Rio Tinto releases fourth quarter production results
16 January 2025
Rio Tinto Chief Executive Jakob Stausholm said: “Our operating performance in 2024 was good, consistent with our ongoing commitment to strengthen the business as we execute our strategy to deliver profitable growth. The implementation of our Safe Production System has again contributed to greater consistency across key operations, including our iron ore assets in the Pilbara and our bauxite operations in Australia, where Amrun and Gove achieved record annual production.
“We are making strong progress in delivering organic growth from our major projects. The Oyu Tolgoi underground copper mine in Mongolia continues to successfully ramp up, while the Simandou high-grade iron ore project in Guinea and our Western Range mine in the Pilbara are on schedule for first production this year.
“Significant milestones were achieved at our Rincon project in Argentina during the quarter, with first lithium delivered and receipt of Board approval to expand the operation, demonstrating both our operational capabilities and ambition to grow in battery materials.
“We remain focused on executing our strategy to deliver attractive shareholder returns and build a stronger, more diversified, and growing business, driven by our confidence in the long-term demand for materials essential to the global energy transition.”
| Production1 | Q42024 | vs Q4 2023 | vs Q3 2024 | 2024 | vs2023 | |
| Pilbara iron ore shipments (100% basis) | Mt | 85.7 | -1 % | +1 % | 328.6 | -1 % |
| Pilbara iron ore production (100% basis) | Mt | 86.5 | -1 % | +3 % | 328.0 | -1 % |
| Bauxite | Mt | 15.4 | +2 % | +2 % | 58.7 | +7 % |
| Aluminium2 | kt | 837 | -1 % | +3 % | 3,296 | +1 % |
| Mined copper (consolidated basis) | kt | 202 | +26 % | +21 % | 697 | +13 % |
| Titanium dioxide slag | kt | 235 | -14 % | -11 % | 990 | -11 % |
| IOC3 iron ore pellets and concentrate | Mt | 2.5 | -6 % | +20 % | 9.4 | -2 % |
1 Rio Tinto share unless otherwise stated.
2 Includes primary aluminium only.
3 Iron Ore Company of Canada.
Q4 2024 operational highlights and other key announcements
• In October, Morlaye Camara, an employee of one of our contractors at the SimFer Port Project in Morebaya, part of the Simandou project, was injured, and subsequently passed away. During the quarter, we completed our internal investigation and the findings were shared across the business.
• Our all injury frequency rate (AIFR) for the fourth quarter was 0.38, a decrease from the third quarter of this year (0.41) and the fourth quarter of 2023 (0.39). The health, safety and wellbeing of our people and partners remains our priority.
• In 2024, we delivered 1% production growth and a 3% increase in sales volumes, both on a copper equivalent basis (based on long-term consensus pricing). At our Investor Seminar in December, our Executive Committee outlined our ambition for a decade of around 3% compound annual growth in copper equivalent production, driven by Oyu Tolgoi, Simandou and our new lithium portfolio.
• Pilbara operations produced 328.0 million tonnes in 2024, with shipments of 328.6 million tonnes, each 1% lower than 2023. Productivity improvements of 10 million tonnes did not fully offset depletion, predominantly at Yandicoogina and Paraburdoo, as we transition to Western Range. The Safe Production System target of 5 million tonnes for 2024 was achieved and Gudai-Darri reached 50 million tonne per annum rates during 2024.
• Bauxite production was 58.7 million tonnes in 2024, 7% higher than 2023, exceeding our guidance. The improvement was driven by the implementation of the Safe Production System, delivering record annual production at Amrun and Gove, with the former currently operating above nameplate capacity.
• Aluminium production of 3.3 million tonnes was 1% higher than 2023, following the ramp-up of Kitimat and completion of cell recovery efforts at Boyne in the prior year, together with increased ownership of Boyne and New Zealand Aluminium Smelter (NZAS). These were partially offset by the continued closure program at Arvida and a request to reduce energy usage at NZAS, resulting in lower output. Production at NZAS is expected to be fully ramped up in the second quarter of 2025.
