UK-Australian mining giant Rio Tinto reported a significant increase in earnings from its aluminium and copper sectors for the first half of 2024, reflecting robust operational performances and strategic acquisitions.
In the copper sector, Rio Tinto's earnings before interest, tax, depreciation, and amortisation (Ebitda) surged by 67% year-on-year, reaching $1.8 million. This impressive growth was largely driven by the ramp-up at the Oyu Tolgoi mine in Mongolia and the resumption of operations at the Kennecott smelter in the United States following its rebuild last year.
The company's mined copper production saw a 13% year-on-year increase, totaling 327,000 tons in the first half of the year. Notable contributions came from a 9% increase in output at the Escondida mine in Chile, an 18% rise at Kennecott, and a 15% boost at Oyu Tolgoi. Rio Tinto aims to achieve an annual copper production rate of 500,000 tons from 2028 to 2036.
Refined copper production also saw a substantial rise of 32% year-on-year, amounting to 125,000 tons in the first half, largely due to the restored operations at Kennecott. However, this was partly offset by a 19% decline in refined copper production at Escondida.
For 2024, Rio Tinto projects its mined copper output to be between 660,000 and 720,000 tons and refined copper production to range from 230,000 to 260,000 tons.
Rio Tinto’s aluminium business also demonstrated strong performance, with Ebitda climbing 38% year-on-year to $1.58 billion, while revenues increased by 4% to $6.49 billion. The company benefited from reduced costs for key raw materials such as caustic soda, coke, and pitch. Average all-in prices remained relatively stable, with rising London Metal Exchange aluminium prices being counterbalanced by lower premiums.
Aluminium production rose by 3% year-on-year to 1.65 million tons in the first half, with stable output across its smelter network. However, alumina production fell by 5% to 3.54 million tons, while bauxite production increased by 10% to 28.1 million tons.
In a strategic move to consolidate its aluminium operations, Rio Tinto acquired the stakes of Japanese firms Sumitomo Chemical and Mitsubishi in New Zealand Aluminium Smelters and Boyne Smelters, respectively. This acquisition solidifies Rio Tinto's control over these assets, enhancing its operational efficiency and market positioning.
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