Rio Tinto's capital expenditure jumps
The world's second-largest integrated miner, Rio Tinto, said today its capital expenditure jumped due to currency appreciation against the U.S. dollar.
The company released its second quarter results today.
Capital expenditure is expected to be around A$6 billion in 2020, as opposed to a range within A$5 to A$6 billion. In 2021 and 2022 capital expenditure will hit A$7 billion.
Despite COVID-19 restrictions, the company increased production, which was up 1% compared with the second quarter of 2019 on a copper equivalent basis. The company said Pilbara iron ore shipments of 86.7 million tonnes (100% basis) were also 1% higher than the second quarter of 2019.
Rio Tinto Chief Executive J-S Jacques said the company is on track to meet guidance.
“We delivered a strong performance, particularly in iron ore and bauxite, demonstrating the underlying resilience of our business and ability to adapt in difficult conditions. Our iron ore assets are performing well in a strong pricing environment and we are on track to meet our 2020 iron ore guidance," said Jacques in a news release.
In June the company apologized <a href="https://www.kitco.com/news/2020-06-02/Rio-Tinto-issues-apology-for-scared-site-blast.html">after a mining blast reportedly destroyed one of the oldest known Aboriginal heritage sites in Western Australia</a>.
The company said it launched a board-led review of our heritage management processes within its iron ore division to be completed by October 2020.