# Rio Tinto production improved versus prior quarter across most sites

- Link: https://www.directorstalkinterviews.com/rio-tinto-production-improved-versus-prior-quarter-across-most-sites/4121086954
- Published: 2022-10-18T07:33:02+01:00
- Author: Amilia Stone

**[Rio Tinto plc](https://www.directorstalkinterviews.com/ftse-company/rio-tinto-plc/rio.l)**(
[LON:RIO](https://www.directorstalkinterviews.com/ftse-company/rio-tinto-plc/rio.l))
has released third quarter production results.

> **Rio Tinto Chief Executive Jakob Stausholm, said**: “Delivering the full potential
> of our assets remains a priority: production improved versus the prior quarter
> across most of our sites, particularly where we have implemented the Rio Tinto
> Safe Production System (RTSPS). We progressed our excel in development objective,
> commissioning some major projects and advancing the next tranche of Pilbara mines,
> agreeing to enter a joint venture with Baowu to develop Western Range and modernising
> the joint venture covering the Rhodes Ridge project in the East Pilbara, unlocking
> a pathway to develop this significant, high quality resource. We also approved
> growth capital for underground mining at Kennecott, early works funding at Rincon
> Lithium and continue to progress Oyu Tolgoi. Our proposal to take Turquoise Hill
> Resources private has unanimous support of the Turquoise Hill Board who have recommended
> shareholders vote in favour of the transaction.
> “We continue to deliver our strategy with decarbonisation at its centre. Last 
> week we announced a partnership with the Government of Canada to invest up to 
> C$737 million over eight years to decarbonise our Rio Tinto Fer et Titane operations
> in Québec, and to position the business as a centre of excellence for critical
> minerals processing.
> “We are taking action to transform our culture and rebuild trust, implementing
> the recommendations of the Everyday Respect report and publishing our second progress
> report on our Communities and Social Performance practices, which includes increased
> feedback from Traditional Owner groups, with responses from seven groups compared
> to four in 2021.”

| **Production\*** |   | **Q3****2022** | vs Q3
2021 | vs Q22022 | **9 MTHS****2022** | vs 9 MTHS2021 | 
| Pilbara iron ore shipments (100% basis) | **Mt** | **82.9** |    -1         % |     +4        % | **234.3** |    -1         % | 
| Pilbara iron ore production (100% basis) | **Mt** | **84.3** |     +1        % |     +7        % | **234.7** |   0            % | 
| Bauxite | **Mt** | **13.7** |    -2         % |    -3         % | **41.4** |     +1        % | 
| Aluminium | **kt** | **759** |    -2         % |     +4        % | **2,226** |    -7         % | 
| Mined copper | **kt** | **138** |       +10    % |     +9        % | **390** |     +8        % | 
| Titanium dioxide slag | **kt** | **310** |       +48    % |     +6        % | **876** |       +11    % | 
| IOC** iron ore pellets and concentrate | **Mt** | **2.8** |       +28    % |     +7        % | **7.8** |     +8        % |

_  *Rio Tinto share unless otherwise stated_

_  **Iron Ore Company of Canada_

**Q3 2022** **operational highlights and other key announcements**

•     In the last quarter we exceeded four years without a fatality on a managed
site. However, our all-injury frequency rate of 0.43 has deteriorated from the third
quarter of 2021 (0.40), and from the prior quarter (0.36). We continue to prioritise
the safety, health and wellbeing of our workforce and communities where we operate.

•     Pilbara operations produced 84.3 million tonnes (100% basis) in the third 
quarter, 1% higher than the third quarter of 2021, and 7% higher than the prior 
quarter with continued commissioning and ramp-up of Gudai-Darri and Robe Valley.
Shipments were 82.9 million tonnes (100% basis), 1% lower than the third quarter
of 2021, and 4% higher than the prior quarter despite two unplanned rail outages
on the Yandicoogina and Gudai-Darri lines. The investigation into the Gudai-Darri
derailment is ongoing. Full year shipments are expected to be at the low end of 
the original 320 to 335 million tonne range.

•     On 14 September, we agreed to enter a joint venture with China Baowu Steel
Group Co. Ltd with respect to the Western Range iron ore project in the Pilbara,
investing $2 billion ($1.3 billion Rio Tinto share^(1)) to develop the mine. Its
annual capacity of 25 million tonnes will help sustain production of the Pilbara
Blend, with construction expected to begin in early 2023 and first production anticipated
in 2025. The transaction with Baowu is subject to satisfaction of various conditions
precedent, including approvals from Rio Tinto shareholders, the Australian Government,
Chinese Government regulatory agencies and the Western Australian Government, among
others.

•     We have agreed, together with Wright Prospecting Pty Ltd, to modernise the
joint venture covering the Rhodes Ridge project in the East Pilbara, Western Australia.
The joint venture updates an existing agreement between the two parties dating back
to 1972 and now provides a pathway for the development of the Rhodes Ridge deposits
utilising Rio Tinto’s rail, port and power infrastructure. The participants have
commenced an Order of Magnitude study, to be conducted by Rio Tinto, which will 
consider the development of an operation before the end of the decade with initial
plant capacity of up to 40 million tonnes annually, subject to the receipt of relevant
approvals.

•     Bauxite production of 13.7 million tonnes was 2% lower than the third quarter
of 2021 due to equipment reliability issues at Gove.

•     Aluminium production of 0.8 million tonnes was 2% lower than the third quarter
of 2021, and 4% higher than the prior quarter as the Kitimat smelter continues to
ramp up and Boyne smelter cell recovery efforts progress as expected. The Kitimat
pot restarts are progressing but structural issues with the alumina conveyor system
caused disruptions through the quarter slowing the rate of pot restarts. We continue
to focus on full recovery during the course of 2023.

