Rio quarterly iron ore production hit by cyclone

Company News

by Anna Napoli

Global miner Rio Tinto (ASX:RIO) has today reported a 3 per cent drop in second-quarter iron ore shipments to 85.4 million tonnes due to disruptions caused by a cyclone in late March which impacted output in the April to June period.

The lower iron ore production was the primary driver of a 2 per cent reduction in copper equivalent production in the first half compared to the corresponding period of 2018.

Bauxite production of 13.4 million tonnes in the second quarter was 1 per cent higher than the same period of 2018.

The mining giant says while it experienced operational and weather issues at its iron ore operations in Australia, pricing and market demand has remained robust.

In a separate statement, Rio announced a delay of 16 months to 30 months for the start of sustainable production at its Oyu Tolgoi underground project in Mongolia. The delay is expected to increase costs by $1.2 billion to $1.9 billion from the $5.3 billion previously disclosed.

Shares Rio Tinto (ASX:RIO) closed 0.35 per cent higher at $103.91 yesterday.
 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.