Rio Tinto – Iron Ore Shipments Up 10% in Q2 CY’18

World’s second largest iron ore miner- Rio Tinto recorded increase in Q2 CY’18 shipments. Rio Tinto’s Pilbara iron ore shipments witnessed at 88.5 MnT, up 10% on quarterly basis as against Q1 CY’18 at 80.3 MnT. It has witnessed a rise of 14% in shipments as against Q2 CY’17 at 77.7 MnT.

Rio Tinto’s Pilbara iron ore production for the second quarter CY’18 depicted marginal rise on quarterly basis at 85.5 MnT, compared to Q1 CY’18, at 83.1 MnT. The Pilbara iron ore production in second quarter CY’18 recorded an increase of 7% against second quarter CY’17 at 79.8 MnT. Favourable weather conditions compared to last year and ramp up of Silvergrass and the ongoing implementation of productivity improvements resulted in increased output.

The Pilbara iron ore production for first half CY’18 at 168.7 MnT recorded 7% increase against first half CY’17.

IOC pellet output down in Q2 CY18:

Rio Tinto’s iron ore & pellet concentrate production for the Q2 CY’18 recorded at 0.87 MnT, decline of 63% against Q1 CY’18 at 2.36 MnT. The Q2 CY’18 results recorded sharp fall of 68% against Q2 CY’17 at 2.68 MnT. The decline is pertaining to new labour agreement resulting in operation halt at mines from 27th Mar’18 to 28th May’18. During the second quarter, a new labour agreement was reached, the workforce returned to work on 28 May 2018, and IOC achieved a safe and successful restart and ramp-up of operations to normal production rates by the end of June 2018. During the period of s uspended operations there was no production.

The share of iron pellets & concentrates production for CY’18 has been revised to 9.0 to 10.0 MnT against the previously laid guidance of production between 10.3 MnT to 11.3 MnT.

Rio Tinto iron ore shipments guidance for 2018 –

Rio Tinto’s Pilbara shipments for 2018 are expected to be at upper end of guidance range 330 to 340 MnT.

The Pilbara train system automation is in progress with around 65% of trains already automated and over 3.3 Mn km completed in the mode. The project is scheduled to be completed by the end of 2018.

The Koodaideri feasibility study relating development of iron ore mine in Koodaideri, Pilbara region is expected to be completed by the end of 2018. The development of mine is expected to be commenced by next year with expected production initiation by 2021.