|
Rio Tinto released its
4Q2020 production results on Tuesday. The iron ore part is shown
below.
Iron Ore Highlights
Pilbara operations
produced 333.4 million tonnes (Rio Tinto share 275.5 million
tonnes), 2% higher than 2019. Fourth quarter production of 86.0
million tonnes (Rio Tinto share 71.0 million tonnes) was 3%
higher than the same period of 2019. Our mines also achieved
record total material moved for the year, 7% higher than the
previous record from 2019, highlighting the improvements to mine
and asset health since 2019. A solid operational performance,
considering weather disruptions and strict measures implemented
in the second quarter to manage COVID-19.
2020 shipments of 330.6
million tonnes (Rio Tinto share 273.1 million tonnes) were 1%
higher than 2019. Shipments were impacted by Cyclone Damien in
the first quarter and by the impacts of COVID-19, which also
resulted in the deferral of maintenance at the port in the the
third quarter. Fourth quarter shipments of 88.9 million tonnes
(Rio Tinto share 73.6 million tonnes) were 2% higher than the
fourth quarter of 2019.
Whilst the port and rail
currently hold the most capacity, the timing impacts of
maintenance and grade blending resulted in the gap between final
2020 shipping and production figures.
Achieved realised
pricing in 2020 was $91.0 per wet metric tonne on an FOB basis
(equivalent to $98.9 per dry metric tonne, at 8% moisture
assumption). This compares to the average price for the Platts
62% index of $101.6 per dry metric tonne. In 2019, average
pricing was $79.0 per wet metric tonne ($85.9 dry metric tonne).
Lower market premiums
for lump, which recovered in the fourth quarter, and the rising
price environment throughout 2020 impacted our average achieved
pricing compared with Platts due to the structure of our
contracts, with approximately 13% of shipments in 2020 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 30%
of 2020 sales were made on a free on board (FOB) basis, with the
remainder sold including freight.
China Portside Trading
We continue to ramp up
our port sales in China, with 5.5 million tonnes of sales in
2020 including 1.8 million tonnes in the fourth quarter. Our
portside operation handles product from our operations in the
Pilbara and in Canada as well as third party product, and
provides blending and screening capabilities.
T1: Rio Tinto Share of Iron Ore Production
|
(Million tonnes) |
Q4 2020 |
vs Q4 2019 |
vs Q3 2020 |
Full Year |
vs Full Year |
|
2020 |
2019 |
|
Pilbara Blend and SP10 Lump1 |
21.7 |
9% |
19% |
77.4 |
-4% |
|
Pilbara Blend and SP10 Fines1 |
31.1 |
3% |
-7% |
123.3 |
3% |
|
Robe Valley Lump |
1.4 |
-13% |
-2% |
5.6 |
10% |
|
Robe Valley Fines |
2.6 |
-6% |
6% |
10.5 |
14% |
|
Yandicoogina Fines (HIY) |
14.2 |
0% |
-9% |
58.8 |
4% |
|
Total Pilbara production |
71 |
3% |
-1% |
275.5 |
2% |
|
Total Pilbara production (100% basis) |
86 |
3% |
0% |
333.4 |
2% |
T2: Rio Tinto Share of Iron Ore Shipments
|
(Million tonnes) |
Q4 2020 |
vs Q4 2019 |
vs Q3 2020 |
Full Year |
vs Full Year |
|
2020 |
2019 |
|
Pilbara Blend Lump |
16.3 |
1% |
5% |
62.9 |
-5% |
|
Pilbara Blend Fines |
35.1 |
13% |
11% |
126.6 |
5% |
|
Robe Valley Lump |
1.2 |
0% |
12% |
4.6 |
14% |
|
Robe Valley Fines |
3.1 |
-6% |
12% |
11.5 |
9% |
|
Yandicoogina Fines (HIY) |
15.1 |
-1% |
6% |
57.7 |
1% |
|
SP10 Lump1 |
1 |
-50% |
26% |
3.9 |
-28% |
|
SP10 Fines1 |
1.8 |
-15% |
19% |
6 |
-37% |
|
Total Pilbara shipments2 |
73.6 |
3% |
9% |
273.1 |
0% |
|
Total Pilbara shipments (100% basis)2 |
88.9 |
2% |
8% |
330.6 |
1% |
|
Total Pilbara Shipments (consolidated basis)2,
3 |
75.6 |
3% |
9% |
280.8 |
0% |
1 SP10 includes other lower grade
products.
2 Shipments includes material shipped
from the Pilbara to our portside trading facility in China which
may not be sold onwards by the group in the same period.
3 While Rio Tinto has a 53% net
beneficial interest in Robe River Iron Associates, it recognises
65% of the assets, liabilities, sales revenues and expenses in
its accounts (as 30% is held through a 60% owned subsidiary and
35% is held through a 100% owned subsidiary). The consolidated
basis sales reported here include Robe River Iron Associates on
a 65% basis to enable comparison with revenue reported in the
financial statements.
