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Rio Tinto Chief Executive J-S
Jacques said “We have delivered a good operational performance across
most of our assets catching up on planned maintenance activity,
particularly in iron ore, and continuing to adapt to new operating
conditions as we learn to live with COVID-19. We have maintained our
capex guidance and our 2020 production guidance across our key products.
“We are focused on regaining the
trust of the Puutu Kunti Kurrama and Pinikura people (PKKP) with a focus
on remedy. On Tuesday 13 October we wrote a letter to Traditional Owners
in the Pilbara detailing that we will review all heritage disturbance in
consultation with them; and shared our intention to modernise our
agreements which includes modifying clauses to ensure respect,
transparency and mutual benefit.
“Rio Tinto has shown great
resilience through challenging conditions and will continue to
prioritise the health and safety of our employees, contractors and
communities. The quality of our assets, coupled with our strong focus on
capital discipline and value over volume approach, mean we can continue
to invest in our business, support our communities, pay taxes and
royalties to host governments and continue to generate superior returns
to shareholders in the short, medium and long term.”
Pilbara operations
Pilbara operations produced 86.4
million tonnes (Rio Tinto share 71.4 million tonnes) in the third
quarter of 2020, 1% lower than the same period of 2019, and 4% higher
than the previous quarter. Our mines also achieved record total material
moved in the third quarter: 6.4% higher than the previous record from
the third quarter of 2019. A solid operational performance, considering
an increase in planned maintenance activity deferred from the first half
related to COVID-19 restrictions.
Third quarter shipments of 82.1
million tonnes (Rio Tinto share 67.6 million tonnes) were 5% lower than
the third quarter of 2019 with significant planned maintenance activity
affecting the port during the period.
Planned maintenance activities
deferred from the first half are expected to continue through the fourth
quarter. Impacts from this activity have been taken into account for
cost and shipment guidance.
Approximately 14% of shipments
in the first nine months 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.
In September, we celebrated a
significant milestone with our long-standing partners, China Baowu Steel
Group. Through the Bao-HI Ranges iron ore joint venture, we have shipped
more than 200 million tonnes of iron ore from the Pilbara in Western
Australia to mills in China. Outside of its commercial partnership, the
Bao-HI Ranges joint venture has delivered other benefits including
training opportunities for China Baowu employees and, last year, Rio
Tinto, China Baowu and Tsinghua University signed a Memorandum of
Understanding to develop and implement new methods to reduce carbon
emissions and improve environmental performance across the steel value
chain. The 200 million tonnes event followed a broader milestone as we
shipped our three billionth tonne of iron ore to China in September (six
billionth tonne in total), 47 years after our first delivery from the
Pilbara.
China Portside Trading
We continue to ramp up our port
sales in China, with 3.6 million tonnes of sales 2020 year to date
including 1.2 million tonnes in the third quarter. In September we
signed a memorandum of understanding with Dalian Port Company Limited to
establish our first iron ore blending operation in a bonded area. This
partnership allows us to offer a blended product to customers across
Asia, using Dalian Port as a transshipment hub. Our portside operation
handles product from our operations in the Pilbara and in Canada - Iron
Ore Company of Canada - as well as third party product, and provides
blending and screening capabilities.
T1: Summary
in Q3 2020
|
|
|
Q3 2020 |
vs Q3 2019 |
vs Q2 2020 |
9 MTHS 2020 |
vs 9 MTHS 2019 |
|
Pilbara iron ore shipments (100% basis) |
Mt |
82.1 |
-5% |
-5% |
241.7 |
0% |
|
Pilbara iron ore production (100% basis) |
Mt |
86.4 |
-1% |
4% |
247.4 |
2% |
|
IOC iron ore pellets and concentrate production |
Mt |
2.3 |
-21% |
-15% |
7.7 |
-4% |
T2: Production Guidance
