Rio Tinto Group (NYSE:RIO) shares are trading lower today after the company disclosed second-quarter production results.
The company reported production of 79.5 million tonnes (67.5 million tonnes for Rio Tinto), a decrease of 2% Y/Y, attributed to a mid-May train collision that disrupted rail capacity for about six days and led to full stockpiles at some mines.
Bauxite production increased to 14.7 million tonnes, up 9% from last year, driven by improved utilization and feed rates at Weipa, aligning with the company’s full-year guidance to the upper end of 53 to 56 million tonnes.
Outlook: Rio Tinto reiterated outlook for production at Pilbara Iron ore of 323 to 338 million tonnes.
Rio Tinto Chief Executive Jakob Stausholm said: “Our operational performance continues to progress. While there are still significant improvements ahead, we are beginning to see a step-change in production, including from our Queensland bauxite business following the roll-out of the Safe Production System.”
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“We continue to prioritise the decarbonisation of our business, announcing the installation of carbon free aluminium smelting cells using ELYSIS technology at our Arvida smelter in Quebec and an investment in a R&D facility to test our low-carbon ironmaking process, BioIron, in Western Australia. We also signed 20-year electricity arrangements backed by renewable electricity to secure the future of the Tiwai Point aluminium smelter in New Zealand.”
Also Read: Australia’s Ngarluma Country Shines Bright: Solar Project Aims to Slash Rio Tinto’s CO2 Footprint
Investors can gain exposure to the stock via VanEck Steel ETF (NYSE:SLX) and NEOS ETF Trust Mast Global Battery Recycling & Production ETF (NYSE:EV).
Price Action: RIO shares are down 2.4% at $65.92 at the last check Tuesday.
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