Rio Tinto

Serbian President Aleksandar Vucic is reportedly set to allow Anglo-Australian mining and minerals company Rio Tinto to start Europe’s largest lithium mine, which Serbia had previously halted two years ago, according to the Financial Times. President Vucic mentioned that “new guarantees” from Rio Tinto and the European Union are likely to meet Serbia’s environmental standards at the Jadar site in the country’s west. Rio Tinto, the world’s largest iron ore producer, stated, “We believe the Jadar project can become a top-tier asset that could help establish an electric vehicle (EV) value chain in Serbia.” Lithium, considered a vital material by the EU and the United States for its use in EV and mobile device batteries, plays a significant role. President Vucic noted, “If we meet all commitments, the mine could open by 2028,” projecting an annual output of 58,000 tons of lithium, which would cover “17% of EV production in Europe — roughly 1.1 million vehicles.” In 2022, after significant environmental protests, Serbia revoked Rio Tinto’s permit for the $2.4 billion Jadar project. If completed, the project could meet 90% of Europe’s current lithium demands, positioning the company as a top lithium supplier. In response to environmental concerns, Serbian activists gathered 30,000 signatures in 2021 and 2022, petitioning for legislation to stop lithium exploration in Serbia. 19-June-2024

 

Rio Tinto (ASX: RIO), the world’s largest iron ore producer, announced a $165 million investment in the Grande-Baie smelter in Quebec, Canada. This funding will refurbish two anode baking furnaces that have reached the end of their service life. The Anglo-Australian mining and minerals giant will also conduct feasibility studies for replacing the scrubbers and overhead bridge cranes at the anode production center. The reconstruction of the concrete shell and refractory lining of these furnaces is scheduled for 2025 and 2026. Rio Tinto emphasized that this upgrade will secure a competitive supply of anodes to the Grande-Baie and Laterrière plants for many years ahead. Additionally, Rio Tinto plans to neutralize carbon emissions from the construction activities through initiatives like tree planting near the aluminum smelter. Martin Lavoie, the operations director for Grande-Baie and Laterrière, stated, “The refurbishment of the Grande-Baie smelter’s anode baking furnaces is a crucial investment that will sustain the responsible production of aluminum in the region, ensuring its competitiveness and generating substantial economic benefits for decades.” Rio Tinto expressed enthusiasm about progressing with this project in the upcoming years, working closely with employees and local business partners. The company had previously completed a similar furnace replacement at its Alma aluminium smelter in 2021. 18-June-2024

 

The strong demand for capesize bulkers continued to rise steadily on Wednesday, reaching a 17-month high. Analysts attribute this surge to the limited availability of vessels in the Atlantic basin. According to the Baltic Exchange, the Capesize 5TC increased by 2.4% on 17 October 2023, reaching $31,100 per day. This marks the second consecutive day above $30,000 per day and is a significant increase from the low of $8,266 observed in September. The last time the 5TC exceeded $30,000 per day was in late May 2022. This trend is particularly pronounced in the Atlantic basin, where rates have surged to nearly $42,000 per day, while the Pacific basin lags behind at $26,000 per day. Despite robust shipping volumes, shipbrokers attribute the rate surge in the Atlantic to a constrained fleet capacity. For instance, the average spot rate for the transatlantic roundtrip C8 voyage between Brazil and Europe has increased by 700% since early September 2023, reaching nearly $41,800 per day on Wednesday. The transatlantic roundtrip C14 voyage between Brazil and China has also improved by 146% in the same period, reaching almost $23,300 per day on Wednesday. Even the average spot rate for the transatlantic roundtrip C10 voyage between Australia and China, though just above $26,000 per day, has increased by 143% since early September 2023, reaching $26,200 per day on Wednesday. On 17 October 2023, Anglo-Australian minerals and mining giant Rio Tinto contracted a capesize bulk carrier at $11.15 per tonne to transport 170K metric tonnes of iron ore from Dampier to Qingdao, with loading scheduled from 1-3 November 2023. The Atlantic basin’s share of the global capesize fleet stood at 21% as of last week, down from 24% in late September 2023. This reduced availability has led charterers to pay higher rates to attract ballasting ships from the Far East. Additionally, rising port congestion has tied up an additional 1% of the capesize and panamax bulk carriers in the past week, and Brazilian iron ore giant Vale reported a 6.6% increase in Q3 2023 sales compared to Q3 2022. 18-October-2023

 

