|
Rio
Tinto chief executive J-S Jacques said “We have delivered improved
production across the majority of our products in the third quarter, with
a solid result at our Pilbara mines driving increased sales of iron ore
into robust markets. Our strong value over volume approach, coupled with
our focus on operational performance and disciplined allocation of
capital, will continue to deliver superior returns to shareholders over
the short, medium and long term.”
Pilbara operations
Third
quarter production of 87.3 million tonnes (Rio Tinto share 72.2 million
tonnes) was 6% higher than the same quarter of 2018 and 10% higher than
the previous quarter. This reflects a solid performance in the mines, with
actions progressing as planned. Our increased focus on waste material
movement and pit development will continue over 2019 and 2020 to improve
mine performance and pit sequencing. Our cost guidance (below) reflects
these additional mining activities.
A
planned rail maintenance shut was executed late in the third quarter,
starting on 25 September and completed on 6 October. Our cost and
shipments guidance take into account the impact of this activity.
Third
quarter sales of 86.1 million tonnes (Rio Tinto share 71.6 million tonnes)
were 5% above the third quarter of 2018 and 1% higher than the previous
quarter.
We
sold 6.7 million tonnes of alternate products in the third quarter. These
are included in the above sales figures. We expect to make additional
sales of these products in the fourth quarter.
The
majority of our iron ore shipments are priced by reference to the average
index price for the month of shipment. We priced approximately 16% of
sales in the first nine months of 2019 by reference to the prior
quarter’s average index lagged by one month, with the remainder sold
either on current quarter average, current month average or on the spot
market.
Pilbara projects
The
Koodaideri iron ore mine is progressing to plan with engineering,
procurement and construction activities on schedule. Preparatory works
have commenced. We expect to produce first ore from Koodaideri in late
2021, consistent with previous guidance.
First
ore from the Robe River Joint Venture sustaining production projects (West
Angelas C&D and Mesa B, C and H at Robe Valley) is also anticipated in
2021, consistent with previous guidance. West Angelas received all
regulatory approvals in early October 2019, and project construction has
commenced. The Robe Valley projects continue to progress through the
environmental and heritage approval processes. We are experiencing some
delays for Mesa H environmental approvals.
2019 guidance
Our
2019 Pilbara shipments guidance is unchanged at between 320 and 330
million tonnes (100% basis), subject to weather.
Our
