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Production peaks and profit slumps for Rio Tinto

Rio Tinto, has commended the Federal Government’s emissions-reduction policy for providing support to heavy industry.

Rio Tinto saw mixed results in its report on the first half of 2023, with improved operational performance, but a significant dip in profits compared to the previous year.

The company generated US$11.7 billion (A$17.3 billion) in earnings before interest, tax, depreciation and amortisation for the first half of 2023, a 25 per cent decline on the previous year.

Total sales revenue fell 10 per cent to US$26.6 billion (A$39.3 billion), leading to a dividend payout of US$1.77  (A$2.62) per share, down 34 per cent from the first half of 2022.

It is understood that the decline is largely owing to easing iron ore prices.

Despite a dip in profits, the company saw improved operational performance with a five per cent lift in volume for the half year.

The company’s Pilbara iron ore operations reported a seven per cent uplift in production and shipments, with Rio’s Guadi-Darri mine reaching capacity.

Rio also reported that its Oyu Tolgoi copper mine in Mongolia achieved first sustainable production for its underground mine during the first half of the year.

The company also entered into a Joint Venture with First Quantum Minerals to development the La Granja copper project in Peru.

And the US$498 million (A$737 million) development of a copper project in Kennecott, Utah, was approved by the board.

“We have a clear pathway to building an even stronger Rio Tinto and continue to gain momentum in our strategy to set the business up for long-term success,” Rio Tinto chief executive Jakob Stausholm said.

“Our robust financials, despite softer market conditions, are driven by the quality of our assets and our great people…”

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