Rio Tinto plc - RIO STOCK NEWS

Rio Tinto has addressed Turquoise Hill (TRQ) shareholders, affirming its commitment to the Oyu Tolgoi project in Mongolia. The company emphasizes the need for US$3.6 billion in funding over two years, warning that shareholders may face dilution unless they contribute. Rio Tinto's final offer stands at C$43 per share, representing a 67% premium over pre-proposal prices. Despite some shareholder opposition, the proposal has received backing from key board members and financial advisors, with a focus on realizing the project's long-term potential amidst significant risks.

Rio Tinto reported improved production in Q3 2022 across most sites, primarily driven by the Rio Tinto Safe Production System (RTSPS). The company made significant progress in development projects, including a joint venture with Baowu for the Western Range project. Additionally, Rio Tinto plans to invest C$737 million in decarbonization efforts in Québec. However, bauxite production experienced a 2% decline due to equipment issues. The company’s proposal to take Turquoise Hill Resources private has unanimous board support, enhancing shareholder value.

Rio Tinto and Wright Prospecting have modernized their joint venture for the Rhodes Ridge project in Western Australia, home to one of the world's largest undeveloped iron ore deposits. This update facilitates development using Rio Tinto's existing infrastructure. An Order of Magnitude study for operations with a capacity of up to 40 million tonnes annually has commenced, targeting completion before the end of the decade. The Rhodes Ridge project hosts 5.8 billion tonnes of high-grade mineral resources. Environmental and cultural considerations will be prioritized in future development.

Rio Tinto has partnered with Scania to develop agile autonomous haul trucks in Western Australia’s Pilbara region, aiming for environmental and productivity benefits. This collaboration marks the Channar mine as the first active site for Scania’s technology, which includes future electric vehicle options. Trials commenced in April 2022, achieving driverless operations swiftly. Rio Tinto plans to phase out new diesel trucks by 2030, enhancing decarbonization efforts while potentially lowering capital and operating expenses through improved efficiency.

Rio Tinto is investing up to C$737 million (US$537 million) in collaboration with the Government of Canada to decarbonize its Fer et Titane (RTFT) operations in Sorel-Tracy, Québec, over the next eight years. The partnership aims to reduce greenhouse gas emissions by up to 70%, while diversifying RTFT's product portfolio to strengthen its position in critical minerals for electric vehicles and aerospace. Canada is investing C$222 million as part of this initiative, targeting sustainable development and innovation in the critical minerals sector.

Rio Tinto has released its second progress report on Communities and Social Performance (CSP) practices, focusing on feedback from Traditional Owners and actions taken to rebuild relationships with Indigenous peoples. Initiated in September 2021, the report highlights advancements in partnerships, governance, and cultural heritage protection in Western Australia. With 500 CSP professionals now engaged globally, the company aims to enhance transparency and community trust, especially following past controversies related to cultural heritage. Full details can be found in the report available online.

Rio Tinto's subsidiary, Richard’s Bay Minerals (RBM), has partnered with Voltalia for a renewable solar power initiative in South Africa. The Bolobedu Solar PV project, set to begin construction in 2023, aims for completion by 2024, providing an annual capacity of 300GWh. This project is expected to reduce RBM’s greenhouse gas emissions by 10% or 237kt CO₂e each year. Additionally, it will support local employment and skills development, ensuring that 51% of the project is black-owned, with at least 10% allocated to black women.

Rio Tinto has welcomed Energy Resources of Australia's announcement to renew its independent board committee, aimed at addressing cost and schedule overruns in the Ranger rehabilitation project in Northern Territory. The committee will introduce new perspectives to manage these challenges. CEO Kellie Parker reaffirmed the company's commitment to collaborate with ERA and develop a viable funding plan for increased rehabilitation costs, emphasizing the importance of the project for the Mirarr People and stakeholders. Rio Tinto has also amended a $100 million credit facility to support ERA's liquidity issues.

Rio Tinto has requested the resignation of Energy Resources of Australia’s (ERA) Chairman Peter Mansell to facilitate board renewal and address significant cost and schedule overruns on the Ranger rehabilitation project in Australia’s Northern Territory. Following cost overruns reported in February 2022, Rio Tinto has expressed concerns over funding solutions presented by ERA's Independent Board Committee, particularly regarding the Mirarr People’s opposition to uranium mining. Rio Tinto aims to develop a workable plan for rehabilitation funding and is considering amendments to a A$100 million credit facility to assist with ERA's liquidity challenges.