Rio Tinto Sizes Up Its Lithium Play Options
Rio Tinto Sizes Up Its Lithium Play Options
Rio Tinto still has the lithium bug, on top of its ambitions for copper, iron ore, bauxite, aluminium and alumina and the obscure mineral scandium which it produces in Quebec and possibly soon in Australia.
Rio's Australian annual meeting in Perth on Thursday heard from CEO Jakob Stausholm who revealed that, while his company remains very interested in lithium, it didn't want to pay too much to play.
But chair, Dom Barton also told the meeting that the company is under growing pressure from parts of the US government and industry to get its massive Resolution copper mine up and running.
The project has been blocked for years by activist opposition on environmental and native rights.
"We are getting immense pressure to proceed because of the copper reserves that are there," Barton told shareholders at Rio Tinto's Australian shareholders meeting.
Pressure was coming from "parts of the U.S. government," Barton clarified on a media call following the meeting, as U.S. senators seek to get copper put on the U.S. critical mineral list which would allow copper projects access to tax breaks.
"We are engaging and we are not (making) any conclusions but we are going through a process right now," CEO Jakob Stausholm said.
But lithium is a headliner grabber and Rio has had something of a chequered career so far in key battery metal.
Its $US2.5 billion plan for a major mine and refinery in Serbia is on the back burner after strong opposition and it is reviewing the start-up costs for its Rincon project in Argentinia because of the country's surging inflation (over 100% a year), weakening growth and a sinking currency.
"Of course, I don't like any cost overruns but, on the other hand, it basically provides invaluable learnings for us before a project is being recommended for full sanctioning," Stausholm said.
Rio paid $US825 million for the Rincon prospect and said it would spend $US140 million on development work on Rincon but that is being reviewed because of the explosion in costs.
Stausholm told media after the AGM that "We wouldn't mind having a stronger lithium business."
"I think it is very difficult to justify to go in and buy at these high prices unless you already know you can sell the lithium at a high price," which is uncertain, he said of the potential for dealmaking.
Lithium prices have slumped sharply since peaking last November. Albemarle has downgraded its outlook, but another US producer, Livent has upgraded its 2023 outlook despite the weak prices.
Stausholm said the outlook for long-run lithium prices is unclear.
"I'm not sure the short term is giving you any indications of" long-term pricing, he said. "What we do know is the world needs to build a number of lithium mines."
Mr. Stausholm said he remains hopeful of a way forward for Rio Tinto's lithium project in Serbia, which came to a halt last year when the government there revoked its licenses.
His caution is in contrast to the spending by Albemarle - there's the $US1 billion on two new hydroxide refinery processing trains in WA and the proposed $US3.7 billion bid for Liontown Resources while Wesfarmers and SQM of Chile are looking at spending more money expanding their mount holland mine and associated WA refinery.
The slide in Chinese prices has seen the share prices of local producers fall, but all are pressing ahead and not as seemingly hesitant as Rio is here.
Rio shares rose 1.2% to $110.14 at the close on Thursday.
力拓除了雄心勃勃地生產銅、鐵礦石、鋁土礦、鋁和氧化鋁以及在魁北克可能很快在澳大利亞生產的不起眼的礦物銫之外,還存在鋰錯誤。
里約熱內盧週四在珀斯舉行的澳大利亞年會聽取了首席執行官雅各布·斯陶斯霍爾姆的講話,他透露,儘管他的公司對鋰仍然非常感興趣,但它不想花太多錢去玩。
但董事長唐·巴頓也在會議上表示,該公司正受到來自美國政府和行業部分部門的越來越大的壓力,要求他們啓動並運營其龐大的Resolution銅礦。
該項目多年來一直因反對環境和原住民權利的激進分子而受阻。
巴頓在力拓的澳大利亞股東大會上對股東說:“由於存在銅儲量,我們面臨着巨大的繼續壓力。”
巴頓在會後的媒體電話會議上澄清說,壓力來自 “美國政府的一部分”,因爲美國參議員正在尋求將銅列入美國關鍵礦產名單,這將使銅項目獲得稅收減免。
首席執行官雅各布·斯塔斯霍爾姆說:“我們正在參與,我們沒有(得出)任何結論,但我們現在正在經歷一個過程。”
但是鋰是頭條新聞的搶奪者,到目前爲止,里約熱內盧在關鍵電池金屬領域的職業生涯有些停頓。
在強烈反對下,其在塞爾維亞建造一座大型礦山和煉油廠的25億美元計劃處於次要地位。由於該國通貨膨脹率激增(每年超過100%)、增長疲軟和貨幣貶值,該公司正在審查其在阿根廷的Rincon項目的啓動成本。
Stausholm說:“當然,我不喜歡任何成本超支,但另一方面,在建議對一個項目進行全面批准之前,它基本上爲我們提供了寶貴的經驗教訓。”
里約熱內盧爲Rincon勘探項目支付了8.25億美元,並表示將花費1.4億美元用於Rincon的開發工作,但由於成本激增,正在對此進行審查。
Stausholm在股東周年大會後對媒體說:“我們不介意加強鋰業務。”
他談到交易的可能性時說:“我認爲,除非你已經知道可以以高價出售鋰,否則很難證明以如此高的價格買入是合理的,” 這是不確定的。
自去年11月達到峯值以來,鋰價格已大幅下跌。雅寶下調了展望,但另一家美國生產商Livent儘管價格疲軟,但還是上調了其2023年的展望。
Stausholm說,長期鋰價格的前景尚不清楚。
他說:“我不確定短期是否能給你任何長期定價的跡象。”“我們所知道的是,世界需要建造許多鋰礦。”
Stausholm表示,他仍然對力拓在塞爾維亞的鋰項目有前進的方向充滿希望。去年,由於塞爾維亞政府吊銷許可證,該項目陷入停頓。
他的謹慎態度與雅寶的支出形成鮮明對比——西澳大利亞州有10億美元購買兩列新的氫氧化物煉油廠加工列車,擬議以37億美元競標Liontown Resources,而智利的Wesfarmers和SQM正在考慮花更多的錢擴建荷蘭山礦和相關的西澳煉油廠。
中國價格的下滑使當地生產商的股價下跌,但所有生產商都在向前邁進,並不像里約那樣猶豫。
週四收盤時,里約股價上漲1.2%,至110.14美元。
譯文內容由第三人軟體翻譯。
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