Rio Tinto PLC, the world's second-biggest mining company by market value, on Wednesday reported its highest-ever annual earnings and dividend. Here's some of what the company had to say:


On operational improvements:

"To achieve our ambition of becoming the best operator, we initiated the Rio Tinto Safe Production System at five pilot sites in 2021, focusing on sustainably unlocking capacity. We are already seeing returns, including a significant improvement at the Kennecott concentrator since deployment in July. We are planning a more extensive programme in 2022, subject to Covid-19 constraints, with up to 30 deployments at 15 sites and up to 80 rapid improvement projects, targeting bottlenecks."


On its Oyu Tolgoi copper project:

"Following the comprehensive agreement announced on 25 January 2022, underground operations are now under way at the Oyu Tolgoi copper/gold project in Mongolia. The agreement will move the project forward, reset the relationship between the partners and unlock the most valuable part of the mine, with first sustainable production expected in the first half of 2023."


On its Kennecott project:

"The [$900 million] first phase of the south wall push-back at Kennecott in the U.S., extending mine life to 2026, is now complete and we are gradually accessing higher copper grades. Stripping for the $1.5 billion second phase, extending operations to 2032, remains on track. In July, we announced a $108 million investment for underground characterisation studies: potential underground mining would occur concurrently with open pit operations and result in increased output."


On its Gudai-Darri iron-ore project:

"The $2.6 billion Gudai-Darri greenfield iron ore mine in Western Australia is advancing. The first train was loaded from the mobile crushing and screening facilities in December and first production from the main plant is expected in the second quarter of 2022, subject to the continuing impacts of Covid-19. This first phase of Gudai-Darri, with a 43 million[metric] ton annual capacity, will replace depleting orebodies and provide some incremental capacity."


On its Jadar lithium project:

"In January 2022, the Government of Serbia cancelled the spatial plan for the Jadar project and required all related permits to be revoked. We are disappointed by this announcement and are committed to exploring all options and are reviewing the legal basis of the decision and the implications for our activities and people in Serbia."


On group capital expenditure:

"We expect capital expenditure to be around $8 billion in 2022, which considers potential increases of around 15% for the Pilbara replacement projects. In each of 2023 and 2024, we expect capital expenditure to be between $9 and $10 billion, which includes the ambition to invest up to $3 billion in growth per year, depending on opportunities. Each year also includes sustaining capital of around $3.5 billion, of which around $1.5 billion a year is for Pilbara iron ore, subject to ongoing inflationary pressure."


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

02-23-22 0233ET