•     Mined copper production of 138 thousand tonnes was 10% higher than the third
quarter of 2021 due to higher grades and recoveries at Kennecott, partly offset 
by lower grades and recoveries at Oyu Tolgoi as a result of planned mine sequencing.
Refined copper production guidance has been reduced to 190 to 220 thousand tonnes(
previously 230 to 290 thousand tonnes), given further downside risk associated with
Kennecott’s smelter and refinery performance, until we undertake the largest rebuild
in nine years which is planned for the second quarter of 2023.

•     On 27 September, we announced approval of $55 million in development capital
to start underground mining and expand production at Kennecott. This will initially
focus on the Lower Commercial Skarn area, which will deliver a total of around 30
thousand tonnes^(2) of additional copper through the period to 2027 alongside open
cut operations. The first ore is expected to be produced in early 2023, with full
production in the second half of the year. Underground battery electric vehicles
are currently being trialled at Kennecott to improve employee health and safety,
increase productivity and reduce carbon emissions from future underground mining
fleets.

•     On 5 September, we entered into a binding agreement to acquire all of the 
remaining shares of Turquoise Hill Resources that Rio Tinto does not currently own,
subject to shareholder approval. The transaction delivers significant value to Turquoise
Hill minority shareholders with the certainty of an all-cash offer of C$43 per share(
with a total cash consideration of $3.3 billion), and provides greater certainty
of funding for the long-term success of the Oyu Tolgoi project.

•     Titanium dioxide slag production of 310 thousand tonnes was 48% higher than
the third quarter of 2021, due to community disruptions at Richards Bay Minerals
in South Africa in 2021, and continued improved performance of operations at Rio
Tinto Fer et Titane (RTFT), Canada.

•     Iron Ore Company of Canada (IOC) production of pellets and concentrate was
28% higher than the third quarter of 2021 due to improved operational performance
as well as timing of the planned annual maintenance shutdown (seven days) which 
was successfully completed in June (this work was completed in September in 2021).

•     This quarter marked 12 months since we began the roll-out of the Rio Tinto
Safe Production System (RTSPS). We now have 22 deployments at 13 sites and 63 rapid
improvement projects (Kaizens) completed or in progress. We are on track to meet
our 2022 target of 30 deployments at 15 sites.

•     In the third quarter, we entered into additional partnerships and progressed
initiatives to decarbonise our business and our value chains, including entering
strategic partnerships with Volvo Group and Ford Motor Company. We also joined the
First Movers Coalition, a global initiative to help commercialise zero-carbon technologies
by harnessing purchasing power and supply chains.

•     On 11 October, we announced a partnership with the Government of Canada to
invest up to C$737 million over the next eight years to decarbonise our Rio Tinto
Fer et Titane operations in Sorel-Tracy, Québec, and to position the business as
a centre of excellence for critical minerals processing. The partnership will also
support projects including BlueSmelting, a low-carbon ilmenite smelting technology,
increasing scandium production, and adding titanium metal to the portfolio. The 
Government of Canada is investing up to C$222 million over the next eight years 
through its Strategic Innovation Fund which supports large-scale, transformative,
and collaborative projects that will help position Canada to prosper in the global
knowledge-based economy. There is no impact to our current capital guidance.

•     On 20 July, we announced we reached agreement with the Australian Taxation
Office (ATO) on all tax matters in dispute. As part of this agreement, in August
we paid the ATO additional tax of A$613 million for the period from 2010 to 2021.
Over this period, Rio Tinto paid nearly A$80 billion in tax and royalties in Australia.

•     On 2 August, we completed the sale of a royalty on an area including the Cortez
mine operational area and the Fourmile development project in Nevada to RG Royalties
LLC, a direct wholly-owned subsidiary of Royal Gold Inc., for $525 million in cash.

•     In October, we entered into a definitive agreement with Uranium Energy Corp(
UEC) pursuant to which UEC will acquire 100% of Rio Tinto’s wholly owned Roughrider
uranium development project located in Saskatchewan, Canada for total consideration
of $150 million comprised of $80 million in cash and $70 million in UEC stock. The
transaction completed on 14 October.

•     On 29 September, we noted the independent valuation report released by Energy
Resources of Australia (ERA) on 26 September 2022, to determine a valuation of the
company as it seeks to address material cost and schedule overruns on the critical
Ranger rehabilitation project in Australia’s Northern Territory. Our consistent 
position is that the terms of any ERA funding solution should reflect fair value
having regard to: the material cost overruns and interim funding requirements; funds
raised will be dedicated strictly to rehabilitation and not any future development;
and the Traditional Owners, the Mirarr People’s consistently publicly stated opposition
to developing the Jabiluka uranium deposit.

•     On 6 October, we welcomed ERA’s announcement that it will renew its independent
board committee to introduce new perspectives to address the material cost and schedule
overruns on the critical Ranger rehabilitation project. We remain committed to ensuring
the rehabilitation is completed to a standard that will establish an environment
similar to the adjacent Kakadu National Park and continues to provide technical 
support to the project.

