Rio Tinto $RIO (-1.11%) has released its fourth quarter production results, which reflect steady operational progress alongside challenges in some key areas. The company achieved notable milestones, including the successful commissioning of the Oyu Tolgoi underground copper mine in Mongolia and the first lithium production at the Rincon project in Argentina. However, the overall production figures showed mixed results for the various raw materials.
Performance for iron ore and bauxite:
- Iron ore shipments from Pilbara reached 328.6 million tons in 2024, down 1% from 2023 due to depletion of older sites, although productivity has improved. The Gudai Darri mine reached an annual production rate of 50 million tons, supporting the transition to Western Range
- Bauxite production increased by 7% year-on-year, reaching a record 58.7 million tons, driven by strong performances from Amrun and Gove
Copper and aluminum updates:
- Copper production increased by 13% to 697,000 tons, supported by higher grades at Escondida and the ramp-up of Oyu Tolgoi.
- Aluminium production remained stable at 3.3 million tons, as increases in Kitimat and Boyne partially offset declines due to energy-related restrictions in New Zealand.
Lithium and sustainability initiatives:
- Rio Tinto commenced lithium production at the Rincon project, marking an important step in its commitment to battery materials.
- The company also approved a $2.5 billion expansion to increase Rincon's capacity to 60,000 tons of lithium carbonate annually by 2028.
Key challenges and outlook:
- The titanium dioxide slag segment suffered an 11% decline in annual production due to weaker demand, while geotechnical issues at Kennecott impacted copper mining.
- The company also had to contend with weather-related interruptions and ongoing operational adjustments at its IOC iron ore and aluminum plants.
CEO Jakob Stausholm reiterated Rio Tinto's strategic focus on sustainable growth. "Our Safe Production System has improved consistency at key operations such as Pilbara iron ore and Amrun bauxite, both of which are set to achieve significant records."
