Latest news with #JakobStausholm
Yahoo
2 days ago
- Business
- Yahoo
Rio Tinto opens $2bn Western Range iron ore mine in Australia
Rio Tinto, in partnership with China Baowu Group, has officially inaugurated the Western Range iron ore mine in the Pilbara, Western Australia. The Western Range mine, with a production capacity of up to 25 million tonnes per annum (mtpa) of iron ore, represents a $2bn joint venture between Rio Tinto (54%) and Baowu (46%). The project, which was completed on time and within budget, is set to sustain the Paraburdoo mining hub for approximately 20 years. The mine's infrastructure includes a primary crusher and an 18km conveyor system that connects to the existing Paraburdoo processing plant. Rio Tinto said the strategic development not only secures jobs for more than 880 residential and FIFO (fly-in, fly-out) employees but also reinforces the economic stability of Paraburdoo town through continued royalties and taxes. The Western Range mine is pioneering in its approach to cultural preservation, being Rio Tinto's first project to implement a co-designed Social, Cultural and Heritage Management Plan with the Yinhawangka traditional owners. This plan, established in 2022, ensures the protection of significant cultural and heritage values in the area. The mine's operations commenced with the processing of the first ore through the Western Range system in late March this year. In September 2022, Rio Tinto and Baowu also agreed to enter into an iron ore sales agreement at market prices, covering a total of up to 126.5 million tonnes of iron ore over approximately 13 years. Rio Tinto CEO Jakob Stausholm said: 'Opening Western Range is an important step in Rio Tinto's extension plans in the Pilbara and ensures the longevity of one of our oldest mining hubs, Paraburdoo, which began operating in 1972. 'I am particularly proud of the work we have done with the Yinhawangka People to develop Western Range, and we will continue to work closely together. Partnering with Baowu ensures our biggest customer directly benefits with a consistent, dedicated supply of Rio Tinto's world-leading Pilbara Blend iron ore.' Furthermore, Rio Tinto and the Puutu Kunti Kurrama and Pinikura (PKKP) Aboriginal Corporation have entered into a co-management agreement that sets a precedent for heritage and social engagement in the mining sector. This agreement covers all of Rio Tinto's iron ore operations on PKKP lands and grants the traditional owners a stronger voice in managing their territories, with a focus on safeguarding cultural heritage and the environment. "Rio Tinto opens $2bn Western Range iron ore mine in Australia" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
News.com.au
2 days ago
- Business
- News.com.au
Rio stays the course on lithium as it looks to rejuvenate iron ore business
Outgoing Rio Tinto boss Jakob Stausholm says Rio remains committed to its lithium strategy Mining giant just opened newest iron ore operation in WA's Pilbara CEO denies being nudged by board as he says company leaders are aligned on ESG and operational improvements The head of the world's second biggest miner Rio Tinto (ASX:RIO) says its board remains aligned on a counter-cyclical push into lithium as CEO Jakob Stausholm denied speculation that friction with the company's board was behind his decision to resign this year. Stausholm's near five year tenure at Rio followed the destruction of the Juukan Gorge rock cave in the Pilbara under his predecessor JS Jacques, an act that led to Jacques' resignation and steered the $150bn miner on a course to prioritise its ESG commitments. In that time, its new investments have focused in two areas, replacement mines to address declining iron ore quality at its flagship Pilbara operations and M&A to become one of the world's largest lithium producers. The latter has come under the microscope amid Stausholm's surprise exit, with lithium prices crashing to four year lows after Rio's entry as a producer via its $10 billion takeover of Argentine brine producer Allkem. Speaking at the opening of Rio's first of five major replacement iron ore mines due in the next five years – the 25Mtpa Western Range with Chinese steel giant Baowu near Paraburdoo – Stausholm said Rio's board remained aligned on its lithium strategy. "The lithium strategy we are absolutely aligned about in the whole board. This is a next pillar," he said. "Think about it like some visionary people 50-60 years ago said Rio Tinto should go into iron ore. "We need to think about the future to the next decade and the next decade. And we are lucky that we have built now a portfolio of outstanding brine resources in Argentina, in Chile. " It's going to complement our – what I would call signature – business here of iron ore for the future." Grade control Under Stausholm, Rio has cleared a number of social licence hurdles in its WA heartland culminating in an agreement this week with the PKKP group, the very Traditional Owner group devastated by the 2020 demolition of Juukan Gorge. It will be a key stakeholder for the US$1.8bn Brockman Syncline 1, the next replacement mine approved for the ~40Mtpa Brockman hub, one of a number of developments that will cost Rio in the order of US$13bn to deliver in the coming years. Western Range is a milestone in that it marks the first new operation delivered by Rio's iron ore division since Juukan Gorge (its Gudai-Darri mine was under construction at the time), and the first to a mine plan co-designed with the TO group, the Yinhawangka People. But Rio's iron ore division has been, quite literally, degrading. 