•     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)__Rio Tinto share includes 100% of funding costs for Paraburdoo plant
upgrades._

_^(2)__Lower Commercial Skarn production targets referred to in this release are
reported as recoverable copper and are underpinned as to 100% by Probable Ore Reserves.
These estimates of Ore Reserves were reported in a release to the Australian Securities
Exchange (ASX) dated 31 August 2022 “Rio Tinto Kennecott Mineral Resources and Ore
Reserves” (Table 1 Release) and have been prepared by Competent Persons in accordance
with the requirements of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves, 2012 (JORC Code)._

**2022 guidance**

| **Rio Tinto share, unless otherwise stated** | 2021 Actuals | **2022****Sept. YTD** | **2022****Previous** | **2022****Current** | 
| Pilbara iron ore (shipments, 100% basis) (Mt) | 322 | **234.3** | **320 to 335** | **320 to 335^(1)** | 
| Bauxite (Mt) | 54 | **41.4** | **54 to 57** | **Unchanged** | 
| Alumina (Mt) | 7.9 | **5.6** | **7.6 to 7.8** | **Unchanged** | 
| Aluminium (Mt) | 3.2 | **2.2** | **3.0 to 3.1** | **Unchanged** | 
| Mined copper (kt) | 494 | **390** | **500 to 575** | **Unchanged** | 
| Refined copper (kt) | 202 | **158** | **230 to 290** | **190 to 220** | 
| Diamonds^(2) (M carats) | 3.8 | **3.3** | **4.5 to 5.0** | **Unchanged** | 
| Titanium dioxide slag (Mt) | 1.0 | **0.9** | **1.1 to 1.4** | **Unchanged** | 
| IOC^(3) iron ore pellets and concentrate (Mt) | 9.7 | **7.8** | **10.0 to 11.0** | **Unchanged** | 
| Boric oxide equivalent (Mt) | 0.5 | **0.4** | **~0.5** | **Unchanged** |

_^(1)__At_ _the low end of the range._

_^(2)__Reflects 100% ownership of Diavik (previously 60%) from 1st November 2021._

_^(3)__Iron Ore Company of Canada._

•     Iron ore shipments and bauxite production guidance remain subject to weather
and market conditions.

•     Our guidance assumes development of the COVID-19 pandemic does not lead to
government-imposed restrictions and widespread protracted cases, which could result
in a significant number of our production and maintenance critical workforce and
contractor base being unable to work due to illness and/or isolation requirements.
This risk extends to prolonged interruption of service from a key partner or supplier
which could lead to severely constrained operational activity of a key asset or 
project.

•     Pilbara shipments guidance remains dependent on ramp-up of Gudai-Darri and
Robe Valley, availability of skilled labour and management of cultural heritage,
including any impacts from the Aboriginal Cultural Heritage Act 2021.

Operating costs

•     Pilbara iron ore 2022 unit cost guidance of $19.5-$21.0 per tonne remains 
unchanged. Operating cost guidance is based on A$:US$ exchange rate of 0.71 and 
excludes COVID-19 response costs.

•     Copper C1 unit cost guidance in 2022 has been revised to 150-170 US cents/
lb (previously 130-150 US cents/lb), following the reduction of the refined copper
guidance range.

**Investments, growth and development projects**

•     We progressed our excel in development objective, safely commissioning some
of our major projects in the period. We expect our share of capital investment to
be around $7.0 billion in 2022, reduced from $7.5 billion previously, due to the
stronger US dollar and reassessment on timing of decarbonisation investment. Our
best estimate of the investment required to decarbonise the business remains at 
$7.5 billion until 2030.

•     Exploration and evaluation expense in the first nine months of 2022 was $593
million, $77 million (15%) higher than the first nine months of 2021, with continued
ramp-up of activities in Guinea, Argentina and Australia.

**Pilbara mine projects**

•     We safely commissioned our Pilbara projects in the period despite challenging
conditions with COVID-19 labour and supply chain disruptions. The focus now moves
to the next tranche of Pilbara mines starting with Western Range.

•     At Gudai-Darri, the ramp up is progressing as planned and the full capacity
run rate is expected to be achieved during 2023.

•     At Robe Valley, the Mesa A rectification works were successfully completed
with the plant operating at full design rates. The final train load out tie-in works
at Mesa J were completed with first ore achieved in August.

•     The Western Range Iron Ore project is a $2 billion ($1.3 billion Rio Tinto
share^(1)) joint venture between Rio Tinto (54 per cent) and China Baowu Steel Group
Co. Ltd (46 per cent). Once completed, Western Range’s annual production capacity
of 25 million tonnes will help sustain production of the Pilbara Blend from Rio 
Tinto’s existing Paraburdoo mining hub. Early works commenced in September following
receipt of Western Australian Government State Agreement approval, with construction
of the mine expected to begin in early 2023 and first production anticipated in 
2025. The construction phase will support approximately 1,600 jobs and once operational,
the mine will require approximately 800 ongoing roles which are expected to be filled
by existing workers transitioning from other sites in the Paraburdoo mining hub.

•     The Greater Paraburdoo Iron Ore Hub proposal, inclusive of the Western Range
Iron Ore project, was approved under the Western Australian Environmental Protection
Act 1986 in August. As part of this approval process, we worked closely with the
Traditional Owners on whose country Western Range is situated, the Yinhawangka People,
to co-design a Social and Cultural Heritage Management Plan to protect significant
cultural and heritage values in the project area. The plan, which was announced 
earlier this year, outlines protocols for joint decision-making on environmental
matters and mine planning. We also continue to actively work with the Yinhawangka
People in relation to approvals required under the Western Australian Aboriginal
Heritage Act 1972 and Western Australian Aboriginal Cultural Heritage Act 2021.

**Oyu Tolgoi underground project**

_Technical progress_

•     Current on-site workforce levels are in line with the 2022 reforecast^(2).
There have been seven drawbells fired at the end of the quarter. The undercut and
draw bell progression remains on track to achieve first sustainable production from
Panel 0 in the first half of 2023.

