|
Rio Tinto Chief Executive J-S
Jacques said “We delivered a strong performance, particularly in iron
ore and bauxite, demonstrating the underlying resilience of our business
and ability to adapt in difficult conditions. Our iron ore assets are
performing well in a strong pricing environment and we are on track to
meet our 2020 iron ore guidance. Despite various COVID-19 related
challenges, all our assets have continued to operate, with our first
priority to protect the health and safety of all our employees and
communities.
“Our focus is to maintain a
business as usual approach with many safeguards at a very unusual time.
Our operational teams are continuing to run our assets safely so we can
continue to contribute to local and national economies and serve our
customers. We remain even more committed to our relationship with
communities, following the Juukan Gorge events in the Pilbara, and we
are engaging extensively with Traditional Owners around our operations
and across Australia.
“We are executing our value over
volume strategy to drive performance, productivity and free cash flow
per share. We will remain agile and ready to adapt to the changing
operating and macro environment.”
Pilbara operations
Pilbara operations produced
161.1 million tonnes (Rio Tinto share 133.2 million tonnes) in the first
half of 2020, 3% higher than the same period of 2019. Total material
moved across our operations, including waste, was 8% higher than the
corresponding period of 2019.
First half shipments of 159.6
million tonnes (Rio Tinto share 132.0 million tonnes) were 3% higher
than the first half of 2019, despite infrastructure damage and
significant disruptions experienced at our ports as a result of Tropical
Cyclone Damien in February. In the second quarter, our operations
performed well, despite the strict measures implemented to manage
COVID-19. In early June, our port operations achieved a record week of
shipping with rates exceeding 400 million tonnes per annum.
Approximately 14% of shipments
in the first half of 2020 were priced by reference to the prior
quarter’s average index lagged by one month. The remainder was sold
either on current quarter average, current month average or on the spot
market.
Approximately 31% of first half
2020 sales were made on a free on board (FOB) basis, with the remainder
sold including freight.
Achieved average pricing in the
first half of 2020 was $78.5 per wet metric tonne on an FOB basis
(equivalent to $85.4 per dry metric tonne, at 8% moisture assumption).
This compares to the average first half price for the Platts 62% index
of $85.1 per dry metric tonne.
China Portside Trading
We continue to increase the
volumes of our port sales in China, with 2.5 million tonnes of sales
during the first half of 2020 (1.7 million tonnes in the second
quarter), and included product from our IOC and Pilbara operations, as
well as third party volume. Our portside trading sales are now serving
61 new customers.
T1: Summary
in Q1 2020
|
|
|
Q2
2020 |
vs Q2
2019 |
vs Q1
2020 |
H1
2020 |
vs H1
2019 |
|
Pilbara iron ore shipments (100% basis) |
Mt |
86.7 |
1% |
19% |
159.6 |
3% |
|
Pilbara iron ore production (100% basis) |
Mt |
83.2 |
4% |
7% |
161.1 |
3% |
|
IOC
iron ore pellets and concentrate |
Mt |
2.8 |
9% |
8% |
5.3 |
6% |
T2: Rio Tinto
Share of Production
|
(Million tonnes) |
Q2
2020 |
vs Q2
2019 |
vs Q1
2020 |
H1
2020 |
vs H1
2019 |
|
Pilbara Blend and SP10 Lump1 |
19 |
-4% |
3% |
37.5 |
-6% |
|
Pilbara Blend and SP10 Fines1 |
30.9 |
8% |
11% |
58.6 |
2% |
|
Robe
Valley Lump |
1.3 |
10% |
-10% |
2.8 |
52% |
|
Robe
Valley Fines |
3 |
40% |
24% |
5.4 |
60% |
|
Yandicoogina Fines (HIY) |
14.8 |
6% |
5% |
28.9 |
5% |
|
Total
Pilbara production |
68.9 |
5% |
7% |
133.2 |
3% |
|
Total