2023 and 2024 marked long time highs for iron ore production at 331.8Mt and 328.6Mt, making Rio the largest exporter of hematite iron ore in the world. But costs have been escalating at a faster rate – on reported numbers at least – than its peers BHP and Fortescue. While BHP and FMG reported C1 cash costs of US$17.50/t and US$19.17/wmt in the first half of FY2025, Rio's unit cash costs came in at US$23/t in CY24. Its 2025 numbers will likely be higher at a guided range of US$23-24.50/t. And while 62% Fe Singapore iron ore futures are sitting at US$95.55/t, Rio's realisation to the benchmark price has been slipping. It notified customers that during the September quarter the spec grade for its Pilbara Blend product will drop. Fastmarkets this week introduced a 61% Fe Index to reflect the lower quality product Pilbara miners are now shipping. It will likely take until the end of this decade, when Rio delivers the higher grade Rhodes Ridge mine, for its grade to recover. Speaking at the Western Range opening, Stausholm denied any rift with new chair Dominic Barton, nor that the miner's focus on ESG under his leadership had clouded its dedication to operating performance. "We are absolutely aligned. It's very important to say we in the management team and the whole board (are) absolutely aligned around the values of Rio Tinto about pursuing the four objectives, about our strategy and the strategic choices and about the assessment of our performance," Stausholm said. "So there is no disalignment. "We are absolutely aligned. It's very important to say we in the management team and the whole board (are) absolutely aligned around the values of Rio Tinto about pursuing the four objectives, about our strategy and the strategic choices and about the assessment of our performance," Stausholm said. "So there is no disalignment. "If you look at my statements at the full year results, I said exactly the same thing because we have under the four objectives, made a lot of progress on rebuilding trust in the company, working towards impeccable ESG credentials, improving how we execute projects. " This project is an example. This project is on time, on schedule. "We still have the potential to do in the best operator, our safe production system is really working. So I said that at the full year, and my chairman repeated that a couple of weeks ago." Steel on top The official opening of Western Range marked a second major development in the relationship between Rio and China's top steel producer Baowu in the Pilbara after the development of Eastern Range in the early 2000s. It followed Rio's landmark first deal with China's Sinosteel at the nearby Channar JV almost 40 years ago. Australia now ships over 900Mt of iron ore a year, the vast bulk of it (around 80%) to China, the world's largest steel producer. But as new, high quality ore sources are developed overseas – notably the high grade 120Mtpa Simandou project in Guinea in which both Rio and Baowu are invested – question marks are hovering over the centrality of the long-established "conveyor belt" between the Pilbara and Beijing to the steel supply chain. FMG chairman Andrew Forrest notably sounded the alarm in recent months over the emergence of new competitors to WA who could eat its golden goose. He is lobbying hard for the establishment of a domestic green iron industry. But Rio remains confident in the role Australian iron ore will play in the future, even in a decarbonising world where green steel technologies – not suited to low and mid-grade ores produced in the Pilbara – could dominate. "It is for us as companies to make sure that the Pilbara ore remains relevant," Stausholm said. "And how do we do that? We do that in partnerships like you see today with Baowu, working on how can we decarbonise the supply chain. " If you find the right solutions and we will, then Pilbara will be the source for many, many decades to come." Stausholm's departure comes as BHP is also rumoured to be looking for a new CEO to replace Mike Henry, and has a number of internal Rio candidates reputedly jostling for position, among them chief commercial officer Bold Baatar and local favourite Simon Trott, who helped open Western Range on Friday and runs the major's iron ore division out of its Perth office.
