RIO TINTO LTD
For the period ended Dec 31, 2024. Filed Feb 20, 2025.
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The yearly report of a company based outside the US. It covers much of what a 10-K does, and may follow accounting rules other than US ones.
FY2024 · Filed Feb 20, 2025
Contents
Copper
| Copper is an essential material for electrification and the global energy transition. By the end of the decade, we aim to deliver 1 million tonnes of copper per year from our global portfolio of assets and projects spanning 4 continents. We are focused on maximising value from our existing assets, delivering profitable growth by unlocking projects, and investing in quality partnerships across the copper value chain. | In 2025, we will look to prioritise building care, capability and trust to further improve ongoing risk management efforts and first line assurance implementation. Assurance plans are in progress for Oyu Tolgoi and Kennecott, while Resolution and Winu will also move to implement first line assurance plans for key critical risks.Market insightsCopper prices climbed to a record high in late May following a series of high-profile supply disruptions and strong Chinese imports. Financial flows into copper amplified this rally, with copper demand seen as a major beneficiary of both the energy transition and data centre investment for AI. Prices subsequently retreated as supply outperformed expectations, US rate cuts continued to be delayed, and exchange inventory rose to a 4-year high. The refined copper market was in a small surplus across 2024. Supply rose modestly, despite high-profile disruptions early in the year. Production growth from the Democratic Republic of the Congo was notably strong. Demand from data centre and energy-transition exposed segments remained positive despite some headwinds from substitution and thrifting as technologies mature. Traditional segments such as residential construction had a more challenging year. Despite this, copper prices averaged 415 US cents per pound in 2024, up 8% from 385 US cents per pound in 2023. In contrast, copper concentrate was undersupplied in 2024, due to significant smelter capacity additions in China and other Asian countries. Treatment and refining charges fell sharply as a result and turned negative from April until August as smelters competed for material. |
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| Snapshot of the year | SafetyIn 2024, we recorded 24 potential fatal incidents (PFIs), an increase from 22 in 2023. Notable critical risks associated with these events were: fall from height, uncontrolled releases of energy, and falling objects. Our all-injury frequency rate (AIFR) dropped slightly to 0.33, a modest decrease from 0.35 in 2023, with an AIFR of 0.27 for employees, and 0.37 for our contractor workforce. Ongoing monitoring to identify continuous improvement opportunities includes two-way learning with our contractor partners. Our Critical Risk Management program and Safety Maturity Model underpin our absolute focus on preventing fatalities and serious events. During the year, key achievements included simplification of critical control tools, as well as capability building through our Leadership in the Field program. At the asset level, we progressed site-specific hazard exposure reduction strategies, which involved mitigating the potential for exposure to silica dust at Oyu Tolgoi, and to sulphur dioxide at Kennecott. Our Winu project team also piloted a psychosocial risk management framework, reinforcing our commitment to a safe, healthy workplace. |
| AIFR0.33(2023: 0.35) | Employee numbers19,000(2023: 8,000) |
| Net cash generated from operating activities$2.6bn(2023: $0.6bn)2 | Scope 1 and 2 GHG emissions (equity Mt CO2e)1.0Mt(2023: 1.0Mt) |
| 1.This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer to page 267 for more information.2.Comparative information has been adjusted to reflect the movement of Rio Tinto Guinea from the Copper product group to “Other operations”. Refer to note 1 (page 167) for details. | |
| Image: Oyu Tolgoi, Mongolia. | For information about decarbonisation efforts in the Copper group, see our 2025 Climate Action Plan, pages 41-75. | For more on our Copper business, see riotinto.com/copper |
Strategic report | Copper
Copper
| Year ended 31 December | 2024 | 2023 | Change |
|---|---|---|---|
| Mined copper production ('000 tonnes — consolidated basis) | 697 | 620 | 13% |
| Refined copper production ('000 tonnes — Rio Tinto share) | 248 | 175 | 42% |
| Segmental revenue (US$ millions) | 9,275 | 6,678 | 39% |
| Average realised copper price (US cents per pound)¹ | 422 | 390 | 8% |
| Underlying EBITDA (US$ millions)² | 3,437 | 1,960 | 75% |
| Underlying EBITDA margin (product group operations) | 49% | 42% | |
| Underlying earnings (US$ millions)² | 811 | 190 | 327% |
| Net cash generated from operating activities (US$ millions)³ | 2,590 | 596 | 335% |
| Capital expenditure — excluding EAUs⁴ (US$ millions) | (2,055) | (1,976) | 4% |
| Free cash flow (US$ millions)² | 526 | (1,386) | |
| Underlying return on capital employed (product group operations)⁵ | 6% | 3% |
- Average realised price for all units sold. Realised price does not include the impact of the provisional pricing adjustments, which negatively impacted revenues by $92 million
(2023: $2 million positive).
