16th Jul 2019 06:53
(Alliance News) - Rio Tinto PLC on Monday reported a drop in first half iron ore production at the company's Pilbara operations in Western Australia due to operational and weather-related issues.
In the six months to June 30, Rio Tinto's Pilbara iron ore production, on a 100% basis, slipped 8% year-on-year to 155.7 million tonnes. Iron shipments also decreased 8% to 154.6 million tonnes.
Pilbara iron production in the second quarter was down 7% to 79.7 million tonnes. Iron ore shipments in the three month period was 3% lower at 85.4 million tonnes.
Rio Tinto blamed the fall in shipments due to recovery works following Tropical Cyclone Veronica and a fire at Cape Lambert. The miner said all repairs are now complete.
Previously, Rio Tinto revised its 2019 Pilbara shipment guidance down to between 320 million tonnes and 330 million tonnes. The miner said this remains unchanged following the second quarter, but will "remain subject to the weather".
The miner's unit cost guidance for Pilbara in 2019 has been revised higher to USD14 to USD15 per tonne from USD13 to USD14 per tonne previously.
"We saw a challenging operational performance across our portfolio in the first half, while also investing in future growth at Richards Bay Minerals and Resolution. Whilst we experienced operational and weather issues at our iron ore operations in Australia, pricing and market demand has remained robust," said Chief Executive Jean-Sebastien Jacques.
Rio Tinto's copper equivalent production was down 2% in the first half, attributed to the lower iron ore production.
The miner produced 13.4 million tonnes of bauxite in the second quarter, 1% ahead of the same period last year. Aluminium production was flat at 800,000 tonnes.
Jacques added: "We remain focused on safely improving and optimising the performance and productivity of our assets in order to drive future cash flow. This, combined with our value over volume strategy and the disciplined allocation of capital, will continue to deliver superior returns to our shareholders in the short, medium and long term."
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