Rio Tinto Q1 iron ore output, shipments drop on weather hit
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The news: Mining giant Rio Tinto has reported a drop in first quarter iron ore production and shipments after adverse weather conditions affected its Pilbara operations, but has maintained its full-year guidance.
The numbers: Iron ore production from its Pilbara operations for the March quarter was 69.8 million tonnes, down 10% from a year ago. Shipments for the quarter were also down 9% to 70.7 million tonnes.
Across its other major divisions, bauxite output was up 12% to 15 million tonnes, while mined copper output rose 16% to 210,000 tonnes.
The context: The global miner said its production and cost guidance for the year remains on track, but Pilbara iron ore shipments are expected to be at the lower end of the 323 million tonnes to 338 million tonnes guidance range due to the losses sustained from extreme weather events in the first quarter. It said mitigation plans are in place to offset around half of this and will require an additional investment of around $150 million for rectification works and contracting mining activities. Lower volumes and recovery costs will be offset by a weaker than expected Australian dollar.
Rio said there was limited impact on its commodities from the imposition of tariffs in the first quarter. “However, there is an uncertain future impact from tariffs on the commodity markets going forward,” it said.
The source: ASX
