RIO - Rio Tinto

• news of a major billion dollar-plus revamp of a key asset in Canada,
• news of a major manufacturing plan in the Pilbara iron ore province and
• the loss of one of its most senior managers to a Perth based mining house.

Rio revealed it will invest $US1.1 billion to expand its “low-carbon” aluminium smelter at Complexe Jonquière in Quebec, Canada, with some financial help from the provincial government.

The investment will see annual capacity grow by about 160,000 tonnes of primary aluminium.

The Canadian government has been involved in such efforts. It has invested in the ELYSIS technology pioneered by Alcoa and Rio Tinto that eliminates all CO2 emissions and replaces them with oxygen.

“This announcement brings us one step closer to the deployment of the first ELYSIS pots, which will make Quebec the leader in greenhouse gas-free aluminium production,” said Pierre Fitzgibbon, Quebec’s minister of economy, innovation and energy.

The Quebec government will provide up to $113 million in support for the latest smelter expansion.

“This is the most significant investment in our aluminium business for more than a decade…,” Rio CEO Jakob Stausholm said in the statement.

Construction will take around 30 months, with commissioning of the new pots expected to start in the first half of 2026 and the smelter fully ramped up by the end of 2026.

…………

Tuesday also saw Rio reveal in a separate statement that it plans to partner with WA group, Gemco Rail to bring local iron ore rail car manufacturing and bearing maintenance to the Pilbara region.

Rio said the partnership will enable Gemco Rail to expand its existing operations “to establish the first ever rail ore car manufacturing and maintenance facility in the Pilbara, creating new jobs, increasing spend with local and Indigenous businesses and supporting local economic growth.”

Rio Tinto expects to invest approximately $A150 million to purchase 100 locally built ore rail cars over six years as well as continued investment in bearing refurbishment over ten years, to support the company’s Pilbara operations.

The first 40 ore cars will be built at Gemco Rail’s existing facility in Forrestfield (southeast of Perth), while the company establishes an additional facility in Karratha.

“Once this new facility is operational, Gemco Rail is expected to build an average of 10 ore cars per year, replacing ore cars as they are retired from Rio Tinto’s existing fleet. The new Karratha facility will also support the supply of new and reconditioned ore car bearings from the Pilbara in an industry-first.”

This partnership has been developed by Rio Tinto, Gemco Rail and Qiqihar Railway Rolling Stock (QRRS) and supported by the WA State Government

The first WA-built rail car is expected to be delivered in 2024 and the Karratha-based facility is expected to be established by the end of 2024, subject to the availability of a suitable property.

…………

And in a third statement Rio revealed that Its global head of Aluminium Ivan Vella would leave at the end of this year for another job in the resources sector – with Perth-based nickel and lithium group IGO revealing not long after that he would be its new boss.

IGO said Mr Vella will replace the late CEO, Peter Bradfield who died in October 2022.

Before his final position as global head of Rio’s aluminium business, Mr Vella was interim chief executive of the iron ore business following the Juukan Gorge debacle.

He has also been chief operating officer of Rio Tinto Coal and Rio’s Oyu Tolgoi copper operations in Mongolia, so he has an extensive background.

“After a rigorous process that considered many high-quality candidates from a number of different jurisdictions, we are delighted to have appointed Ivan to lead IGO through the next stage of our transformation,” IGO chair Michael Nossal said in a statement on Monday

“Ivan has a wealth of international experience across a range of commodities and markets, and has proven his aptitude in some of the most complex operating environments.”

Vella will commence at IGO no later than December 11 as he finishes up at Rio Tinto and he and his family relocates from Montreal to Perth.

I don't follow RIO closely as, rightly or wrongly, I hold enough BHP. Here's an update on recent activity and possible future direction.
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It has been a bustling end to 2023 for Rio Tinto (ASX:RIO). A new iron ore mine in the Pilbara, confirmation of progress on a significant iron ore mine in Guinea, and finally, the long-awaited advancement in their Winu copper/ gold and silver prospect towards the mining stage.