• Mined copper production of 697 thousand tonnes (consolidated basis) in 2024 was 13% higher than 2023, reflecting the ramp up of Oyu Tolgoi underground and increased production from Escondida due to higher grades fed to the concentrator (0.99% versus 0.83%). This offset geotechnical challenges at Kennecott as instabilities in the pit wall impacted the mining sequence from the second quarter.
• On 4 December, we signed a Term Sheet with Sumitomo Metal Mining (SMM) for a Joint Venture to deliver the Winu copper-gold project in Western Australia. We will continue to develop and operate Winu as managing partner and SMM will pay $195 million upfront, and $204 million in deferred consideration, contingent on milestones and adjustments to be agreed. We will now work to finalise definitive agreements in the first half of 2025, along with formalising the broader strategic partnership.
• Titanium dioxide slag production of 990 thousand tonnes in 2024 was 11% lower than 2023 due to reduced market demand. A furnace reconstruction, starting in the first quarter of 2024, continues at our RTIT Quebec Operations. Through 2024, we operated six out of nine furnaces in Quebec and three out of four at Richards Bay Minerals (RBM).
• IOC production of 9.4 million tonnes in 2024 was 2% lower than 2023 due to an 11-day site-wide shutdown driven by forest fires in mid-July, resulting in a revised mine plan and maintenance schedule. We also experienced operational challenges in the mine and concentrator throughout the year.
• At the end of 2024, we had commenced deployment of the Safe Production System at 31 (~80%) of our sites, including three additional sites in the fourth quarter. We achieved our Safe Production System target of 5 million tonnes production uplift for Pilbara Iron Ore and two of our sites delivered their best production performance on record in the quarter.
• On 9 October, we announced a definitive agreement to acquire Arcadium Lithium plc (Arcadium) in an all-cash transaction for US$5.85 per share. This transaction will bring Arcadium’s world-class, complementary lithium business into our portfolio, establishing a global leader in energy transition commodities. During the quarter, we made good progress on the outstanding conditions, with Arcadium announcing that it had obtained all requisite shareholder approvals for the proposed acquisition. We have received most of the required foreign investment approvals, including clearance by the Committee on Foreign Investment in the United States (CFIUS) in January 2025, and all of the required merger control clearances. Closing of the transaction remains subject to foreign investment approvals in Australia and Canada, approval of the Royal Court of Jersey and other closing conditions, and is expected to occur before mid-2025.
• On 2 December, we completed the sale of Dampier Salt Limited’s Lake MacLeod operation to Leichhardt Industrials Group. The consideration of A$375 million was received in December.
• On 6 December, we completed the sale of Sweetwater, a former uranium legacy site in Wyoming, United States. The consideration of $175 million was received in December.
• On 12 December, we announced the approval of $2.5 billion1 to expand the Rincon project in Argentina, our first commercial scale lithium operation, to an annual capacity of 60,000 tonnes of battery grade lithium carbonate. Mine life is expected to be 40 years2, with construction of the expanded plant scheduled to begin in mid-2025, subject to permitting. First production is expected in 2028 with a three-year ramp-up to full capacity. The project uses direct lithium extraction (DLE) technology, a process that supports water conservation, reduces waste and produces lithium carbonate more consistently than other methods.
• On 19 December, we announced the appointment of Georgie Bezette as our new Chief People Officer, succeeding James Martin, who retired at the end of 2024.
All figures in this report are unaudited. All currency figures in this report are US dollars, and comments refer to Rio Tinto’s share of production, unless otherwise stated.
1 Included in the Group’s capital expenditure guidance provided at our Investor Seminar on 4 December 2024.
2 The production target of approximately 53 kt of battery grade lithium carbonate per year for a period of 40 years was previously reported in a release to the ASX dated 4 December 2024 titled “Rincon Project Mineral Resources and Ore Reserves: Table 1”. Rio Tinto confirms that all material assumptions underpinning that production target continue to apply and have not materially changed. Plans are in place to build for a capacity of 60 kt of battery grade lithium carbonate per year with debottlenecking and improvement programs scheduled to unlock this additional throughput.