•     At September, shafts 3 and 4 sinking reached 288 metres and 410 metres below
ground level respectively, with both sinking rates and achieved depths roughly in
line with 2022 reforecast. Construction of the final major stage of materials handling
infrastructure commenced in the second quarter of 2022 including civil and underground
works for the conveyor to surface.

•     Study work for Panels 1 and 2 (which are required to support the ramp-up to
95,000 tonnes of ore per day) remains on track to be completed in the first half
of 2023 and will incorporate any ventilation impacts due to the shaft 3 and 4 delays.

**Other key projects and exploration and evaluation**

•     At the Resolution Copper project in Arizona, the US Forest Service continues
work on the Environmental Impact Statement as part of the federal permitting requirements
for the project. We continue to consult and partner with local communities and Native
American tribes, as we progress our mine studies to further shape our understanding
of the orebody.

•     At the Winu copper-gold project in Western Australia, we are committed to 
a pathway that prioritises the highest standards on environmental and cultural heritage,
and strengthening Traditional Owner relationships. The pathway is expected to take
longer than originally anticipated and remains subject to regulatory and other required
approvals.

•     At the Simandou iron ore project in Guinea, discussions continue on the shareholders
agreement, finalising cost estimates and funding, and securing all necessary permits
and approvals regarding the project infrastructure. This follows the incorporation
of the joint venture company in July (La Compagnie du Transguinéen) between the 
government of the Republic of Guinea, Winning Consortium Simandou (WCS) and Rio 
Tinto Simfer to further progress plans to co-develop the multi-purpose, multi-user
infrastructure for the project. We progressed early works and hiring for critical
roles with a significant focus on Guinean local businesses, ahead of mobilisation
of a larger workforce over the coming months. Work at the mine site recommenced 
with the re-mobilisation of teams following the lifting of the stop work order issued
by the Government of Guinea in August.

•     At the Jadar lithium-borate project in Serbia, we are continuing to explore
all options. We acknowledge the concerns from local communities and are engaging
meaningfully to explore ways to address them.

•     At the Rincon lithium project in Argentina, we are progressing early works
including construction of a camp and airstrip. We are also developing a three thousand
tonne per annum lithium carbonate starter plant to accelerate market entry by the
first half of 2024, and de-risk the planned full scale operation. We continue to
engage with communities, the province of Salta and the Government of Argentina to
ensure an open and transparent dialogue with stakeholders about the works underway.
Detailed studies for the full scale operation are progressing.

_^(1)__Rio Tinto share includes 100% of funding costs for Paraburdoo plant upgrades._

_^(2)__A cost and schedule reforecast was performed in June 2022 and estimates that
$7.06 billion is required to complete the Hugo North 1 project (an increase of $
0.3 billion beyond the 2020 Definitive Estimate). The 2022 Reforecast excludes impacts
of COVID-19 restrictions arising after June 2022. The 2022 reforecast remains subject
to Oyu Tolgoi Board approval._

**[Sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news)
highlights**

We are implementing the 26 recommendations of the Everyday Respect report including
leadership training where we are on track to meet our target of 80% by the end of
the year, with 75% completion rate as of 30 September. All sites have completed 
safe and inclusive facilities self-assessments with initiatives to be rolled out
through next year, while safety rectifications are on track to be completed this
year. The Business Conduct Office is developing a discrete unit which will consist
of a team of specialists who deliver safe, confidential and caring support to those
impacted by harmful and disrespectful behaviours. We are currently designing a pilot
for Mongolia and Western Australia as the initial recipients of the discrete unit.

**Communities & Social Performance (CSP)**

To share our progress on the actions we have taken to improve our cultural heritage
approach and Indigenous participation and leadership, in the quarter we published
our second progress report on our CSP practices, which includes direct feedback 
from Traditional Owners and details the actions the company has taken to rebuild
relationships with Indigenous peoples and external stakeholders. We have seen increased
engagement with feedback from seven Traditional Owner groups compared to four in
2021 – which will enable us to continue to learn and improve.

In June 2021, Environmental Resources Management (ERM) were engaged to conduct independent
cultural heritage management audits across our business globally. They conducted
audits at Australian assets in 2021 and during 2022 the focus has been on assets
outside Australia. ERM has published a summary of insights and common findings from
our Australian businesses. These insights from the independent audit have informed
reviews of our Communities and Social Performance Standard, the Cultural Heritage
Management Group Procedure and guidance documentation.

On 28 July, we announced a commitment of A$75 million across 10 years to renew our
partnerships with the Shire of Ashburton and the City of Karratha to continue the
delivery of a range of important community projects across the two regions. The 
renewed partnerships will build upon and further strengthen Rio Tinto’s relationship
with local government partners.

In August, we announced a partnership with the Cheslatta Carrier Nation, a First
Nation in British Columbia, on an archaeological project that aims to better understand
the history of Indigenous communities and human migrations in North America. The
Cheslatta-led project will survey and excavate a variety of sites of cultural and
historical significance, some of which possibly span the past 10,000 years or more.
We will contribute C$2.8 million dollars to this Indigenous-led research initiative,
which builds on the New Day agreement signed in 2020 between the Cheslatta Carrier
Nation and the company to promote the social and economic well-being of the Cheslatta
community.

On 6 October, we announced the signing of a Memorandum of Understanding (MOU) with
the Mayor’s Office of Ulaanbaatar City and National Amusement Park LLC to undertake
a restoration project in the National Amusement Park. Under the partnership, Rio
Tinto Mongolia will restore 10 hectares of land, between the Children’s Palace and
the Sun Road, located in the western section of the National Amusement Park.

