Rio Tinto has released production results for the second quarter of 2023, which displays continued efforts to ramp-up production in order to support the world’s energy transition, while continuing its own decarbonisation.
Rio Tinto Chief Executive, Jakob Stausholm, said that the company has built further momentum in its Pilbara iron ore business for the quarter, and now expects to deliver shipments in the upper half of its guidance range for the year.
“The ramp-up of the Oyu Tolgoi underground mine progressed ahead of plan, and we remain on track to more than triple its copper production by the end of the decade,” Mr Stausholm said.
“Production downgrades during the quarter highlight that we still have much more to do elsewhere, as we roll out the Safe Production System to create stability and achieve excellence across our global portfolio.
“We continued to take disciplined measures to grow in the materials the world needs for the energy transition, with investments to expand our low carbon aluminium production and increase our underground copper production at Kennecott.
“We are taking practical steps and making investments to decarbonise, being the first to convert an open pit mine to renewable diesel at our Boron operations, signing a memorandum of understanding with Baowu to explore decarbonisation of the steel value chain and delivering first production from our ground-breaking BlueSmelting demonstration plant at Sorel-Tracy in Quebec in July.”
Q2 2023 key announcements:
- Injury frequency rate of 0.36 increased slightly from the second quarter of 2022 (0.35), and from the prior quarter (0.35)
- Pilbara operations produced 81.3 million tonnes (100 per cent basis) in the second quarter, three per cent higher than the second quarter of 2022, as Gudai-Darri achieved sustained nameplate capacity during the period
- Bauxite production of 13.5 million tonnes was five per cent lower than the second quarter of 2022 as Weipa operations were impacted by the higher-than-average first quarter rainfall, which continued to reduce pit access and led to longer haul distances
- Aluminium production of 0.8 million tonnes was eleven per cent higher than the second quarter of 2022 due to the continued ramp-up of the Kitimat smelter
- Mined copper production of 145,000t (on a consolidated basis), was one per cent lower than the second quarter of 2022, due to operation of Kennecott’s concentrator at reduced rates, as as the site recovered from a conveyor failure in March 2023, and unplanned maintenance and lower crusher and conveyor availability at Escondida
- Refined copper guidance has been reduced to 160,000-190,000t (down from 180,000-210,000t) and copper C1 unit cost guidance has been raised to 180-200 US cents/lb (from 160-180 US cents/lb) as completion of the rebuild of the Kennecott smelter is now expected in September 2023 (previously August 2023)
- Titanium dioxide slag production of 303,000t was four per cent higher than the second quarter of 2022, due to improved smelter operational performance
- IOC production was 21 per cent lower than the second quarter of 2022 as ~3.5 weeks of production was lost in June, primarily due to wildfires in Northern Quebec, together with a slightly extended shutdown
- In the second quarter, Rio Tinto commenced deployment of the Safe Production System at a further two sites, taking the total to 20 sites
- On 13 June, it was announced that Ivan Vella, Chief Executive, Aluminium, has accepted a new position outside of Rio Tinto and will leave in December 2023
