How is Rio Tinto progressing? A snapshot of latest developments

Source: Mark Agnor, Shutterstock

Summary

  • Rio Tinto (ASX:RIO) has entered into an agreement with Turquoise Hill for the development of the Oyu Tolgoi mine.
  • The miner has also increased the 2021 exploration budget and its stakes in the Citadel project.
  • Rio has achieved battery-grade lithium production from a demonstration plant located at California's Boron mine.

Rio Tinto (ASX: RIO) is one of the world’s leading metals and mining giants with its headquarters in London and Melbourne. The company has its operations in over six continents with special focus on Canada and Australia. Iron ore and copper are the primary sources of earnings of the world's second-largest miner, but it is not limited to this; the company also deals with the extraction of aluminium, coal, uranium etc.

With its vast projects and operations spread across the globe, it becomes difficult for the company's followers to keep a track of all the recent developments of the company. Let us have a brief look at the latest updates of the mining giant.

Binding Head of Agreement (HoA) with Turquoise Hill Resources at Oyu Tolgoi:

Copyright © 2021 Kalkine Media Pty Ltd

As per Rio’s latest media release on 9 April 2021, it has entered into an agreement with Turquoise Hill Resources, which aligns with the company’s US$2.3 billion financial plan for the development of the Oyu Tolgoi mine located in Mongolia.

Oyu Tolgoi is claimed as the world’s largest new copper-gold mine, located in the Gobi region of Mongolia. The project is operated via a joint venture with Rio’s subsidiary, Turquoise Hill, having 66 per cent stake and the remaining 34 per cent stake held by the Mongolian government.

Interesting Read: FMG, BHP, and RIO Fly High on Soaring Iron Ore Prices

Both the partners, Rio and Turquoise, are facing trouble over the underground expansion of the mine due to the cost overrun of US$1.4 billion by Rio on accounts of complex geology.

Under the current agreement, both partners have agreed to restructure the principal debt repayments up to US$1.4bn with lenders. The parties have also agreed to raise US$500 million under senior supplemental debt (SSD. Additionally, Rio has also committed to providing up to US$750 million through a co-lending facility.

Increased Budget in Citadel copper-gold project:

Source: © Effe45 | Megapixl.com

The miner has been heavily investing in copper projects for the past two years on the hopes of surging copper demands amid the rising craze for electric vehicles and the construction of bigger power grids across the globe, which will create a deficit for the red metal.

In line with the same, Rio has increased the 2021 exploration budget for the Citadel project. Located in Paterson Province of WA, Citadel is a JV gold-copper project between Rio and Antipa Minerals (ASX: AZY).

The miner has also increased its stake into the project from 51 per cent to 65 per cent and the exploration budget from US$13.8 million to US$24.5 million.

The project contains a mineral resource of 63.8Mt @ 0.8 g/t Au and 0.2% Cu for 1.6Moz of gold and 127,000t of copper.

Battery Grade Lithium at Boron Plant:

Copyright © 2021 Kalkine Media Pty Ltd

It seems like the miner is taking a serious note of the battery boom. In the recent media release on 8 April 2021, the miner confirmed that it had achieved battery-grade lithium production from a demonstration plant located at California's Boron mine.

Good Read: Rio Tinto Kicks Off Lithium Production from Waste Rocks at US Site   

On 12 April, another lithium player, Galaxy Resources (ASX: GXY) climbed more than 10 per cent on the release of its projects' updates. Pilbara Minerals Limited (ASX: PLS), Orocobre Limited (ASX: ORE), Mineral Resources (ASX: MIN), Syrah (ASX: SYH) and Galan (ASX: GLN) are also gaining traction amid rising lithium demands due to the electric vehicle revolution.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK