RIO to Extend Operational Life of Yarwun With Production Cut

Core Insights - Rio Tinto Group (RIO) will reduce production by 40% at its Yarwun Alumina Refinery starting October 2026 to extend the operation's life until 2035 [1][8] - The production cut will lower alumina output by 1.2 million tons annually, but will not affect customer requirements [4][8] - The company is exploring options for staff redeployment across its Gladstone sites due to the impact on 180 roles [4][8] Production and Operational Impacts - The production reduction allows Rio Tinto time to explore life-extension and modernization options at Yarwun, as the tailings facility is expected to reach capacity by 2031 [3][8] - Other facilities, including bauxite mines and aluminum smelters, will continue to operate at full capacity [3] - Rio Tinto's alumina production is anticipated to be between 7.4 million tons and 7.8 million tons for 2025 [6] Financial Guidance and Performance - Rio Tinto expects Pilbara iron ore shipments at the lower end of 323-338 million tons due to cyclone impacts in Q1 2025 [5] - Bauxite guidance has been increased to 59-61 million tons from 57-59 million tons, indicating higher utilization rates [5] - In the past year, Rio Tinto shares have gained 18.5%, outperforming the industry's growth of 14.2% [7]