Third-quarter iron ore production ticks higher at Rio Tinto
16th Oct 2024 08:15
(Sharecast News) - Anglo-Australian miner Rio Tinto left its annual iron ore forecasts unchanged on Wednesday, after third quarter production edged higher.
The blue chip said iron ore production at its vast Pilbara mine in Western Australia rose 1% in the last three months, to 84.1m tonnes, while shipments increased 1% at 84.5m tonnes.
Production was 1% below 2023 levels on a nine-month basis. But despite, Rio Tinto reiterated its full-year guidance, for iron ore shipments of between 323m and 338m tonnes.
However, it also flagged operating costs at the site were now expected come in the upper half of its $21.75 to $23.50 per tonne guidance, due to inflation being at the higher end of forecasts.
Rio Tinto also reported an 8% jump bauxite production, following what it called a "step change" at its Australian mines, including higher plant availability and improved utilisation rates.
But mined copper fell 1% to 168,000 tonnes, dragged lower by 44% slump in production at its Kennecott mine following highwall movement. And production of Iron Ore Company of Canada iron ore pellets tumbled 11% to 2.1m tonnes, after forest fires caused an 11-day, site-wide shut down in July.
As a result, Rio Tinto - the world's largest iron ore producer - trimmed its full-year forecast for IOC iron ore pellets to between 9.1m and 9.6m tonnes, from 9.8m to 11.5m tonnes previously.
Jakob Stausholm, chief executive, said: "We continue to strengthen our operations, with the roll-out of the safe production system delivering consistent production at Pilbara and a step change from our Australian bauxite mines.
"We are building on this, with more work to do across our global portfolio."
Stausholm added that the group remained on track for first production from its Simandou high-grade iron ore project in Guinea next year, and for first lithium from the Rincon mine in Argentina by the end of this year.
As at 0900 BST, Rio Tinto's London-listed shares were up 1% at 5,086p.