17th Feb 2020 11:38
(Alliance News) - Rio Tinto PLC on Monday lowered annual shipments guidance at its iron ore operations in the Pilbara region of Western Australia following infrastructure damage caused by cyclone Damien.
For 2020, the miner now expects shipments at Pilbara between 324 million and 334 million tonnes, having previously forecast between 330 million and 343 million tonnes.
For 2019, the firm reported Pilbara iron ore shipments of 327 million tonnes, down 3% on 2018, after being hit by weather and operational challenges in the first half of the year.
Rio Tinto on Monday added operations at the site are "progressively resuming" following the cyclone.
"The cyclone caused infrastructure damage across our entire Pilbara network, including impact to access roads, electrical and communications infrastructure and accommodation. All mine sites experienced some disruption and will take time to return to normal operations," Rio Tinto explained.
The company added: "Rio Tinto is working with its customers to minimise any disruption in supply. Safety remains our top priority as we ramp up operations, and undertake the necessary remediation work, following the passing of the cyclone.
Tropical Cyclone Damien made landfall earlier in February and was classed as a category three storm in Australia.
Shares in Rio Tinto were 0.9% higher at 4,235.50 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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