World’s leading iron ore miner – Rio Tinto recorded iron ore shipments at 77.8 mn t for Q1 CY’21, up by 7% y-o-y as compared to 72.9 mn t in Q1 CY’20. This is due to strong operating performance and sufficient inventory available in the quarter.
Iron ore production decreased by 2% in Q1 CY’21 on weather constraints
The total iron ore production marked a 2% decrease to 76.4 mn t in Q1 CY’21 as against 77.8 mn t in Q1 CY’20. The Pilbara iron ore production dropped due to above-average wet weather in the mines through February. In the first quarter, labour resource availability and weather challenges disrupted maintenance in the mine processing facilities which will be prioritized for the rest of the year. Production dropped 11% compared to 86 mn t in Q4 CY’20.
IOC pellet production down in Q1 CY’21
IOC iron ore pellet & concentrate production in Q1 CY’21 was recorded at 2.3 mn t, down 8% compared to Q1 CY’20. This is due to the impact of weather, loading unit availability on mine feed and reduced concentrator mill availability. In addition, there was a fire at one of the two reclaimers at the port on 31st March.
Key updates
- The company’s Pilbara iron ore shipment guidance remains unchanged at 325-340 mn t for CY’21. It remains subject to risks associated with tying in approximately 90 million tonnes of replacement mine capacity at existing hubs in Robe Valley, West Angelas and Western Turner Syncline Phase 2 as well as the start-up of Gudai-Darri.
- The company on 19th February announced a new commercial freight shipping service connecting Western Australia’s Pilbara region to Singapore. The service is expected to reduce the lead-time for goods by six to ten days compared with freight via Fremantle and potentially provide opportunities for local Pilbara businesses.
- At IOC, the iron ore pellet and concentrate production guidance for CY’21 is unchanged at 10.5-12 mn t.
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