Wiki source code of Rio Tinto

Version 4.1 by Asif Farooqui on 2022/08/29 09:16
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5 = Summary =
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7 * Rio Tinto Plc is in the business of exploration, mining, and processing of mineral resources like Iron Ore, Aluminium, Copper and Diamonds, Energy and Minerals.
8 * Rio Tinto is world's number one copper producer
9 * Rio Tinto works across six continents in around 35 countries. Most of our assets are in Australia and North America, with operations also in Europe, Asia, Africa, and Central and South America.
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12 [[image:RIO0.png||height="156" width="721"]]
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15 Rio Tinto Plc (NYSE: RIO, LSE: RIO) is in the business of exploration, mining, and processing of mineral resources like Iron Ore, Aluminium, Copper and Diamonds, Energy and Minerals. The company has work in 35 countries includes mines, smelters and refineries, as well as in sales offices, data centres, research and development labs and with artificial intelligence.
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18 = Recent Developments =
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20 **Rio Tinto completes sale of Cortez Gold Royalty for $525 million in cash**{{footnote}}https://www.riotinto.com/news/releases/2022/Rio-Tinto-completes-sale-of-Cortez-Gold-Royalty-for-525-million-in-cash{{/footnote}}
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23 02 August 2022; Rio Tinto has completed the sale of a royalty it holds 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.
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26 The Cortez Royalty is a 1.2% gross production royalty on the Cortez gold mine that is operated by Nevada Gold Mines, a joint venture between Barrick Gold Corporation (“Barrick”) and Newmont Corporation; and the Fourmile project which is 100% owned and operated by Barrick. Rio Tinto obtained the royalty as partial consideration for the sale of its 40% interest in the Cortez Complex to Barrick in 2008. Royalty payments commence once the Cortez Complex has produced a total of 15 million ounces of gold since 2008. This is expected to occur imminently.
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29 Financial Highlights
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31 Half Year Results 2022
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33 Rio Tinto delivers underlying EBITDA of $15.6 billion and an interim dividend of 267 US cents per share
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35 27 July 2022; [[https:~~/~~/www.riotinto.com/news/releases/2022/Rio-Tinto-delivers-underlying-EBITDA-of-15,-d-,6-billion-and-an-interim-dividend-of-267-US-cents-per-share>>url:https://www.riotinto.com/news/releases/2022/Rio-Tinto-delivers-underlying-EBITDA-of-15,-d-,6-billion-and-an-interim-dividend-of-267-US-cents-per-share]]
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39 $10.5 billion net cash generated from operating activities, which was 23% lower than 2021 first half, flowed through to 30% lower free cash flow1 of $7.1 billion, which included a 6% decrease in capital expenditure to $3.1 billion, as its current programme of Pilbara replacement projects near completion.
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42 $15.6 billion underlying EBITDA1 was 26% below 2021 first half, with an underlying EBITDA margin of 50%.
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45 $8.9 billion of net earnings, 28% lower than 2021 first half, reflected the movement in commodity prices, the impact of higher energy prices on its operations and higher rates of inflation on its operating costs and closure liabilities. Effective tax rate on net earnings of 24.5% compared with 28.5% in 2021 first half.
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48 $0.3 billion of net cash at 30 June 2022, which compared with net cash1 of $1.6 billion at the start of the year, reflected the free cash flow of $7.1 billion, offset by $7.6 billion of cash returns to shareholders and the $0.8 billion Rincon acquisition.
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51 Full Year 2021
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53 $25.3 billion net cash generated from operating activities was 60% higher than 2020 driven by higher prices. This flowed through to 88% higher free cash flow of $17.7 billion, which included a 19% rise in capital expenditure to $7.4 billion.
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55 [[https:~~/~~/fintel.io/doc/sec-rio-tinto-plc-863064-20f-2022-february-25-19048-5537>>url:https://fintel.io/doc/sec-rio-tinto-plc-863064-20f-2022-february-25-19048-5537]]
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58 $21.1 billion of net earnings, 116% higher than 2020, reflected the higher prices, the impact of closure provision increases at Energy Resources of Australia (ERA) and other non-operating sites, $0.5 billion of exchange and derivative gains and $0.2 billion of impairments. Effective tax rate on net earnings of 27.7% compared with 33.1% in 2020.
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60 $37.7 billion underlying EBITDA was 58% above 2020, with an underlying EBITDA margin of 57%.
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62 $21.4 billion underlying earnings (underlying EPS of 1,321.1 US cents) were 72% above 2020 with a 28.0% effective tax rate on underlying earnings, compared with 29.5% in 2020.
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64 $1.6 billion of net cash at year end, compared with net debt of $0.7 billion at the start of the year, reflected the free cash flow1 of $17.7 billion, partly offset by $15.4 billion of cash returns to shareholders.
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66 $16.8 billion full-year dividend, equivalent to 1,040 US cents per share and 79% of underlying earnings, includes $6.7 billion record final ordinary dividend (417 US cents per share) and $1.0 billion final special dividend (62 US cents per share) declared today.
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69 Net debt reduced by $2.2 billion in 2021, resulting in a net cash position of $1.6 billion at 31 December 2021. This reflected its strong free cash flow, partly offset by dividend payments of $15.4 billion.
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72 Capital projects
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74 Iron Ore
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76 $0.9bn (Rio Tinto share) Investment in the Robe River Joint Venture (West Angelas C and D and Mesa B, C and H at Robe Valley) in the Pilbara to sustain production capacity.
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78 $2.6bn Investment in Gudai-Darri, a new production hub in the Pilbara region of Western Australia. The investment incorporates a processing plant and infrastructure including a 166-kilometre rail line connecting the mine to its existing network. Once complete, the mine will have an initial annual capacity of 43 million tonnes.
