Exhibit 99.1
Notice to ASX/LSE
Rio Tinto releases first quarter production results
17 April 2020
Rio Tinto Chief Executive J-S Jacques said “In these uncertain and unprecedented times we continue to deliver products to our customers with our first priority to protect the health and safety of all our employees and communities. We are focused on maintaining a business as usual approach and have taken extensive measures to ensure we can do so safely.
“All of our assets continue to operate and we achieved a very robust production performance in the first quarter. Our world-class portfolio and strong balance sheet serve us well in all market conditions and are particularly valuable in the current volatile environment. Our resilience and value over volume strategy mean we can continue to invest in our business, and support our communities and host governments.”
| Production* |
|
Q1 2020 | vs Q1 2019 | vs Q4 2019 | ||||||||||
|
Pilbara iron ore shipments (100% basis)
|
Mt | 72.9 | +5% | -16% | ||||||||||
|
Pilbara iron ore production (100% basis)
|
Mt | 77.8 | +2% | -7% | ||||||||||
| Bauxite | Mt | 13.8 | +8% | -9% | ||||||||||
| Aluminium | kt | 783 | -2% | 0% | ||||||||||
| Mined copper | kt | 133.0 | -8% | -4% | ||||||||||
| Titanium dioxide slag | kt | 293 | -1% | +3% | ||||||||||
| IOC iron ore pellets and concentrate | Mt | 2.6 | +3% | 0% | ||||||||||
*Rio Tinto share unless otherwise stated
Q1 Operational update
•We are protecting the health of our employees and communities through rapid implementation of health and hygiene controls in response to Covid-19. We have also strengthened our focus on safety programmes to ensure the safety of our employees during a period of significant change.
•Pilbara iron ore shipments of 73 million tonnes (100% basis) were 5% higher than the first quarter of 2019, driven by a strong recovery across the network in March following tropical cyclone Damien in February 2020. The portside trading trial continues in China with the 1 millionth tonne of ore sold.
•Bauxite production of 13.8 million tonnes was 8% higher than the first quarter of 2019, following the successful ramp-up of Amrun in 2019. Third party shipments of 9.5 million tonnes in the quarter were 7% higher than the same period of 2019.
•Aluminium production of 0.8 million tonnes in the first quarter was 2% lower than the first quarter of 2019 with ISAL operating at 85% capacity in line with our value over volume strategy.
•Mined copper production of 133 thousand tonnes was 8% lower than the same period in 2019, reflecting anticipated lower copper grades, partially offset by higher throughput.
•At Kennecott in the US, we are working to resume normal operations following a 5.7 magnitude earthquake on 18 March. The mine, concentrator, tailings storage facility and refinery have all
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resumed safe and stable operations. There was some damage to the furnace, which impacts full year copper guidance (see below).
•Titanium dioxide slag production of 293 thousand tonnes was 1% lower than the first quarter in 2019 partly due to Covid-19 restrictions in Quebec and South Africa.
•Production of pellets and concentrate at the Iron Ore Company of Canada (IOC) was 3% higher than the same period of 2019.
•All major projects progressed well in the first quarter, but are now being affected by Covid-19 including government imposed restrictions on the movement of goods and people. Recovery rates may differ across regions - we will update the market once the situation stabilises.
•Capital expenditure is now expected to be $5 to 6 billion in 2020 (down from the previous guidance of $7 billion) partly due to Covid-19 constraints, and partly due to the favourable currency impact from the strong US dollar. Capital expenditure originally planned for 2020 may subsequently flow into 2021 and 2022, and we will provide a further update on capital re-phasing in due course.
•We are continuing to work with our customers to fulfil orders and meet their requirements while complying with government directives. Our customer order books remain healthy, with our commercial teams focusing on business continuity and customer support.
Covid-19
Our markets
Demand in China continues to recover. In the rest of the world, the outlook is more uncertain. Commodity supply is being disrupted as Covid-19 restrictions impact supply chains and people movement globally.
•Demand for the high-quality iron ores we produce remained strong in the first quarter of 2020, mainly driven by a combination of seaborne supply disruptions and solid demand from China’s steel mills despite Covid-19 impacts.
•The market for primary aluminium contracted further in the first quarter of 2020 primarily due to lower automotive production.
•China’s demand for imported bauxite continued to grow in the first quarter, as domestic reserves continue to decline in quality and quantity, and mine production was disrupted by Covid-19 restrictions.
•Although copper demand remained reasonable in the quarter, the decline in the price reflects deteriorating industrial growth expectations globally.
•To some extent, weaker commodity prices also reflect decreasing industry supply costs, which are falling due to a strong US dollar and tailwinds from lower energy and freight costs, partly offset by Covid-19 related expenditure.
Our assets
We have introduced measures to combat the spread and impacts of Covid-19, to ensure we keep our employees and communities safe, and our operations running. We are working closely with governments around the world to ensure our operations continue to contribute to society during this challenging time. Our assets are operating with some Covid-19 restrictions in place to comply with government directives. Full details of initiatives taken to date can be found on our website: www.riotinto.com/news/releases. Specifically, we have implemented the following actions:
Workforce
•We have changed rosters at our Iron Ore operations, construction and exploration projects meaning fewer crew changeovers at our sites and in our operations centre to reduce the risk of transmission.
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•The majority of employees and critical contractors on national fly-in-fly-out (FIFO) arrangements have been relocated to Western Australia.
Operations
•We have reduced mining operations at Richards Bay Minerals (RBM) in South Africa in compliance with a government directive to effect a lockdown on 26 March for 21 days. The rail and port remain open for product shipments.