2025 guidance
| Rio Tinto production share, unless otherwise stated | 2024 Guidance | 2024Actuals | 2025 Guidance |
| Pilbara iron ore (shipments, 100% basis) (Mt) | 323 to 338 | 328.6 | 323 to 338 |
| Bauxite (Mt) | 53 to 561 | 58.7 | 57 to 59 |
| Alumina (Mt) | 7.0 to 7.32 | 7.3 | 7.4 to 7.8 |
| Aluminium (Mt) | 3.2 to 3.4 | 3.3 | 3.25 to 3.45 |
| Copper (consolidated basis) (kt)3 | – | 792.6 | 780 to 850 |
| Mined copper (consolidated basis) (kt) | 660 to 7204 | 697.1 | – |
| Refined copper (kt) | 230 to 260 | 248.3 | – |
| Titanium dioxide slag (Mt) | 0.9 to 1.1 | 1.0 | 1.0 to 1.2 |
| IOC iron ore pellets and concentrate (Mt) | 9.1 to 9.6 | 9.4 | 9.7 to 11.4 |
| Boric oxide equivalent (Mt) | ~0.5 | 0.5 | ~0.5 |
1 Expect to exceed the top end of guidance.
2 Expect to achieve upper end of guidance.
3 From Q1 2025, we will report copper production and guidance as one metric, in order to simplify reporting and align with peer practices. For further details see slide 90 of our Investor Seminar 2024 presentation.
4 Around the bottom end.
• 2025 production guidance is unchanged since December 2024.
• Pilbara iron ore guidance remains subject to the timing of approvals for planned mining areas and heritage clearances. SP10 levels are expected to remain elevated until replacement projects are delivered.
• Iron ore shipments and bauxite production guidance remain subject to weather impacts.
Operating costs
• Guidance for 2025 Pilbara iron ore and copper C1 unit cash costs will be provided in the 2024 full year results release due on 19 February 2025.
• 2024 Pilbara iron ore unit cash costs are expected to be in the upper half of our $21.75 to $23.50 per tonne guidance (based on an average A$:US$ exchange rate of 0.66). This is due to inflation being at the higher end of our expectations and lower production.
• 2024 copper C1 unit costs are expected to be unchanged at 140 to 160 US cents/lb guidance.
Aluminium modelling
To assist with modelling of aluminium operating costs during a volatile price environment for raw materials, we provide the following breakdown and sensitivities for the alumina and aluminium metal segments (Primary Metal and Pacific Aluminium). This excludes the effect of intra and inter segment eliminations on group profit.
Alumina refining
| Production cash cost (%) | FY 23 | H1 24 | H2 24 | FY 24 |
| Bauxite | 31 | 32 | 33 | 33 |
| Conversion | 34 | 39 | 38 | 38 |
| Caustic | 22 | 17 | 17 | 17 |
| Energy | 13 | 12 | 12 | 12 |
| Total | 100 | 100 | 100 | 100 |
| Input costs (nominal) | H1 23Index price | H2 23Index price | H1 24Index price | H2 24Index price | FY 24Annual cost sensitivity impact on underlying EBITDA |
| Caustic soda1 ($/t) | 424 | 369 | 376 | 430 | $11m per $10/t |
| Natural gas2 ($/mmbtu) | 2.54 | 2.79 | 2.21 | 2.61 | $4m per $0.10/GJ |
| Brent oil ($/bbl) | 79.7 | 85.5 | 84.0 | 77.5 | $2m per $10/bbl |
1North East Asia FOB | 2Henry Hub
Aluminium smelting
| Production cash cost (%) | FY 23 | H1 24 | H2 24 | FY 24 |
| Alumina | 38 | 41 | 45 | 43 |
| Power | 18 | 19 | 21 | 20 |
| Conversion | 21 | 22 | 19 | 20 |
| Carbon | 21 | 16 | 13 | 15 |
| Materials | 2 | 2 | 2 | 2 |
| Total | 100 | 100 | 100 | 100 |
| Input costs (nominal) | H1 23Index price | H2 23Index price | H1 24Index price | H2 24Index price | Inventory flow | FY 24Annual cost sensitivity impact on underlying EBITDA |
| Alumina1 ($/t) | 352 | 335 | 400 | 603 | 1 – 2 months | $65m per $10/t |
| Petroleum coke2 ($/t) | 631 | 491 | 394 | 391 | 2 – 3 months | $11m per $10/t |
| Coal tar pitch3 ($/t) | 1,386 | 1,130 | 958 | 910 | 1 – 2 months | $3m per $10/t |
