Archive | Rio Tinto

Rio’s $1bn spend to reach zero emissions “not enough” – by Cecilia Jamasmie (Mining.com – February 26, 2020)

February 27, 2020 in Canadian Media Resource Articles, Rio Tinto

https://www.mining.com/

Rio Tinto (ASX, LON, NYSE: RIO) will spend $1 billion over the next five years to reduce its carbon footprint and have net zero greenhouse gas emissions by 2050, but some analysts say the announcement is a minor step towards helping the mining industry achieve climate goals.

Delivering full-year results for 2019, in which the company recorded its highest profit in eight years, chief executive officer Jean-Sébastien Jacques said the world has got to a point where it is necessary to sacrifice growth to meet climate targets.

“The challenge for the world, and for the resources industry, is to continue the focus on poverty reduction and wealth creation, while delivering climate action,” Jacques said. “This will require complex trade-offs.” Continue Reading →

Rio Tinto Is Digging Mostly Into Its Pocket – by Clara Ferreira Marques (Bloomberg News – February 26, 2020)

February 26, 2020 in International Media Resource Articles, Rio Tinto

https://business.financialpost.com/

(Bloomberg Opinion) — A combination of hefty dividends and contracting output is turning the world’s second-largest miner into the poster child for a $1.5 trillion industry’s growth quandary.

Rio Tinto Group announced a record $3.7 billion final dividend Wednesday, adding to $11.9 billion of cash returns already paid in 2019. Yet it produced less iron ore, copper and aluminum, leaving market prices to lift underlying earnings by 18%.

Rio’s Pilbara operations stumbled early in the year. Its Mongolian copper mine, a key source of future production and the basis of a greener portfolio, is now not only sorely overdue and over-budget, but also tangled in international tax arbitration. Continue Reading →

[Bougainville/Copper] The Horse Breeder, the Novelist and the $60 Billion Mine – by Aaron Clark (Financial Post/Bloomberg – January 27, 2020)

January 28, 2020 in Australia/New Caledonia/Papua New Guinea Mining, Copper, International Media Resource Articles, Rio Tinto

https://business.financialpost.com/

(Bloomberg) — Australia has some big decisions to make about its future. For insight into the stories that matter, sign up for our new weekly newsletter.

John Kuhns has been many things: an investment banker, a silicon smelter operator in China and a novelist. His sights are now set on an abandoned mine with an estimated $60 billion of gold and copper.

Kuhns is among a handful of people exploring for minerals and courting landowners on the Pacific island of Bougainville. His rivals include an Arabian-horse breeder, a hedge fund investment manager who keeps wallabies on his estate and a former Australian defense minister. Continue Reading →

Violent Protests Shut Down Key Rio Tinto Mine in South Africa – by Felix Njini and David Stringer (Bloomberg News – December 4, 2019)

December 5, 2019 in Africa Mining, International Media Resource Articles, Mining Conflict and Opposition, Rio Tinto

https://www.bloomberg.com/

Violent protests, often characterized by deadly shootings and barricades of burning tires, are making it harder for the world’s biggest mining companies to operate in South Africa.

Rio Tinto Group shuttered its Richards Bay Minerals unit on Wednesday and paused a $463 million expansion project amid escalating violence in surrounding communities that led to an employee being shot and injured. The stoppage will further sap investor sentiment in a country where business confidence is near the lowest level in two decades.

The freezing of the Zulti South project comes as President Cyril Ramaphosa battles to stimulate growth and retain the nation’s last investment-grade credit rating. South Africa’s economy contracted for a second quarter this year in the three months through September as farming, mining and factory output slumped. Continue Reading →

U.S. copper frenzy grows as Rio Tinto plans $1.5 billion Utah mine expansion – by Ernest Scheyder (Reuters U.S. – December 3, 2019)

December 3, 2019 in Copper, International Media Resource Articles, Rio Tinto, United States Mining

https://www.reuters.com/

(Reuters) – Rio Tinto Plc said on Tuesday it would spend $1.5 billion to expand its Kennecott copper mine in Utah, part of a growing trend by miners to invest in strategic mineral projects across the United States.

The move more than doubles the mining industry’s recent investment in U.S. copper projects, as Tesla Inc and other automakers demand more of the red metal for electric vehicle motors and other components.

“We like copper. We like the U.S.,” Rio Chief Executive Jean-Sebastien Jacques said in an interview. “If we had not taken this decision, our position in the U.S. market would be shrinking.” Continue Reading →

Apache man moving ‘home’ to protest copper mine in Arizona – by Felicia Fonseca (Washington Post – November 27, 2019)

November 28, 2019 in Aboriginal and Inuit Mining and Oil/Gas, BHP Billiton, Copper, International Media Resource Articles, Mining Conflict and Opposition, Rio Tinto, United States Mining

https://www.washingtonpost.com/

FLAGSTAFF, Ariz. — Wendsler Nosie Sr. is drawn to a mountainous area in central Arizona where he and other Apaches have harvested medicinal plants, held coming-of-age ceremonies and gathered acorns for generations.