•We are working with the government of Quebec to comply with the directive to slow down non-critical projects and activities for our Quebec operations.
•We have shut down the fourth pot-line at the Tiwai Point smelter in New Zealand (NZAS) with production continuing on the other three lines to comply with government lockdown requirements for containing the spread of Covid-19 and to support the health and safety of our people at the site.
Products
•We have changed our product mix at IOC to focus on the production of concentrates in order to match market demand.
•In aluminium, in response to market conditions we have reduced the proportion of primary metal being produced as value added products.
Guidance
|
Production guidance
Rio Tinto share, unless otherwise stated
|
2020 (current)
|
2020 (previous) | ||||||||||||||||||||||||
| Pilbara iron ore (shipments, 100% basis) |
324 to 334 Mt
|
324 to 334 Mt | ||||||||||||||||||||||||
| Bauxite | 55 to 58 Mt | 55 to 58 Mt | ||||||||||||||||||||||||
| Alumina | 7.8 to 8.2 Mt | 7.8 to 8.2 Mt | ||||||||||||||||||||||||
| Aluminium | 3.1 to 3.3 Mt | 3.1 to 3.3 Mt | ||||||||||||||||||||||||
| Mined copper | 475 to 520 kt | 530 to 570 kt | ||||||||||||||||||||||||
| Refined copper | 165 to 205 kt | 205 to 235 kt | ||||||||||||||||||||||||
| Diamonds | 12 to 14 M carats | 12 to 14 M carats | ||||||||||||||||||||||||
| Titanium dioxide slag | At lower end of 1.2 to 1.4 Mt | 1.2 to 1.4 Mt | ||||||||||||||||||||||||
|
Iron Ore Company of Canada
pellets and concentrate
|
10.5 to 12.0 Mt
|
10.5 to 12.0 Mt | ||||||||||||||||||||||||
| Boric oxide equivalent | ~0.5 Mt | ~0.5 Mt | ||||||||||||||||||||||||
•We will continue to monitor and adjust production levels and product mix to meet customer requirements in 2020, in line with our value over volume strategy, government imposed restrictions related to Covid-19, and any other potential Covid-19 related disruptions.
•Mined and refined copper guidance is lowered due to a potential reduction in second half output at Escondida from Covid-19 measures and the earthquake repairs at Kennecott.
•Titanium dioxide slag guidance is expected to be at the lower end of the prior guidance range due to Covid-19 restrictions instructed by the governments in Quebec and South Africa.
Operating costs
•Pilbara iron ore 2020 unit cost guidance of $14-$15 per tonne remains unchanged.
•Copper C1 unit cost guidance in 2020 is unchanged at 120-135 US cents/lb.
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Investments, growth and development projects
•All major projects progressed well in the first quarter, but are now being affected by the Covid-19 restrictions. The team is investigating ways to mitigate Covid-19 impacts including those associated with roster changes, travel restrictions and the design and fabrication of long lead items in China and Europe. Whilst it is too early to estimate, the restrictions are likely to have some impact on our progress. Recovery rates may differ across regions - we will update the market once the situation stabilises.
•Capital expenditure is now expected to be $5 to 6 billion in 2020 (down from the previous guidance of $7 billion) partly due to Covid-19 constraints, and partly due to the favourable currency impact from the strong US dollar. Capital expenditure originally planned for 2020 may subsequently flow into 2021 and 2022, and we will provide a further update on capital re-phasing in due course.
•Exploration and evaluation spend in the first quarter was $144 million, 16% higher than the first quarter of 2019, reflecting an increase in central exploration including the Winu copper/gold project in Western Australia, and higher spend associated with our Jadar borates/lithium project in Serbia.
Pilbara replacement projects
•Overall construction is progressing with key personnel retained in Western Australia following the implementation of border controls to limit the transmission of Covid-19.The ramp-up of Koodaideri is still expected to occur in early 2022.
•The other Pilbara projects remain largely on track including Western Turner Syncline Phase 2 and Robe River Joint Venture sustaining projects (West Angelas C&D and Mesas B, C and H at Robe Valley). Environmental approval of Mesa H is progressing.
•We are working closely with the authorities to prevent any delay in the permitting process from Covid-19.
Oyu Tolgoi underground project
•As announced on 16 March 2020, work on the Oyu Tolgoi underground project continues, and we are achieving strong productivity in underground development (1,939 equivalent metres in March, average monthly 1,815 equivalent metres).
•Despite these gains, progress has slowed as a result of restrictions placed on the movement of people to contain the spread of Covid-19, including specialist commissioning personnel as well as goods.
•Work continues on the mine design and we still expect this to be completed in the first half of 2020 with the Definitive Estimate1 of cost and schedule in the second half of 2020. This will include the estimate of development capital costs and schedule for the underground project based on the updated design of Panel 0.
•Based on current information, the underground project remains within the range announced in July 2019 of a 16 to 30 month delay in schedule and an increase of $1.2 to $1.9 billion in development capital costs. Depending on how long they are in place, Covid-19 restrictions may impact the schedule range.
Other key projects and exploration and evaluation
•Phase one of the south wall pushback project at Kennecott remains on track with access to higher grades expected from 2021.
•The Zulti South project in South Africa continues to be on hold. A restart will not occur until Covid-19 restrictions have been fully lifted and security and community issues have been resolved.