In the quarter, Rio Tinto representatives met other members of the Panguna Impact
Assessment Oversight Committee in person for the first time in Buka, Bougainville.
The consulting firm to undertake the impact assessment is expected to be engaged
in October 2022 with the first phase planned to take 18 to 24 months. In advance
of the impact assessment formally commencing in the fourth quarter of this year,
technical consulting firm Tetra Tech Coffey has been on the ground in Bougainville
investigating priority issues relating to the levee between the Jaba and Kawerong
rivers.

Key highlights from the quarter are outlined above, with further information available
on our website. 

**Climate change, product stewardship and our value chain**

We progressed initiatives in the third quarter working to decarbonise our business
and actively develop technologies to decarbonise our value chains.

•     On 21 July, we signed a non-binding global MOU with Ford Motor Company to 
jointly develop more sustainable and secure supply chains for battery and low-carbon
materials to be used in Ford vehicles. The multi-materials partnership will support
the transition toward a net-zero future by supplying Ford with materials including
lithium, low-carbon aluminium and copper.

•     On 26 August, we announced an investment of $29 million to build a new aluminium
recycling facility at our Arvida Plant in Saguenay-Lac-Saint-Jean, Quebec, to expand
its offering of low-carbon aluminium solutions for customers in the automotive, 
packaging and construction markets. The facility will make Rio Tinto the first primary
producer in North America to incorporate recycled post-consumer aluminium into aluminium
alloys.

•     On 13 September, we announced we had signed an MOU with Volvo Group to create
a strategic partnership where Rio will supply responsibly sourced low-carbon products
and solutions to Volvo Group and the companies will work towards decarbonising our
operations through piloting Volvo Group’s sustainable autonomous hauling solutions.

•     On 20 September, we announced we would join the First Movers Coalition (FMC),
a global initiative to help commercialise zero-carbon technologies by harnessing
purchasing power and supply chains. The initiative is led by the World Economic 
Forum and the US Government and targets sectors including aluminium, aviation, chemicals,
concrete, shipping, steel, and trucking, which are responsible for 30 per cent of
global emissions. We have joined the shipping, trucking and aviation categories 
working closely with the FMC team to determine how it practically integrates the
intent of the commitments in the context of Rio Tinto’s global operations.

•     On 22 September, we announced an MOU with Shougang Group, one of the world’s
top 10 steel producers, to promote research, design and implementation of low-carbon
solutions for the steel value chain. The MOU’s focus areas include low-carbon sintering
technology, blast furnace and basic oxygen furnace optimisation, and carbon capture
and utilisation.

•     On 25 September, Tomago Aluminium Company, New South Wales, Australia called
for Expressions of Interest to develop, invest in or procure long-term traceable
renewable energy and dispatchable firm power generation projects or contracts, to
underpin its decarbonisation strategy and net-zero ambition. Tomago Aluminium is
an independently managed joint venture 51.55 per cent owned by Rio Tinto.

•     On 29 September, we announced we had started producing spodumene concentrate,
a mineral used in the production of lithium for batteries, at a demonstration plant
in our metallurgical complex in Sorel-Tracy, Canada. The plant will demonstrate 
at industrial scale a new spodumene concentration process that provides lithium 
oxide grades and recoveries well above the industry average.

•     On 6 October, we announced an agreement with international energy company 
Voltalia and local Black Economic Empowerment (BEE) partners, to supply renewable
solar power at our Richards Bay Minerals (RBM) operation in KwaZulu-Natal, South
Africa. The power plant is scheduled to be complete by 2024 and is expected to cut
RBM’s annual greenhouse gas emissions by at least 10 per cent (compared to 2018 
baseline emissions), or 237kt CO2e per year.

•     On 11 October, we announced a partnership with the Government of Canada to
invest up to C$737 million over the next eight years to decarbonise our Rio Tinto
Fer et Titane operations in Sorel-Tracy, Québec, and to position the business as
a centre of excellence for critical minerals processing. The partnership will also
support projects including BlueSmelting, a low-carbon ilmenite smelting technology,
increasing scandium production, and adding titanium metal to the portfolio. The 
Government of Canada is investing up to C$222 million over the next eight years 
through its Strategic Innovation Fund which supports large-scale, transformative,
and collaborative projects that will help position Canada to prosper in the global
knowledge-based economy. There is no impact to our current capital guidance.

**Our markets**

Commodity prices continued their downward trend during the quarter and there are
further downside risks to demand as the global economy slows. Labour markets are
holding up relatively well although consumer confidence has waned. Fears of recession
are emerging on the implementation of aggressive interest rate hikes in the US and
Europe, while a weak property sector continues to weigh on China’s economy. Freight
rates are falling amid slowing global trade as global supply chains show signs of
improvement.

•     China’s economy has been challenged by ongoing COVID-lockdowns, power shortages
in summer, and continued weakness in the property market. Even as the government
maintains a dynamic zero-COVID policy, it has increased policy support to help relieve
industries and restore confidence. The recovery has been uneven across sectors, 
with the policy-induced acceleration in infrastructure spending, car sales and exports
providing key drivers of growth during the quarter. However, slowing global demand
poses downside risks to China’s strong exports, while consumers remain cautious 
of the property market.

•     The US economy is showing more signs of a slowdown even though employment 
trends are still holding up positively. Consumers are spending more cautiously, 
industrial production growth is more subdued and corporate profits have edged lower.
Inflation remains elevated despite easing gasoline prices. This has prompted a more
hawkish position by the Federal Reserve, which is expected to continue its aggressive
rate hikes even after three consecutive 75 basis point hikes this year.

