Rio Tinto Reports Increased Production in Q3 2023

Overview

Rio Tinto, the second-largest mining company in the world, has announced higher production of aluminum and copper in the third quarter of 2023 compared to the same period last year. However, the company has downgraded its full-year output estimate for its Canadian iron-ore operations due to plant setbacks and wildfires.

Aluminum Production

Rio Tinto reported a 9% increase in aluminum production, with a total of 828,000 metric tons produced in the three months ending in September. As one of the largest aluminum producers globally, Rio Tinto operates smelters in various countries, including Canada and Australia.

The production of bauxite, which is used to manufacture aluminum, also saw a 2% year-on-year increase, reaching 13.9 million tons.

Copper Production

As a significant copper producer, Rio Tinto reported a 5% rise in mined copper output during the third quarter, reaching 169,000 tons.

Iron Ore Operations

Nevertheless, Rio Tinto downgraded its annual output projection for its Iron Ore Company of Canada (IOC) business. The company now expects to produce between 9.3 million and 9.8 million tons of iron ore pellets and concentrate. This is a revision from the previous estimate of between 10.0 million and 11.0 million tons.

The revision is attributed to extended plant downtime, conveyor belt failures, and the aftermath of wildfires in Northern Quebec from the previous quarter.

Australian Iron Ore Mining

In the third quarter, Rio Tinto produced 83.5 million tons of iron ore from its Australian mining operations and shipped 83.9 million tons. The company’s main source of income comes from extracting iron ore in remote northwest Australia.

Rio Tinto expects its full-year shipments to fall within the upper range of its own projection, between 320 million and 335 million tons, although with a higher-than-anticipated quantity of low-grade ore.