•Construction of the second tunnel at the Kemano hydropower facility at Kitimat, British Columbia has been put on care and maintenance due to contractor availability. We are evaluating the impact and next steps to resume progress on the project.
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•The Resolution Copper project in Arizona is progressing, with shaft 9 on schedule reaching 1.8 kilometres of the targeted 2.1 kilometres at the end of March.
•Construction of the ELYSIS research and development centre in the Saguenay has been temporarily suspended, aligned with the Covid-19 measures introduced by the Quebec government.
•On the Winu preliminary study for the copper/gold deposit in Western Australia, Covid-19 precautionary measures are in place. Drilling and fieldwork activities continue as planned at present. Future activities are likely to be affected by Covid-19 restrictions including the ability to move people and gain access to sites.
•Activities at the Falcon diamond study in Saskatchewan have been scaled back in response to Covid-19 constraints, with the 2019 bulk samples now being processed by the recently commissioned bulk diamond sampling plant.
EBITDA Sensitivities: previously published for 2019, next update on 29 July 2020
|
|
2019 average price / rate |
($m) impact on FY 2019 underlying
EBITDA of 10% price/rate change
|
||||||
| Copper | 273c/lb | 350 | ||||||
| Aluminium | $1,791/t | 482 | ||||||
| Gold | $1,393/oz | 54 | ||||||
| Iron ore (62% Fe FOB) | $85.9/dmt | 2,061 | ||||||
| A$ | 0.70 | 529 | ||||||
| C$ | 0.75 | 199 | ||||||
| Oil (Brent) | $64/bbl | 72 | ||||||
1 As described above, the level of accuracy of these estimates is preliminary in nature and subject to a range of variables, in line with previous guidance. The confidence level of these estimates is at a level associated with a Conceptual or Order of Magnitude Study, and further work is required between now and the second half of 2020 to refine the mine design options and study them to a level of confidence and accuracy associated with Feasibility Study quality estimates.
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 2019 is excluded from Rio Tinto share of production data.
IRON ORE
| Million tonnes | Q1 2020 | vs Q1 2019 | vs Q4 2019 | ||||||||
| Rio Tinto share of production |
|
|
|
||||||||
|
Pilbara Blend and SP10 Lump1
|
18.5 | -7% | -7% | ||||||||
|
Pilbara Blend and SP10 Fines1
|
27.7 | -4% | -8% | ||||||||
| Robe Valley Lump | 1.5 | +132% | -6% | ||||||||
| Robe Valley Fines | 2.4 | +95% | -14% | ||||||||
| Yandicoogina Fines (HIY) | 14.1 | +5% | -1% | ||||||||
| Total Pilbara production | 64.2 | 0% | -7% | ||||||||
|
Total Pilbara production (100% basis)
|
77.8 | +2% | -7% | ||||||||
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| Million tonnes | Q1 2020 | vs Q1 2019 | vs Q4 2019 | ||||||||
| Rio Tinto share of shipments |
|
|
|
||||||||
| Pilbara Blend Lump | 14.4 | -9% | -11% | ||||||||
| Pilbara Blend Fines | 26.7 | -1% | -14% | ||||||||
| Robe Valley Lump | 1.1 | +147% | -9% | ||||||||
| Robe Valley Fines | 2.7 | +106% | -18% | ||||||||
| Yandicoogina Fines (HIY) | 12.9 | +5% | -15% | ||||||||
|
SP10 Lump1
|
1.0 | N/A | -51% | ||||||||
|
SP10 Fines1
|
1.1 | -29% | -48% | ||||||||
| Total Pilbara shipments | 59.9 | +3% | -16% | ||||||||
|
Total Pilbara shipments (100% basis)
|
72.9 | +5% | -16% | ||||||||
|
Total Pilbara sales (Rio Tinto share)2
|
59.8 | +3% | -15% | ||||||||
|
Total Pilbara sales (100% basis)2
|
72.8 | +5% | -15% | ||||||||
|
Total Pilbara sales (consolidated basis)2, 3
|
61.6 | +4% | -15% | ||||||||
1 SP10 includes some lower grade products.
2 Differences between shipments and sales reflect tonnes held for portside trading and material purchased from IOC and sold.
3 While Rio Tinto has a 53% net beneficial interest in Robe River Iron Associates, it recognises 65% of the assets, liabilities, sales revenues and expenses in its accounts (as 30% is held through a 60% owned subsidiary and 35% is held through a 100% owned subsidiary). The consolidated basis sales reported here include Robe River Iron Associates on a 65% basis to enable comparison with revenue reported in the financial statements.
Pilbara operations
Pilbara operations produced 77.8 million tonnes (Rio Tinto share 64.2 million tonnes) in the first quarter, 2% higher than the first quarter of 2019. Production in the quarter was impacted by Tropical Cyclone Damien in February which caused infrastructure damage and interrupted operations due to flooding across the Pilbara network. There was a strong recovery in March across mines, rail and port.
First quarter sales of 72.8 million tonnes (Rio Tinto share 59.8 million tonnes) were 5% above the first quarter of 2019, despite significant disruptions experienced at our ports and infrastructure damage as a result of Tropical Cyclone Damien.
Approximately 16% of sales in the first 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 33% of sales in the quarter were made free on board (FOB), with the remainder sold including freight.