•     The Eurozone’s economic growth outlook has deteriorated, as inflation climbed
further, and the latest data points suggest the region’s economy could be already
in contraction. The European Central Bank is expected to continue its rate hikes
to curb inflation, while industrial output could be further curtailed if energy 
shortages persist.

•     Iron ore Platts CFR prices trended down from $120/dmt to $96/dmt during the
third quarter (averaging $103/dmt, down from $138/dmt during the second quarter)
as the loss of confidence in China’s property market and COVID-related disruptions
to construction activity curtailed China’s steel production and consumption by ~
9% August year to date versus the same period of 2021. The major iron ore producers
shipped the same aggregate volume during the first three quarters of 2022 as they
did over the same period of 2021. With supply from other producers down 17% year
to date – due to, among other factors, the war in Ukraine and export taxes in India–
total seaborne supply contracted 4.5% during August year to date versus the same
period of 2021.

•     The LME aluminium price extended further losses, dropping 20% over the quarter,
averaging $2,354/t. Additional smelter curtailments in Europe and China on high 
power prices and low hydropower generation, respectively, were insufficient to offset
the weak macro environment. Aluminium demand has deteriorated, especially in Europe,
which placed downward pressure on prices. Shipments in the US and Canada have been
resilient and there are signs of improvement in demand in China.

•     The copper LME price dropped 7% over the third quarter to $3.47/lb. A strong
US dollar, tightening monetary policy and challenging economic outlook weighed on
market sentiment. Nevertheless, prices have been partly supported by supply concerns
and low exchange inventories, which currently remain at multi-year lows.

•     The electric vehicle (EV) market continues to experience strong growth, supported
by government policies, while EV producers roll out new models to take market share
at the expense of internal combustion engine vehicles. Lithium carbonate prices 
remain elevated on strong demand. Power rationing in China’s Sichuan province (a
key lithium supply hub) also led to production cuts and market tightness during 
the quarter.

**IRON ORE**

| **Rio Tinto share of production (Million tonnes)** | **Q3****2022** | vs Q3
2021 | vs Q22022 | **9 MTHS****2022** | vs 9 MTHS2021 | 
| Pilbara Blend and SP10 Lump^(1) | **21.3** |     +8        % |       +10    % | **57.7** |     +3        % | 
| Pilbara Blend and SP10 Fines^(1) | **32.6** |     +6        % |     +8        % | **88.5** |     +1        % | 
| Robe Valley Lump | **1.4** |    -2         % |       +18    % | **3.6** |    -8         % | 
| Robe Valley Fines | **2.2** |    -6         % |       +15    % | **5.7** |      -10     % | 
| Yandicoogina Fines (HIY) | **13.5** |      -14     % |     +1        % | **41.5** |    -2         % | 
| Total Pilbara production | **71.0** |     +1        % |     +7        % | **197.0** |   0            % | 
| Total Pilbara production (100% basis) | **84.3** |     +1        % |     +7        % | **234.7** |   0            % |

| **Rio Tinto share of shipments (Million tonnes)** | **Q3****2022** | vs Q3
2021 | vs Q22022 | **9 MTHS****2022** | vs 9 MTHS2021 | 
| Pilbara Blend Lump | **15.3** |       +18    % |       +21    % | **38.8** |   0            % | 
| Pilbara Blend Fines | **31.6** |     +9        % |       +26    % | **78.5** |    -8         % | 
| Robe Valley Lump | **1.3** |       +33    % |       +32    % | **2.9** |   0            % | 
| Robe Valley Fines | **2.4** |    -7         % |     +4        % | **6.4** |      -10     % | 
| Yandicoogina Fines (HIY) | **13.5** |    -9         % |    -5         % | **42.2** |    -1         % | 
| SP10 Lump^(1) | **1.6** |      -66     % |      -63     % | **9.9** |      -12     % | 
| SP10 Fines^(1) | **3.8** |    -7         % |      -44     % | **17.6** |       +80    % | 
| Total Pilbara shipments^(2) | **69.5** |   0            % |     +4        % | **196.4** |    -1         % | 
| Total Pilbara shipments (100% basis)^(2) | **82.9** |    -1         % |     +4        % | **234.3** |    -1         % | 
| Total Pilbara Shipments (consolidated basis)^(2, 3) | **71.4** |   0            % |     +5        % | **201.3** |    -1         % |

_^(1)_ _SP10 includes other lower grade products._

_^(2)_ _Shipments includes material shipped from the Pilbara to our portside trading
facility in China which may not be sold onwards by the group in the same period._

_^(3)_ _While Rio Tinto has a 53% net beneficial interest in Robe River Iron Associates,
it recognises 65% of the assets, liabilities, sales revenues and expenses in its
accounts (as 30% is held through a 60% owned subsidiary and 35% is held through 
a 100% owned subsidiary). The consolidated basis sales reported here include Robe
River Iron Associates on a 65% basis to enable comparison with revenue reported 
in the financial statements. _

**Pilbara operations**

We produced 84.3 million tonnes (Rio Tinto share 71.0 million tonnes) in the third
quarter, 1% higher than the corresponding period of 2021, and 7% higher than the
prior quarter with continued commissioning and ramp-up of Gudai-Darri and Robe Valley.
We produced less SP10 this quarter compared to the prior quarter.

