Rio Tinto takes a blow from weather disruptions
Anglo-Australian miner Rio Tinto (ASX: RIO) says its operations were affected by ongoing weather-related issues during the first quarter.
Global iron ore production of 42 million tonnes attributable was down 3 per cent on the first quarter of 2010 and down 16 per cent on the fourth quarter of 2010. Operations in the Pilbara were disrupted by three tropical cyclones and widespread flooding.
The impact of tropical cyclones and associated widespread flooding also included a derailment 34 kilometres south of Dampier, in which more than four kilometres of track were damaged. This prompted the immediate suspension of all in-loading to both terminals at Dampier for nine days. Some speed restrictions remain in place as rail track integrity is being assured.
Chief executive Tom Albanese said “Our Australian coal, iron ore, uranium and alumina operations were affected by the extreme weather in the first quarter, but most are recovering and are benefiting from continued strong prices. We have successfully gained control of Riversdale Mining Limited and plan to accelerate the development of these significant tier one coking coal assets.”
The flexibility provided by the Operations Centre enabled the weather impact to be mitigated to some extent. The Operations Centre will demonstrate its value as catch-up takes place over the next three quarters.
Rio also said the capacity of the Pilbara system increased by five million tonnes to 225 Mt/a, following the completion of the first debottlenecking project at the Dampier port.
In 2011, Rio Tinto’s global iron ore production for its Australian and Canadian operations is expected to be 191 million tonnes (Rio Tinto share) and 244 million tonnes on a 100 per cent basis.