Rio declares force majeure, lowers guidance

Rio Tinto has revealed its full-year Pilbara iron ore shipments are expected to be at the lower end of its 338 million to 350 million tonnes guidance, after Tropical Cyclone Veronica damaged its Cape Lambert port.

In a statement, the miner said initial inspections uncovered damage its Cape Lambert A port facility, which led it to declare force majeure on some contracts.

It said the impact of the disruption to production caused by the cyclone, combined with the damage caused by a fire at the same Cape Lambert A facility in January, would result in a loss of approximately 14mt of production in 2019.

Cape Lambert A is capable of loading more than 85mt per annum, and the principal products loaded through the port are its Hamersley Iron Yandicoogina and Robe River products.

In 2018, Rio shipped 57.4mt of its Hamersley Iron Yandicoogina 32mt of Robe River.

Despite the announcement, Rio's ASX-listed shares were up 1.94 per cent to trade at $99.81 at 12.55pm AEDT, reaching 11-year highs.