Rio posts lower iron ore production, shipments

Mining major Rio Tinto has recorded a slight drop in Pilbara iron ore shipments and production citing weather disruptions but has stuck by guidance forecasts.

Rio Tinto’s Pilbara iron ore shipments dropped 5 per cent to 78 million tonnes in the first quarter of 2024, compared to Q1 in 2023. It cited weather disruptions at ports and reduced production at the mines as reasons for the lower volumes.

Its Pilbara iron ore production dropped slightly by 2 per cent to 77.9mt in Q1 of 2024, compared to the prior corresponding period.

Rio said its SP10- lower grade product- levels were expected to remain elevated until replacement projects were delivered.

Its SP10 product accounted for 18 per cent of shipments for the first quarter, which it said was in line with the second half of 2023.

Pilbara iron ore cash costs remained unchanged at $21.75 to $23.50 per tonne.

Rio produced 13.4mt of bauxite, 826 thousand tonnes of aluminium and 156kt of mined copper on a consolidated basis, according to Rio.

The miner said its production guidance remained unchanged across all its products, still targeting Pilbara iron ore shipments of between 323 to 339mt for the year. 

“We delivered stable operating results in the first quarter, including improvements at our bauxite and aluminium businesses, as we navigated seasonal challenges across our global operations,” chief executive Jakob Stausholm said.

“Our full year guidance is unchanged across all our products."

Rio said construction of its part owned Western Range mine was now more than 50 per cent complete with first ore remaining on track for 2025.

The miner said it was progressing Pilbara mine replacement studies for Hope Downs 1, Brockman, Greater Nammuldi and West Angelas projects in the Pilbara.

It said the project timelines were subject to timing of approvals and heritage clearances.

During the quarter Rio also inked a partnership with BHP and BlueScope to investigate the development of the country’s first electric smelting furnace pilot plant.

Commenting on its markets, the miner said China’s economic recovery had been uneven, promoting more government support to sustain growth and meet the target of about 5 per cent GDP growth.

"The manufacturing sector remains strong, given increased industrial production and exports, while property activity remains weak, despite improved policy support. 

"There is continued issuance of financing for infrastructure projects, although efforts are being taken to restructure local government debts."

Rio said China's domestic steel demand trended at similar levels to last year "but steel exports rose 30 per cent year-on-year during the first two months and are likely to remain historically elevated, in turn, supporting iron ore demand." 

Rio’s shares last changes hands at $128.57, down 0.101 per cent as of 11AM AWST.