Rio Tinto Lowers 2021 Iron Ore Shipments Forecast on Tight Western Australian Labor Market

Australian mining giant Rio Tinto Group (RIO) on Friday reduced its 2021 Pilbara iron ore shipments forecast as the COVID lockdowns, Supply crunch were further hampered by a tighter labour market in Western Australia. These have all led to a delay of the completion of a new greenfield mine at Gudai-Darri.

Australian mining giant Rio Tinto Group (RIO) on Friday reduced its 2021 Pilbara iron ore shipments forecast as the COVID lockdowns, Supply crunch were further hampered by a tighter labour market in Western Australia. These have all led to a delay of the completion of a new greenfield mine at Gudai-Darri.

 Gudai Darri WA

Rio now expects 2021 Pilbara iron ore shipments at between 320 million tonnes (mt) and 325 mt, down from a previous range of 325 mt to 340 mt. For trainwatchers the lower output puts Rio on course to lose its spot as the world’s biggest iron ore producer to Brazilian rival Vale S.A.

Highlights

  • Rio shipped 83.4 mt iron ore in the three months ended Sept. 30, 2% higher than the 82.1 mt shipped last year.
  • Pilbara iron ore production was 4% lower, hurt by heritage management, brownfield mine replacement tie-ins and project completion delays.

Iron ore prices have continued to trade erratically following ongoing Chinese hostility and the energy crisis enveloping Chinese industry. The prices were hit by China’s steel output curbs and a sharp slowdown in the country’s property activity due to a regulatory crackdown.

Iron ore prices have nearly halved since hitting a record peak in mid-May. Rio Tinto was benefiting from the surge in Iron Prices until the industrial activity in top consumer China which hit a wall and plummeted.

Source: abs Reuters

The TradersCommunity News Desk

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