Pilbara production (100% basis) |
83.2 |
4% |
7% |
161.1 |
3% |
T3:
Rio Tinto Operational Data
|
|
Rio
Tinto
interest |
Q2
2019 |
Q3
2019 |
Q4
2019 |
Q1
2020 |
Q2
2020 |
H1
2019 |
H1
2020 |
|
Western Australia |
|
|
|
|
|
|
|
|
|
Pilbara Operations |
|
|
|
|
|
|
|
|
|
Saleable iron ore production ('000 tonnes) |
|
|
|
|
|
|
|
|
Hamersley mines |
(a) |
50,087 |
55,567 |
52,521 |
49,327 |
53,187 |
101,304 |
102,514 |
|
Hamersley - Channar |
60.0% |
2,419 |
1,579 |
2,420 |
1,934 |
2,223 |
3,971 |
4,157 |
|
Hope
Downs |
50.0% |
12,101 |
12,155 |
12,095 |
11,334 |
11,318 |
24,015 |
22,652 |
|
Robe
River - Pannawonica (Mesas J and A) |
53.0% |
6,282 |
8,914 |
8,225 |
7,320 |
8,126 |
9,811 |
15,446 |
|
Robe
River - West Angelas |
53.0% |
8,853 |
9,133 |
8,318 |
7,912 |
8,378 |
16,635 |
16,290 |
|
Total
production ('000 tonnes) |
|
79,741 |
87,347 |
83,579 |
77,827 |
83,232 |
155,736 |
161,059 |
|
Breakdown of total production: |
|
|
|
|
|
|
|
|
|
Pilbara Blend and SP10 Lump (b) |
|
24,291 |
25,434 |
24,326 |
22,592 |
23,222 |
48,359 |
45,813 |
|
Pilbara Blend and SP10 Fines (b) |
|
35,194 |
38,296 |
36,833 |
33,806 |
37,100 |
70,118 |
70,906 |
|
Robe
Valley Lump |
|
2,266 |
3,113 |
2,969 |
2,778 |
2,502 |
3,465 |
5,279 |
|
Robe
Valley Fines |
|
4,015 |
5,802 |
5,256 |
4,542 |
5,625 |
6,346 |
10,167 |
|
Yandicoogina Fines (HIY) |
|
13,975 |
14,704 |
14,194 |
14,110 |
14,784 |
27,448 |
28,893 |
|
Breakdown of total shipments: |
|
|
|
|
|
|
|
|
|
Pilbara Blend Lump |
|
21,653 |
19,329 |
19,680 |
17,506 |
20,339 |
40,621 |
37,844 |
|
Pilbara Blend Fines |
|
39,358 |
36,947 |
39,186 |
33,197 |
40,379 |
72,374 |
73,576 |
|
Robe
Valley Lump |
|
1,957 |
2,433 |
2,350 |
2,135 |
2,110 |
2,820 |
4,245 |
|
Robe
Valley Fines |
|
4,862 |
6,318 |
6,149 |
5,071 |
5,659 |
7,330 |
10,730 |
|
Yandicoogina Fines (HIY) |
|
15,212 |
14,286 |
15,260 |
12,913 |
15,578 |
27,505 |
28,491 |
|
SP10
Lump (b) |
|
635 |
2,685 |
2,072 |
1,006 |
1,014 |
635 |
2,020 |
|
SP10
Fines (b) |
|
1,747 |
4,057 |
2,081 |
1,089 |
1,603 |
3,289 |
2,692 |
|
Total
shipments ('000 tonnes) (c) |
|
85,423 |
86,055 |
86,779 |
72,916 |
86,681 |
154,573 |
159,598 |
|
Iron Ore Company of Canada |
58.7% |
|
|
|
|
|
|
|
|
Newfoundland & Labrador and Quebec in Canada |
|
|
|
|
|
|
|
|
Saleable iron ore production: |
|
|
|
|
|
|
|
|
|
Concentrates ('000 tonnes) |
|
2,031 |
2,384 |
1,951 |
1,572 |
2,593 |
3,547 |
4,165 |
|
Pellets ('000 tonnes) |
|
2,280 |
2,657 |
2,415 |
2,788 |
2,112 |
4,989 |
4,899 |
|
IOC
Total production ('000 tonnes) |
|
4,311 |
5,041 |
4,366 |
4,360 |
4,704 |
8,536 |
9,064 |
|
Shipments: |
|
|
|
|
|
|
|
|
|
Concentrates ('000 tonnes) |
|
2,239 |
2,427 |
2,083 |
1,713 |
2,402 |
3,117 |
4,115 |
|
Pellets ('000 tonnes) |
|
2,424 |
2,093 |
2,406 |
3,013 |
2,248 |
5,108 |
5,261 |
|
IOC
Total Shipments ('000 tonnes) (c) |
|
4,663 |
4,520 |
4,490 |
4,726 |
4,650 |
8,225 |
9,376 |
|
Global Iron Ore Totals |
|
|
|
|
|
|
|
|
|
Iron
Ore Production ('000 tonnes) |
|
84,052 |
92,389 |
87,945 |
82,187 |
87,936 |
164,272 |
170,123 |
|
Iron
Ore Shipments ('000 tonnes) |
|
90,085 |
90,576 |
91,269 |
77,642 |
91,332 |
162,798 |
168,974 |
|
Iron
Ore Sales ('000 tonnes) (d) |
|
90,085 |
90,576 |
89,690 |
77,397 |
91,361 |
162,798 |
168,758 |
|
(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) SP10 include other lower grade products.
(c) Shipments includes material shipped to our portside trading
facility in China which may not be sold onwards in the same
period.
(d) Include Pilbara and IOC sales adjusted for portside trading
movements and third party volumes sold. |
|
Rio Tinto percentage interest shown above is at 30 June 2020.
The data represent full production and sales on a 100% basis
unless otherwise stated. |
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