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- Rio Tinto (ASX:RIO) releases its Q4 and full-year production results for 2023
- The mining giant flagged an increase in copper, iron ore and aluminium production compared to 2022
- Pilbara iron ore production increased by two per cent in 2023 to 331.5 million tonnes, aluminium increased by nine per cent and copper increased by two per cent
- The news comes despite two fatally disabling injuries in 2023, RIO has deployed a Safe Production System at 60 per cent of its sites to combat this
- In 2023, the yearly cash outflow due to increased working capital matched the first half at $0.9 billion
- RIO shares are down 1.20 per cent, trading at $126.78 at 11:24 am AEDT
Rio Tinto (ASX:RIO) has released its Q4 and full-year production results for 2023, flagging an increase in copper, iron ore and aluminium production compared to 2022.
The mining giant reported increases in its Pilbara iron ore production by two per cent to 331.5 million tonnes, compared to the previous year, a nine per cent increase for aluminium and a two per cent increase for copper.
The news comes despite reporting two fatally disabling injuries in 2023, however, RIO has endured no fatalities consecutively for five years.
Q4 activities
Pilbara iron ore shipments equalled 331.8 million tonnes for 2023 and were three per cent higher compared to 2022, equating to more than 10 million tonnes of critical minerals, the second highest on record.
Ownership increased in Rio’s Mongolian Oyu Tolgoi project, the largest known gold and copper deposit in the world and Rio’s Gudai-Darri mine in the Pilbara has reached nameplate capacity to produce 43 million tonnes per annum after 12 months of commissioning.
Iron ore production at Gudai has also increased by seven million tonnes to 50 million tonnes per year through incremental gains at a cost of around $70 million, subject to environmental, heritage and other approvals.
Bauxite operations saw a continued improvement in the fourth quarter, with production eight per cent higher than the prior quarter, despite challenges of higher-than-average rainfall at Weipa in the first quarter and equipment downtime at both Weipa and Gove in the first half.
But Bauxite production in 2023 was unchanged from 2022 at 54.6 million tonnes.
Management comment
“We made real progress in shaping our portfolio for the future, entering the recycled aluminium market in North America and progressing the world-class Simandou iron ore project in Guinea,” RIO Chief Executive Jakob Stausholm said.
“We have one of the most exciting exploration pipelines in years, including our new copper joint venture with Codelco, launched in December.
“There is good demand for the materials we produce, and our purpose and long-term strategy make more sense than ever.
“The work we are doing today is creating a stronger Rio Tinto for years to come, as we invest in profitable growth while continuing to deliver attractive shareholder returns.”
To combat continued injuries onsite, Rio has deployed a Safe Production System at 60 per cent of its sites, with implementation at various stages of maturity. Rio has already begun to see a 20 per cent improvement in safety at these sites.
The company said it was well-positioned to deliver its 2024 priorities, including a further five million tonne uplift at its Pilbara operations.
Financials
In 2023, the yearly cash outflow due to increased working capital matched the first half at $0.9 billion.
This was influenced by ample stocks in the Pilbara, ongoing inventory at Kennecott after a smelter rebuild, and challenging market conditions, including titanium dioxide feedstock.
Higher iron ore prices at the year-end, to be realised in 2024, also affected receivables. Additionally, lower dividends from Escondida impacted RIO’s operating cash flow.
RIO shares were down 1.20 per cent, trading at $126.78 at 11:24 am AEDT.