On Thursday, he’ll start a three-day journey to make a permanent home in the area known as Chi’chil Bildagoteel, or Oak Flat, in protest of a proposed copper mine made possible by a federal land exchange.

The Resolution Copper mine near Superior would be one of the largest such mines in North America, using techniques known as block-cave mining that call for digging underneath the ore body and setting off explosions to extract it. Continue Reading →

Rio Tinto commits $1M to Centre of Excellence for Indigenous Minerals Development – by Staff (Northern Ontario Business – November 28, 2019)

November 28, 2019 in Aboriginal and Inuit Mining and Oil/Gas, Canadian Regional Media and Web Publications, Ontario Mining, Rio Tinto

https://www.northernontariobusiness.com/

Waubetek-led initiative aims to increase opportunities for Indigenous participation in mining

Global mining giant Rio Tinto has committed $1 million over five years to become a founding partner in the Centre of Excellence for Indigenous Minerals Development being established in Northern Ontario.

The centre is an initiative of the Waubetek Business Development Corp., an Indigenous-led economic development organization based on the Whitefish River First Nation that provides business financing and economic development services to First Nations and Aboriginal businesses located throughout northeastern Ontario.

It’s being designed as a centre of knowledge and expertise for Indigenous communities, industry and governments. It will connect stakeholders to develop partnerships and offer access to information, referral services and training tools around Indigenous participation in mineral development. Continue Reading →

The High-Stakes Race For Bougainville’s Copper And Gold – by Tim Treadgold (Forbes Magazine – November 27, 2019)

November 28, 2019 in Australia/New Caledonia/Papua New Guinea Mining, Copper, Gold and Silver, International Media Resource Articles, Rio Tinto

https://www.forbes.com/

Fat profits are being made by speculators confident they can beat a Chinese takeover of one of the world’s great copper and gold deposits on the Pacific island of Bougainville even though it hasn’t produced a pound of metal in 30 years.

The once fabulous Panguna mine was closed in 1989 during a civil war which pitted locals, fighting as the Bougainville Revolutionary Army, against troops of the government of Papua New Guinea which claimed control of the island.

An estimated 20,000 people died from the fighting and disease in what ranks as the worst conflict in the South Pacific since World War Two. An uneasy truce in 2001 formally ended the conflict but Bougainvilleans have continued to push for independence which is being tested in a two-question referendum which started this week and will end on December 7 with voters being asked whether they want complete independence or just greater autonomy from Papua New Guinea. Continue Reading →

Will Bougainville Reopen the Panguna Mine? – by Joshua Mcdonald (The Diplomat – November 22, 2019)

November 25, 2019 in Australia/New Caledonia/Papua New Guinea Mining, Copper, Gold and Silver, International Media Resource Articles, Rio Tinto

https://thediplomat.com/

With an independence referendum on the horizon, reopening the Panguna mine offers both attractive opportunities and terrible consequences.

The Panguna mine on the Pacific island of Bougainville is one of the largest copper and gold deposits in the world. The mine was also at the center of a decade-long civil war fought between the Bougainville Revolutionary Army and the Papua New Guinea Defense Force in the 1990s. The conflict cost as many as 15,000 lives and displaced 40,000 of the island’s 200,000 inhabitants.

Before the war, the Panguna mine generated more than $1 billion in national tax revenue and accounted for about 45 percent of Papua New Guinea’s total exports, 17 percent of its internal revenue, and 12 percent of its gross domestic product. It essentially paved the way for the nation’s transition to independence from Australia.

But Panguna landowners and local employees — angered by the environmental destruction from the operation, poor wages, and unfair distribution of revenue (less than 1 percent of profits were reinvested in Bougainville) — eventually took up arms. Continue Reading →

Rio Tinto faces having to renegotiate terms of Mongolian copper project – by Anand Dairtan (Reuters U.S. – November 21, 2019)

November 22, 2019 in Asia Mining, Copper, International Media Resource Articles, Rio Tinto

https://www.reuters.com/

ULAANBAATAR (Reuters) – Rio Tinto faces renegotiating the terms of an agreement underpinning its Mongolian copper mine project, after lawmakers on Thursday approved plans to revise the deal to make it more beneficial for Mongolia.

The Oyu Tolgoi mine, Mongolia’s biggest foreign investment project, has already been subject to delays and ballooning costs, leaving Mongolian lawmakers impatient for income, while Rio Tinto says it has invested billions.

