Tag Archives: Stephen McIntosh

Rio Tinto reinforces strategy, technology and climate change focus

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Rio Tinto has added a new role to its Executive Committee as it considers the next phase of its transformation to, it says, reinforce the company’s commitment to strategy, technology and climate change in a new era.

Peter Toth will become Group Executive, Strategy and Development with a focus on leading Rio Tinto’s transformation efforts around portfolio, climate change, and closure, working in partnership with the product group and commercial teams. He will also assume responsibility for Rio Tinto Exploration and Ventures.

Stephen McIntosh, Group Executive of Growth & Innovation and Health, Safety & Environment (HSE), has decided to retire after more than 30 years with Rio, leaving the company on September 30. McIntosh joined the company as an exploration geophysicist in 1987 and led the exploration team from 2011 to 2016, joining the Executive Committee in 2016. During his time with the company, he built strong exploration, project and technology capabilities, Rio said.

With McIntosh’s departure, Mark Davies will assume the role of Group Executive, Safety, Technical and Projects, with a focus on maintaining the company’s longstanding commitment to safety, health and environment, while further building on the company’s efforts in technology and project delivery to support operational excellence in the years ahead, Rio said.

Both Toth and Davies will join the Rio Tinto Executive Committee on October 1, reporting to Chief Executive, J-S Jacques.

Toth, a dual Hungarian and Australian citizen, joined Rio Tinto in 2014 as Global Head of Strategy. In 2015, he became Head of Corporate Development with responsibility for corporate strategy (including climate strategy) and business development. He was the Chief Executive of ASX-listed OM Holdings, an integrated manganese and silicon company, between 2008 and 2014 and, prior to this, spent 14 years with BHP Billiton in a range of roles, including the Head of Marketing for carbon steel materials. He is based in London.

Davies, an Australian citizen, brings extensive international experience gained over 25 years with Rio Tinto in Australia, the US, the UK and Singapore, Rio says. He joined the company in 1995 as a senior mechanical engineer and has worked in various operational and functional leadership roles during this time. These include Chief Commercial Officer and interim CEO for the Iron and Titanium business unit, head of Group Risk and most recently, Vice President, Global Procurement. He will move to Brisbane.

J-S Jacques said: “We remain committed to strong performance, disciplined capital allocation and a focus on value over volume as we transform our business to make the most of future opportunities in an increasingly complex world. With Peter and Mark joining the executive team we will enhance our focus in areas that will be absolutely vital for Rio Tinto’s future performance and success – strategy, technology and climate change. I welcome them both to our team.

“As we welcome our new team members we also say goodbye to Steve, who has significantly contributed to our company over many decades. We are very grateful for his support and leadership in areas from exploration to innovation. We thank him for his commitment, and I wish Steve and his family all the very best for the future.”

Rio revises Oyu Tolgoi cost and production estimates on rock stability issues

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Rio Tinto has provided an update on its majority-owned Oyu Tolgoi copper-gold underground project, in Mongolia, admitting that stability risks identified with the previously approved mine design has led to an estimated cost increase and delay to first production.

First output is now expected to be achieved between May 2022 and June 2023, a delay of 16 to 30 months compared with the original feasibility study guidance in 2016, while preliminary estimates for development capital spend is now $6.5-$7.2 billion, $1.2-$1.9 billion up on the $5.3 billion previously disclosed.

These estimates are preliminary in nature – the equivalent of a conceptual or order of magnitude study – but Rio said a definitive estimate should be forthcoming in the second half of 2020.

Oyu Tolgoi Underground is Rio’s major copper growth project. When the underground mine is fully ramped up, the existing open pit and underground, combined, are expected to produce more than 500,000 t/y of copper.

Alongside this announcement, Rio Tinto also published its June quarter production results, which showed Rio’s share of production of the Oyu Tolgoi open-pit mine was 13,100 t of copper over the period.

Since February, key below ground infrastructure such as the control room facility and the jaw crusher system have been completed and construction of shafts 3 and 4 is progressing well, according to Rio. The commissioning of shaft 2 remains on track for October 2019.

As Rio previously advised, enhanced geotechnical information and data modelling suggests there may be some stability risks identified with the approved mine design. As a result, several other mine design options are under consideration to complete the project.

Rio said: “Studies to date indicate that these options may result in some of the critical underground infrastructure, such as the mid-access drive and the ore handling system, being relocated or removed. Options relating to the sequence of crossing the panel boundaries during mining operations are also being analysed.”

These options are being evaluated to determine the final design of the first panel of mining, “Panel 0”, with the work anticipated to continue until early 2020, Rio said. This is where the definitive estimate date of the second half of 2020 comes from. This estimate will include the final estimate of cost and schedule for the remaining underground project and the preferred mine design approach.

Rio said: “All options under consideration present a pathway to sustainable first production, and have different cost and schedule implications. To date, these have been defined to a level of accuracy associated with a conceptual study or order of magnitude study, and, therefore, significantly more work is required to complete the final assessment.”

