Source - Alliance News

Rio Tinto PLC on Friday reported it produced less aluminium in the first half of 2022 due to strikes in Canada, while titanium dioxide slag production fell due to cyclones in Madagascar.

The Anglo-Australian miner produced 1.5 million tonnes of aluminium for the six months ended June 30, down 9% from the same period a year before. Following this, it lowered its aluminium production guidance for 2022 to 3.0 to 3.1 million tonnes from 3.1 to 3.2 million tonnes in its previous guidance.

‘Aluminium production of 700,000 tonnes was 10% lower than the second quarter of 2021 due to reduced capacity at our Kitimat smelter in British Columbia following the strike which commenced in July 2021. A controlled restart began at the end of the second quarter of 2022 with ramp-up progressing subject to plant stability,’ Rio Tinto explains.

Meanwhile, its titanium dioxide slag production fell 2% to 566,000 tonnes for the first half, due to operational disruptions following cyclones in Madagascar.

Pilbara iron ore production decreased 1% to 150.3 million tonnes due to stronger rainfall in May in Pilbara, Australia. For the second quarter, Pilbara production was up 4% year-on-year to 78.6 million tonnes as production volumes ramped up.

Rio Tinto mined 7% more copper in the first half of 2022, at 252,000 tonnes.

‘Higher rates of inflation have increased our closure liabilities with an impact to underlying earnings. In the first half of 2022, this resulted in increased charges of approximately $400 million pre-tax within underlying earnings compared with the first half of 2021, including a $300 million increase in amortisation of discount, with the remainder impacting earnings before interest, tax, depreciation and amortisation’ the company said.

‘We made progress against our four objectives during the first half and we are determined to further strengthen Rio Tinto while investing to grow in the commodities needed for the energy transition, decarbonise our portfolio, be a partner and employer of choice, maintain our tight capital allocation and continue to pay attractive dividends,’ said Chief Executive Officer Jakob Stausholm.

Shares in Rio Tinto were down 2.1% at A$93.96 on Friday in Sydney.

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