Non-ferrous: Major companies release Q3CY'24 production results

• Rio Tinto reports improvement in bauxite output
  
  
• Alcoa witnesses 4% decline in alumina production
  
  

Major global companies recently released their non-ferrous metals production results for Q3CY'24 (June-September 2024).

Rio Tinto reports improved bauxite output

Rio Tinto reported bauxite production of 15.1 million tonnes (mnt) in Q3CY'24, an 8% increase y-o-y. This improvement is attributed to enhanced plant availability and utilisation rates, with operations running above nameplate capacity due to the implementation of the Safe Production System. In contrast, mined copper production totalled 168,000 tonnes (t) on a consolidated basis, reflecting a 1% decrease y-o-y.

Additionally, aluminium production totalled 0.8 mnt, reflecting a 2% decline y-o-y. This decrease was primarily due to a temporary reduction in electricity usage in early August. However, this measure has concluded, and production ramp-up commenced from late September, with expectations for continued increases through the second quarter of 2025.

Rio Tinto maintained its CY'24 production guidance for refined copper at 0.23-0.26 mnt, unchanged from previous estimates. In 2023, the company produced 0.175 mnt, while year-to-date figures for 2024 show production at 0.17 mnt. This stability reflects consistent operational performance in the refined copper segment.

Escondida increases copper output

Escondida, a key asset of BHP and one of the world's largest copper mines, reported a 15% increase in copper production compared to the third quarter of 2023. This boost was driven by higher ore grades processed at the concentrators, which improved from 0.85% to 1.00%, along with enhanced recovery rates.

Alcoa witnesses decline in production

Alcoa, a leading global producer of aluminium, reported that its alumina production decreased by 4% q-o-q to 2.44 mnt. Conversely, aluminium production saw a slight increase of 3% q-o-q to 559,000 t.

Adjusted EBITDA, excluding special items, was $455 million, a sequential increase of $130 million, primarily driven by higher alumina prices and lower raw material costs. This positive financial performance reflects Alcoa's operational efficiency and market responsiveness.

Alcoa expects that its total production and shipments in the aluminium segment in 2024 will remain consistent with previous estimates, at 2.2-2.3 mnt for production and 2.5-2.6 mnt for shipments.

In October 2024, Alcoa announced a long-term agreement to supply aluminium Bahrain BSC (Alba) with up to 16.5 mnt of smelter-grade alumina over a period of 10 years.

Antofagasta sees considerable rise in copper output

Chilean miner Antofagasta, a prominent player in the copper industry, announced a substantial 15% q-o-q increase in copper production for Q3 CY'24 to 179,000 t. This boost was largely driven by a partial destocking of inventories at Los Pelambres and improved copper grades and recoveries at Centinela. Despite this quarterly success, year-to-date production is 1% q-o-q lower, while net cash costs have risen by 10% q-o-q, highlighting the ongoing challenges in cost management amid market fluctuations.

For the first nine months of 2024, copper production totalled 463,700 t, which represents a 1% decrease y-o-y. Increased output from Los Pelambres and Centinela Cathodes helped to balance the decline in production from Centinela Concentrates.