Rio Tinto Group (RIO) CEO Jakob Stausholm Presents at Bank of America Virtual Global Metals, Mining and Steel Conference (Transcript)

Summary of Rio Tinto Group Conference Call Company Overview - Company: Rio Tinto Group (NYSE: RIO) - Event: Bank of America Virtual Global Metals, Mining and Steel Conference - Date: May 17, 2022 - Participants: Jakob Stausholm (CEO), Jason Fairclough (Bank of America), James Redfern (Bank of America) [1][2] Key Industry Insights - Current Economic Climate: The world is experiencing significant uncertainty, with discussions around inflation and recession risks due to geopolitical crises like the Ukraine conflict [3][5] - Long-term Outlook: Despite short-term unpredictability, there is confidence in the long-term demand for materials essential for energy transition, particularly as climate change becomes a pressing issue [6][7] Core Company Strategies and Objectives - Decarbonization Commitment: Rio Tinto is focused on decarbonizing its operations while growing its business, emphasizing the need for materials like lithium and copper for the energy transition [6][7][11] - Cultural Reset: The company is undergoing a cultural transformation to enhance relationships with communities and stakeholders, particularly traditional landowners [8][9] - Four Key Objectives: 1. Become the best operator 2. Achieve impeccable ESG credentials 3. Excel in development 4. Strengthen social license [10][16] Financial Performance - Record Results: In the previous year, Rio Tinto reported $21 billion in after-tax profits and a return on capital employed of 44$7.5 billion in value-accretive projects from 2022 to 2030 to support its decarbonization goals [11] - New Projects: - Underground mining at Oyu Tolgoi is progressing, with a focus on rebuilding relationships in Mongolia [12][21] - Acquisition of the Rincon lithium project in Argentina and development of the Simandou iron ore project in Guinea are underway [12][38] Innovations and Technology - ELYSIS Joint Venture: The partnership with Alcoa aims to produce CO2-free aluminum, marking a significant technological advancement in the industry [11][34] - Scandium and Tellurium Production: Rio Tinto has opened a scandium plant in Canada and a tellurium plant in Utah, both utilizing waste streams for profitable extraction [13][15][14] Market Position and Future Prospects - Aluminum Business: The aluminum segment is expected to grow significantly due to its lower carbon footprint compared to competitors, despite past challenges [29] - Lithium Demand: The company anticipates a tenfold increase in lithium demand by 2030, positioning its Rincon and Jadar projects as critical assets [36][37] Conclusion - Commitment to Growth: Despite economic uncertainties, Rio Tinto is focused on executing its strategies, investing in essential commodities for the energy transition, and maintaining strong financial health [16]