iron ore unit cost guidance in 2019 remains at $14 - $15 per tonne.
T1: Summary in Q3 2019
|
Unit
in Million Tons
|
Q3
2019
|
vs
Q3 2018
|
vs
Q2 2019
|
9
mths 2019
|
vs
9 mths 2018
|
|
Pilbara
iron ore shipments (100% basis)
|
86.1
|
5%
|
1%
|
240.6
|
-4%
|
|
Pilbara
iron ore production (100% basis)
|
87.3
|
6%
|
10%
|
243.1
|
-3%
|
T2: Rio Tinto Share of Production
|
Unit in Million Tons
|
Q3 2019
|
vs Q3 2018
|
vs Q2 2019
|
9 mths 2019
|
vs 9mths 2018
|
|
|
|
Pilbara Blend Lump
|
21
|
2%
|
6%
|
60.8
|
-4%
|
|
|
Pilbara Blend Fines
|
31.7
|
6%
|
11%
|
89
|
-2%
|
|
|
Robe Valley Lump
|
1.6
|
12%
|
37%
|
3.5
|
-22%
|
|
|
Robe Valley Fines
|
3.1
|
12%
|
44%
|
6.4
|
-24%
|
|
|
Yandicoogina Fines (HIY)
|
14.7
|
2%
|
5%
|
42.2
|
-1%
|
|
|
Total Pilbara production
|
72.2
|
4%
|
10%
|
201.9
|
-4%
|
|
|
Total Pilbara production (100% basis)
|
87.3
|
6%
|
10%
|
243.1
|
-3%
|
|
|
Total Pilbara shipments (a) (100% basis)
|
86.1
|
5%
|
1%
|
240.6
|
-4%
|
|
T3: Rio Tinto Share of Production
|
Unit: 1,000 tons
|
2018 Q3
|
2019 Q2
|
2019 Q3
|
2018 9 MTHS
|
2019 9 MTHS
|
Q3 2019 vs Q3 2018
|
Q3 2019 vs Q2 2019
|
9 MTHS 2019 vs 9 MTHS 2018
|
|
Iron Ore
|
72,010
|
68,141
|
75,117
|
215,782
|
209,839
|
4%
|
10%
|
-3%
|
T4: Rio Tinto Share of Production
|
|
Rio
Tinto
interest
|
Q3
2018
|
Q4
2018
|
Q1
2019
|
Q2
2019
|
Q3
2019
|
9
MTHS
2018
|
9
MTHS
2019
|
|
Production
('000 tonnes) (a)
|
|
|
|
|
|
|
|
|
Hamersley
mines
|
(b)
|
54,583
|
56,364
|
51,218
|
50,087
|
55,567
|
164,248
|
156,871
|
|
Hamersley
- Channar
|
60%
|
604
|
1,337
|
931
|
1,451
|
947
|
2,967
|
3,330
|
|
Hope
Downs
|
50%
|
5,713
|
5,845
|
5,957
|
6,051
|
6,077
|
16,839
|
18,085
|
|
Iron
Ore Company of Canada
|
59%
|
2,880
|
2,836
|
2,481
|
2,532
|
2,960
|
6,116
|
7,972
|
|
Robe
River - Pannawonica (Mesas J and A)
|
53%
|
4,208
|
4,004
|
1,870
|
3,329
|
4,725
|
12,928
|
9,924
|
|
Robe
River - West Angelas
|
53%
|
4,021
|
4,631
|
4,125
|
4,692
|
4,840
|
12,685
|
13,657
|
|
Rio
Tinto iron ore production ('000 tonnes)
|
|
72,010
|
75,018
|
66,581
|
68,141
|
75,117
|
215,782
|
209,839
|
|
Breakdown
of Production:
|
|
|
|
|
|
|
|
|
|
Pilbara
Blend Lump
|
|
20,554
|
21,674
|
19,978
|
19,842
|
21,015
|
63,169
|
60,836
|
|
Pilbara
Blend Fines
|
|
29,921
|
31,652
|
28,779
|
28,463
|
31,713
|
90,930
|
88,955
|
|
Robe
Valley Lump
|
|
1,470
|
1,409
|
635
|
1,201
|
1,650
|
4,488
|
3,486
|
|
Robe
Valley Fines
|
|
2,738
|
2,595
|
1,235
|
2,128
|
3,075
|
8,441
|
6,438
|
|
Yandicoogina
Fines (HIY)
|
|
14,446
|
14,852
|
13,473
|
13,975
|
14,704
|
42,639
|
42,151
|
|
Pilbara
iron ore production ('000 tonnes)
|
|
69,129
|
72,182
|
64,101
|
65,610
|
72,156
|
209,666
|
201,867
|
|
IOC
Concentrate
|
|
1,131
|
1,433
|
890
|
1,193
|
1,400
|
2,501
|
3,483
|
|
IOC
Pellets
|
|
1,750
|
1,403
|
1,590
|
1,339
|
1,560
|
3,615
|
4,489
|
|
IOC
iron ore production ('000 tonnes)
