Rio Tinto chief executive officer Jakob Stausholm has highlighted decarbonisation as an essential priority for the business as it reflects on a strong second quarter.
Stausholm said the major’s operational performance continues to progress, as the company sees a “step-change in production”.
“We growing with discipline in the materials the world needs for the energy transition,” he said.
“Construction of the Simandou high grade iron ore project in Guinea is advancing at pace, the ramp up of the Oyu Tolgoi underground is on track and we are set to achieve first production from the Rincon starter plant by the end of the year.”
All conditions have been satisfied for Rio’s investment to develop Simandou, with the transaction to be completed during the week of July 15.
Rio Tinto executive committee lead for Guinea and copper chief executive Bold Baatar thanked those who made the investment possible.
“We thank the Government of Guinea, Chinalco, Baowu and WCS for their partnership in reaching this milestone towards developing the world class Simandou project,” he said.
“Simandou will deliver a significant new source of high-grade iron ore that will strengthen Rio Tinto’s portfolio for the decarbonisation of the steel industry.”
In its other operations, Rio has installed carbon-free aluminium smelting cells at its Arvida smelter in Quebec and is investing in a research and development facility to test a low-carbon ironmaking process 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,” Stausholm said.
“As we progress against our objectives and strategy, we have a clear long-term pathway to profitable growth and continued attractive shareholder returns.”
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