T3: 2021 Guidance
|
Rio Tinto share, unless otherwise stated |
2020 Actuals |
2021 |
|
Pilbara iron ore (shipments, 100% basis) (Mt) |
331 |
325 to 340 |
|
IOC iron ore pellets and concentrate (Mt) |
10.4 |
10.5 to 12.0 |
T4:
Details of Production and Shipments
|
|
Rio Tinto |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Full Year |
Full Year |
|
interest |
2019 |
2020 |
2020 |
2020 |
2020 |
2019 |
2020 |
|
Rio Tinto Iron Ore |
|
|
|
|
|
|
|
|
|
Western Australia |
|
|
|
|
|
|
|
|
|
Pilbara Operations |
|
|
|
|
|
|
|
|
|
Saleable iron ore production ('000 tonnes) |
|
|
|
|
|
|
|
|
Hamersley mines |
(a) |
52,521 |
49,327 |
53,187 |
54,852 |
53,316 |
209,392 |
210,682 |
|
Hamersley - Channar (b) |
100.00% |
2,420 |
1,934 |
2,223 |
2,849 |
2,169 |
7,970 |
9,175 |
|
Hope Downs |
50.00% |
12,095 |
11,334 |
11,318 |
13,250 |
13,142 |
48,264 |
49,045 |
|
Robe River - Pannawonica (Mesas J and A) |
53.00% |
8,225 |
7,320 |
8,126 |
7,324 |
7,525 |
26,951 |
30,295 |
|
Robe River - West Angelas |
53.00% |
8,318 |
7,912 |
8,378 |
8,110 |
9,809 |
34,086 |
34,209 |
|
Total production ('000 tonnes) |
|
83,579 |
77,827 |
83,232 |
86,385 |
85,961 |
326,663 |
333,405 |
|
Breakdown of total production: |
|
|
|
|
|
|
|
|
|
Pilbara Blend and SP10 Lump (c) |
|
24,326 |
22,592 |
23,222 |
22,674 |
25,888 |
98,119 |
94,375 |
|
Pilbara Blend and SP10 Fines (c) |
|
36,833 |
33,806 |
37,100 |
40,725 |
38,316 |
145,247 |
149,947 |
|
Robe Valley Lump |
|
2,969 |
2,778 |
2,502 |
2,639 |
2,574 |
9,547 |
10,492 |
|
Robe Valley Fines |
|
5,256 |
4,542 |
5,625 |
4,685 |
4,951 |
17,404 |
19,803 |
|
Yandicoogina Fines (HIY) |
|
14,194 |
14,110 |
14,784 |
15,662 |
14,233 |
56,346 |
58,789 |
|
Breakdown of total shipments: |
|
|
|
|
|
|
|
|
|
Pilbara Blend Lump |
|
19,680 |
17,506 |
20,339 |
19,118 |
20,155 |
79,630 |
77,117 |
|
Pilbara Blend Fines |
|
39,186 |
33,197 |
40,379 |
39,230 |
42,727 |
148,508 |
155,533 |
|
Robe Valley Lump |
|
2,350 |
2,135 |
2,110 |
2,098 |
2,351 |
7,603 |
8,694 |
|
Robe Valley Fines |
|
6,149 |
5,071 |
5,659 |
5,140 |
5,778 |
19,797 |
21,648 |
|
Yandicoogina Fines (HIY) |
|
15,260 |
12,913 |
15,578 |
14,203 |
15,055 |
57,052 |
57,749 |
|
SP10 Lump (c) |
|
2,072 |
1,006 |
1,014 |
822 |
1,037 |
5,391 |
3,879 |
|
SP10 Fines (c) |
|
2,081 |
1,089 |
1,603 |
1,488 |
1,771 |
9,427 |
5,951 |
|
Total shipments ('000 tonnes) (d) |
|
86,779 |
72,916 |
86,681 |
82,099 |
88,873 |
327,408 |
330,570 |
|
Iron Ore Company of Canada |
58.70% |
|
|
|
|
|
|
|
|
Newfoundland & Labrador and Quebec in Canada |
|
|
|
|
|
|
|
|
Saleable iron ore production: |
|
|
|
|
|
|
|
|
|
Concentrates ('000 tonnes) |
|
1,951 |
1,572 |
2,593 |
1,768 |
2,208 |
7,883 |
8,141 |
|
Pellets ('000 tonnes) |
|
2,415 |
2,788 |
2,112 |
2,217 |
2,457 |
10,061 |
9,574 |
|
IOC Total production ('000 tonnes) |
|
4,366 |
4,360 |
4,704 |
3,985 |
4,666 |
17,943 |
17,715 |
|
Shipments: |
|
|
|
|
|
|
|
|
|
Concentrates ('000 tonnes) |
|
2,083 |
1,713 |
2,402 |
2,307 |
1,970 |
7,628 |
8,392 |
|
Pellets ('000 tonnes) |
|
2,406 |
3,013 |
2,248 |
2,347 |
2,620 |
9,607 |
10,229 |
|
IOC Total Shipments ('000 tonnes) (d) |
|
4,490 |
4,726 |
4,650 |
4,654 |
4,591 |
17,235 |
18,621 |
|
Global Iron Ore Totals |
|
|
|
|
|
|
|
|
|
Iron Ore Production ('000 tonnes) |
|
87,945 |
82,187 |
87,936 |
90,370 |
90,627 |
344,606 |
351,121 |
|
Iron Ore Shipments ('000 tonnes) |
|
91,269 |
77,642 |
91,332 |
86,753 |
93,464 |
344,642 |
349,190 |
|
Iron Ore Sales ('000 tonnes) (e) |
|
89,690 |
77,397 |
91,361 |
86,398 |
92,942 |
343,063 |
348,098 |
(a) Includes 100% of
production from Paraburdoo, Mt Tom Price, Western Turner
Syncline, 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) Rio Tinto’s ownership interest in Channar mine increased
from 60% to 100%, following conclusion of its joint venture with
Sinosteel Corporation upon reaching planned 290 million tonnes
production on 23 October 2020. Historic data is unchanged.
(c) SP10 include other lower grade products.
(d) Shipments includes material shipped to our portside trading
facility in China which may not be sold onwards in the same
period.
(e) Include Pilbara and IOC sales adjusted for portside trading
movements and third party volumes sold.
Official Document:
Rio Tinto releases fourth quarter production results |
