(Alliance News) - Rio Tinto PLC on Tuesday maintained its guidance for the year ahead, after ending its fourth quarter with production slightly up on last year.

The Anglo-Australian mining and metals company, which has numerous assets worldwide, said that overall production was higher in 2022 versus the previous year across all commodities, except aluminium.

At Pilbara, the company's iron ore asset in Western Australia, operations produced 324.1 million tonnes in 2022, up 1% year-on-year. Shipments were 321.6 million tonnes, in line with 2021, as performance improvements continued across the system.

Bauxite production was recorded at 13.2 million tonnes in the fourth quarter, and 54.6 million tonnes in the year overall. Both reflected a 1% increase on the year prior, which Rio Tinto noted was despite reliability issues at the Weipa and Gove assets in Australia.

Annually, mined copper production was 6% higher at 521 thousand tonnes. Titanium dioxide slag jumped even higher, up 18% to 1,200 thousand tonnes.

By contrast, aluminium production fell 4% to 3.0 million tonnes, which Rio Tinto blamed on reduced output at its Kitimat smelter in British Columbia, Canada, and Boyne smelter in Queensland, Australia.

The company noted, however, that the rate of pot restarts at Kitimat picked up in the fourth quarter while Boyne smelter cell recovery efforts continued. It said recovery at both smelters is progressing well, with full ramp-up expected to be completed during the course of 2023.

During the fourth quarter, Rio Tinto also completed its acquisition of Turquoise Hill Resources Ltd for a consideration of USD3.1 billion, simplifying ownership of the Oyu Tolgoi mine in Mongolia and strengthening its copper portfolio.

It now holds a 66% direct interest in the Oyu Tolgoi project, with the remaining 34% owned by the Government of Mongolia through Erdenes Oyu Tolgoi.

Rio Tinto remained aware of macroeconomic pressures, and said that its 2022 Pilbara iron ore unit cash costs are likely to end up slightly above the top end of its USD19.5 to USD21.0 per tonne guidance range, primarily due to inflation, diesel prices and labour costs.

Looking ahead, the company warned of high volatility in the coming quarter due to the end of Covid-19 controls in China, with increased short-term risks of supply chain disruptions and labour shortages.

Its 2023 production guidance is unchanged since November, with the exception of mined copper, which is now 600 to 655 thousand tonnes, from 550 to 600 thousand tonnes, reflecting the company's increased ownership in Oyu Tolgoi from 33% to 66%.

Rio Tinto shares closed 1.2% lower at AUD120.67 in Sydney on Tuesday. In London, shares were up 0.3% at 6,113.00 pence on Tuesday morning.

By Holly Beveridge; Alliance News reporter

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