Mitsubishi Ore Transport has entered into a five-year charter agreement with Anglo-Australian mining giant Rio Tinto. The Japanese bulk carrier owner will provide a newly built post-panamax bulk carrier for this arrangement. This 87,000-dwt vessel, set to be delivered from Oshima Shipyard in March of the upcoming year, will be tasked with transporting bauxite between Queensland, Australia, and China on behalf of Rio Tinto. It’s worth noting that in March 2023, NYK Line acquired control of Mitsubishi Ore Transport Co., Ltd. (MOT). NYK obtained all the shares of MOT from Mitsubishi Corp. (MC), Tokio Marine & Nichido Fire Insurance Co., Ltd. (Tokio Marine & Nichido), and Mitsubishi Heavy Industries, Ltd. (MHI), effectively making MOT its wholly-owned subsidiary. MOT is a joint venture involving NYK (with a 40.28% stake), MC, Tokio Marine & Nichido, and MHI. It primarily engages in vessel management and ship-owning activities, maintaining a fleet of 17 ships including bulkers, pure car and truck carriers, and wood-chip carriers. Furthermore, MOT possesses valuable expertise in vessel management and ship ownership. This acquisition of MOT as a wholly-owned subsidiary is expected to bolster NYK’s group-wide ship management capabilities, particularly in addressing issues related to the adoption of next-generation fuel vessels for decarbonization efforts. NYK also aims to achieve synergy in its dry bulk business and facilitate flexible, value-added business development. 16-October-2023

 

Anglo-Australian minerals and mining giant Rio Tinto expressed that the end of China’s Covid controls may cause supply chain disruptions and restrictions in December presumably to bring high volatility in Q2 2023. The world’s largest iron ore producer Rio Tinto miner stated steel demand recovery hinges on China’s ability to control the coronavirus outbreak. According to Rio Tinto, the end of China’s zero-Covid policy in December could increase the risk of supply chain disruptions and labor shortages. 18-January-2023

 

The world’s largest iron ore producer Rio Tinto has increased the number of 210K DWT LNG-fuelled newcastlemax bulk carrier new buildings it has chartered in from Singapore-based Eastern Pacific Shipping to six (6). The latest deal is an option that Rio Tinto and Eastern Pacific Shipping agreed on under the earlier three (3) LNG-fuelled newcastlemax bulk carrier new buildings. Anglo-Australian minerals and mining giant Rio Tinto has chartered in the LNG-fuelled newcastlemax bulk carriers for at least five (5) years. Singapore-based shipowner and operator Eastern Pacific Shipping is paying approximately $67 million per 210K DWT LNG-fuelled newcastlemax bulk carrier new building. In May 2021, Rio Tinto chartered three (3) similar bulk carriers from Seoul-based H-Line Shipping. Currently, LNG-fuelled newcastlemax bulk carrier newbuilding price climbed to $77 million. Australian mining giant Rio Tinto is studying other alternative fuels such as ammonia and hydrogen to decrease its carbon footprint. The world’s largest iron ore producer Rio Tinto’s long-term goal is to reach net zero-carbon shipping of its outputs by 2050. 4-August-2021

 

The world’s largest iron ore producer Rio Tinto shipped 76 million tonnes of iron ore in Q2 2021 due to the storms that affected its West Australian operations. Therefore, Australian mining giant Rio Tinto announced that the company foresees to ship near the lower end of its range of 325 million tonnes and 340 million in 2021. Furthermore, Rio Tinto shipped 13 million tonnes of bauxite in Q2 2021 due to the continuous operation weakness following harsh wet weather in Eastern Australia in Q1 2021. Australian mining giant Rio Tinto CEO Jakob Stausholm stated that the world economy recovered steadily. Rio Tinto concentrated on servicing the buyers with as much product as the company can. Rio Tinto encountered some difficulties in the Q2 prominently at Pilbara operations due to tremendous rainfall. Furthermore, corona-virus travel restrictions added an additional burden on Rio Tinto. Iron ore prices climbed to records above $230 per tonne in May 2021 due to the post-corona-virus infrastructure drive by China. China’s steel demand was up 5% year-on-year in Q2 2021. 18-July-2021

 

Aussie mining giant Rio Tinto has reported that the company has exported 19% more iron ore in Q2 2020 compared to Q1 2020. Rio Tinto exported 87 million tonnes of iron ore in Q2 2020. Rio Tinto exported 73 million tonnes of iron ore in Q1 2020 due to infrastructure damage and significant weather disturbances in February 2020. In Q2 2020, Rio Tinto operations performed well, notwithstanding the severe measures executed to handle the corona pandemic. In Q2 2020, Rio Tinto shipped 14.6 million tonnes of bauxite which is 9% higher than Q2 2019. Up to now, the corona recession has a limited impact on bauxite demand. Rio Tinto presented a strong performance, particularly in iron ore and bauxite business in difficult conditions due to the corona recession. 16-July-2020

 