Preliminary information now suggests, depending on which mine design options are adopted, first sustainable production could be achieved between May 2022-June 2023. This range includes contingency of up to eight months reflecting the “unexpected and challenging geotechnical issues, complexities in the construction of shaft 2 and the detailed work still required to reach a more precise estimate”, Rio said.

The company added: “The company will continue to focus on minimising the impact to project schedule and cost, as it works through the detailed analysis and testing of each mine design option. Although further work is necessary to reach definitive conclusions, Rio Tinto is reviewing the carrying value of its investment in the project and will announce if any changes are required in the half year results on August 1, 2019.”

Stephen McIntosh, Group Executive, Growth & Innovation, said: “We have made significant progress on a number of key elements in the construction of the underground project during 2019. However, the ground conditions are more challenging than expected and we are having to review our mine plan and consider a number of options. Delays are not unusual for such a large and complex project, but we are very focused as a team on finding the right pathway to deliver this high value project.”

Arnaud Soirat, Chief Executive, Copper & Diamonds, said: “Oyu Tolgoi is a world-class orebody and a world-class business that is already producing copper, employing around 16,000 people and benefitting Mongolia through taxes, royalties and significant procurement. We are working with Turquoise Hill Resources and the Government of Mongolia to complete the underground, which will unlock the most valuable part of the mine for the benefit of all stakeholders.”

Oyu Tolgoi is owned 66% by Turquoise Hill Resources (THR) and 34% by the Mongolian government, with Rio Tinto holding a majority stake in THR.

Rio Tinto’s debut Amrun bauxite shipment sets sail

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Rio Tinto has completed the first shipment of bauxite from its Amrun mine in Queensland, Australia, six weeks ahead of schedule.

At a ceremony on the Western Cape York Peninsula in the far north of Queensland, more than 80,000 t of bauxite was loaded on to the RTM Weipa bound for Rio’s Yarwun alumina refinery in Gladstone.

The US$1.9 billion (A$2.6 billion) investment in Amrun is aimed at replacing production from the depleting East Weipa mine and increasing annual bauxite exports by around 10 Mt. Amrun is expected to reach a full production rate of 22.8 Mt/y during 2019.

Rio Tinto Aluminium chief executive Alf Barrios said: “Bringing Amrun online further strengthens our position as a leading supplier in the seaborne market. We have the largest bauxite resources in the industry and are geographically well positioned to supply China’s significant future import needs, as well as supporting our refinery and smelting operations in Australia and New Zealand.”

The mining major was able to bring Amrun in ahead of schedule thanks, in part, to an innovation in design and fabrication of key infrastructure purpose-built for construction at Amrun’s remote location, according to Rio Tinto Growth & Innovation Group Executive Stephen McIntosh.

This included design and fabrication of the wharf on the Western Cape York Peninsula, which was constructed over water in essentially 13 pieces.

During construction, the Amrun development set a benchmark in supporting local and regional suppliers with US$1.6 billion invested with Australian companies, including $181 million with local Cape York companies, Rio said.

Rio’s Technical Development Centre on the search for jadarite process cure

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Rio Tinto is developing a new chemical procedure to process jadarite, a mineral discovered in 2004 with concentrations of lithium and boron, as it looks to unlock the potential at its Jadar asset in Serbia.

The company’s Technical Development Centre in Bundoora, Victoria (Australia), in collaboration with the company’s team of global experts, is using ground-breaking methods to reduce jadarite to its component parts, according to a release from the International Mining and Resources Conference.

This will see lithium carbonate and boric acid produced from the mined ore.

Lithium is increasingly being used to produce batteries for electric vehicles and mobile phones, while borates are essential components for heat-resistant glass, fibreglass and smartphone screens.

Rio Tinto’s Group Executive – Growth and Innovation, Stephen McIntosh said Rio’s Bundoora site had an essential role in its global business.

“Our Bundoora Technical Development Centre was established more than 25 years ago. It has a proud history of applying innovative thinking to help us to maximise value in our business,” he said.

“The centre is actively involved in applying technical expertise to improve how we find, study, build, optimise and close our operations.”

Rio Tinto has built a pilot processing plant within a large shipping container to be relocated to the Serbia mine site should the project proceed to production. The company is currently working on a prefeasibility study on Jadar, the only project where there is a known occurrence of jadarite.

Rio has invested more than $100 million on the project to date. Significant investment is required to continue technical analysis and planning to move from prefeasibility to feasibility, then to construction and operation, the latter of which could occur in 2023-2024.

The resource base at Jadar is currently are 21 Mt of B2O3-equivalent and 2.5 Mt of Li2O-equivalent.

The IMARC conference and exhibition, taking place this week in Melbourne, Victoria, is developed in collaboration with its founding partners the Victorian State Government of Australia, Austmine, AusIMM and Mines and Money.