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
Grafico Azioni Rio Tinto (LSE:RIO)
Storico
Da Mar 2023 a Mar 2024