Editor: Adam Zhang
Rio Tinto announced that Bauxite production of 50.8 million tonnes in 2017 was six % higher than 2016, reflecting strong operational performances at Gove and Weipa. Production at Gove was 23 % higher than 2016, benefiting from the planned production ramp-up associated with de-bottlenecking of capacity, whilst production at Weipa was five per cent higher than 2016. Fourth quarter production of 13.8 million tonnes was 14 % higher than the corresponding quarter of 2016.
The strong production performance enabled the Group to ship 32.3 million tonnes to third parties in 2017, ten % higher than 2016. Fourth quarter shipments were 25 % higher than the fourth quarter of 2016.
Amrun
The Amrun project is advancing to plan. All wharf modules are now installed and the process plant beneficiation modules and transfer tower are in location. Upcoming activities include completion of the stacker, reclaimer assembly and ship loader assembly. The project remains on schedule for first shipment in the first half of 2019.
Alumina
Alumina production for 2017 was in line with 2016, with a strong performance at Yarwun partially offset by lower production at the Queensland Alumina refinery due to major maintenance.
Aluminium
Aluminium production of 3.6 million tonnes in 2017 was one per cent lower than 2016. Strong operational performances were achieved across most sites, reflecting the implementation of productivity improvements across the business. This was offset by production curtailment at the Boyne smelter due to higher power prices in Queensland, and by lower production at the non-managed Sohar smelter due to a power interruption incident in the third quarter. Excluding these events, 2017 aluminium production was one % higher than 2016.
Average aluminium prices in 2017 were USD 2,231 per tonne. This includes a USD 221 per tonne premium for value-added product, which represented 57 % of aluminium sold, and the physical market premium.
On 10 January 2018, Rio Tinto announced it had received a binding offer for the sale of the Aluminium Dunkerque smelter in France for USD 500 million, subject to final adjustments. The sale is expected to complete in the second quarter of 2018, subject to satisfactory completion of consultations with key stakeholders.
Adam’s suggestions
Rio Tinto’s share of production in 2018 is expected to be between 49 and 51 million tonnes of bauxite, 8.0 to 8.2 million tonnes of alumina and 3.5 to 3.7 million tonnes of aluminium (guidance to be adjusted following completion of the sale of the Aluminium Dunkerque smelter).