Rio Tinto Production Short of 2 Million Tonnes for June Quarter
Rio Tinto (ASX: RIO) is expected to have a production shortfall of 2 million tonnes at its Pilbara iron ore operations when it releases its June quarter report next week. However, the mining giant is in a position to make up for the lost volume in the later part of 2013.
That would mean Rio would not meet analysts expectation of 61 million tonnes of production for Q2.
Analysts explained the lower production of iron ore by Rio to the record dry season rainfall and a conveyor outage.
"It's not a good thing for Rio, but they are expanding this quarter and have the potential to make it up if things run smoothly in their expansions ... They will put in another shiploader at Cape Lambert as part of their expansion plans, which will also help them ship any stockpiles they haven't been able to move," The Australian quoted an analyst.
Besides the lower iron ore production, a survey by West Business said job cuts are being expected in almost every commodity mined in Western Australia as prices in the international market continued to go down, especially gold and iron ore which had taken the biggest hit.
About 5,000 mining jobs in WA have so far been lost. The worst hit was Kalgoorlie after the gold price collapse in April, but job losses were reported all the way to the Kimberley, through Rio Tinto's Argyle mine and all the way to Albany.