Modernising Agreements and Transition to Renewables
Operating and sustaining capital cost outlook
Outlook for 2022
2021 cost guidance of $18-18.5/t
Cost pressures continue:
Work index increase of 12% (from 2021 forecast)
- Continued investment in asset health and reliability
Tight labour market driving higher rates
Diesel price (+23%, 2021F v 2020)
Cost of materials due to strong construction market and COVID-19 restrictions
Unit cost history
2021 latest cost estimate (%)
(US$/t)
22
22
18
20
20
Investing in our assets
Key focus areas:
- Asset reliability
-
Plant and rail asset health
Accommodation / camps
-
Systems including IT
Sustaining capital investment
(US$bn)
■FTE labour
~1.5
13
1.3
1.1
35
■Contractor labour
0.9
Diesel and energy
0.5
■Materials
14
10
12
2016 2017 2018 2019
2020
2021
Pilbara Iron Ore
Peers*
20
*Unit cost for peers are based off publicly available sales,
revenue and EBITDA data, with adjustments made for
comparison to RTIO's reporting method and products
Rio Tinto ©2021, Rio Tinto, All Rights Reserved
FTE = full time equivalent
■Other
2017
2018
2019
2020
2021
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