Rio Tinto releases unaudited Q3 2022 production results

The Rio Tinto Group has announced an unaudited Q3 production highlights mentioning that 138,000 tonnes of mined copper were produced in Q3 2022, registering a 10 per cent increase from Q3 2021, as per a press release from the mining major. 
Rio Tinto’s increase in the mined copper production against the Q3 2021 is attributed to the higher grades and recoveries at Kennecott, partly offset by lower grades and recoveries at Oyu Tolgoi as a result of planned mine sequencing.
Rio Tinto’s refined copper production guidance has been reduced to 190 to 220 thousand tonnes as against the previous 230 to 290 thousand tonnes, given further downside risk associated with Kennecott’s smelter and refinery performance, until the company undertakes the largest rebuild in nine years which is planned for the second quarter of 2023.
On 27 September, Rio Tinto’s approved $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 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. 
Rio Tinto increased its diamond output to 1,192 carats in the third quarter of 2022, up 43% year-on-year and 4% more than in the second quarter of 2022. In the first nine months of this year, the company mined 3.33 million carats of rough against its annual production target of 4.5-5 million carats. This resulted in diamond output growth of 24% compared to the previous year. Rio Tinto was able to achieve this by completing the acquisition of the Diavik diamond mine in Canada in 2021, becoming its sole owner.
Rio Tinto entered into a binding agreement in September 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. Rio Tinto also completed the sale of 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 on 2 August 2022.
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 the 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 the unanimous support of the Turquoise Hill Board who have recommended shareholders vote in favour of the transaction.”

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished