The world’s leading iron ore miner, Rio Tinto, recorded iron ore shipments at 78 million tonnes (mnt) for Q1CY’24, down by 5% y-o-y as compared to 82.5 mnt in Q1CY’23. Shipments, on a quarterly basis, decreased against 86.3 mnt in Q4CY’23. Shipments fell amid weather disruptions at ports and reduced production from some of Rio’s Western Australian mines. SP10 volumes accounted for 18% of shipments in the first quarter, in line with the second half of 2023.
All figures mentioned are on 100% basis, which means that the shipments include material shipped from the Pilbara mines to the portside trading facility in China which may not be sold onwards by the group during the same period.
Iron ore production dips 2% in Q1CY24
The total iron ore production marked a 2% fall to 77.9 mnt in Q1CY24 as against 79.3 mnt in Q1CY23. This was due to increased Covid-19 cases on site in Pilbara following the Western Australian border re-opening and spikes in cases across other operations. Productivity gains across various operations helped offset planned ore depletion at Yandicoogina during the first quarter of 2023.
Meanwhile, production decreased by 11% q-o-q as compared to 87.5 mnt in Q4CY’23.
IOC pellet production up in Q1
The Iron Ore Company of Canada’s (IOC’s) iron ore pellet and concentrate production in Q1CY24 were recorded at 2.6 mnt, inched up by 3% y-o-y because of rail and port availability and their utilisation.
On a quarterly basis, output decreased by 3% as compared to 2.5 mnt in Q4CY21.
IOC is a joint venture between Rio Tinto, Mitsubishi and the Labrador Iron Ore Royalty Income Corp.
Key updates
- The company’s Pilbara iron ore shipment guidance for CY’24 remains stable at 323-338 mnt. This guidance remains subject to the timing of approvals for planned mining areas and heritage clearances.
- At IOC, the iron ore pellet and concentrate production guidance for CY’24 also remains unchanged at 9.8-11.5 mnt.