|
|
2,880
|
2,836
|
2,481
|
2,532
|
2,960
|
6,116
|
7,972
|
|
Breakdown
of Sales:
|
|
|
|
|
|
|
|
|
|
Pilbara
Blend Lump
|
|
17,967
|
18,439
|
15,772
|
18,644
|
18,633
|
55,453
|
53,049
|
|
Pilbara
Blend Fines
|
|
31,432
|
35,205
|
28,406
|
33,912
|
34,088
|
97,336
|
96,406
|
|
Robe
Valley Lump
|
|
1,174
|
1,219
|
457
|
1,037
|
1,290
|
3,661
|
2,784
|
|
Robe
Valley Fines
|
|
2,839
|
2,996
|
1,308
|
2,577
|
3,349
|
9,089
|
7,234
|
|
Yandicoogina
Fines (HIY)
|
|
14,583
|
14,831
|
12,294
|
15,212
|
14,286
|
42,549
|
41,791
|
|
Pilbara
iron ore sales ('000 tonnes) (c)
|
|
67,995
|
72,690
|
58,236
|
71,382
|
71,646
|
208,088
|
201,264
|
|
IOC
Concentrate
|
|
1,521
|
1,558
|
516
|
1,315
|
1,425
|
2,329
|
3,256
|
|
IOC
Pellets
|
|
1,659
|
1,516
|
1,576
|
1,423
|
1,229
|
3,435
|
4,228
|
|
IOC
Iron ore sales ('000 tonnes)
|
|
3,180
|
3,073
|
2,092
|
2,738
|
2,654
|
5,763
|
7,484
|
|
Rio
Tinto iron ore sales ('000 tonnes)
|
71,175
|
75,763
|
60,328
|
74,119
|
74,300
|
213,851
|
208,748
|
Note:
(a) Mine production figures for metals refer to the
total quantity of metal produced in concentrates, leach liquor or doré
bullion irrespective of whether these products are then refined onsite,
except for the data for bauxite and iron ore which represent production of
marketable quantities of ore plus concentrates and pellets.
(b) Includes 100% of production from Paraburdoo, Mt Tom
Price, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass and the
Eastern Range mines. Whilst Rio Tinto owns 54% of the Eastern Range mine,
under the terms of the joint venture agreement, Hamersley Iron manages the
operation and is obliged to purchase all mine production from the joint
venture and therefore all of the production is included in Rio Tinto's
share of production.
(c) Pilbara Blend sales include 6.7 million tonnes of
alternate products in Q3 2019 and 10.7 million tonnes in the first nine
months of 2019.
T5: Rio Tinto Operational Data
|
|
Rio
Tinto
interest
|
Q3
2018
|
Q4
2018
|
Q1
2019
|
Q2
2019
|
Q3
2019
|
9
MTHS
2018
|
9
MTHS
2019
|
|
IRON ORE
|
|
|
|
|
|
|
|
|
|
Rio
Tinto Iron Ore
|
|
|
|
|
|
|
|
|
|
Western
Australia
|
|
|
|
|
|
|
|
|
|
Pilbara
Operations
|
|
|
|
|
|
|
|
|
|
Saleable
iron ore production ('000 tonnes)
|
|
|
|
|
|
|
|
|
Hamersley
mines
|
(a)
|
54,583
|
56,364
|
51,218
|
50,087
|
55,567
|
164,248
|
156,871
|
|
Hamersley
- Channar
|
60.0%
|
1,007
|
2,228
|
1,552
|
2,419
|
1,579
|
4,945
|
5,549
|
|
Hope
Downs
|
50.0%
|
11,426
|
11,691
|
11,913
|
12,101
|
12,155
|
33,677
|
36,169
|
|
Robe
River - Pannawonica (Mesas J and A)
|
53.0%
|
7,940
|
7,555
|
3,529
|
6,282
|
8,914
|
24,393
|
18,725
|
|
Robe
River - West Angelas
|
53.0%
|
7,587
|
8,738
|
7,783
|
8,853
|
9,133
|
23,933
|
25,768
|
|
Total
production ('000 tonnes)
|
|
82,542
|
86,576
|
75,995
|