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ALUMINIUM
Rio Tinto share of production (‘000 tonnes)
|
|
Q1 2020 | vs Q1 2019 | vs Q4 2019 | ||||||||
| Bauxite | 13,813 | +8% | -9% | ||||||||
| Bauxite third party shipments | 9,469 | +7% | -14% | ||||||||
| Alumina | 2,010 | 0% | -1% | ||||||||
| Aluminium | 783 | -2% | 0% | ||||||||
Bauxite
First quarter bauxite production of 13.8 million tonnes was 8% higher than the first quarter of 2019. Production was lower than the fourth quarter of 2019, reflecting normal wet season conditions and maintenance activity at Gove.
Production from CBG in Guinea was 21% higher than the first quarter of 2019 reflecting good progress on the ramp-up of the expansion. On 27 March, CBG successfully passed its 90-day completion test for the expansion to 18.5 million tonnes per year.
We shipped 9.5 million tonnes of bauxite to third parties in the first quarter, 7% higher than same period of 2019.
Alumina
Alumina production in the first quarter of 2020 was in line with the corresponding period of 2019.
Aluminium
First quarter aluminium production of 0.8 million tonnes was 2% lower than the first quarter of 2019, primarily due to lower production at the ISAL and Kitimat smelters, partly offset by the ramp-up of the non-managed Becancour smelter back to 84% of capacity following a lock-out in 2019. Further ramp-up is currently on hold due to Covid-19.
We continue to operate the ISAL smelter at 85% capacity in line with our value over volume strategy, and Kitimat production was lower as it progresses through its first pot relining cycle which has been impacted by earlier than planned pot-lining replacement. Our Quebec managed smelters performed well, with aluminium production for the first quarter 2% higher than the same period in 2019, reflecting ongoing productivity improvement.
The aluminium industry continues to face challenging conditions in global markets and policy uncertainty, exacerbated by the impact of Covid-19, with global inventory levels rising from 2.2 million tonnes to 3 million tonnes. We continue to actively work on enhancing the competitiveness of our smelters, including discussing energy pricing with stakeholders, to ensure the sustainability of our smelters in Australasia and in Iceland.
We announced strategic reviews of our interests in the Tiwai Point smelter in New Zealand in October 2019 and in the ISAL smelter in Iceland in February 2020. Work on these reviews is ongoing. This will determine the viability and competitive position of these operations and will consider all options, including curtailment and closure.
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COPPER & DIAMONDS
Rio Tinto share of production (‘000 tonnes)
|
|
Q1 2020 | vs Q1 2019 | vs Q4 2019 | ||||||||
| Mined copper |
|
|
|
||||||||
| Rio Tinto Kennecott | 35.0 | -33% | -1% | ||||||||
| Escondida | 86.2 | +13% | -7% | ||||||||
| Oyu Tolgoi | 11.8 | -23% | +7% | ||||||||
|
|
|||||||||||
| Refined copper | |||||||||||
| Rio Tinto Kennecott | 26.4 | -11% | -49% | ||||||||
| Escondida | 20.9 | +12% | +2% | ||||||||
|
|
|
|
|
||||||||
|
Diamonds (‘000 carats)
|
|||||||||||
| Argyle | 2,578 | -7% | -23% | ||||||||
| Diavik | 857 | -15% | +2% | ||||||||
Rio Tinto Kennecott
Mined copper production was 33% lower than the same quarter in 2019, primarily due to pit sequencing, which contained lower copper ore grade material, partially offset by higher recovery rates. Copper grades were 33% lower in the first quarter of 2020 compared with the same quarter of 2019. Grades will continue to be lower through 2020 before increasing from the first quarter of 2021, with the transition from east wall to south wall mining.
Refined copper was 11% lower than the same quarter in 2019, due to lower anode production driven by reduced concentrate delivery, rate limitation from supply chain impacts, and reduced online time for inspection and repair following the earthquake on 18 March.
Following the earthquake, damage to the flash converting furnace in the Kennecott smelter has been identified, resulting in a full furnace rebuild being required in 2020.
The smelter is scheduled for a 45-day planned maintenance shutdown due to commence in May.
Grades were higher in the first quarter for molybdenum, with concentrate production 171% higher than the same quarter in 2019.
Escondida
Mined copper production at Escondida was 13% higher than the same quarter of 2019 due to higher concentrator throughput, and a higher amount of material stacked at the sulphide leach pads.
Oyu Tolgoi
Mined copper production from the open pit was 23% lower than the same quarter of 2019 due to decreased head grade. Grades were 26% lower than the same quarter in 2019 due to sequencing and blending of low-grade stockpiles. First quarter sales have been affected by slower collections of product from the warehouse by customers due to curtailed operations in China during peak Covid-19 restrictions.
Diamonds
At Argyle, carat production was 23% lower than last quarter. Full year production guidance remains unaffected.
At Diavik, carats recovered in first quarter 2020 were 2% higher than last quarter due to higher processed tonnes, largely offset by lower recovered grade from the mine.
Page 8 of 26
The diamond industry continues to face challenging conditions across key markets exacerbated by the impact of Covid-19. In particular, there has been a demand slump due to a retail shutdown during peak season, as well as lower rough diamond demand from people movement restrictions in India.
ENERGY & MINERALS
Rio Tinto share of production
|
|
Q1 2020 | vs Q1 2019 | vs Q4 2019 | ||||||||
| Iron ore pellets and concentrate (million tonnes) | |||||||||||
| IOC | 2.6 | +3% | 0% | ||||||||
|
|
|||||||||||
| Minerals (‘000 tonnes) | |||||||||||
|
Borates – B2O3 content
|
126 | +10% | -2% | ||||||||
| Titanium dioxide slag | 293 | -1% | +3% | ||||||||
|
|
|||||||||||
| Uranium (‘000 lbs) | |||||||||||
| Energy Resources of Australia | 676 | -15% | +5% | ||||||||
Iron Ore Company of Canada (IOC)
Iron ore pellets and concentrate production was in line with the last quarter and 3% higher than the first quarter of 2019, due to improved concentrator feed. IOC achieved first quarter records including total material moved and total shipments as a result of increased focus on asset optimisation.
