J-S Jacques, chief executive of Rio Tinto Group, said: “In the last quarter of 2018, we achieved solid business performance, especially in our copper assets. Last year, we further strengthened our portfolio and continued to invest in high-quality growth projects. In 2018, we completed the Amrun bauxite project ahead of schedule, started the AutoHaul (%) project, approved the investment in Koodaideri and Robe River projects, and signed the Oyu Tolgoi power supply agreement. Meanwhile, we have completed a $8.6 billion divestiture of assets, including the Grasberg copper and gold mine in Indonesia and our remaining coal assets. We will strictly implement the strategy of “value is higher than output”, strictly allocate capital, continue to promote the strategic objectives of the company, and provide shareholders with high returns in the short, medium and long term.
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In 2018, Pilbara iron ore shipments amounted to 338 million tons (100% equity basis), an increase of 2% over the whole year of 2017.
In the fourth quarter of 2018, Rio Tinto announced the successful launch of the automatic train system in the Pilbara mining area, approved a $2.6 billion investment in Koodaideri, and approved an investment of $1.55 billion to maintain the capacity of Robe River Joint Venture, a joint venture that Rio Tinto owns 53% of and will invest $820 million in.
The bauxite output in 2018 was 50.4 million tons, 1% lower than that in 2017. Third-party shipments increased by 2% to 32.8 million tons. In the fourth quarter of last year, production declined in the short term as a result of the commissioning work of the Guinean Bauxite Company (CBG) and the transfer of operations from East Weipa bauxite to Amrun bauxite in Queensland.
The output of electrolytic aluminium was 3.5 million tons, down 3% from 2017, mainly due to the continuing interruption of labor supply at the non-Rio Tinto-managed Becancour Smelter in Canada.
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The output of copper is 634,000 tons, 33% higher than that in 2017, and higher than the guidance interval. It mainly reflects the strong performance of Escondida and the increased production of Kennecott, a higher quality copper mine.
The output of high titanium slag is 1.1 million tons, which is 15% less than that of last year. The reason was the disruption of Rio Tinto Fer et Titane’s production in the second quarter and the intermittent shutdown caused by the labor dispute between the contractor of Richards Bay Minerals and its employees in the first half of last year.
Iron Ore Company of Canada produced 4% more in the fourth quarter than in the fourth quarter of 2017. However, production in 2018 was 20% lower than that in 2017, as the strike at the mine severely affected production in the second quarter.
Other milestones in the quarter included the first shipment of bauxite by Amrun bauxite six weeks ahead of schedule, and the signing of the Framework Agreement on Electricity Purchase by Oyu Tolgoi and the Mongolian Government.
| PVA FIBER |