On schedule: An employee standing near trays of jadarite containing lithium and borate at the Rio research centre in Loznica, Serbia. The firm says production may start in 2026 and reach an output of 58,000 tonnes of lithium carbonate in 2029. — Bloomberg
PERTH: Rio Tinto Group says second-quarter shipments of iron ore from Western Australia rose modestly even as Chinese demand softened, while the company’s copper output jumped by almost a fifth.
The increase in exports of iron ore used to make steel came even as the miner said Chinese demand for the alloy was “muted” as the country’s property market struggles to emerge from a prolonged downturn.
China continued to be “supported by a manufacturing recovery and more resilient exports”, Rio said in a filing yesterday.
The production of copper, an essential metal for the energy transition, rose as output was ramped up at Rio’s mine in Mongolia.
Iron ore prices have dropped by more than a fifth this year, largely due to a lack of demand from China’s property market, although that’s been partially offset by supportive policy moves by Beijing.
Prices are likely to remain above US$100 a tonne this year but could decline from 2025 on a wave of new supply, including from Rio’s Simandou project in Guinea.
Rio, one of the world’s biggest miners, exported 80.3 million tonnes of iron ore over the three months through June.
Guidance for its Pilbara operations for the full year remains between 323 million tonnes and 338 million tonnes with cash costs of US$21.75 to US$23.50 per tonne.
“The government has provided additional measures for the market to destock the large inventory overhang,” Rio said. “However, housing activity remains weak.”
All conditions have now been satisfied for Simandou to be developed, including the Guinean and Chinese regulatory approvals, the miner said.
The Simfer mine at the project is on track to deliver first production in 2025, ramping up over 30 months to an annualised capacity of 60 million tonnes a year, it said.
For copper, production at the Oyu Tolgoi underground mine in Mongolia increased by 23% in the second quarter from a year earlier.
Total output of the red metal was 171,000 tonnes, up 18% on the previous year. Aluminium production rose by 1% to 824,000 tonnes. Iron ore still generates around 60% of the miner’s revenue, but Rio is making progress in diversifying output.
“We are growing with discipline in the materials the world needs for the energy transition,” chief executive officer Jakob Stausholm said in the statement.
Rio is also set to bring its Western Range iron ore mine, which is 70% complete, in the Pilbara online next year.
It also has five additional iron ore projects in the region, intended as backfill for its existing ageing portfolio in the area.
The miner said it’s on track to begin production at its Rincon lithium project in Argentina and is also moving ahead with mines for battery metal in Canada and Serbia. — Bloomberg
