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Released October 19, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Global metals miner Rio Tinto (NYSE:RIO) (London, England) reported generally positive third-quarter 2020 production numbers on Friday, with some exceptions such as copper. But the company cautioned it was seeing signs of a slowing rate of recovery in most economies.
Industrial Info is tracking more than $25 billion worth of capital project activity by the mining giant.
Click on the image at right for a graph showing Rio Tinto project activity by world region.
Rio Tinto reported year-over-year growth in bauxite and aluminum production during the just-ended quarter.
Iron ore production from the company's Pilbara operations in northwest Australia was 86.4 million metric tons, down 1% from third-quarter 2019, as the operations became more normal amid the COVID-19 pandemic, Rio Tinto said.
Third-quarter mined copper was down 18% from the same period in 2019, the result of an extended smelter shutdown at Rio Tinto's Kennecott operations in Utah. The shutdown was extended as a result of unexpected issues following planned maintenance, the company said. A startup of the smelter has begun, and it is expected to be fully operational this month. For more information, see Industrial Info's project report.
Rio Tinto said its production guidance for 2020 remains unchanged with the exception of refined copper. Its capital expenditure guidance remains at about $6 billion in 2020 and $7 billion in both 2021 and 2022.
Global economic activity in the third quarter was generally strong, the company said, but "recent high-frequency data suggest that the rate of recovery in growth is slowing in most economies, with pent-up demand dissipating, and the rise of renewed lockdowns threatening recovery."
Chinese iron ore demand is at record levels, but China's steel consumption was expected to ease going forward. Also, the automotive sector was continuing to recover, supporting some demand for value-added aluminum products, but remained below pre-COVID-19 levels globally.
Copper prices reached a two-year high in the third quarter, Rio Tinto added, supported by Chinese demand.
Phase one of the South Wall Pushback Project at the Kennecott Bingham Canyon Mine in Utah remains on track, the company reported, with access to higher grades expected from 2021. The project is part of a plan to extend the life of the 400,000-ton-per-day open-pit operation to 2027, adding 180,000 tons per year of copper production. For more information, see Industrial Info's project report.
At its Resolution underground copper mine project near Superior, Arizona, "we continue to manage the impacts of the COVID-19 pandemic, including engagement with local communities," the company said. Deepening of the existing Shaft #9 at the mine reached about two kilometers of the 2.1 kilometers planned in September, with shaft sinking expected to be completed in the first quarter of 2021. The project involves rehabilitating and deepening the shaft to link it with the newer Shaft #10. For more information, see Industrial Info's project report.
Elsewhere, in the wake of destroying indigenous sacred sites earlier this year in Australia, Rio Tinto said it has "taken a number of actions to strengthen cultural heritage governance and controls, and commenced the longer-term process of regaining the trust of traditional owners."
As part of its iron mining activities, the company destroyed two rock shelters in May at Juukan Gorge in Western Australia that were estimated to be 46,000 years old. The incident sparked dismay among traditional owner groups and widespread outrage, which in turn led to the announcement that Rio Tinto Chief Executive Jean-Sebastien Jacques would leave the company next year in March.
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.
Industrial Info is tracking more than $25 billion worth of capital project activity by the mining giant.
Rio Tinto reported year-over-year growth in bauxite and aluminum production during the just-ended quarter.
Iron ore production from the company's Pilbara operations in northwest Australia was 86.4 million metric tons, down 1% from third-quarter 2019, as the operations became more normal amid the COVID-19 pandemic, Rio Tinto said.
Third-quarter mined copper was down 18% from the same period in 2019, the result of an extended smelter shutdown at Rio Tinto's Kennecott operations in Utah. The shutdown was extended as a result of unexpected issues following planned maintenance, the company said. A startup of the smelter has begun, and it is expected to be fully operational this month. For more information, see Industrial Info's project report.
Rio Tinto said its production guidance for 2020 remains unchanged with the exception of refined copper. Its capital expenditure guidance remains at about $6 billion in 2020 and $7 billion in both 2021 and 2022.
Global economic activity in the third quarter was generally strong, the company said, but "recent high-frequency data suggest that the rate of recovery in growth is slowing in most economies, with pent-up demand dissipating, and the rise of renewed lockdowns threatening recovery."
Chinese iron ore demand is at record levels, but China's steel consumption was expected to ease going forward. Also, the automotive sector was continuing to recover, supporting some demand for value-added aluminum products, but remained below pre-COVID-19 levels globally.
Copper prices reached a two-year high in the third quarter, Rio Tinto added, supported by Chinese demand.
Phase one of the South Wall Pushback Project at the Kennecott Bingham Canyon Mine in Utah remains on track, the company reported, with access to higher grades expected from 2021. The project is part of a plan to extend the life of the 400,000-ton-per-day open-pit operation to 2027, adding 180,000 tons per year of copper production. For more information, see Industrial Info's project report.
At its Resolution underground copper mine project near Superior, Arizona, "we continue to manage the impacts of the COVID-19 pandemic, including engagement with local communities," the company said. Deepening of the existing Shaft #9 at the mine reached about two kilometers of the 2.1 kilometers planned in September, with shaft sinking expected to be completed in the first quarter of 2021. The project involves rehabilitating and deepening the shaft to link it with the newer Shaft #10. For more information, see Industrial Info's project report.
Elsewhere, in the wake of destroying indigenous sacred sites earlier this year in Australia, Rio Tinto said it has "taken a number of actions to strengthen cultural heritage governance and controls, and commenced the longer-term process of regaining the trust of traditional owners."
As part of its iron mining activities, the company destroyed two rock shelters in May at Juukan Gorge in Western Australia that were estimated to be 46,000 years old. The incident sparked dismay among traditional owner groups and widespread outrage, which in turn led to the announcement that Rio Tinto Chief Executive Jean-Sebastien Jacques would leave the company next year in March.
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.
