20th Apr 2022 05:57
(Alliance News) - Rio Tinto PLC on Wednesday reported a "challenging" quarter from its key Pilbara iron ore operations, though the miner left annual guidance unchanged.
In the first three months of 2022, total iron ore shipments from the Western Australia-located asset fell 8% annually to 71.5 million tonnes. Quarter-on-quarter, shipments declined by 15%.
Iron ore production from Pilbara fell 6% yearly to 71.7 million tonnes and 15% from the fourth quarter of 2021.
"Pilbara operations had a challenging first quarter, as expected, as ongoing mine depletion was not offset by mine replacement projects, with delayed commissioning of Gudai-Darri (first ore still forecast for the second quarter of 2022) and ongoing commissioning challenges at the Mesa A wet plant continuing to impact production ramp up at Robe Valley," Rio Tinto said.
The miner also noted Covid-19 hit labour supply at Pilbara.
"We experienced increased cases on-site in the Pilbara following the Western Australian border opening in March," the FTSE 100 constituent said.
Looking ahead to the remainder of the year at Pilbara, Rio Tinto said: "We expect increased production volumes and improved product mix in the second half with the commissioning and ramp up of Gudai-Darri, commissioning of the Robe Valley wet plant and improved mine pit health."
It expects total Pilbara shipments for 2022 between 320 and 335 million tonnes, which would range from a 0.6% decline to a 4.0% rise from 322 million tonnes in 2021. Guidance was unchanged.
Elsewhere, first quarter bauxite output was flat year-on-year, aluminium production fell 8% annually, while for mined copper, it rose 4%.
The company added: "Commodity prices have been elevated due to actual and expected disruptions to supply. We expect commodity demand to be underpinned by the global energy transition which is creating new demand for our products and near-term Chinese policies that are becoming more growth focused. Recent input cost increases are the largest raw material cost hike since the oil crisis in 1973. Rising interest rates globally pose downside risks to economic growth.
"Economic growth and commodity demand started positively this year as the world continues to recover from the pandemic downturn. However, market expectations have been revised downwards amidst sustained high inflation, the outbreak of the Russia-Ukraine war, and a resurgence of Covid-19 lockdowns in China."
Rio Tinto shares were 1.7% lower at AUD119.55 each in Sydney on Wednesday afternoon.
By Eric Cunha; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Rio Tinto