We have changed our product mix at IOC to focus on the production of concentrates in order to match market demand.
The Ministry of Natural Resources of the government of Newfoundland and Labrador has granted renewals of all mining leases and tailing licenses needed for IOC to operate for an additional 30 years.
Borates
Borates production was slightly below the previous quarter and aligned with market conditions. We will continue to base any decision to adjust refinery utilisation rates to match market demand.
Iron and Titanium
Titanium dioxide feedstock production was 3% higher than last quarter, due to community disruptions that resulted in a site wide shutdown at RBM in December 2019. Furnaces at RBM are currently operating at reduced power levels as a result of Covid-19 government restrictions.
We have temporarily suspended production at the Rio Tinto Fer et Titane (RTFT) metal powder plant in Sorel-Tracy, Quebec due to the slowdown in demand from the automotive industry.
Uranium
In late 2019, we announced our support for Energy Resources of Australia’s (ERA) plans for a renounceable entitlement offer to raise $324 million for the rehabilitation of the Ranger Project Area in the Northern Territory, Australia. Following completion of the rights issue, we now hold 86% in ERA, up from 68%.
ERA continues to process existing stockpiles. Production was 5% higher than last quarter due to Rio Tinto’s increased ownership from 1 March 2020.
Page 9 of 26
EXPLORATION AND EVALUATION
Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in the first quarter of 2020 was $144 million, compared with $124 million in the first quarter of 2019. Approximately 54% of this expenditure was incurred by central exploration, 32% by Copper & Diamonds, 11% by Energy & Minerals and 3% by Iron Ore and Aluminium.
Exploration activities are likely to be affected by Covid-19 restrictions including the ability to move people and gain access to sites. A further update will be provided in July.
There were no significant divestments of central exploration properties in the first quarter of 2020.
Exploration highlights
Rio Tinto has a strong portfolio of projects with activity in 17 countries across seven commodities.
A summary of activity for the quarter is as follows:
| Commodities | Studies Stage |
Advanced
projects
|
Greenfield/ Brownfield
programmes
|
||||||||
| Bauxite | Cape York, Australia | Amargosa, Brazil*; Sanxai, Laos* | Cape York, Australia | ||||||||
| Base Metals |
Copper/molybdenum: Resolution, US;
Winu, Australia
|
La Granja, Peru
Nickel: Tamarack, US (3rd party operated)
|
Copper Greenfield: Australia, Chile, China, Kazakhstan, Nicaragua, Peru, Serbia, US, Zambia, Brazil, Canada, Colombia
Copper Brownfield, Oyu Tolgoi, Mongolia
Nickel Greenfield: Canada, Uganda, Finland
|
||||||||
| Diamonds | Falcon, Canada |
|
Greenfield: Canada
Brownfield: Diavik, Canada
|
||||||||
| Minerals |
Lithium borates: Jadar, Serbia
Heavy mineral sands: Mutamba, Mozambique (3rd party operated)
|
|
Heavy mineral sands: Tanzania
Industrial Minerals: Serbia
Industrial minerals brownfield: Boron, US
|
||||||||
| Iron Ore | Pilbara, Australia | Pilbara, Australia |
Brownfield: Pilbara, Australia
|
||||||||
* limited activity during the quarter
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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.
Page 11 of 26
Contacts
media.enquiries@riotinto.com
riotinto.com
Follow @RioTinto on Twitter
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Media Relations, United Kingdom
Illtud Harri
M +44 7920 503 600
David Outhwaite
T +44 20 7781 1623
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Media Relations, Americas
Matthew Klar
T +1 514 608 4429
Media Relations, Asia
Grant Donald
T +65 6679 9290
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Media Relations, Australia
Jonathan Rose
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M +61 447 028 913
Matt Chambers
T +61 3 9283 3087
M +61 433 525 739
Jesse Riseborough
T +61 8 6211 6013
M +61 436 653 412
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||||
|
Investor Relations, United Kingdom
Menno Sanderse
T +44 20 7781 1517
M +44 7825 195 178
David Ovington
T +44 20 7781 2051
M +44 7920 010 978
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Investor Relations, Australia
Natalie Worley
T +61 3 9283 3063
M +61 409 210 462
Amar Jambaa
T +61 3 9283 3627
M +61 472 865 948
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|
Group Company Secretary
Steve Allen
Rio Tinto plc
6 St James’s Square
London SW1Y 4AD
United Kingdom
T +44 20 7781 2000
Registered in England
No. 719885
|
Joint Company Secretary
Tim Paine
Rio Tinto Limited
Level 7, 360 Collins Street
Melbourne 3000
Australia
T +61 3 9283 3333
Registered in Australia
ABN 96 004 458 404
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This announcement is authorised for release to the market by Rio Tinto’s Group Company Secretary.
