Rio Tinto increases production from Pilbara operations

Rio Tinto (ASX:RIO) has seen a 3% increase in production from its Pilbara operations for the second quarter of 2023 compared to the same time last year.

Pilbara operations produced 81.3Mt in the quarter as the Gudai-Darri mine achieved sustained nameplate capacity during the period.

Shipments totalled 79.1mt, 1% lower than Q2 2022, reflecting the impact of planned major maintenance at the Dampier port and a train derailment. With operational improvements across the system and implementation of the safe production system, full-year shipments are expected to be in the upper half of the 320-335mt range.

With a focus on continuously improving safety, strengthening employee engagement and sustainability lifting operational performance, the safe production system is now at 20 of Rio’s sites.

Aluminium production was up 11% to 800,00t as Rio benefitted from the continued ramp-up of the Kitimat smelter. Recovery at the Kitimat and Boyne smelters is progressing to plan with full ramp-up expected to be completed later in the year.

Bauxite production of 13.5Mt was 5% lower than the second quarter of 2022 due to Rio’s Weipa operations being impacted by higher-than-average rainfall. Production was further affected by equipment downtime.

As a result of this, Rio expects full year bauxite production to be at the lower end of the 54 to 57Mt range.

Mined copper production was down 1% to 145,000t due to unplanned maintenance, a conveyor failure and lower crusher and conveyor availability.

Titanium dioxide slag production was up 4% to 303,000t due to improved operational performance at Rio’s smelters.

Chief executive Jakob Stausholm commented on the quarter.  

“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,” he 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 are taking practical steps 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 to Sorel-Tracy in Quebec in July.”