The preliminary studies and drilling for the massive Rhodes Ridge iron ore deposit will cost over half a billion dollars, while Rio's involvement in the Simandou project in Guinea amounts to nearly $A12 billion. Now, with Winu, the cost is expected to reach hundreds of millions of dollars.

These developments and more were unveiled at the company's 2023 investor day in Sydney this week.

The Winu copper-gold project is located in the Paterson Range of the East Pilbara, where Rio Tinto discovered its mining potential almost seven years ago. It shares the area with Newcrest/ Newmont/ Greatland's Havieron prospect, Newcrest /Newmont's older Telfer mine, and several other smaller prospects and older mines.

Progress on Winu moved a step closer this week as Rio sought WA environmental approval for the mine. While Rio has yet to disclose the resource/reserves size and the anticipated mining rate, there are suggestions that it could have a life span of 40 years or more.

Rio has been in discussions with Traditional Owner groups regarding the mine's plans. The company has emphasized its intention to collaborate closely with the Nyangumarta and Martu Traditional Owners, working at their pace without rushing the development of Winu.

If the mine progresses, it will involve open pit mining below the water table and the extraction of 490 million tonnes of waste rock over the project's lifespan. Rio has also speculated about Winu's potential to support a network of mines.

Work on the project was halted in 2020 due to challenges posed by COVID-19 lockdowns, as well as the controversy surrounding the Juukan Gorge sacred rock shelters at one of its Pilbara iron ore mines, which led to a pause in discussions with traditional owners at Winu.

In July 2020, Rio announced that the Winu resource contained just over half a billion tonnes of copper ore, along with an adjacent prospect with gold, silver, and copper values.

Rio stated, "The Inferred Mineral Resource, reported at a 0.2% copper equivalent cutoff, is 503 million tonnes at 0.45% copper equivalent (CuEq). This includes a higher grade component of 188 million tonnes at 0.68% CuEq at a cutoff grade of 0.45% CuEq."

At that time, Rio planned to commence mining the higher-grade ore in 2023. However, this target date has been pushed back by a year or more, contingent on receiving environmental approval for the project.

Rio indicated during an investor day that the proposed development will be environmentally friendly, with the company planning to use solar and wind power to reduce emissions and generate 75% of its electricity.

(Rio also revealed plans to dramatically reduce emissions at its established Kennecott copper mine in Utah by transitioning from fossil fuel-based diesel to green diesel in the next year.)

Rio will procure power for Winu from wind and solar farms and a liquefied natural gas-powered station located 300 kilometers away on the coast.

To put things into perspective, Winu's 500 million tonnes are smaller than the second estimate for Chalice Mining's substantial Gonneville discovery, which boasts high values of copper, gold, platinum, palladium, nickel, and some cobalt. A scoping study suggests that the first stage of mining for Gonneville could cost over $2 billion. However, this is being reevaluated as the company considers developing the high-grade sulphide ores with a combined open cut and underground operation.

In conclusion, while Winu is undoubtedly significant, Gonneville is even larger and promises higher copper production annually. Some might argue that Rio should consider acquiring Chalice and deferring Winu.

*****LOGIC BEHIND CHOICE OF FULL CALENDAR YEAR 2024 STOCK TIPPING COMPETITION*****

RIO has been on the radar for quite a while and performed very well since identified in weekly scans back towards the end of October, as shown in the chart below. With iron ore in increasing demand in recent times and a breakthrough of former resistance to establish bullish sentiment at the beginning of November, it is suggested by the charts that RIO should continue in an upward trend and explains the logic for choice within the stock tipping competition. Further descriptions can also be obtained from recent episodes of the weekly video series of analyses of the Australian market, which includes analysis of RIO within (link below for the latest episode).

RIO have teamed with European Energy Australia (what a non sequitur that is!) to buy all the out put of their planned calliope solar farm.

Mick

mullokintyre said:

RIO have teamed with European Energy Australia (what a non sequitur that is!) to buy all the out put of their planned calliope solar farm.
View attachment 169467
Mick

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A bit sad that Rio has to walk the line due to the Australian government carbon free pipe dream...
Less profit but no choice I think if they want to stay and work in Australia.
That or close business here
A great company sadly affected by wokism ..hopefully they will make up these losses in better countries as I own a few RIO shares...