LEI: 213800YOEO5OQ72G2R82
Classification: 3.1 Additional regulated information required to be disclosed under the laws of a Member State
Page 12 of 26
Rio Tinto production summary
| Rio Tinto share of production | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarter |
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Full Year | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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2019
Q1
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2019
Q4
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2020
Q1
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2019 |
Q1 20
vs
Q1 19
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Q1 20
Vs
Q4 19
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| Principal Commodities |
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| Alumina | ('000 t) | 2,008 | 2,032 | 2,010 | 7,744 | 0% | -1% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Aluminium | ('000 t) | 796 | 783 | 783 | 3,171 | -2% | 0% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Bauxite | ('000 t) | 12,763 | 15,137 | 13,813 | 55,105 | 8% | -9% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Borates | ('000 t) | 115 | 128 | 126 | 520 | 10% | -2% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Copper - mined | ('000 t) | 143.9 | 138.7 | 133.0 | 577.4 | -8% | -4% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Copper - refined | ('000 t) | 48.3 | 71.9 | 47.2 | 259.6 | -2% | -34% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Diamonds | ('000 cts) | 3,796 | 4,203 | 3,434 | 17,030 | -10% | -18% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Iron Ore | ('000 t) | 66,581 | 71,352 | 66,787 | 281,192 | 0% | -6% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Titanium dioxide slag | ('000 t) | 296 | 286 | 293 | 1,206 | -1% | 3% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Uranium | ('000 lbs) | 793 | 642 | 676 | 2,640 | -15% | 5% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other Metals & Minerals |
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| Gold - mined | ('000 oz) | 115.4 | 75.0 | 61.5 | 389.7 | -47% | -18% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gold - refined | ('000 oz) | 41.7 | 63.3 | 44.8 | 218.7 | 7% | -29% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Molybdenum | ('000 t) | 1.9 | 4.7 | 5.1 | 11.2 | 171% | 9% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Salt | ('000 t) | 1,310 | 1,450 | 1,044 | 5,422 | -20% | -28% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Silver - mined | ('000 oz) | 1,481 | 1,209 | 1,027 | 5,412 | -31% | -15% | |||||||||||||||||||||||||||||||||||||||||||||||||
| Silver - refined | ('000 oz) | 617 | 839 | 462 | 2,853 | -25% | -45% | |||||||||||||||||||||||||||||||||||||||||||||||||
Throughout this report, figures in italics indicate adjustments made since the figure was previously quoted on the equivalent page or reported for the first time. Production figures are sometimes more precise than the rounded numbers shown, hence small differences may result between the total of the quarter figures and the year to date figures.
Page 13 of 26
Rio Tinto share of production
Page 14 of 26
Page 15 of 26
| Rio Tinto share of production | ||||||||||||||||||||||||||||||||||||||||||||
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Rio Tinto
interest
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Q1
2019
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Q2
2019
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Q3
2019
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Q4
2019
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Q1
2020
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Full Year
2019
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| IRON ORE |
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| Production ('000 tonnes) (a) |
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| Hamersley mines | (b) | 51,218 | 50,087 | 55,567 | 52,521 | 49,327 | 209,392 | |||||||||||||||||||||||||||||||||||||
| Hamersley - Channar | 60% | 931 | 1,451 | 947 | 1,452 | 1,160 | 4,782 | |||||||||||||||||||||||||||||||||||||
| Hope Downs | 50% | 5,957 | 6,051 | 6,077 | 6,047 | 5,667 | 24,132 | |||||||||||||||||||||||||||||||||||||
| Iron Ore Company of Canada | 59% | 2,481 | 2,532 | 2,960 | 2,564 | 2,560 | 10,536 | |||||||||||||||||||||||||||||||||||||
| Robe River - Pannawonica (Mesas J and A) | 53% | 1,870 | 3,329 | 4,725 | 4,360 | 3,880 | 14,284 | |||||||||||||||||||||||||||||||||||||
| Robe River - West Angelas | 53% | 4,125 | 4,692 | 4,840 | 4,409 | 4,193 | 18,066 | |||||||||||||||||||||||||||||||||||||
| Rio Tinto iron ore production ('000 tonnes) |
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66,581 | 68,141 | 75,117 | 71,352 | 66,787 | 281,192 | |||||||||||||||||||||||||||||||||||||
| Breakdown of Production: |
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| Pilbara Blend and SP10 Lump (c) |
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19,978 | 19,842 | 21,015 | 19,930 | 18,504 | 80,766 | |||||||||||||||||||||||||||||||||||||
| Pilbara Blend and SP10 Fines (c) |
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28,779 | 28,463 | 31,713 | 30,304 | 27,734 | 119,260 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Lump |
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635 | 1,201 | 1,650 | 1,574 | 1,472 | 5,060 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Fines |
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1,235 | 2,128 | 3,075 | 2,786 | 2,407 | 9,224 | |||||||||||||||||||||||||||||||||||||
| Yandicoogina Fines (HIY) |
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13,473 | 13,975 | 14,704 | 14,194 | 14,110 | 56,346 | |||||||||||||||||||||||||||||||||||||
| Pilbara iron ore production ('000 tonnes) |
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64,101 | 65,610 | 72,156 | 68,788 | 64,227 | 270,655 | |||||||||||||||||||||||||||||||||||||
