- Australia’s biggest iron ore exporter Rio Tinto (RIO) sees a drop in shipments in the year’s first quarter due to delays on expansion projects
- The company shipped 71.5 million tonnes of the steel making commodity, an 8 per cent drop on this time last year and a 15 per cent drop from the fourth quarter of 2021
- Iron ore production was 71.7 million, a six per cent drop from the previous corresponding period and an eight per cent drop from the previous quarter
- However, Rio is expecting its processing plant at Gudai-Darri to be completed and operational before the end of June, which it is expecting to ramp up iron ore production
- Rio shares dropped 2.57 per cent to $118.53 per share
Iron ore giant Rio Tinto (RIO) has seen a drop in shipments in the year’s first quarter due to delays on expansion projects.
The company shipped 71.5 million tonnes of the steel making commodity, an 8 per cent drop on this time last year and a 15 per cent drop from the fourth quarter of 2021.
Iron ore production was 71.7 million, a six per cent drop from the previous corresponding period and an eight per cent drop from the previous quarter.
Australia’s biggest iron ore exporter has been investing in a generation of new mines over the past four years, but delivery of those projects have been impacted by COVID-19 pandemic, which made sourcing materials and labour difficult.
“Production in the first quarter was challenging as expected, re-emphasising a need to lift our operational performance,” CEO Jakob Stausholm said.
However, Rio is expecting its main Pilbara processing plant at Gudai-Darri to be completed and operational before the end of June.
Mr Stausholm said the completion of this mine should allow Rio to produce a higher proportion of Pilbara iron ore.
“As we ramp up Gudai-Darri, our iron ore business will have greater production capacity and be better placed to produce additional tonnes of Pilbara Blend in the second half,” he told the market.
Rio shares have dropped 2.57 per cent and were trading at $118.53 per share at 3:59pm AEST.