*****MONTHLY UPDATE FOR FULL CALENDAR YEAR 2024 STOCK TIPPING COMPETITION*****

January 2024 - Bring out the pacemakers for RIO shareholders - clear! All jokes aside though, many shareholders may have felt palpitations over the past month as the shareprice declined back towards November levels and the last line of defence of the last level of support before bouncing back and rebounding back above the 10 and 30 day moving averages over the past few days. Watch and observe - a swing up in the ADX of the DMI indicator would show continued momentum and strength in the move, as would continuing increases in the RSI and an RSI maintaining itself above 50. The resistance of $134.51 from 22nd December appears to be back in play at this point in time - let's see how it affects the share price from here moving forward.

As mentioned in the weekly video update for ASX Traders United, this stock was initially detected in scans back at the end of October, so those members acting upon chart suggestions back then would be sitting on a tidy profit from entries at about $120 per share (obviously not financial advice - see disclaimer in the video). The use of options could be worthy to utilise for keen investors/traders - put protection or call option selling for income generation are potential avenues to investigate for those already well in profit.



Latest update of discussion:

Eldest son works for RIO in The Pilbara.
Salary sacrifices for shares every month.
Laughing all the to the bank.
Will pay for his "mansion" on 13 acres in Geraldton when completed later this year.

farmerge said:

Eldest son works for RIO in The Pilbara.
Salary sacrifices for shares every month.
Laughing all the to the bank.
Will pay for his "mansion" on 13 acres in Geraldton when completed later this year.

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like father like son

rcw1 said:

like father like son

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son is wealthy father is a pauper!!!!

farmerge said:

son is wealthy father is a pauper!!!!

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are you sure about that ??

check the latest beef prices

at least on the East Coast .. they have risen a bit ( rather counter-intuitive , considering the recent rains over here )

divs4ever said:

are you sure about that ??

check the latest beef prices

at least on the East Coast .. they have risen a bit ( rather counter-intuitive , considering the recent rains over here )

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Yep slowly rising here at each sale so will be interesting when the agent comes out to have a look at the yearlings we will be putting up for sale in early March.
Only thing at the moment is stinking heat and no rain for the past 4 months.
Fortunately still have a couple of dams with plenty of water.

qldfrog said:

Overwhelmed with grass here on the sunny coast , a bit hot so buffalo flies..
overall, happy I could keep my herd in the drought before, and should have a few in calf.
Better now but we had atrocious low cattle price at the salesyard till November or so, below cost, and only now recovering.
The cost difference between Woolies and salesyard is still mind-blowing.
Even paying butcher , beast,and counting hours I would guess we are averaging well below $8 cut and packed and that is for no economy of scale, shed process and kill in the field.
Considering that this includes fillet etc, guts,fat and skin thrown away .
@farmerge might have more accurate figures
We are still paying far too much at the shop

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Oops wrong thread apologies

farmerge said:

Yep slowly rising here at each sale so will be interesting when the agent comes out to have a look at the yearlings we will be putting up for sale in early March.
Only thing at the moment is stinking heat and no rain for the past 4 months.
Fortunately still have a couple of dams with plenty of water.

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Guys, I mistook this thread for FMG

So io , Australia and here it comes
I own Rio in super

qldfrog said:

So io , Australia and here it comes

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paywalled ... I assume it's Simandou

but there's anothr whale in Pilbara that might soon follow


... heirs to the fortune of Lang Hancock’s business partner Peter Wright – are on the precipice of the big time. More than 50 years after the pioneering mining entrepreneurs first identified the claim, the Bennett family is set to become the co-developers, with mining giant Rio Tinto, of a mega project in the Pilbara, the size of which dwarfs other major iron ore operations.

And at the same time, Rhodes Ridge is back on the cards – Rio is reviving a long-stalled agreement to jointly develop the mine – the family is shaking up the way it manages its vast wealth...