Third quarter shipments of 82.9 million tonnes (Rio Tinto share 69.5 million tonnes)
were 1% lower than the third quarter of 2021, and 4% higher than the prior quarter
despite two unplanned rail outages on the Yandicoogina and Gudai-Darri lines. The
investigation into the Gudai-Darri derailment is ongoing. Full year shipments are
expected to be at the low end of the original 320 to 335 million tonne range.

There were some encouraging performance trends in the third quarter in relation 
to mine material movements, build-up of run of mine ore stocks and continued ramp
up of new projects. Deployment of the Rio Tinto Safe Production System continues
to see positive results at West Angelas, Yandicoogina, Tom Price, and Brockman 4.

Approximately 11% of sales in the nine months were priced by reference to the prior
quarter’s average index lagged by one month. The remainder was sold either on current
quarter average, current month average, average of two months, forward month or 
on the spot market. Approximately 29% of sales in the third quarter were made on
a free on board (FOB) basis, with the remainder sold including freight.

**China Portside Trading**

We continue to increase our iron ore portside sales in China, with 19.5 million 
tonnes of sales in the first nine months of 2022 (8.9 million tonnes in the first
nine months of 2021). At the end of the September, inventory levels are 5.5 million
tonnes, including 3.0 million tonnes of Pilbara product. In the first nine months
of 2022 approximately 77% of our portside sales were either screened or blended 
in Chinese ports.

**ALUMINIUM**

| **Rio Tinto share of production (‘000 tonnes)** | **Q3****2022** | vs Q3
2021 | vs Q22022 | **9 MTHS****2022** | vs 9 MTHS2021 | 
| Bauxite | **            13,680** |    -2         % |    -3         % | **            41,437** |     +1        % | 
| Bauxite third party shipments | **              9,049** |      -10     % |    -6         % | **            28,783** |     +1        % | 
| Alumina | **              1,838** |    -5         % |    -1         % | **              5,603** |    -6         % | 
| Aluminium | **                 759** |    -2         % |     +4        % | **              2,226** |    -7         % |

**Bauxite**

Bauxite production of 13.7 million tonnes was 2% lower than the third quarter of
2021 due to equipment reliability issues at Gove.

We shipped 9.0 million tonnes of bauxite to third parties in the third quarter, 
10% lower than the same period of 2021, due to vessel loading constraints at Weipa.

**Alumina**

Alumina production of 1.8 million tonnes was 5% lower than the third quarter of 
2021. The Yarwun refinery successfully completed planned shutdowns in the third 
quarter and improved its operating stability.  Queensland Alumina Limited (QAL) 
was impacted by lower operational stability as a result of equipment reliability.

As the result of QAL activation of a step-in process following sanction measures
by the Australian Government, Rio Tinto has taken on 100% of capacity for as long
as the step-in continues. This results in use of Rusal’s 20% share of capacity by
Rio Tinto under the tolling arrangement with QAL. This additional output is excluded
from the production tables in this report as QAL remains 80% owned by Rio Tinto 
and 20% owned by Rusal.

**Aluminium**

Aluminium production of 0.8 million tonnes was 2% lower than the third quarter of
2021, and 4% higher than the prior quarter as the Kitimat smelter continues to ramp
up and Boyne smelter cell recovery efforts progress as expected. The Kitimat pot
restarts are progressing but structural issues with the alumina conveyor system 
caused disruptions through the quarter slowing the rate of pot restarts. We continue
to focus on full recovery during the course of 2023.

The LME aluminium price extended further losses, dropping 20% over the quarter, 
averaging $2,354/t, while raw materials and energy prices remained at the same levels
of the second quarter, putting more pressure on margins.

Boyne Smelter has been increasingly impacted by the significant coal price escalation
in Queensland, Australia for its 50% exposure to spot thermal coal prices. Coal 
contracts will be renewed for 2023 onwards.

**COPPER**

| **Rio Tinto share of production (‘000 tonnes)** | **Q3****2022** | vs Q3
2021 | vs Q22022 | **9 MTHS****2022** | vs 9 MTHS2021 | 
| **Mined copper** |   |   |   |   |   | 
| Kennecott | **50.7** |       +19    % |       +50    % | **131.7** |       +20    % | 
| Escondida | **75.1** |       +10    % |    -9         % | **225.6** |     +7        % | 
| Oyu Tolgoi | **12.2** |      -13     % |       +19    % | **32.6** |      -22     % | 
|   |   |   |   |   |   | 
| **Refined copper** |   |   |   |   |   | 
| Kennecott | **39.2** |       +10    % |       +20    % | **112.2** |    -5         % | 
| Escondida | **14.9** |     +1        % |      -11      % | **46.0** |     +4        % |

**Kennecott**

Mined copper production was 19% higher than the third quarter of 2021, and 50% higher
than the prior quarter with significant progress into higher grades following the
transition to the south wall (averaging 0.54% in the first nine months), higher 
recoveries and strong mill performance driving higher ore milled.

Refined copper production guidance has been reduced to 190 to 220 thousand tonnes(
previously 230 to 290 thousand tonnes), given further downside risk associated with
Kennecott’s smelter and refinery performance, until we undertake the largest rebuild
in nine years which is planned for the second quarter of 2023.

**Escondida**

Mined copper production was 10% higher than the third quarter of 2021 mainly due
to expected higher concentrator feed grade and higher recoverable copper in ore 
stacked for leaching mainly due to higher material stacked in both oxide and sulphide
leach.

**Oyu Tolgoi**

Mined copper production from the open pit was 13% lower than the third quarter of
2021 due to lower copper grades and recoveries as a result of planned mine sequencing.
Mined copper was 19% higher than the prior quarter with higher milled ore and slightly
higher copper grades. Gold grades were significantly lower than the third quarter
of the prior year (0.22% vs 0.63%), due to mine planning sequence.