1Australia FOB | 2US Gulf FOB | 3North America FOB
Investments, growth and development projects
• Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in 2024 was $935 million, compared with $855 million in 2023 (excluding Simandou). Approximately 25% of the spend was by central exploration, 23% by Minerals (with the majority focusing on lithium), 36% by Copper, 14% by Iron Ore and 2% by Aluminium. In 2024, all qualifying expenditure relating to Simandou is being capitalised. Qualifying expenditure on the Rincon project has been capitalised since 1 July 2024.
Pilbara projects
• Construction of our Western Range mine is now over 90% complete with fabrication and overland conveyor belt installation finalised. We continue to focus on completion of the new crushing and screening facilities, with first ore from that new system on plan for the first half of 2025.
• We continue to advance our next tranche of Pilbara mine replacement projects at Hope Downs 1 (Hope Downs 2 and Bedded Hilltop), Brockman 4 (Brockman Syncline 1), Greater Nammuldi and West Angelas. Funding for the full execution of the Brockman 4 project was obtained during the quarter. Early works and design are underway for the Brockman 4 and the Hope Downs 1 projects. Environmental and heritage approvals are progressing and timelines remain subject to receiving these approvals. The Greater Nammuldi project continues to progress at a rate behind the original development schedule.
• The Rhodes Ridge pre-feasibility study, which is targeting an initial capacity of up to 40 million tonnes per year, subject to relevant approvals, remains on track to be completed in 2025. First ore is expected by the end of the decade.
• Early works activities at our Coastal Water desalination project progressed with earthworks materially complete and several key contract packages awarded during the quarter. The $395 million plant will provide water to our port operations in Dampier. At full capacity, it will produce approximately 4GL/year to reduce draw from the Bungaroo aquifer to sustainable levels. We are assessing a further phase of the project.
• We are progressing engineering works for the replacement of all three bucketwheel reclaimers and associated infrastructure within the Parker Point Stockyard at our Dampier Port. Early enabling works are progressing well, with several contract packages awarded in the quarter and fabrication of the reclaimers commencing in December.
Oyu Tolgoi underground project
• First ore on the conveyor to surface belt was achieved in October 2024, with the conveyor system now able to transport ore to the surface from a depth of 1,300 metres. Load and production testing of the conveyor system is progressing.
• Construction works for the concentrator conversion remain on schedule. Commissioning activities commenced during the quarter and are forecast to be progressively completed through to the second quarter of 2025.
• Construction of primary crusher 2 is progressing to plan and remains on track to be completed by the end of 2025.
Simandou iron ore project
• The SimFer mine1 is on track to deliver first production at the mine gate in 2025, ramping up over 30 months to an annualised capacity of 60 million tonnes per year2 (27 million tonnes per year Rio Tinto share).
• For the SimFer mine, bulk earthworks are progressing to plan, despite productivity being impacted by wet weather during the quarter. All mine construction contracts are complete, and the two initial crushers are now commissioned, with first ore crushed on 1 January 2025.
