Strong Foundation for Growth, Decarbonisation and Shareholder Returns
Minerals
Strong pricing across portfolio supports EBITDA
Underlying EBITDA 2021 vs 2020
$ million
4,000
1,432
2,817
19
3,000
2,603
1,710
(136)
(60)
(129)
2,000
(105)
(69)
(59)
1,000
0
2020 underlying
EBITDA
Price
Exchange rates
Energy
Inflation
Flexed 2020 Volumes and Mix
underlying
EBITDA
Cash costs
One-offs
Other
2021 underlying
EBITDA
In 2021, we benefited from strong market conditions in particular for iron ore pellets and
concentrate, but also for titanium dioxide pigment and borates, driven by global economic growth
and underpinned by a robust construction market. We also saw a recovery in diamond prices
following a pandemic-related build-up of demand and low inventory levels.
Underlying EBITDA of $2.6 billion was 52% higher than 2020, primarily due to the strong pricing
environment which more than offset the impact of lower volumes, which in turn drove up unit cash
costs due to fixed cost inefficiencies.
We generated net cash of $1.4 billion from our operating activities, and $0.8 billion of free cash
flow, 28% and 19% higher than 2020, respectively, reflecting the strong pricing environment and
higher dividends paid to holders of non-controlling interests at Iron Ore Company of Canada.
-
The business continued to comply with government-imposed COVID-19 restrictions, notably in
Canada, the US and South Africa. At our titanium dioxide business we experienced 9% lower
production, as a result of community disruptions and subsequent curtailment of operations at
Richards Bay Minerals (RBM) in South Africa for around three months coupled with an extended
ramp-up period, as well as unplanned maintenance and equipment reliability issues at Rio Tinto
Fer et Titane (RTFT) in Canada.
On 18 November, we announced we had become the sole owner of Diavik Diamond Mine in the
Northwest Territories of Canada, continuing its leading role in the Canadian diamond industry.
Rio Tinto
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