**Nuton^(TM)**

Rio Tinto made a $25 million investment in McEwen Copper Inc. through its copper
leaching technology venture, Nuton. In connection with the investment, a Nuton Collaboration
Agreement allows the parties to test Nuton technologies at McEwen Copper’s Los Azules
development project in Argentina.

**MINERALS**

| **Rio Tinto share of production (million tonnes)** | **Q3****2022** | vs Q3
2021 | vs Q22022 | **9 MTHS****2022** | vs 9 MTHS2021 | 
| **Iron ore pellets and concentrate** |   |   |   |   |   | 
| IOC | **2.8** |       +28    % |     +7        % | **7.8** |     +8        % | 
|   |   |   |   |   |   | 
| **Rio Tinto share of production (‘000 tonnes)** | **Q3****2022** | vs Q32021 | vs Q22022 | **9 MTHS****2022** | vs 9 MTHS2021 | 
| **Minerals** |   |   |   |   |   | 
| Borates – B_(2)O_(3) content | **130** |     +6        % |    -5         % | **391** |     +5        % | 
| Titanium dioxide slag | **310** |       +48    % |     +6        % | **876** |       +11    % | 
|   |   |   |   |   |   | 
| **Rio Tinto share of production (‘000 carats)** | **Q3****2022** | vs Q32021 | vs Q22022 | **9 MTHS****2022** | vs 9 MTHS2021 | 
| Diavik^(1) | **              1,192** |       +43    % |     +4        % | **              3,333** |       +24    % |

_^(1)_ _Reflects 100% ownership of Diavik (previously 60%) from 1st November 2021._

**Iron Ore Company of Canada (IOC)**

Iron ore production was 28% higher than the third quarter of 2021, due to improved
operational performance as well as timing of the planned annual maintenance shutdown(
seven days) which was successfully completed in June (this work was completed in
September in 2021).

**Borates**

Borates production in the third quarter was 6% higher than the corresponding period
of 2021 with strong production rates and higher grades as well as improved equipment
reliability versus the same period in 2021. We continued to experience logistical
challenges with high congestion at the Port of Los Angeles and shipping rates at
elevated levels due to high wait times on containerships.

**Iron and Titanium**

Titanium dioxide production was 48% higher than the third quarter of 2021, due to
community disruptions at Richards Bay Minerals in South Africa in 2021, and continued
improved performance of operations at Rio Tinto Fer et Titane, Canada. The energy
situation in South Africa is a critical risk and we are monitoring the situation
closely.

**Diamonds**

At Diavik, our share of carats was 43% higher than the third quarter of 2021 due
to the benefit of our increased share of production since taking 100% ownership 
of Diavik from November 2021.

**EXPLORATION AND EVALUATION**

Pre-tax and pre-divestment expenditure on exploration and evaluation charged to 
the profit and loss account in the first nine months of 2022 was $593 million, compared
with $516 million in the first nine months of 2021. Approximately 39% of this expenditure
was incurred by Copper (includes Simandou), 31% by central exploration, 22% by Minerals
and 8% by Iron Ore.

**Exploration highlights**

Rio Tinto has a strong portfolio of projects with activity in 18 countries across
seven commodities in early exploration and studies stages. The bulk of the exploration
expenditure in the third quarter of 2022 focused on copper in Australia, Peru, Zambia
and the United States, diamonds in Canada and Angola, and nickel in Canada and Finland.
Mine-lease exploration continued at Rio Tinto managed businesses including Pilbara
Iron in Australia, Diavik in Canada and Cape York in Australia.

In October, we entered into a definitive agreement with Uranium Energy Corp (UEC)
pursuant to which UEC will acquire 100% of Rio Tinto’s wholly owned Roughrider uranium
development project located in the Athabasca Basin in Saskatchewan, Canada for total
consideration of $150 million comprised of $80 million in cash and $70 million in
UEC stock. The transaction completed on 14 October.

The Falcon Project in Saskatchewan, Canada, will remain in care and maintenance 
until the end of 2022 during which time Rio Tinto will consider alternative commercial
options, including potential exit.

A summary of activity for the quarter is as follows:

| **Commodities** | **Studies Stage** | **Advanced projects** | **Greenfield/ Brownfield programmes** | 
| **Bauxite** |   | Amargosa, Brazil*,Sanxai, Laos* | Melville Island, AustraliaCape York, Australia | 
| **Battery Materials** | Rincon Lithium, ArgentinaLithium borates: Jadar, SerbiaNickel: Tamarack, US (3rd party operated) |   | Nickel Greenfield: Australia, Canada, Finland, PeruLithium Greenfield: US, Australia | 
| **Copper** | Copper/molybdenum: Resolution, USCopper/Gold: Winu, Australia | Copper: La Granja, Peru, Pribrezhniy, KazakhstanCalibre-Magnum, Australia | Copper Greenfield: Australia, Brazil, Canada, Chile, China, Colombia, Finland, Kazakhstan, Namibia, Laos, Peru, Serbia, US, Zambia | 
| **Diamonds** | Falcon, Canada* |   | Diamonds Greenfield: Canada, AngolaDiamonds Brownfield: Diavik | 
| **Iron Ore** | Pilbara, AustraliaSimandou, Guinea | Pilbara, Australia | Greenfield and Brownfield: Pilbara, Australia | 
| **Minerals** | Potash: KL262*, CanadaHeavy mineral sands: Mutamba, Mozambique |   | Heavy mineral sands Greenfield: Australia, South Africa |

_*Limited activity during the quarter_

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