• During the fourth quarter, all construction milestones for the period stipulated by the Government of Guinea were achieved for the SimFer infrastructure scope. In connection with SimFer’s scope of the 620 kilometre long multi-use TransGuinean railway line, which will connect Simandou’s mine operations to the port facilities, with the arrival of track laying locomotives, 8.5 kilometres of rail was installed and in October construction of the 275 metre Milo River bridge was completed. Tunnel excavation activity on the SimFer scope is now more than 75% complete, with construction at the port continuing to advance on the transhipment vessel (TSV) wharf and rail car dumper infrastructure. Expectations for delivery of the first trans shipping vessels remain on plan.
• The current total workforce across all the Simfer scope of mine, rail and port is 13,300 with 81% national Guinean participation.
Other key projects and exploration and evaluation
• The AP60 expansion project in Quebec remains on schedule. Construction activities during the quarter included commencement of installation of the silo for the gas treatment centre, busbar and the first floor slabs. Once completed, the project will add 96 new AP60 pots, increasing AP60 capacity by 160,000 tonnes of primary aluminium per year by the end of 2026. This new capacity, in addition to 30,000 tonnes of new recycling capacity at Arvida expected to open in the fourth quarter of 2025, will offset the 170,000 tonnes of capacity lost through the gradual closure of potrooms at the Arvida smelter from 2024.
• At Kennecott, activities continued on the North Rim Skarn (NRS) underground development and infrastructure. Production from NRS is forecast to commence in mid-2025, delivering around 250,000 tonnes through to 20333.
• At the Resolution Copper project in Arizona, we continue to await a decision from the U.S. Supreme Court on the petition filed by the Apache Stronghold requesting to hear its case to stop the land exchange between Resolution Copper and the federal government. Separately the Supreme Court denied a petition from the San Carlos Apache Tribe, asking the Court to review a decision by the Arizona Supreme Court regarding a water discharge permit issued to Resolution Copper. We continue to progress the Final Environmental Impact Statement with the United States Forest Service, however they have yet to advise on the date of republication. We also advanced partnership discussions with several federally-recognised Native American Tribes. While there is significant local support for the project, we respect the views of groups who oppose it and will continue our efforts to address and mitigate concerns.
• At the Winu copper-gold project in Australia, we signed a Term Sheet with Sumitomo Metal Mining (SMM) in December for a Joint Venture to deliver the project. A pre-feasibility study with an initial development of processing capacity of up to 10 million tonnes per year is expected to be completed in 2025, along with the submission of an Environmental Review Document under the EPA Environmental Impact Assessment process. Project Agreement negotiations with Nyangumarta and the Martu Traditional Owner Groups remain our priority.
• Nuton, our copper heap leaching technology venture, continues to develop its path towards deployment with ten partnerships in five countries: United States, Mexico, Chile, Peru and Argentina. Construction is progressing at our first large scale deployment site at Gunnison’s Johnson Camp Mine in Arizona, where we expect to achieve first copper in the second half of 2025. Work on the second industrial scale deployment for potential implementation in 2025 is well underway. Additionally, in the fourth quarter, Nuton signed an Option to the Joint Venture Agreement with Aldebaran Resources for the Altar project and also increased its ownership to 17.2% in McEwen’s Los Azules project. Both projects are located in San Juan Province, Argentina.
• At the Rincon project in Argentina, first lithium was produced from the 3,000 tonne starter plant in November. Full commissioning and plant ramp-up continues, with project completion expected in the first quarter of 2025. The feasibility study for the full-scale operation was completed during the quarter, with our Board approving an investment of $2.5 billion to expand Rincon’s capacity to 60,000 tonnes4 of battery grade lithium carbonate per year. We released the Rincon Project Mineral Resources and Ore Reserves statement on 4 December.
• At the Jadar project in Serbia, the application process for obtaining the Exploitation Field Licence (EFL) continued during the fourth quarter. The EFL is essential for commencing fieldwork, including detailed geotechnical investigations, while cultural heritage and environmental surveys have resumed. The Environmental Impact Assessment process for the scoping and content for the mine progressed through the public consultation phase. This step includes legally mandated consultations, which the project supports, to encourage an open, fact-based dialogue.