79,741
|
87,347
|
251,196
|
243,083
|
|
Breakdown
of total production:
|
|
|
|
|
|
|
|
|
|
Pilbara
Blend Lump
|
|
24,461
|
26,084
|
24,068
|
24,291
|
25,434
|
75,545
|
73,793
|
|
Pilbara
Blend Fines
|
|
35,696
|
38,085
|
34,924
|
35,194
|
38,296
|
108,620
|
108,413
|
|
Robe
Valley Lump
|
|
2,774
|
2,659
|
1,198
|
2,266
|
3,113
|
8,467
|
6,578
|
|
Robe
Valley Fines
|
|
5,166
|
4,896
|
2,331
|
4,015
|
5,802
|
15,926
|
12,148
|
|
Yandicoogina
Fines (HIY)
|
|
14,446
|
14,852
|
13,473
|
13,975
|
14,704
|
42,639
|
42,151
|
|
Breakdown
of total sales:
|
|
|
|
|
|
|
|
|
|
Pilbara
Blend Lump
|
|
21,644
|
22,161
|
18,968
|
22,287
|
22,014
|
66,054
|
63,269
|
|
Pilbara
Blend Fines
|
|
38,100
|
42,497
|
34,558
|
41,105
|
41,004
|
118,058
|
116,667
|
|
Robe
Valley Lump
|
|
2,215
|
2,301
|
863
|
1,957
|
2,433
|
6,908
|
5,253
|
|
Robe
Valley Fines
|
|
5,356
|
5,652
|
2,468
|
4,862
|
6,318
|
17,149
|
13,648
|
|
Yandicoogina
Fines (HIY)
|
|
14,583
|
14,831
|
12,294
|
15,212
|
14,286
|
42,549
|
41,791
|
|
Total
sales ('000 tonnes) (b) (c)
|
|
81,898
|
87,442
|
69,150
|
85,423
|
86,055
|
250,718
|
240,628
|
|
Iron
Ore Company of Canada
|
58.7%
|
|
|
|
|
|
|
|
|
Newfoundland
& Labrador and Quebec in Canada
|
|
|
|
|
|
|
|
|
Saleable
iron ore production:
|
|
|
|
|
|
|
|
|
|
Concentrates
('000 tonnes)
|
|
1,926
|
2,441
|
1,516
|
2,031
|
2,384
|
4,260
|
5,932
|
|
Pellets
('000 tonnes)
|
|
2,979
|
2,389
|
2,709
|
2,280
|
2,657
|
6,156
|
7,646
|
|
IOC
Total production ('000 tonnes)
|
|
4,905
|
4,830
|
4,225
|
4,311
|
5,041
|
10,416
|
13,577
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
Concentrates
('000 tonnes)
|
|
2,590
|
2,653
|
878
|
2,239
|
2,427
|
3,966
|
5,544
|
|
Pellets
('000 tonnes)
|
|
2,825
|
2,581
|
2,684
|
2,424
|
2,093
|
5,849
|
7,201
|
|
IOC
Total Sales ('000 tonnes)
|
|
5,415
|
5,234
|
3,562
|
4,663
|
4,520
|
9,815
|
12,745
|
|
Global
Iron Ore Totals
|
|
|
|
|
|
|
|
|
|
Iron
Ore Production ('000 tonnes)
|
|
87,448
|
91,406
|
80,219
|
84,052
|
92,389
|
261,612
|
256,660
|
|
Iron
Ore Sales ('000 tonnes)
|
|
87,314
|
92,676
|
72,712
|
90,085
|
90,576
|
260,533
|
253,373
|
Note:
(a) Includes 100% of production from Paraburdoo, Mt Tom
Price, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass and the
Eastern Range mines. Whilst Rio Tinto owns 54% of the Eastern Range mine,
under the terms of the joint venture agreement, Hamersley Iron manages the
operation and is obliged to purchase all mine production from the joint
venture and therefore all of the production is included in Rio Tinto's
share of production.
(b) Pilbara Blend sales include 6.7 million tonnes of
alternate products in Q3 2019 and 10.7 million tonnes in the first nine
months of 2019.
(c) Sales represent iron ore exported from Western
Australian ports.
Related Link: Official
Document
|