| IOC Concentrate |
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890 | 1,193 | 1,400 | 1,146 | 923 | 4,629 | |||||||||||||||||||||||||||||||||||||
| IOC Pellets |
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1,590 | 1,339 | 1,560 | 1,418 | 1,637 | 5,908 | |||||||||||||||||||||||||||||||||||||
| IOC iron ore production ('000 tonnes) |
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2,481 | 2,532 | 2,960 | 2,564 | 2,560 | 10,536 | |||||||||||||||||||||||||||||||||||||
| Breakdown of Shipments: |
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| Pilbara Blend Lump (d) |
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15,772 | 18,009 | 15,948 | 16,176 | 14,385 | 65,906 | |||||||||||||||||||||||||||||||||||||
| Pilbara Blend Fines (d) |
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26,864 | 32,165 | 30,032 | 31,182 | 26,692 | 120,243 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Lump |
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457 | 1,037 | 1,290 | 1,246 | 1,132 | 4,030 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Fines |
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1,308 | 2,577 | 3,349 | 3,259 | 2,688 | 10,493 | |||||||||||||||||||||||||||||||||||||
| Yandicoogina Fines (HIY) |
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12,294 | 15,212 | 14,286 | 15,260 | 12,913 | 57,052 | |||||||||||||||||||||||||||||||||||||
| SP10 Lump (c) |
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0 | 635 | 2,685 | 2,072 | 1,006 | 5,391 | |||||||||||||||||||||||||||||||||||||
| SP10 Fines (c) |
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1,542 | 1,747 | 4,057 | 2,081 | 1,089 | 9,427 | |||||||||||||||||||||||||||||||||||||
| Pilbara iron ore shipments ('000 tonnes) |
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58,236 | 71,382 | 71,646 | 71,277 | 59,903 | 272,540 | |||||||||||||||||||||||||||||||||||||
| IOC Iron ore shipments ('000 tonnes) |
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2,092 | 2,738 | 2,654 | 2,636 | 2,775 | 10,120 | |||||||||||||||||||||||||||||||||||||
| Rio Tinto iron ore shipments ('000 tonnes) | 60,328 | 74,119 | 74,300 | 73,913 | 62,678 | 282,660 | ||||||||||||||||||||||||||||||||||||||
| Breakdown of Sales: |
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| Pilbara Blend Lump (d) |
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15,772 | 18,009 | 15,948 | 16,176 | 14,385 | 65,906 | |||||||||||||||||||||||||||||||||||||
| Pilbara Blend Fines (d) |
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26,864 | 32,165 | 30,032 | 31,182 | 26,692 | 120,243 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Lump |
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457 | 1,037 | 1,290 | 1,246 | 1,132 | 4,030 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Fines |
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1,308 | 2,577 | 3,349 | 3,259 | 2,688 | 10,493 | |||||||||||||||||||||||||||||||||||||
Page 16 of 26
| Yandicoogina Fines (HIY) |
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12,294 | 15,212 | 14,286 | 15,260 | 12,913 | 57,052 | ||||||||||||||||
| SP10 Lump (c) |
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0 | 635 | 2,611 | 1,733 | 907 | 4,979 | ||||||||||||||||
| SP10 Fines (c) |
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1,542 | 1,747 | 3,962 | 1,185 | 1,104 | 8,437 | ||||||||||||||||
| Pilbara iron ore sales ('000 tonnes) (e) |
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58,236 | 71,382 | 71,478 | 70,043 | 59,820 | 271,139 | ||||||||||||||||
| Pilbara iron ore sales - consolidated basis ('000 tonnes) (e) (f) |
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59,541 | 73,230 | 73,619 | 72,166 | 61,645 | 278,557 | ||||||||||||||||
| IOC Concentrate |
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516 | 1,315 | 1,425 | 1,223 | 1,006 | 4,479 | ||||||||||||||||
| IOC Pellets |
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1,576 | 1,423 | 1,229 | 1,413 | 1,769 | 5,641 | ||||||||||||||||
| IOC Iron ore sales ('000 tonnes) |
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2,092 | 2,738 | 2,654 | 2,636 | 2,775 | 10,120 | ||||||||||||||||
| (a) Mine production figures for metals refer to the total quantity of metal produced in concentrates, leach liquor or doré bullion irrespective of whether these products are then refined onsite, except for the data for bauxite and iron ore which represent production of marketable quantities of ore plus concentrates and pellets. | ||
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(b) Includes 100% of production from Paraburdoo, Mt Tom Price, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass and the Eastern Range mines. Whilst Rio Tinto owns 54% of the Eastern Range mine, under the terms of the joint venture agreement, Hamersley Iron manages the operation and is obliged to purchase all mine production from the joint venture and therefore all of the production is included in Rio Tinto's share of production.
(c) SP10 include other lower grade products. SP10 fines sales also include IOC product that is further blended and sold at port in China.
(d) Restatement due to separately reporting SP10 lump and SP10 fines products that include other lower grade products.
(e) Differences between shipments and sales reflect tonnes held for portside trading and material purchased from IOC then further blended and sold at port in China.
(f) While Rio Tinto has a 53% net beneficial interest in Robe River Iron Associates, it recognises 65% of the assets, liabilities, sales revenues and expenses in its accounts (as 30% is held through a 60% owned subsidiary and 35% is held through a 100% owned subsidiary). The consolidated basis sales reported here include Robe River Iron Associates on a 65% basis to enable comparison with revenue reported in the financial statements.
