16th Apr 2019 06:56
LONDON (Alliance News) - Rio Tinto PLC on Tuesday lowered its annual iron ore production guidance as its operations were hit by fire and tropical cyclone, which also brought significant damage to the port, affecting shipments.
The company's Pilbara mine located in Western Australia recorded a 9% year-on-year decline in iron ore production to 76.0 million tonnes for the three months to March-end, 64.1 million of which was net to Rio Tinto. As a result, iron ore shipments decreased by 14% to 69.1 million tonnes, with 58.2 million tonnes net to Rio Tinto.
The FTSE 100-listed miner explained that the production was impacted by a fire at Cape Lambert A in January and significant disruptions caused primarily by tropical cyclone Veronica in March.
Looking ahead, Rio Tinto said it now expects its Pilbara shipments in 2019 to be between 333 million and 343 million tonnes as the damage to the port from tropical cyclone Veronica is expected to result in ongoing disruption to shipments.
Previously, the company guided its annual production at the lower end of the range of 338 million and 350 million tonnes, on a 100% basis.
"Our iron ore business faced several challenges at the start of this year, particularly from tropical cyclones. As a result, and following the continuing assessment of damage at the port resulting from the cyclones and other minor disruptions, 2019 guidance for Pilbara shipments is reduced," said Chief Executive Jean-Sebastien Jacques.
He added: "The quarterly operational performance in our other products was solid, generally higher than last year."
Rio Tinto reported a 1% rise in bauxite production for the quarter to 12.8 million tonnes and a 48% jump in mined copper production to 143,900 tonnes, with the copper rise helped by an increased plant throughput.
First-quarter aluminium production was flat at 796,000 tonnes due to an "ongoing lock-out" at the Becancour smelter in Canada. Excluding production from the non-managed Becancour smelter, production was 1% higher year-on-year.
2019 guidance is unchanged, the company noted. Rio Tinto's expected share of bauxite production in 2019 is between 56 million and 59 million tonnes. The company's share of mined copper production for 2019 is expected to be between 550,000 and 600,000 tonnes, subject to grade availability.
Aluminium production guidance is between 3.2 million and 3.4 million tonnes.
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