Rio Tinto, a leading global mining group, has announced its production and operational results for the third quarter of 2024 ended September 30. Overall, the company has achieved many new milestones across its operations, including a surge in bauxite production.
Overview of bauxite production
The Q3 report revealed that Rio Tinto's bauxite output reached 15.1 million tonnes, recording a Q-o-Q increase of 2.7 per cent from 14.7 million tonnes and a year-on-year rise of 8.6 per cent from 13.9 million tonnes. In nine months, Rio's bauxite production totalled 43.2 million tonnes, up by 9 per cent year-on-year.
The persistent rise in Rio's bauxite output through the third quarter of 2024 could be attributed to improved production efficiency owing to the implementation of the Safe Production System, especially at Amrun mine in Weipa, which is currently operating above nameplate capacity.
Rio Tinto Chief Executive Jakob Stausholm also reiterated that the Safe Production System optimised production at Australian bauxite mines. He explicitly said: "We continue to strengthen our operations, with the roll-out of the Safe Production System delivering consistent production at our Pilbara iron ore business and a step change from our Australian bauxite mines. We are building on this, with more work to do across our global portfolio."
Insights into aluminium output
In contrast, Rio Tinto's aluminium production experienced a 2 per cent decrease Q-o-Q and Y-o-Y, standing at 809,000 tonnes. This decrease was primarily due to the operation cut at the New Zealand Aluminium Smelter following a limited electricity usage order from Meridian Energy. In Q2 2024, Rio Tinto's aluminium production was 824,000 tonnes, while the output in Q3 2023 was 828,000 tonnes. Over the nine months of 2024, Rio Tinto's aluminium output totalled 2.459 million tonnes, a 1 per cent increase from 2.43 million tonnes a year ago.
Among many other achievements in Q3, a notable is Rio's partnership with the Queensland Government to promote renewable energy development, ensuring the long-term viability of Boyne Smelters Limited (BSL), Australia's second-largest aluminium smelter.
Rio Tinto Chief said, "The decarbonisation of our business remains a priority and is progressing well. We took another important step in securing a long-term future for the Boyne Smelter, announcing a partnership with the Queensland Government to support investment in renewable energy projects."
About a week ago, Rio Tinto signed an acquisition contract with Arcadium Lithium plc for US$5.85 per share. This acquisition will bring Arcadium's world-class lithium business into Rio Tinto's portfolio, signifying a groundbreaking collaboration between the aluminium and lithium industries. Lithium is an essential component used alongside aluminium for manufacturing aluminium-lithium (Al-Li) alloys.
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