Rio Tinto plc - RIO STOCK NEWS

Rio Tinto has made significant strides in Q1 2022, including the initiation of underground mining at Oyu Tolgoi after a key agreement with the Mongolian government. The company completed the acquisition of the Rincon lithium project in Argentina and signed a framework agreement for the Simandou iron ore project in Guinea. However, production faced challenges, showing a decline in Pilbara shipments and production by 8% and 6% respectively compared to Q1 2021. Rio Tinto aims to enhance operational performance in the second half with various strategic initiatives.

Rio Tinto has published its 2021 economic contribution report, revealing a total direct economic input of $66.6 billion, up from $47 billion in 2020. The company's taxes and royalties paid globally amounted to $13.3 billion, an increase from $8.4 billion in the previous year. In Australia, Rio contributed $11.1 billion in taxes and royalties, reflecting growth driven by operational resilience amid COVID-19. Overall, since 2017, Rio's contributions exceed $251 billion, underscoring its role in supporting local economies.

Rio Tinto has successfully ratified a new five-year Collective Bargaining Agreement with unions representing 1,300 employees at the Kennecott copper operation in Salt Lake City, Utah. The agreement, effective April 1, 2022, was ratified after seven weeks of negotiations and promises competitive wages and enhanced benefits for employees. Managing director Gaby Poirier expressed satisfaction with the agreement, highlighting its role in providing fair compensation and enabling future growth for Kennecott, which contributes $1.6 billion annually to Utah's economy.

Rio Tinto has finalized the acquisition of the Rincon lithium project in Argentina for $825 million, following approval from Australia’s Foreign Investment Review Board. The agreement with Rincon Mining was first announced in December 2021. Rincon is a significant undeveloped lithium project located in the lithium triangle, capable of producing battery-grade lithium carbonate with low carbon emissions. The deal positions Rio Tinto to meet growing lithium demand, projected to increase 25-35% annually over the next decade.

Rio Tinto has proposed to acquire the remaining 49% of Turquoise Hill's shares it doesn't own at C$34 per share, valuing the deal at approximately US$2.7 billion. This offer represents a 32% premium over Turquoise Hill’s last closing share price. The deal aims to simplify the ownership structure of the Oyu Tolgoi project in Mongolia and strengthen Rio Tinto's copper portfolio. This follows a recent agreement to advance the Oyu Tolgoi project's underground operations, providing immediate value to Turquoise Hill shareholders amidst ongoing development uncertainties.

Rio Tinto held its biannual Steering Committee meeting in Pittsburgh, collaborating with major mining unions globally including the United Steelworkers and the Mining and Energy Union. The committee, established in 2016, focuses on fostering dialogue and ensuring adherence to the International Labor Organization’s core standards. Key topics included an external review of workplace culture and strategies for addressing its findings. The committee also emphasized the mining sector's role in supplying critical minerals for the green economy.

Rio Tinto has settled with the Australian Securities and Investment Commission (ASIC) over the disclosure of a coal impairment in its 2012 accounts, paying a penalty of A$750,000. The settlement, which involved no fraud findings, closes the ASIC case. However, Rio Tinto is still defending against ongoing proceedings from the SEC. The Rio Tinto Coal Mozambique (RTCM) was acquired in 2011 and divested in 2014, and similar cases were previously settled with the UK Financial Conduct Authority in 2017 and dismissed by a US court.