- Accountability for Rio Tinto Guinea, our in-country external affairs office, remains with Bold Baatar, and has therefore moved from the Copper product group to “Other operations” following
his change in role to Chief Commercial Officer. Accordingly, prior period amounts have been adjusted for comparability.
Net cash generated from operating activities excludes the operating cash flows of equity accounted units (EAUs) but includes dividends from EAUs (Escondida).
Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment, capitalised evaluation costs and purchases less sales of other intangible assets.
It excludes EAUs.
- Underlying return on capital employed (ROCE) is defined as underlying earnings (product group operations) excluding net interest divided by average capital employed.
Improved financials benefited from the
steady ramp-up at Oyu Tolgoi, the strong
performance at Escondida and the
successful restart of the Kennecott smelter,
following the rebuild in 2023, releasing
working capital through the drawdown of
inventories, enhancing operating cash flow.
Underlying EBITDA increased by 75%
compared with 2023 and free cash flow
turned positive supported by a strong LME
copper price and higher volumes. Overall,
mined copper production rose by 13% and
refined copper production by 42%.
Copper C1 net unit costs, at 142 cents per
pound, reduced by 53 cents per pound, or
27%, from 2023, reflecting cost efficiencies
on the higher mined copper production at
Oyu Tolgoi and Escondida, and higher
refined copper production at Kennecott,
following the smelter rebuild in 2023.
We generated significantly higher net cash
from operating activities of$2.6 billion, which
included higher dividends from Escondida.
Mined copper production, at 697 thousand
tonnes, was 13% higher than 2023, reflecting
the ramp-up of Oyu Tolgoi underground and
increased production from Escondida due to
higher grades fed to the concentrator (0.99%
versus 0.83%). This offset geotechnical
challenges at Kennecott as instabilities in the
pit wall impacted the mining sequence from
the second quarter of 2024.
Refined copper production increased by 42%
to 248 thousand tonnes with the Kennecott
smelter and refinery returning to normal
operations following the successful rebuild in
Oyu Tolgoi underground project
In 2024, we delivered 6.5 million tonnes of
ore milled from the underground mine at an
average copper head grade of 1.94% and
34.5 million tonnes from the open pit with an
average grade of 0.39%. The ramp-up
remains on track to reach 500 thousand
tonnes of copper production per annum
(100% basis and stated as recoverable
metal) for the Oyu Tolgoi underground and
open pit mines for the years 2028 to 20361.
We continue to see good performance from
the underground mine. We completed
drawbell construction at Panel 0, with a total
of 124 drawbells opened. The sinking of
ventilation Shafts 3 and 4 was completed in
April 2024 following the breakthrough to
surface. Both shafts were commissioned in
the second half of 2024.
In November 2024, Oyu Tolgoi successfully
concluded Collective Agreement
negotiations, marking a historic milestone as
the first agreement involving two trade
unions at the operation. The agreement will
remain in effect for the next three years.
For more information about our capital projects and future growth options, see pages 22-23.
- The 500 thousand tonne per year copper production
target (stated as recoverable metal) for the Oyu Tolgoi
underground and open pit mines for the years 2028 to
2036 was previously reported in a release to the
Australian Securities Exchange (ASX) dated 11 July
2023 “Investor site visit to Oyu Tolgoi copper mine,
Mongolia”. All material assumptions underpinning that
production target continue to apply and have not
materially changed.
Advancing Winu with Sumitomo
Metal Mining
In December, we announced a new
partnership with Sumitomo Metal Mining
(SMM) to deliver the Winu copper-gold
project in Western Australia. Under the Term
Sheet signed between the partners, Rio Tinto
will continue to develop and operate Winu as
the managing partner, with SMM to acquire a
30% equity share. Located in the Great
Sandy Desert, near our Pilbara iron ore
operations, Winu is a low-risk, long-life
deposit that is highly prospective for
expansion. In 2025, alongside finalising the
joint venture definitive agreements, we will
advance regulatory approvals for an initial
processing capacity up to 10Mtpa.
Environmental Review Document
preparation under the Environmental
Protection Authority of Western Australia’s
Environmental Impact Assessment process
will take place in parallel with ongoing Project
Agreement negotiations with the
Nyangumarta People, Traditional Owners
of the land on which the Winu deposit is
situated, and the Martu People, Traditional
Owners of the land home to the
Karlkayn airstrip.
As part of our renewed relationship with
SMM, we have also entered into a letter of
intent to explore broader value chain
opportunities for commercial, technical, and
strategic collaboration across copper, other
base metals and lithium.
For more information see riotinto.com/winu
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.