Reports related to this article:
Project(s): View 6 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released December 05, 2017 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Volatile commodity markets and a possible slowdown in China have forced Rio Tinto plc (NYSE:RIO) (London, England) to lower its 2017 capital-spending forecast to less than $4.5 billion, compared with its earlier guidance of $5 billion, as it focuses on cutting costs at its iron ore, copper and other businesses. Nonetheless, the company expects to increase capital spending in the following years. Industrial Info is tracking $20.8 billion in active projects involving Rio Tinto, including about $7.2 billion under construction.
Rio Tinto expects capital spending to bounce back to $5.5 billion in 2018 and $6 billion for each of the following two years. The company expects China to see weaker demand for construction, infrastructure and automotive services in the next six months, but believes this will pick up in the longer term. China's recent crackdown on steel production to reduce pollution is among the factors stoking demand for high-grade, lower-emitting ore and boosting global prices, according to Reuters.
One of Rio Tinto's largest projects under construction in the U.S. is the $660 million expansion of the Bingham Canyon Copper Mine in Utah, which accounts for nearly 20% of U.S. copper production. The company plans to extract an additional 180,000 tonnes per year of copper, 185,000 ounces per year of gold and 13,800 tonnes per year of molybdenum as it extends the mine life to 2029. Rio Tinto also is at work on $100 million in rehabilitation and enhancement work for the mountainside affected by the Bingham Canyon mine, dubbed the Alternative View Project. For more information, see Industrial Info's reports on the expansion and rehabilitation projects.
Last month, Rio Tinto restarted the smelter associated with the mine after a nearly six-week outage following the on-the-job death of a worker. Mining and milling operations were not halted, and all ore extracted was stockpiled to be processed later. However, Rio Tinto has not yet announced when it would lift its force majeure on refined copper from the facility.
In Canada, Rio Tinto is undergoing a $392 million expansion of its Lac De Gras Diavik Diamond Mine in the Northwest Territories, 220 kilometres south of the Arctic Circle. It expects the new capacity to result in 10 million diamond carats over a five-year mine life, after the project is completed in 2020; Rio Tinto expects its companywide production of diamonds to be between 17 million and 20 million carats in 2018. The mine is 60% owned by Rio Tinto and 40% owned by Dominion Diamond Corporation (Calgary, Alberta). For more information, see Industrial Info's project report.
In Australia, Rio Tinto expects to seek board approval next year to develop its "intelligent" Koodaideri Iron Ore Mine & Processing Plant in the Pilbara region of Western Australia at a total cost of well over $2 billion. It would include newer, robotics-driven technologies such as driverless trains and trucks. Chris Salisbury, Rio Tinto's chief executive for iron ore development, told Reuters that the proposed mine and processing plant would produce about 40 million tonnes per year by 2021, but eventually could be expanded to 70 million tonnes or more. Rio Tinto already produces more than 300 million tonnes of ore annually in Australia, according to Reuters.
The proposed Koodaideri project would include infrastructure such as an accommodation camp, which would house 2,000 workers during the construction process and 1,000 after completion, and a rail-line addition that would run 170 kilometers to Rio Tinto's port facilities at Dampier, Western Australia. For more information, see Industrial Info's project reports on the mine and processing plant, camp and rail line.
Australia is among the countries that has seen a pickup in mining-related project activity, driven by improving commodity prices. Other companies to announce higher capital spending for 2018 include BHP Billiton Limited (NYSE:BHP) (Melbourne, Australia), Barrick Gold Corporation (NYSE:ABX) (Toronto, Ontario) and Newmont Mining Corporation (NYSE:NEM) (Greenwood Village, Colorado). For more information, see August 23, 2017, article - Mining Industry Prepares for Growth in 2018.
Rio Tinto said in a press release that it expects to ship 330 million to 340 million tonnes of iron ore from its pillar operations in 2018, a notch higher than its forecast of 330 million tonnes for this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Rio Tinto expects capital spending to bounce back to $5.5 billion in 2018 and $6 billion for each of the following two years. The company expects China to see weaker demand for construction, infrastructure and automotive services in the next six months, but believes this will pick up in the longer term. China's recent crackdown on steel production to reduce pollution is among the factors stoking demand for high-grade, lower-emitting ore and boosting global prices, according to Reuters.
One of Rio Tinto's largest projects under construction in the U.S. is the $660 million expansion of the Bingham Canyon Copper Mine in Utah, which accounts for nearly 20% of U.S. copper production. The company plans to extract an additional 180,000 tonnes per year of copper, 185,000 ounces per year of gold and 13,800 tonnes per year of molybdenum as it extends the mine life to 2029. Rio Tinto also is at work on $100 million in rehabilitation and enhancement work for the mountainside affected by the Bingham Canyon mine, dubbed the Alternative View Project. For more information, see Industrial Info's reports on the expansion and rehabilitation projects.
Last month, Rio Tinto restarted the smelter associated with the mine after a nearly six-week outage following the on-the-job death of a worker. Mining and milling operations were not halted, and all ore extracted was stockpiled to be processed later. However, Rio Tinto has not yet announced when it would lift its force majeure on refined copper from the facility.
In Canada, Rio Tinto is undergoing a $392 million expansion of its Lac De Gras Diavik Diamond Mine in the Northwest Territories, 220 kilometres south of the Arctic Circle. It expects the new capacity to result in 10 million diamond carats over a five-year mine life, after the project is completed in 2020; Rio Tinto expects its companywide production of diamonds to be between 17 million and 20 million carats in 2018. The mine is 60% owned by Rio Tinto and 40% owned by Dominion Diamond Corporation (Calgary, Alberta). For more information, see Industrial Info's project report.
In Australia, Rio Tinto expects to seek board approval next year to develop its "intelligent" Koodaideri Iron Ore Mine & Processing Plant in the Pilbara region of Western Australia at a total cost of well over $2 billion. It would include newer, robotics-driven technologies such as driverless trains and trucks. Chris Salisbury, Rio Tinto's chief executive for iron ore development, told Reuters that the proposed mine and processing plant would produce about 40 million tonnes per year by 2021, but eventually could be expanded to 70 million tonnes or more. Rio Tinto already produces more than 300 million tonnes of ore annually in Australia, according to Reuters.
The proposed Koodaideri project would include infrastructure such as an accommodation camp, which would house 2,000 workers during the construction process and 1,000 after completion, and a rail-line addition that would run 170 kilometers to Rio Tinto's port facilities at Dampier, Western Australia. For more information, see Industrial Info's project reports on the mine and processing plant, camp and rail line.
Australia is among the countries that has seen a pickup in mining-related project activity, driven by improving commodity prices. Other companies to announce higher capital spending for 2018 include BHP Billiton Limited (NYSE:BHP) (Melbourne, Australia), Barrick Gold Corporation (NYSE:ABX) (Toronto, Ontario) and Newmont Mining Corporation (NYSE:NEM) (Greenwood Village, Colorado). For more information, see August 23, 2017, article - Mining Industry Prepares for Growth in 2018.
Rio Tinto said in a press release that it expects to ship 330 million to 340 million tonnes of iron ore from its pillar operations in 2018, a notch higher than its forecast of 330 million tonnes for this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