Rio Tinto-owned Turquoise Hill Resources has a 66% stake in the multi-billion-dollar project and the Mongolian state owns 34%, with investment terms agreed in 2015 in a deal known as the Dubai Agreement. Continue Reading →

Rio Tinto eyes copper deposit north of La Ronge – by Alex MacPherson (Saskatoon StarPhoenix – November 12, 2019)

November 12, 2019 in Canadian Media Resource Articles, Copper, Rio Tinto, Saskatchewan Mining

https://thestarphoenix.com/

One of the world’s largest mining companies is spending millions of dollars to look for copper in northern Saskatchewan — and could commit tens of millions more if its engineers and geologists like what the drill rigs uncover.

Rio Tinto Exploration Canada Inc. spent the summer taking core samples at the Janice Lake copper deposit north of La Ronge after signing an option agreement with Forum Energy Metals Corp., which acquired the property in 2017.

Under the terms of the agreement, Rio Tinto can spend up to $30 million over seven years to acquire an 81 per cent stake in the property, which was staked in the 1960s and bounced between companies before ending up in Forum’s portfolio. Continue Reading →

RPT-COLUMN-Rio Tinto says miners need to do more on the environment. Here’s how – by Clyde Russell (Reuters U.S. – October 29, 2019)

October 30, 2019 in Climate Change, Carbon Taxes and ENGOs, International Media Resource Articles, Rio Tinto

https://www.reuters.com/

LONDON, Oct 29 (Reuters) – The boss of one of the world’s biggest mining companies wants the industry to do more than talk about winning a social licence in an increasingly carbon constrained world. The problem is that his company and others probably won’t like the solutions.

Rio Tinto Chief Executive Jean-Sebastien Jacques told the London Metal Exchange (LME) annual forum on Monday that mining needed to do more on the environmental, social and corporate governance (ESG) front in order to remain relevant and profitable as the world deals with climate change.

“Lots of people are talking about it, but I’m not sure there is action,” Jacques said. Notwithstanding that Jacques himself was talking about it, he is probably correct that the mining industry, and more broadly the natural resources sector, has yet to fully get to grips with how the industry will look in the next 20-30 years. Continue Reading →

Rio Tinto says miners need to leverage technology as scrutiny of the industry rises (Reuters U.S. – October 28, 2019)

October 28, 2019 in Aluminium/Bauxite, Climate Change, Carbon Taxes and ENGOs, International Media Resource Articles, Rio Tinto

https://www.reuters.com/

LONDON, Oct 28 (Reuters) – Mining companies should make more use of technology to respond to increasing demands from investors and communities for responsible mining practices, Rio Tinto CEO Jean-Sébastien Jacques said on Monday.

Technologies such as autonomous rail-cars and increased automation can lower the impact of the industry on the environment as well as raise profit margins, he said, adding that blockchain can be deployed to track if the supply chain met ethical standards.

“There is absolutely no doubt in my mind we will face greater regulation and scrutiny,” Jacques said in a keynote speech marking the beginning of London Metal Exchange (LME) Week in London. Continue Reading →

Mining Giant Sends Shock Waves Through New Zealand’s Stock Market – by David Winning and Robb M. Stewart (Wall Street Journal – October 23, 2019)

October 23, 2019 in Aluminium/Bauxite, Australia/New Caledonia/Papua New Guinea Mining, International Media Resource Articles, Rio Tinto

https://www.wsj.com/

The lights abruptly went out on New Zealand’s long-running stocks rally Wednesday. The reason: A global mining giant’s threat to pull the plug on the country’s biggest buyer of electricity.

The NZX-50 index had been among the world’s best-performing stock benchmarks this year, notching a 26% gain through Tuesday. But it fell 2.1%, close to a three-week low, after Rio Tinto PLC said its Tiwai Point smelter is unprofitable, citing high energy costs and historically low aluminum prices because of oversupply in the market.

The selloff illustrates how small stock markets can be especially vulnerable to big corporate decisions. Tiwai Point, which employs roughly 1,000 people and has been in operation for nearly half a century, is the single biggest user of electricity in New Zealand, where it accounts for roughly 14% of energy demand. Continue Reading →

Rio Tinto sees rosy future for diamonds despite end of Argyle – by Barbara Lewis (Reuters U.S. – September 26, 2019)

September 30, 2019 in Australia/New Caledonia/Papua New Guinea Mining, Diamond Mining, International Media Resource Articles, Rio Tinto

https://www.reuters.com/

LONDON (Reuters) – Rio Tinto (RIO.AX)(RIO.L) is exploring for diamonds in Canada as part of its plans to stay in the sector despite the looming closure of its Argyle mine in Australia, known for extremely rare pink diamonds, the firm’s head of copper and diamonds said.

Demand and prices for the wider market have fallen as concerns mount about the world economy, and laboratory-grown gems have added to supply. Colored or particularly large diamonds, however, have held value, especially pink diamonds, 90% of which are produced by Argyle. That mine, the world’s biggest in carat terms, is expected to cease production by the end of next year.

Arnaud Soirat, Rio’s chief executive for copper and diamonds, said pink diamonds had risen in price by 500% since 2000. He gave no figures for the overall market, but producers have reported lower overall demand and prices. Continue Reading →