Rio Tinto: Strong results at Oyu Tolgoi copper and Pilbara iron ore

MELBOURNE, Australia – Rio Tinto delivered strong operational performance in the third quarter. Oyu Tolgoi copper production increased 29% year-to-date, with the operation running at a ~450 kt annualised rate in the quarter, and global iron ore sales are up 3% year-to-date. The Simandou iron ore mine hit an annualised production run-rate of ~10 Mtpa (100% basis) in the quarter as the project continues to ramp up.

Rio Tinto Chief Executive Simon Trott said: “We are finishing the year with momentum, with significant opportunities to accelerate improvements in safety, productivity and reliability through implementation of our operating system. We remain on track for a $1.8 billion annualised productivity benefit run-rate by the end of 2026. Our major projects remain on schedule and budget, underwriting our growth profile to 2030.

“We made further significant steps in decarbonising our business in the third quarter, with our Pacific Aluminium smelter repowering arrangements now well progressed.

“Today, we announce that we have achieved more than $2 billion of capital release year-to-date, as we actively manage our portfolio with discipline to maximise long-term value, as part of the $5 to 10 billion capital release program.”

Executive Summary

• Operational excellence: ~1% YTD increase in copper equivalent (CuEq2) production, driven by growth from Oyu Tolgoi copper and Pilbara iron ore.
• Copper: Oyu Tolgoi production increased by 27% YoY in Q3 and 29% YTD. At Kennecott, we successfully completed the rebuild of the flash converting furnace at end-August ahead of plan.
• Iron ore: Q3 global iron ore sales were 90.8 Mt, up 3% YoY, while Pilbara sales increased 2% YoY. Simandou hit an annualised production run-rate of ~10 Mtpa (100% basis) in Q3 as the project ramps up and remains on track to reach a 60 Mtpa production run-rate during H2 20283.
• Aluminium: Consistent, stable performance across the full operating system. Pacific smelter repowering arrangements are now well progressed, following the Tomago and Bell Bay power agreements in Q3.
• Lithium: Production up 33% YTD despite adverse weather impacting Q3 operations. Fenix 1B ramp-up continues to progress well.