Dona Ferentes said:

paywalled ... I assume it's Simandou

but there's anothr whale in Pilbara that might soon follow

The country’s most secretive billionaires, Angela Bennett and her family, are about to get much richer

The daughter of prospector Peter Wright, Lang Hancock’s business partner, Angela Bennett almost sold the family business. A new development deal with Rio Tinto is set to supercharge her fortune.

www.afr.com

... heirs to the fortune of Lang Hancock’s business partner Peter Wright – are on the precipice of the big time. More than 50 years after the pioneering mining entrepreneurs first identified the claim, the Bennett family is set to become the co-developers, with mining giant Rio Tinto, of a mega project in the Pilbara, the size of which dwarfs other major iron ore operations.

And at the same time, Rhodes Ridge is back on the cards – Rio is reviving a long-stalled agreement to jointly develop the mine – the family is shaking up the way it manages its vast wealth...

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I wonder why the Bennett's have been sitting on this for so long while the big three have been raking in a fortune. Strange.

Sean K said:

I wonder why the Bennett's have been sitting on this for so long while the big three have been raking in a fortune. Strange.

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seems like generation shift , from the story, plus getting the legal watertight.
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"... Rhodes Ridge, more than 1200 kilometres from Perth, is no ordinary iron ore mine. With an estimated 6.8 billion tonnes of high-grade ore, it could be the largest and richest undeveloped iron ore operation on earth. Planning work for the mine has been moving ahead swiftly since 2022, when Rio decided to proceed with the project. Environmental approvals were lodged last week.

"Half of this mammoth project, which Rio hopes will catapult it back as the foremost iron ore miner in Australia, is owned by Peter Wright’s children – including Bennett, whom he adopted, through Wright Prospecting..."
.....
"... While the finer details of the agreement are not public, much will depend on what port and rail facilities the eventual mine uses – and who pays for those. Rio has indicated it would charge the Wrights access fees. Analysts at Goldman Sachs have said as a result, Rio’s effective share in the ore that will eventually be mined at Rhodes Ridge will be between 60 to 70 per cent..."

Dona Ferentes said:

paywalled ... I assume it's Simandou

but there's anothr whale in Pilbara that might soon follow

The country’s most secretive billionaires, Angela Bennett and her family, are about to get much richer

The daughter of prospector Peter Wright, Lang Hancock’s business partner, Angela Bennett almost sold the family business. A new development deal with Rio Tinto is set to supercharge her fortune.

www.afr.com

... heirs to the fortune of Lang Hancock’s business partner Peter Wright – are on the precipice of the big time. More than 50 years after the pioneering mining entrepreneurs first identified the claim, the Bennett family is set to become the co-developers, with mining giant Rio Tinto, of a mega project in the Pilbara, the size of which dwarfs other major iron ore operations.

And at the same time, Rhodes Ridge is back on the cards – Rio is reviving a long-stalled agreement to jointly develop the mine – the family is shaking up the way it manages its vast wealth...

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Sorry, I had full access but was on the move so postponed the reading and now am unable to read as well..I have so feeling these paywall are wonky and give you access when on low bandwidth

qldfrog said:

Sorry, I had full access but was on the move so postponed the reading and now am unable to read as well..I have so feeling these paywall are wonky and give you access when on low bandwidth

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Similar news wo paywall
Or
Simandou indeed

***** MONTHLY UPDATE FOR FULL CALENDAR YEAR 2024 STOCK TIPPING COMPETITION - @debtfree *****

February 2024 - Another month of cardiac pacemaker action for RIO shareholders along with a flailing iron ore price on the commodity markets... Unfortunately though, as discussed in weekly video updates for a while now, the writing has been on the wall for RIO with a flattening and then declining 30 day moving average as well as tests of former resistance levels acting as support.

As discussed in the weekly video for the week ending 23rd February (link here and also below in the graphic), it was suggested that holders who had previously entered the trade noted on the charts back at the end of October consider closing-out, considering the firm close below 10 and 30 day moving averages, and the close below the support level of $126.57.