17th Jan 2020 05:57
(Alliance News) -Â Miner Rio Tinto PLC on Thursday reported a mixed production outturn for 2019, with Pilbara iron ore shipments slipping.
In 2019, Pilbara iron ore shipments of 327 million tonnes were down 3% on 2018, hit by weather and operational challenges in the first half of the year.
This was, though, in line with the Anglo-Australian miner's guidance for output between 320 million to 330 million tonnes.
Aluminium production of 3.2 million tonnes was 2% lower than 2018, and mined copper production of 577,000 tonnes was down 5%.
For the fourth quarter alone, iron ore shipments totalled 86.8 million tonnes, down 1% year-on-year but up 1% on the third quarter.
Quarterly aluminium output of 783,000 tonnes was down 4% on the year and down 1% on the quarter. Mined copper, at 138,700, was down 9% on a year ago and down 12% on the previous quarter.
Showing an improvement in 2019 was Bauxite production, of 55 million tonnes, which was 9% higher than 2018. This was underpinned by the successful ramp-up of the Amrun mine in Queensland, Australia.
Meanwhile, titanium dioxide slag production of 1.2 million tonnes was 8% higher than 2018, reflecting continued operational improvement and the restart of furnaces in line with market conditions.
This was in line with guidance for titanium dioxide output to be at the bottom of Rio Tinto's forecast range of 1.2 million to 1.4 million tonnes.
Rio Tinto Chief Executive Jean-Sebastien Jacques said: "We finished the year with good momentum, particularly in our Pilbara iron ore operations and in bauxite, despite having experienced some operational challenges in 2019."
"We are increasing our investment, with USD2.25 billion of high-return projects in iron ore and copper approved in the fourth quarter. We also boosted our exploration and evaluation expenditure to USD624 million in 2019, further strengthening our pipeline of opportunities," he added.
Looking ahead, Rio Tinto expects Pilbara iron ore shipments around 300 million to 343 million tonnes in 2020, and aluminium production of 3.1 million to 3.3 million.
Mined copper output, however, is seen around 530,000 to 570,000 tonnes, which would put 2020 output below 2019's levels.
For Bauxite, output is guided towards a range of 55 million tonnes to 58 million tonnes, and titanium dioxide slag at 1.2 million tonnes to 1.4 million tonnes.
"Our guidance is framed by expectations of general stability in global GDP growth in 2020, tempered by negative risks, including geopolitical tensions and oil price volatility. In this environment, we will continue to monitor and adjust production levels and product mix to meet customer requirements in 2020, in line with our value over volume strategy," Rio Tinto said.
Rio Tinto shares in Australia closed 1.8% higher at AUD105.24 on Friday.
By Lucy Heming;Â [email protected]
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