Rio Tinto shaves up to 3% off 2016 iron-ore target

PERTH (miningweekly.com) – Diversified miner Rio Tinto has downgraded its iron-ore shipment expectations for 2016, after port and rail maintenance during the third quarter reduced shipments by 5% year-on-year to 80.9-million tonnes.

Rio is now expecting to ship between 325-million and 330-million tonnes of iron-ore in 2016, compared with the previous guidance of between 330-million and 340-million tonnes.

Rio expects to return to its full shipment guidance, subject to productivity and capital expenditure plans, in 2017.

In the three months to September, Rio produced 83.2-million tonnes of iron-ore, a 2% increase on the previous corresponding period. In the nine-months under review, the Pilbara operations delivered 243.9-million tonnes, a 7% increase on the previous corresponding period.

Iron-ore sales reached 80.9-million tonnes for the quarter, and 239.9-million tonnes in the year-to-date.

Meanwhile, bauxite production was up 10% on the previous corresponding period, to 12.4-million tonnes, with quarterly production records set at the Weipa and Gove projects, in Australia, which led to nine-month bauxite production of 35.6-million tonnes.

Rio CEO Jean-Sebastian Jacques said on Thursday that output from the company’s iron-ore and bauxite assets reflected the drive for productivity and operational excellence.

“With a continued focus on value, we will seek further productivity improvements across the business. Our rigorous attention to cash generation, coupled with a disciplined allocation of capital remains our key focus in delivering shareholder value,” he said.

Meanwhile, mined copper production for the quarter under review increased by 16%, to 133 300 tonnes, as the Kennecott mine, in the US, and the Oyu Tolgoi mine, in Mongolia, increased production.

In the nine months to date, Rio produced 409 600 t of mined copper, a 4% increase on the previous corresponding period.

Aluminium production for the third quarter was also up by 11%, to 924 000 t, as the Kitimat operation, in Canada, delivered record production.

Hard coking coal production was up 17% to 2.1-million tonnes and semi-soft and thermal coal production was down 2% on the previous corresponding period to 5.4-million tonnes.