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Page 17 of 26
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Page 23 of 26
| Rio Tinto operational data | ||||||||||||||||||||||||||||||||||||||||||||
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Rio Tinto
interest
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Q1
2019
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Q2
2019
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Q3
2019
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Q4
2019
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Q1
2020
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Full Year
2019
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| IRON ORE |
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| Rio Tinto Iron Ore |
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| Western Australia |
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| Pilbara Operations |
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| Saleable iron ore production ('000 tonnes) |
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| Hamersley mines | (a) | 51,218 | 50,087 | 55,567 | 52,521 | 49,327 | 209,392 | |||||||||||||||||||||||||||||||||||||
| Hamersley - Channar | 60.0% | 1,552 | 2,419 | 1,579 | 2,420 | 1,934 | 7,970 | |||||||||||||||||||||||||||||||||||||
| Hope Downs | 50.0% | 11,913 | 12,101 | 12,155 | 12,095 | 11,334 | 48,264 | |||||||||||||||||||||||||||||||||||||
| Robe River - Pannawonica (Mesas J and A) | 53.0% | 3,529 | 6,282 | 8,914 | 8,225 | 7,320 | 26,951 | |||||||||||||||||||||||||||||||||||||
| Robe River - West Angelas | 53.0% | 7,783 | 8,853 | 9,133 | 8,318 | 7,912 | 34,086 | |||||||||||||||||||||||||||||||||||||
| Total production ('000 tonnes) | 75,995 | 79,741 | 87,347 | 83,579 | 77,827 | 326,663 | ||||||||||||||||||||||||||||||||||||||
| Breakdown of total production: |
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| Pilbara Blend and SP10 Lump (b) |
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24,068 | 24,291 | 25,434 | 24,326 | 22,592 | 98,119 | |||||||||||||||||||||||||||||||||||||
| Pilbara Blend and SP10 Fines (b) |
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34,924 | 35,194 | 38,296 | 36,833 | 33,806 | 145,247 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Lump |
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1,198 | 2,266 | 3,113 | 2,969 | 2,778 | 9,547 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Fines |
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2,331 | 4,015 | 5,802 | 5,256 | 4,542 | 17,404 | |||||||||||||||||||||||||||||||||||||
| Yandicoogina Fines (HIY) |
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13,473 | 13,975 | 14,704 | 14,194 | 14,110 | 56,346 | |||||||||||||||||||||||||||||||||||||
| Breakdown of total shipments: | ||||||||||||||||||||||||||||||||||||||||||||
| Pilbara Blend Lump (c) |
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18,968 | 21,653 | 19,329 | 19,680 | 17,506 | 79,630 | |||||||||||||||||||||||||||||||||||||
| Pilbara Blend Fines (c) |
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33,016 | 39,358 | 36,947 | 39,186 | 33,197 | 148,508 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Lump |
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863 | 1,957 | 2,433 | 2,350 | 2,135 | 7,603 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Fines |
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2,468 | 4,862 | 6,318 | 6,149 | 5,071 | 19,797 | |||||||||||||||||||||||||||||||||||||
| Yandicoogina Fines (HIY) |
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12,294 | 15,212 | 14,286 | 15,260 | 12,913 | 57,052 | |||||||||||||||||||||||||||||||||||||
| SP10 Lump (b) |
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0 | 635 | 2,685 | 2,072 | 1,006 | 5,391 | |||||||||||||||||||||||||||||||||||||
| SP10 Fines (b) |
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1,542 | 1,747 | 4,057 | 2,081 | 1,089 | 9,427 | |||||||||||||||||||||||||||||||||||||
| Total shipments ('000 tonnes) (d) | 69,150 | 85,423 | 86,055 | 86,779 | 72,916 | 327,408 | ||||||||||||||||||||||||||||||||||||||
| Breakdown of total sales: | ||||||||||||||||||||||||||||||||||||||||||||
| Pilbara Blend Lump (c) |
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18,968 | 21,653 | 19,329 | 19,680 | 17,506 | 79,630 | |||||||||||||||||||||||||||||||||||||
| Pilbara Blend Fines (c) |
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33,016 | 39,358 | 36,947 | 39,186 | 33,197 | 148,508 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Lump |
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863 | 1,957 | 2,433 | 2,350 | 2,135 | 7,603 | |||||||||||||||||||||||||||||||||||||
| Robe Valley Fines |
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2,468 | 4,862 | 6,318 | 6,149 | 5,071 | 19,797 | |||||||||||||||||||||||||||||||||||||
| Yandicoogina Fines (HIY) |
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12,294 | 15,212 | 14,286 | 15,260 | 12,913 | 57,052 | |||||||||||||||||||||||||||||||||||||
| SP10 Lump (b) |
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0 | 635 | 2,611 | 1,733 | 907 | 4,979 | |||||||||||||||||||||||||||||||||||||
| SP10 Fines (b) |
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1,542 | 1,747 | 3,962 | 1,185 | 1,104 | 8,437 | |||||||||||||||||||||||||||||||||||||
| Total sales ('000 tonnes) | 69,150 | 85,423 | 85,888 | 85,545 | 72,833 | 326,006 | ||||||||||||||||||||||||||||||||||||||
Page 24 of 26
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(a) Includes 100% of production from Paraburdoo, Mt Tom Price, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass and the Eastern Range mines. Whilst Rio Tinto owns 54% of the Eastern Range mine, under the terms of the joint venture agreement, Hamersley Iron manages the operation and is obliged to purchase all mine production from the joint venture and therefore all of the production is included in Rio Tinto's share of production.
(b) SP10 include other lower grade products. SP10 fines sales also include IOC product that is further blended and sold at port in China.
(c) Restatement due to separately reporting SP10 lump and SP10 fines products that include other lower grade products.
(d) Shipments represent iron ore exported from Western Australian ports: a portion of this material is shipped for portside trading to be further blended and subsequently sold.
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| Rio Tinto percentage interest shown above is at 31 March 2020. The data represent full production and sales on a 100% basis unless otherwise stated. | ||||||||||||||||||||||||||||||||||||||||||||
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