Aussie mining giant Rio Tinto’s iron ore exports to China decreased by 16% in Q1 2020 compared to Q4 2019. Rio Tinto’s 2020 full-year predictions of iron ore exports to China still at 334 million metric tonnes. In Q1 2020, China’s iron ore demand increased. In Q1 2020, Rio Tinto exported 73 million metric tonnes of iron ore to China, compared to 87 million metric tonnes of iron ore in Q4 2019. In February 2020, due to tropical cyclone Damian, Rio Tinto’s iron ore exports to China were severely affected however it was recovered in March 2020. Rio Tinto’s iron ore exports to China decreased 16% in Q1 2020 due to seaborne supply interruptions and strong demand from China’s steel mills despite the impact of coronavirus. Aussie mining giant Rio Tinto has also taken advantage of low freight rates in Q1 2020 for iron ore exports to China. In Q1 2020, Rio Tinto produced 13.8 million tonnes of bauxite production which is 8% higher than Q1 2019. China’s bauxite demand increased significantly in Q1 2020, as China’s domestic reserves continue to decrease in quality and quantity due to coronavirus restrictions. Australian giant miner Rio Tinto exported 9.5 million tonnes of bauxite in Q1 2020 which is 7% higher than Q1 2019. According to Rio Tinto’s report, the company will continue to mining and will take all necessary precautions while protecting the health and safety of all employees. 20-April-2020

 

Vale is revising its 2020 iron ore production forecasts downwards due to the anticipated impacts of the COVID-19 pandemic on its operations. The mining giant now estimates its output will range from 310 million to 330 million tonnes, a decrease from the previously projected 340 million to 355 million tonnes. In the first quarter, Vale saw a significant reduction in production by more than 18%, with a total of 59.6 million tonnes of iron ore produced, and a decline in sales by almost 7%, totaling 51.7 million tonnes. Despite these setbacks, Vale indicated that the pandemic had a limited effect on its operations during the first quarter. The temporary shutdown of the Teluk Rubiah Maritime Terminal in Malaysia was noted, yet it reportedly did not affect production figures. Vale has voiced concerns over the potential for increased disruptions to its operations moving forward, especially as Brazil escalates measures to control the virus spread. The company foresees a rise in absenteeism at its sites due to enhanced safety protocols or if the virus spreads in nearby communities. Further, government-imposed restrictions to curb the pandemic might constrain Vale’s operations by affecting the availability of essential labor. The resumption of operations at the Timbopeba mine in Ouro Preto, Minas Gerais, has been postponed to the second quarter of 2020, from an initial first-quarter schedule. Despite these challenges, Vale remains hopeful that a steady ramp-up in production at the S11D mine, expected to reach around 90 million tonnes in 2020, will offset the adverse effects. Comparatively, Rio Tinto, another leading mining company, experienced a 16% drop in iron ore shipments in the first quarter of 2020 compared to the final quarter of 2019, with 72.9 million tonnes shipped. However, this represented a 5% increase over the first quarter of 2019, thanks to a robust recovery across its operations in March following February’s tropical cyclone Damian disruptions. Despite the downturn, the demand for high-quality iron ore remained resilient in the first quarter, as reported by Rio Tinto. 18-April-2020

 

Australian mining giant Rio Tinto exported 14% less iron ore in Q1 2019 due to a series of cyclones and has decreased the end of 2019 estimations. In March 2019, Rio Tinto reported that iron ore production was affected by cyclones. Furthermore, Rio Tinto’s iron ore production was also impacted by the fire at Cape Lambert A in January 2019. Cape Lambert A is an iron ore terminal with a capacity of loading more than 85 million tons per year. In March 2019, due to cyclones, Port of Port Hedland closed for 92.5 hours, Port of Dampier closed for 132 hours and Port of Ashburton closed for 109 hours. Rio Tinto’s iron ore exports reached 69 million tons in Q1 2019 versus 71 million tons in Q1 2018. These unfortunate events will impact the Australian mining giant Rio Tinto’s Q2 2019 performance and year-end reports. Australian mining giant Rio Tinto decreased 2019 year-end guidance for Pilbara exports to 333 million tons from 350 million tons. According to Rio Tinto, Q1 2019 operational performance is better than Q1 2018. Australian mining giant Rio Tinto aims to continue providing unsurpassed returns to the company’s shareholders in the short, medium, and long term. Rio Tinto completed Amrun bauxite mine in advance and produced 13 million tons of bauxite in Q1 2019. 16-April-2019

 

Capesize dry bulk carrier 2014 built 186K DWT M/V Cape America chartered out to Rio Tinto for $17,000 per day for 2 years period. 17-April-2017

 

Greek Golden Flame Shipping chartered out cape size 2010 built dry bulk carrier 180K DWT M/V Samjohn Legacy to Rio Tinto 5 to 8 months for $9,100 per day. Previously, M/V Samjohn Legacy was chartered out to E.ON for the past year at $11,000 per day. 21-August-2016