Rio Tinto Cuts 2021 Projection for Iron-Ore Shipments, Copper Output
15 October 2021 - 9:24AM
Dow Jones News
By Rhiannon Hoyle
Rio Tinto PLC Friday said it expects to ship less iron ore than
previously anticipated from its Australian mining operations this
year because of delays to projects caused by labor shortages in the
country's west.
The world's second-largest miner by market value is also on
track to produce less copper and bauxite than it projected this
year in big part because of plant-related problems, the company
said on Friday.
While Rio Tinto shipped 83.4 million metric tons of iron ore
from Australia's Pilbara region in the three months through
September, up 2% on a year ago, third-quarter production of the
steelmaking commodity was down 4% year-on-year.
"We now expect Pilbara shipments to be 320 to 325 million tons
following modest delays to completion of the new greenfield mine at
Gudai-Darri and the Robe Valley brownfield mine replacement project
due to the tight labor market in Western Australia," said the
company.
"We have also experienced delays due to a tight global supply
chain, including more emerging challenges around equipment parts
availability," it said.
Rio Tinto--which vies with Brazil's Vale SA to be the world's
biggest exporter of iron ore--had in July projected 2021 shipments
to be at the low end of an earlier 325 million to 340 million ton
guidance range.
"It has been another difficult quarter operationally," said
Chief Executive Jakob Stausholm.
The company has been benefiting from elevated iron-ore prices,
which climbed to record highs earlier this year. Iron ore accounted
for more than 80% of Rio Tinto's first-half earnings. While prices
are off their earlier peaks, because of a fall in Chinese steel
production in recent months, they remain above historical
averages.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
October 14, 2021 18:09 ET (22:09 GMT)
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