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Highlights
- Rio Tinto Limited today (July 15) shared its production results for the second quarter of 2022.
- Rio reported Pilbara iron ore shipments of 79.9 MT in the second quarter, an increase of 12% from the previous quarter.
- Aluminium, titanium dioxide slag and IOC iron ore pellets and concentrate decreased by 10%, 2% and 4%, respectively, compared with Q2 FY21.
- Rio’s shares were trading 2.57% lower at AU$93.54 apiece on ASX at 12.13 PM AEST.
Anglo-Australian miner Rio Tinto Limited (ASX:RIO) today (15 July 022) shared its production results for the second quarter of 2022.
The company's shares were trading 2.57% lower at AU$93.54 apiece on ASX at 12.13 PM AEST after the announcement of results. This outperformed ASX 200 Materials Index, which declined 3.06% at 14,346.20 points today at 12.14 PM AEST.
Q2 FY22 production updates
In the second quarter, Rio reported Pilbara iron ore shipments of 79.9 MT, up 12% from the previous quarter and 5% from the same quarter in FY21. Bauxite, mined copper and Pilbara iron ore production rose 3%, 9% and 4%, respectively, compared with Q2 FY21.
Meanwhile, aluminium, titanium dioxide slag and IOC iron ore pellets and concentrate decreased 10%, 2% and 4%, respectively, compared with Q2 FY21.
In addition, Rio provided operational updates, stating that the mining giant’s all-injury frequency rate of 0.35 is an improvement over the second quarter of 2021 (0.42) and is consistent with the prior quarter (0.35).
In June, Gudai-Darri made its first ore delivery from the primary facility. Rio Tinto anticipates higher production volumes and a better product mix as it ramps up in the second half. In the second quarter, Pilbara operations produced 78.6 million tonnes of what? (100% basis), which is 4% more than in the corresponding period in 2021.
Further, Rio informed that on 18 May 2022, it declared to reach an agreement to modify the terms of the funding arrangement with Turquoise Hill Resources (TRQ) to provide up to $400 million in short-term early advances while the TRQ Special Committee considers the company’s offer of C$34 per share in cash to purchase roughly 49% of TRQ's issued and outstanding shares that Rio Tinto does not already own. The TRQ initial stock offering deadline in the fundraising plan, which was originally set for the end of August, has been moved up to the end of 2022.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 15 July 2022
Rio’s investment plans
On 13 July 2022, Rio had announced that it would spend US$188 million (CA$240 million) to add 202,000 metric tonnes to the capacity of its Alma smelter in Lac-Saint-Jean, Quebec, for the manufacture of low-carbon, high-value aluminium billets.
Notable, 770 employees now employed at the Alma facility are expected to be supported together with the anticipated creation of 40 new permanent employees. Additionally, it is anticipated to provide Quebec with nearly $160 million in economic benefits.
Image Source: © Ashiga | Megapixl.com
The company further informed that construction would start in May 2023 after the completion of comprehensive engineering and preparatory work. Rio Tinto is planning to begin commissioning in the first quarter of 2025.