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81 Aluminium
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83 $0.8bn Investment in a second tunnel at the 1000MW Kemano hydropower facility at Kitimat, British Columbia, Canada, which will ensure the long-term reliability of the power supply to the Kitimat smelter.
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86 Copper
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88 $1.5bn for Phase two of the south wall pushback to extend mine life at Kennecott by a further six years.
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90 $6.925bn Development of the Oyu Tolgoi underground copper/gold mine in Mongolia (Rio Tinto 34%), which is expected to produce (from the open pit and underground) an average of ~~500,000 tonnes2 of copper per year from 2028 to 2036 and an average of ~~350,000 tonnes2 of copper per year for a further five years, compared with 163,000 tonnes in 2021 (open pit).
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93 Minerals
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95 $0.5bn for Development of the Zulti South project at Richards Bay Minerals (RBM) in South Africa (Rio Tinto 74%).
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97 $2.4bn Development of the greenfield Jadar lithium-borates project in Serbia. The development will include an underground mine with associated infrastructure and equipment, including electric haul trucks, as well as a beneficiation chemical processing plant.
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101 Operations
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104 The company work across six continents in around 35 countries. Most of its assets are in Australia and North America, with operations also in Europe, Asia, Africa, and Central and South America.
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106 [[https:~~/~~/www.riotinto.com/operations>>url:https://www.riotinto.com/operations]]
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108 To produce aluminium, copper, diamonds, gold, industrial minerals and iron ore, the company own and operate open pit and underground mines, mills, refineries, smelters, power stations, research and service facilities. The company also use its own railways, ports and ships to deliver materials to its customers.
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111 Australia
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113 Pilbara
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115 In the Pilbara region of Western Australia, the company own an integrated portfolio of iron ore assets: a world-class, integrated network of 17 mines
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117 Weipa
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119 The company's Weipa operations in Far North Queensland includes three bauxite mines, processing facilities, shiploaders, an export wharf, two ports, power stations, a rail network and ferry terminals.
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121 Yarwun Alumina Refinery
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123 Yarwun shipped its first alumina in late 2004 and today produces more than three million tonnes of alumina per year.
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125 Dampier Salt
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127 Dampier Salt Limited, located in Western Australia and comprising three solar salt operations – Dampier, Port Hedland and Lake MacLeod – is the world’s largest exporter of seaborne salt.
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129 Gove
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131 The company's Gove Operations have been supplying the global aluminium industry with world-class bauxite for more than 40 years.
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133 Bell Bay Aluminium
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135 Operating since 1955, Bell Bay holds a unique place in Tasmanian and Australian history as the first aluminium smelter in the Southern Hemisphere
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137 Boyne Smelters Limited
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139 Boyne Smelters Limited has been operating since 1982 and is Australia’s second largest aluminium smelter.
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141 Argyle
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143 Ceasing mining in 2020, Argyle was one of the world’s largest producers of diamonds and the largest supplier of natural coloured diamonds
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145 Energy Resources of Australia Ltd
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147 Energy Resources of Australia Ltd is one of Australia’s largest producers of uranium.
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150 Canada
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152 Saguenay – Lac-Saint-Jean
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154 An important hub for its aluminium business, the Saguenay – Lac-Saint-Jean region is responsible for close to half of its global aluminium production.
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156 BC Works
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158 The company's BC Works operation comprises a newly modernised aluminium smelter and the Kemano Powerhouse, a hydropower facility supplied by the Nechako reservoir
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160 Diavik
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162 About 200 kilometres south of the Arctic Circle sit some of the world’s most sought-after diamonds.
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164 Rio Tinto Fer et Titane
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166 RTFT operates an open cast titanium dioxide mine at Lac Tio near Havre-Saint-Pierre and, at its metallurgical complex in Sorel-Tracy, extracts high-quality titanium dioxide feedstock, pig iron, steel and metal powders from the ore.
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168 Iron Ore Company of Canada
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170 Iron Ore Company of Canada operations are integrated across Labrador City, Newfoundland and Labrador and Sept-Iles, Quebec.
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173 Iceland
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175 ISAL
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177 The company's ISAL aluminium smelter produces some of the highest quality, lowest carbon footprint aluminium in the world
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180 Madagascar
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182 QIT Madagascar Minerals
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184 The company's operation near Fort Dauphin in the Anosy region of south-eastern Madagascar produces ilmenite, which is a major source of titanium dioxide
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187 Mongolia
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189 Oyu Tolgoi
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191 Oyu Tolgoi is one of the largest known copper and gold deposits in the world. It is also one of the most modern, safe and sustainable operations in the world.
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194 New Zealand
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196 New Zealand’s Aluminium Smelter
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198 NZAS converts alumina into aluminium using renewable hydroelectricity, resulting in one of the lowest carbon footprints for an aluminium smelter in the world.
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201 South Africa
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203 Richards Bay Minerals
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205 The company's Richards Bay Minerals operation is a world leader in heavy mineral sands extraction and refining and is South Africa’s largest mineral sands producer.
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208 US
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210 Kennecott
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212 The company's Kennecott mine is a world-class, integrated copper mining operation that has been mining and processing minerals from the rich ore body of the Bingham Canyon Mine since 1903, and is even today one of the top producing mines in the world.
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214 Boron
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216 The company mine borates, a naturally occurring mineral, from its mine in Boron, California, which the company then refine and transform into products essential to modern living.
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219 Company History
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221 The company has great history from an ancient mine to the world's #1 copper producer
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223 [[https:~~/~~/www.riotinto.com/about/business/history>>url:https://www.riotinto.com/about/business/history]]
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226 <history table>
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228 {{putFootnotes/}}
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