Rio Tinto shows greater consistency across key operations

(Posted on 19/01/25)

Rio Tinto has released fourth quarter production results. Chief Executive Jakob Stausholm said: “Our operating performance in 2024 was good, consistent with our ongoing commitment to strengthen the business as we execute our strategy to deliver profitable growth. The implementation of our Safe Production System has again contributed to greater consistency across key operations, including our iron ore assets in the Pilbara and our bauxite operations in Australia, where Amrun and Gove achieved record annual production.

“We are making strong progress in delivering organic growth from our major projects. The Oyu Tolgoi underground copper mine in Mongolia continues to successfully ramp up, while the Simandou high-grade iron ore project in Guinea and our Western Range mine in the Pilbara are on schedule for first production this year.

“Significant milestones were achieved at our Rincon project in Argentina during the quarter, with first lithium delivered and receipt of Board approval to expand the operation, demonstrating both our operational capabilities and ambition to grow in battery materials.

"We remain focused on executing our strategy to deliver attractive shareholder returns and build a stronger, more diversified, and growing business, driven by our confidence in the long-term demand for materials essential to the global energy transition.”

Q4 2024 operational highlights and other key announcements included:

In 2024, the company delivered 1% production growth and a 3% increase in sales volumes, both on a copper equivalent basis (based on long-term consensus pricing). At the Investor Seminar in December, the Executive Committee outlined ambition for a decade of around 3% compound annual growth in copper equivalent production, driven by Oyu Tolgoi, Simandou and our new lithium portfolio.
Pilbara operations produced 328.0 million tonnes in 2024, with shipments of 328.6 million tonnes, each 1% lower than 2023. Productivity improvements of 10 million tonnes did not fully offset depletion, predominantly at Yandicoogina and Paraburdoo, as the company transition to Western Range. The Safe Production System target of 5 million tonnes for 2024 was achieved and Gudai-Darri reached 50 million tonne per annum rates during 2024.
Bauxite production was 58.7 million tonnes in 2024, 7% higher than 2023, exceeding guidance. The improvement was driven by the implementation of the Safe Production System, delivering record annual production at Amrun and Gove, with the former currently operating above nameplate capacity.
Aluminium production of 3.3 million tonnes was 1% higher than 2023, following the ramp-up of Kitimat and completion of cell recovery efforts at Boyne in the prior year, together with increased ownership of Boyne and New Zealand Aluminium Smelter (NZAS). These were partially offset by the continued closure program at Arvida and a request to reduce energy usage at NZAS, resulting in lower output. Production at NZAS is expected to be fully ramped up in the second quarter of 2025.
Mined copper production of 697 thousand tonnes (consolidated basis) in 2024 was 13% higher than 2023, reflecting the ramp up of Oyu Tolgoi underground and increased production from Escondida due to higher grades fed to the concentrator (0.99% versus 0.83%). This offset geotechnical challenges at Kennecott as instabilities in the pit wall impacted the mining sequence from the second quarter.
On 4 December, Rio Tinto signed a Term Sheet with Sumitomo Metal Mining (SMM) for a Joint Venture to deliver the Winu copper-gold project in Western Australia. The company will continue to develop and operate Winu as managing partner and SMM will pay $195 million upfront, and $204 million in deferred consideration, contingent on milestones and adjustments to be agreed.
Titanium dioxide slag production of 990 thousand tonnes in 2024 was 11% lower than 2023 due to reduced market demand. A furnace reconstruction, starting in the first quarter of 2024, continues at RTIT Quebec Operations.
IOC production of 9.4 million tonnes in 2024 was 2% lower than 2023 due to an 11-day site-wide shutdown driven by forest fires in mid-July, resulting in a revised mine plan and maintenance schedule.