|
|
2019 Actuals |
2020 Sept YTD |
2020 |
|
Pilbara iron ore (shipments, 100% basis) (Mt) |
327 |
242 |
324 to 334 |
|
IOC iron ore pellets and concentrate (Mt) |
10.5 |
7.7 |
10.5 to 12.0 |
T3:
Rio Tinto Share of Production
|
(Million tonnes) |
Q3 2020 |
vs Q3 2019 |
vs Q2 2020 |
9 MTHS 2020 |
vs 9 MTHS 2019 |
|
Pilbara Blend and SP10 Lump1 |
18.3 |
-13% |
-4% |
55.7 |
-8% |
|
Pilbara Blend and SP10 Fines1 |
33.6 |
6% |
9% |
92.2 |
4% |
|
Robe Valley Lump |
1.4 |
-15% |
5% |
4.2 |
20% |
|
Robe Valley Fines |
2.5 |
-19% |
-17% |
7.9 |
22% |
|
Yandicoogina Fines (HIY) |
15.7 |
7% |
6% |
44.6 |
6% |
|
Total Pilbara production |
71.4 |
-1% |
4% |
204.5 |
1% |
|
Total Pilbara production (100% basis) |
86.4 |
-1% |
4% |
247.4 |
2% |
T4:
Rio Tinto Operational Data
|
|
Rio Tinto
interest |
Q3
2019 |
Q4
2019 |
Q1
2020 |
Q2
2020 |
Q3
2020 |
9 MTHS
2019 |
9 MTHS
2020 |
|
Western Australia |
|
|
|
|
|
|
|
|
|
Pilbara Operations |
|
|
|
|
|
|
|
|
|
Saleable iron ore production ('000 tonnes) |
|
|
|
|
|
|
|
|
Hamersley mines |
(a) |
55,567 |
52,521 |
49,327 |
53,187 |
54,852 |
156,871 |
157,366 |
|
Hamersley - Channar |
60.00% |
1,579 |
2,420 |
1,934 |
2,223 |
2,849 |
5,549 |
7,006 |
|
Hope Downs |
50.00% |
12,155 |
12,095 |
11,334 |
11,318 |
13,250 |
36,169 |
35,903 |
|
Robe River - Pannawonica (Mesas J and A) |
53.00% |
8,914 |
8,225 |
7,320 |
8,126 |
7,324 |
18,725 |
22,770 |
|
Robe River - West Angelas |
53.00% |
9,133 |
8,318 |
7,912 |
8,378 |
8,110 |
25,768 |
24,399 |
|
Total production ('000 tonnes) |
|
87,347 |
83,579 |
77,827 |
83,232 |
86,385 |
243,083 |
247,444 |
|
Breakdown of total production: |
|
|
|
|
|
|
|
|
|
Pilbara Blend and SP10 Lump (b) |
|
25,434 |
24,326 |
22,592 |
23,222 |
22,674 |
73,793 |
68,487 |
|
Pilbara Blend and SP10 Fines (b) |
|
38,296 |
36,833 |
33,806 |
37,100 |
40,725 |
108,413 |
111,631 |
|
Robe Valley Lump |
|
3,113 |
2,969 |
2,778 |
2,502 |
2,639 |
6,578 |
7,918 |
|
Robe Valley Fines |
|
5,802 |
5,256 |
4,542 |
5,625 |
4,685 |
12,148 |
14,852 |
|
Yandicoogina Fines (HIY) |
|
14,704 |
14,194 |
14,110 |
14,784 |
15,662 |
42,151 |
44,556 |
|
Breakdown of total shipments: |
|
|
|
|
|
|
|
|
|
Pilbara Blend Lump |
|
19,329 |
19,680 |
17,506 |
20,339 |
19,118 |
59,950 |
56,962 |
|
Pilbara Blend Fines |
|
36,947 |
39,186 |
33,197 |
40,379 |
39,230 |
109,321 |
112,806 |
|
Robe Valley Lump |
|
2,433 |
2,350 |
2,135 |
2,110 |
2,098 |
5,253 |
6,343 |
|
Robe Valley Fines |
|
6,318 |
6,149 |
5,071 |
5,659 |
5,140 |
13,648 |
15,870 |
|
Yandicoogina Fines (HIY) |
|
14,286 |
15,260 |
12,913 |
15,578 |
14,203 |
41,791 |
42,694 |
|
SP10 Lump (b) |
|
2,685 |
2,072 |
1,006 |
1,014 |
822 |
3,319 |
2,842 |
|
SP10 Fines (b) |
|
4,057 |
2,081 |
1,089 |
1,603 |
1,488 |
7,346 |
4,180 |
|
Total shipments ('000 tonnes) (c) |
|
86,055 |
86,779 |
72,916 |
86,681 |
82,099 |
240,628 |
241,697 |
|
Iron Ore Company of Canada |
58.7% |
|
|
|
|
|
|
|
|
Newfoundland & Labrador and Quebec in Canada |
|
|
|
|
|
|
|
|
Saleable iron ore production: |
|
|
|
|
|
|
|
|
|
Concentrates ('000 tonnes) |
|
2,384 |
1,951 |
1,572 |
2,593 |
1,768 |
5,932 |
5,933 |
|
Pellets ('000 tonnes) |
|
2,657 |
2,415 |
2,788 |
2,112 |
2,217 |
7,646 |
7,116 |
|
IOC Total production ('000 tonnes) |
|
5,041 |
4,366 |
4,360 |
4,704 |
3,985 |
13,577 |
13,049 |
|
Shipments: |
|
|
|
|
|
|
|
|
|
Concentrates ('000 tonnes) |
|
2,427 |
2,083 |
1,713 |
2,402 |
2,307 |
5,544 |
6,422 |
|
Pellets ('000 tonnes) |
|
2,093 |
2,406 |
3,013 |
2,248 |
2,347 |
7,201 |
7,608 |
|
IOC Total Shipments ('000 tonnes) (c) |
|
4,520 |
4,490 |
4,726 |
4,650 |
4,654 |
12,745 |
14,030 |
|
Global Iron Ore Totals |
|
|
|
|
|
|
|
|
|
Iron Ore Production ('000 tonnes) |
|
92,389 |
87,945 |
82,187 |
87,936 |
90,370 |
256,660 |
260,493 |
|
Iron Ore Shipments ('000 tonnes) |
|
90,576 |
91,269 |
77,642 |
91,332 |
86,753 |
253,373 |
255,727 |
|
Iron Ore Sales ('000 tonnes) (d) |
|
90,576 |
89,690 |
77,397 |
91,361 |
86,398 |
251,794 |
255,156 |
|
(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
September 2020. The data represent full production and
sales on a 100% basis unless otherwise stated. |
(To contact the reporter on this story: cody.wang@steelhome.cn or 86-555-2238837 18725550282) |
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