AU Financial Review
2 days ago
- Business
- AU Financial Review
Rio Tinto's departing CEO rejects talk of rift with chairman
Departing Rio Tinto chief executive Jakob Stausholm says there is no bad blood with chairman Dominic Barton, and the company's next boss could 'very well be' an internal candidate. Stausholm's comments come two weeks after his exit was announced and as the Danish executive hosted guests at the official opening of Rio's $2.4 billion Western Range iron ore joint venture with Chinese giant Baowu in the Pilbara region on Friday.
AU Financial Review
2 days ago
- Business
- AU Financial Review
Rio Tinto's $20b Pilbara investment wave is just getting started
There was a strong sense of yesterday's heroes when departing Rio Tinto chief executive Jakob Stausholm hosted a range of foreign and domestic dignitaries in the Pilbara iron ore district on Friday. The official opening of the $2.4 billion Western Range mine could easily be Stausholm's last visit to the Pilbara as chief executive, and his successor will be greeted with a public narrative that Australian iron ore is in decline, requiring Rio to pivot towards a new hero such as copper or lithium.
Yahoo
5 days ago
- Business
- Yahoo
Rio Tinto shares down after Jefferies cuts stock to Hold on emerging headwinds
-- Shares in Rio Tinto (NYSE:RIO) fell 2% in U.S. premarket trading Tuesday after Jefferies lowered its rating on the mining giant to Hold from Buy, citing a more balanced risk/reward profile amid a series of emerging headwinds. The brokerage cut its price targets across listings, with the Rio Plc target lowered from 5,700p to 4,600p and the Rio Ltd target from A$147 to A$115. 'We do not believe that Rio (or BHP) is 'broken'. We just consider the risk/reward tradeoff to be more balanced following recent developments,' analysts led by Christopher LaFemina. One of the key concerns is the uncertainty surrounding the company's strategic direction following the announcement that CEO Jakob Stausholm will step down later this year. The analysts noted that potential successors—including Simon Trott, Jérôme Pécresse, and Bold Baatar—bring different implications for future strategy, including M&A potential. 'Until the new CEO is announced, the strategic direction of Rio will be a risk,' the analysts noted. Jefferies also flags growing concerns around Rio's lithium investments. While seen as countercyclical, these projects carry risks of 'rising capital intensity and potentially low returns' if demand fails to meet Rio's expectations. As spending increases, near-term free cash flow (FCF) could be negatively affected without a corresponding boost in earnings, the analysts said. The team is also cautious on iron ore, which accounts for over 70% of Rio's net present value. The analysts expect the price to ease in the near term, citing trade tensions between the U.S. and China, structural steel capacity cuts in China, and seasonal weakness. 'We model $90/t in 3Q vs current spot of $95/t,' they wrote, with a long-term forecast in the $80–90/t range. 'A lower iron ore price is negative for Rio,' the analysts added. As for the political landscape, Jefferies points out that U.S. tariffs on Canadian aluminum, a key production region for Rio, could reduce profitability despite potential gains in regional pricing. Meanwhile, political developments in Mongolia may complicate operations at the Oyu Tolgoi project, though Jefferies' base case assumes no major disruption. In the mining sector, Jefferies now favors Glencore (OTC:GLNCY), Anglo American (JO:AGLJ), and Vale SA ADR (NYSE:VALE) over Rio Tinto and BHP Group Ltd (ASX:BHP), citing better positioning with respect to capital allocation and geopolitical exposure. Related articles Rio Tinto shares down after Jefferies cuts stock to Hold on emerging headwinds Music majors weigh AI licensing deals with generative startups, WSJ reports TSX closes higher, remains resilient despite trade tensions Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
