By Rhiannon Hoyle


Rio Tinto, the world's second-biggest miner by market value, on Tuesday said it shipped more iron ore in the second quarter of 2024 versus a year ago, but produced less. It reported increased output of bauxite, aluminum and mined copper. Here are some remarks from the company's second-quarter production report.


On Pilbara iron-ore operations:

"We produced 79.5 million [metric] tons (Rio Tinto share 67.5 million tons) in the second quarter, 2% lower than the corresponding period of 2023. Productivity gains offset ore depletion, however production and shipping in the quarter were impacted by a train collision in mid-May, which resulted in around six days of lost rail capacity and full stockpiles at some mines.

Shipments of 80.3 million tons (Rio Tinto share 66.2 million tons) were 2% higher than the second quarter of 2023, with the draw down of port stocks. SP10 volumes accounted for 17% of shipments in the second quarter, in line with the first quarter of 2024."


On Kennecott copper mine:

"Mined copper production was 30% higher than the second quarter of 2023 following a conveyor outage in the prior period. However, production was 1% lower than the previous quarter following changes to the mine plan to manage geotechnical risk in our mining area. These changes delayed access to pit ore and resulted in additional lower grade stockpiled material being processed. The change in ore type also impacted recoveries.

We are currently reworking our mine plan and expect to provide a further update in our third quarter operations review. Our group full year mined copper production guidance is therefore expected to be around the bottom end of our 660,000 to 720,000 ton range."


On Escondida copper mine:

"Mined copper production was 12% higher than the second quarter of 2023 due to a 7% improvement in concentrator feed grade to 0.99% (0.93% in second quarter of 2023) as mining continued into higher grade zones, together with 12% higher concentrator output."


On Oyu Tolgoi copper mine:

"Mined copper production increased 23% from the second quarter of 2023. We continue to see good performance from the underground mine, with a total of 114 drawbells opened from Panel 0, including 14 during the quarter."


On bauxite mines:

"Bauxite production of 14.7 million tons was 9% higher than the second quarter of 2023. The increase reflects implementation of the Safe Production System, especially at Weipa where we achieved higher plant utilization and feed rates. As a consequence, our group full year bauxite production guidance is expected to be around the top end of our 53 to 56 million ton range."


On iron-ore markets:

"Strong seaborne supply maintained China's monthly average iron ore imports at almost 110 million tons in the quarter and portside inventories increased by 5 million tons to 149 million tons during the period. Lump premiums recovered strongly during the same period, while iron ore fines price relativities widened."


On copper markets:

"Chinese copper demand growth slowed moderately into the second quarter, as rising prices temporarily hit demand. Elsewhere, demand has stabilized in developed markets, with a notable decline in U.S. inventories. Globally, exchange inventories have increased but remain low on a historic basis. The copper concentrate market remains tight, which is reflected in historically low smelting and refining charges."


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

07-15-24 2058ET