Rio Tinto’s 3Q Copper and Aluminium Production Declines, Bauxite Output Rises

Rio Tinto’s

Rio Tinto, the UK-Australian mining giant, posted moderate declines in mined copper and primary aluminium production in the third quarter of 2024. However, the company saw overall output growth during the first nine months of the year.

Copper Production Declines Amid Challenges at Key Mines

In the third quarter, Rio Tinto’s mined copper production dropped by 1% year-on-year, reaching 167,800 tonnes. This decline was largely due to a significant 44% decrease at the Kennecott mine in the United States, where geological issues, including ground movement, restricted access to high-grade ore, forcing the use of lower-grade material. However, the company’s Escondida mine in Chile showed a 15% increase in output, driven by higher ore grades, and Oyu Tolgoi in Mongolia experienced a 19% production boost due to increased operational efficiency.

For the first nine months of 2024, Rio Tinto's mined copper production increased by 8% year-on-year, totalling 494,700 tonnes. Meanwhile, refined copper production surged by 59% in Q3, reaching 54,300 tonnes, thanks to a 129% increase at Kennecott following its smelter and refinery rebuild in the previous quarter. This was partially offset by a 24% drop in Escondida’s refined copper output due to lower ore grades. Overall, Rio Tinto’s refined copper production for January-September was up by 39% to 179,600 tonnes.

Aluminium Production Experiences Setbacks

Rio Tinto's primary aluminium production in Q3 fell by 2% year-on-year to 809,000 tonnes. This also represented a 2% drop from the previous quarter. However, aluminium production for the first nine months of 2024 was up by 1%, totalling 2.46 million tonnes. The decline in Q3 was linked to operational issues at the New Zealand Aluminium Smelters subsidiary, where Meridian Energy halted plans for a 600 MW renewable hydrogen and ammonia project due to economic and logistical challenges. As a result, the company expects to ramp up the smelter at Tiwai Peninsula in New Zealand by the second quarter of 2025.

Rio Tinto is also focusing on sustainability. In August 2024, Rio Tinto entered a partnership with the Queensland state government in Australia to ensure the long-term future of its Boyne smelter by transitioning to renewable energy sources.

Bauxite Production Shows Growth

Bauxite production, another key commodity for Rio Tinto, increased by 8% year-on-year in Q3 to 15.1 million tonnes. This growth was driven by higher utilisation rates at Rio Tinto’s Amrun mine in Weipa, Australia, following the implementation of the company’s Safe Production System in 2021. The system uses data-driven insights to optimize maintenance scheduling and prevent bottlenecking. Total bauxite production for the first nine months of 2024 rose by 9% year-on-year, totalling 43.2 million tonnes.

Outlook for 2024

Looking ahead, Rio Tinto expects to produce between 660,000 and 720,000 tonnes of mined copper and 230,000 to 260,000 tonnes of refined copper for the remainder of 2024, indicating a steady production forecast for the rest of the year despite the challenges faced in Q3.