Challenging weather conditions at Rio Tinto’s West Australian and Queensland operations have disrupted iron ore shipments in the first quarter of 2017. Copper output targets had to be revised after strike.
Rio Tinto chief executive J-S Jacques said: »Despite challenging weather c[ds_preview]onditions at our West Australian and Queensland operations, we delivered solid production in the first quarter of 2017. Our strategy is unchanged. Our number one priority is safety. We maintain our disciplined approach to capital management and maximizing cash flow, with a focus on managing costs and enhancing productivity across the business. These actions support the delivery of strong cash returns to shareholders in the short, medium and long term.«
Pilbara iron ore shipments were 76.7 mill. tonnes in the first quarter (100 % basis). Ship loading was impacted by cyclone activity during the period, and sections of the rail network were affected by significant rainfall, the company explained. Despite these disruptions, shipments were in line with the first quarter of 2016 and guidance for 2017 remains at 330 to 340 mill. tonnes. In early 2017, Rio Tinto had released its 2016 figures, reporting iron-ore shipments of 327.6 mill. t from its Western Australia mining operations during the year, up 3% on 2015.
First quarter bauxite production of 11.3 mill. tonnes and aluminum production of 889,000 tonnes were both 2 % higher than the corresponding quarter of 2016.
Mined copper production was 37 % lower than the first quarter of 2016 due to a 43 day labour strike at Escondida. This strike, combined with the curtailment of production at Grasberg, has forced Rio Tinto to revise its 2017 mined copper guidance of 500,000 to 550,000 tonnes.
Titanium dioxide slag production increased by 35 % compared to the first quarter of 2016, reflecting higher market demand. 2017 production guidance has slightly increased to between 1.2 and 1.3 mill. tonnes.
