By Rhiannon Hoyle

Rio Tinto said it produced and shipped slightly less of steelmaking ingredient iron ore in 2024, but mined more copper, bauxite and made more aluminum.

The world's second-biggest miner by market value on Thursday said it produced 328.0 million metric tons of iron ore last year at mines in Australia's mineral-rich Pilbara region, and shipped 328.6 million tons as it drew from stockpiles. Both were 1% lower compared to 2023.

Rio Tinto, which it makes most of its money from its mammoth Australian iron-ore mines, previously estimated annual shipments of between 323 million and 338 million tons.

Productivity improvements did not fully offset depleting supplies from older mines, Rio Tinto said. The company also faced heavy rainfall, which was more than five times historical levels, it said.

"As a result, mine stocks were drawn down, with operations in the first quarter of 2025 to focus on recovering pit health," Rio Tinto said.

The miner produced more bauxite than forecast last year, with production of 58.7 million tons up 7% year over year and topping company guidance of 53 million to 56 million tons.

The improvement followed the rollout of what Rio Tinto calls its Safe Production System, which resulted in higher plant availability and utilization rates especially at its Amrun mine, it said. Rio Tinto is now using that system at roughly 80% of its sites, it said.

The company produced 1% more primary aluminum than the year prior, at nearly 3.3 million tons. It had estimated it would produce between 3.2 million and 3.4 million tons.

In Rio Tinto's copper operations, mine production rose by 13% versus 2023 to 697,100 tons, also meeting its earlier guidance. Rio Tinto had projected annual output of 660,000 to 720,000 tons.

Higher copper output was underpinned by rising output from the Oyu Tolgoi mine in Mongolia, and the tapping of a higher-grade zone at the huge Escondida mine in Chile.

Rio Tinto has been expanding its copper operations, betting the industrial metal will be essential for a global shift to clean energy.

It recently agreed to buy Arcadium Lithium, a deal that should transform it into one of the world's biggest producers of lithium, a battery material. The Anglo-Australian miner said that deal is on track to close before mid-2025.

Rio Tinto is also developing a huge iron-ore project, called Simandou, in Guinea where it expects to start producing the steelmaking commodity this year.

"We remain focused on executing our strategy to deliver attractive shareholder returns and build a stronger, more diversified, and growing business, driven by our confidence in the long-term demand for materials essential to the global energy transition," Chief Executive Jakob Stausholm said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

January 15, 2025 17:27 ET (22:27 GMT)

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