Rio Tinto: iron ore production up 3%, mined copper output down
Mining giant Rio Tinto has announced that its Pilbara operations produced 81.3 million tonnes (100% basis) of iron ore in Q2 2023, 3% higher than in Q2 2022 as Gudai-Darri achieved sustained nameplate capacity during the period.
The company’s Q2 2023 iron ore shipments were 79.1 million tonnes (100% basis), 1% lower than the corresponding period of 2022, reflecting the impact of planned major maintenance at the Dampier port and a train derailment.
“With continued operational improvements across the Pilbara system, and the implementation of the Safe Production System, full year shipments are now expected to be in the upper half of the original 320 to 335 million tonne range,” the company said.
Rio Tinto added that its mined copper production of 145 thousand tonnes (on a consolidated basis), was 1% lower than the second quarter of 2022.
“We benefited from the continued ramp-up of the high grade underground mine at Oyu Tolgoi. However, this benefit was more than offset by the continued operation of Kennecott’s concentrator at reduced rates, as we recovered from a conveyor failure in March 2023, and unplanned maintenance, and lower crusher and conveyor availability, at Escondida,” Rio Tinto said.
According to a press release, the company’s refined copper guidance has been reduced to 160 to 190 thousand tonnes (previously 180 to 210 thousand tonnes) and its copper C1 unit cost guidance has been raised to 180 to 200 US cents/lb (from 160 to 180 US cents/lb) as completion of the rebuild of the Kennecott smelter is now expected in September 2023 (previously August 2023).
The company’s bauxite production of 13.5 million tonnes was 5% lower than the second quarter of 2022 as its 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 11% higher than the second quarter of 2022 as the company benefited from the continued ramp-up of the Kitimat smelter.
CEO Jakob Stausholm commented, “We built further momentum in our Pilbara iron ore business for the quarter, and now expect to deliver shipments in the upper half of our 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.
“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.”
