  ------  ------  ------  ------  -------  ------- 
 
IRON ORE 
Rio Tinto Iron Ore 
Western Australia 
Pilbara Operations 
Saleable iron ore production ('000 tonnes) 
  Hamersley mines                                    (a)  48,674  52,921  56,501  53,631  56,034   97,338  109,665 
  Hamersley - Channar                              60.0%   3,172   2,661   2,241   1,893   2,045    5,896    3,939 
  Hope Downs                                       50.0%  12,575  11,956  11,975  10,685  11,567   23,010   22,252 
  Robe River - Pannawonica (Mesas J and A)         53.0%   6,936   8,416   8,642   8,816   7,637   14,124   16,453 
  Robe River - West Angelas                        53.0%   8,444   9,011   8,507   8,094   8,252   16,598   16,346 
                                                          ------  ------  ------  ------  ------  -------  ------- 
Total production ('000 tonnes)                            79,801  84,965  87,866  83,120  85,534  156,966  168,654 
--------------------------------------------  ----------  ------  ------  ------  ------  ------  -------  ------- 
Breakdown of total production: 
  Pilbara Blend Lump                                      24,671  25,342  25,496  24,831  26,253   48,288   51,084 
  Pilbara Blend Fines                                     34,682  36,748  37,641  35,556  37,368   67,437   72,924 
  Robe Valley Lump                                         2,753   2,962   3,106   2,993   2,699    5,494    5,693 
  Robe Valley Fines                                        4,183   5,454   5,535   5,823   4,937    8,630   10,760 
  Yandicoogina Fines (HIY)                                13,512  14,458  16,088  13,916  14,277   27,116   28,193 
Breakdown of total sales: 
  Pilbara Blend Lump                                      21,561  21,959  22,377  21,457  22,954   41,723   44,410 
  Pilbara Blend Fines                                     35,871  40,305  43,039  37,320  42,638   72,551   79,957 
  Robe Valley Lump                                         2,382   2,624   2,619   2,307   2,386    4,600    4,693 
  Robe Valley Fines                                        4,472   5,989   6,202   5,652   6,141    8,948   11,793 
  Yandicoogina Fines (HIY)                                13,371  14,963  15,731  13,578  14,388   26,491   27,966 
                                                          ------  ------  ------  ------  ------  -------  ------- 
Total sales ('000 tonnes) (b)                             77,658  85,840  89,968  80,314  88,506  154,313  168,820 
--------------------------------------------  ----------  ------  ------  ------  ------  ------  -------  ------- 
(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) Sales represent iron ore exported from Western Australian ports. 
Iron Ore Company of Canada                         58.7% 
Newfoundland & Labrador and Quebec in Canada 
Saleable iron ore production: 
  Concentrates ('000 tonnes)                               2,212   2,469   1,980   1,360     974    4,101    2,334 
  Pellets ('000 tonnes)                                    2,356   2,932   2,675   2,667     510    4,860    3,177 
                                                          ------  ------  ------  ------  ------  -------  ------- 
IOC Total production ('000 tonnes)                         4,569   5,401   4,655   4,027   1,484    8,961    5,510 
Sales: 
  Concentrates ('000 tonnes)                               1,599   2,319   2,655   1,271     105    3,630    1,376 
  Pellets ('000 tonnes)                                    2,536   2,707   2,750   2,681     343    4,945    3,024 
                                                          ------  ------  ------  ------  ------  -------  ------- 
IOC Total Sales ('000 tonnes)                              4,135   5,027   5,404   3,951     449    8,575    4,400 
Global Iron Ore Totals 
Iron Ore Production ('000 tonnes)                         84,370  90,365  92,521  87,146  87,018  165,927  174,164 
Iron Ore Sales ('000 tonnes)                              81,792  90,867  95,373  84,265  88,954  162,888  173,220 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 
 
Rio Tinto operational data 
 
                                             Rio Tinto       Q2       Q3       Q4      Q1      Q2      H1        H1 
                                              interest     2017     2017     2017    2018    2018    2017      2018 
-----------------------------------------  -----------  -------  -------  -------  ------  ------  ------  -------- 
 
SALT 
Dampier Salt                                     68.4% 
Western Australia 
  Salt production ('000 tonnes)                           2,159    1,795    2,246   2,215   2,431   3,405     4,646 
-----------------------------------------  -----------  -------  -------  -------  ------  ------  ------  -------- 
 
TITANIUM DIOXIDE SLAG 
Rio Tinto Iron & Titanium                       100.0% 
Canada and South Africa 
  (Rio Tinto share) (a) 
  Titanium dioxide slag ('000 tonnes)                       316      327      341     294     232     647       525 
                                                        -------  -------  -------  ------  ------  ------  -------- 
 
(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)                           991    1,407    1,343     975     881   2,306     1,856 
(a) ERA production data are drummed U(3) O(8) . 
Rössing Uranium Ltd (a)                     68.6% 
Namibia 
  U(3) O(8) Production ('000 lbs)                         1,254    1,103    1,314   1,236   1,352   2,235     2,589 
                                                        -------  -------  -------  ------  ------  ------  -------- 
(a) Rössing production data are drummed U(3) O(8) . 
------------------------------------------------------------------------------------------------------------------- 
Rio Tinto percentage interest shown above is at 30 June 2018. The data represent full production 
 and sales on a 100% basis unless otherwise stated. 
 

[1] Formerly Forte a la Corne

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

DRLGGUUWMUPRPPQ

(END) Dow Jones Newswires

July 17, 2018 02:00 ET (06:00 GMT)

Grafico Azioni Rio Tinto (LSE:RIO)
Storico
Da Feb 2024 a Mar 2024 Clicca qui per i Grafici di Rio Tinto
Grafico Azioni Rio Tinto (LSE:RIO)
Storico
Da Mar 2023 a Mar 2024 Clicca qui per i Grafici di Rio Tinto