Rio Tinto drops iron ore guidance by ~13 million tonnes

Company News

by Jessica Amir

Rio Tinto (ASX:RIO) has dropped its iron ore Pilbara shipments guidance for 2019 by about 13 million tonnes.

It comes as it experiencing mine operational challenges, particularly in the Greater Brockman hub in the Pilbara.

It’s now targeting between 320 million tonnes and 330 million tonnes. Down from 333 million tonnes and 343 million tonnes.

Given the change in volume guidance, unit costs will be updated in its Q2 quarterly operations review (16 July 2019), with additional sales to be made in 2019.

Rio Tinto says the operational challenges have resulted in a higher proportion of certain lower grade products, partly to protect the quality of its flagship Pilbara Blend.

Shares in Rio Tinto (ASX:RIO) closed 1.94 per cent higher at $105.71 yesterday.

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.