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Oct.20.2020 1USD=6.693RMB
  SteelHome >>Raw Material>>Market Info>>International Dynamics
 
Rio Tinto's 3Q2020 Iron Ore Production Down 1% YoY to 86.4Mlnt in Pilbara, WA

http://en.steelhome.cn [SteelHome] 2020-10-16 11:24:51

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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 quarters 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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