|
Rio Tinto PLC on Wednesday said it expects to deliver iron ore shipments from Pilbara at the upper half of its annual guidance range, after building ‘further momentum’ over the second quarter. In the second quarter, the Anglo-Australian mining and metals company said Pilbara iron ore shipments on a 100% basis fell 1% annually to 79.1 million tonnes, which was also down 4% from the first quarter. Pilbara is in Western Australia. Pilbara iron ore production on a 100% basis rose 3% annually to 81.3 million tonnes in the second quarter, which was also up 2% from the prior quarter. Over the first half as a whole, Pilbara shipments and production were both 7% ahead of the prior year at 161.7 million and 160.5 million tonnes respectively. Rio Tinto said global group-share bauxite production fell 5% annually to 13.5 million tonnes in the second quarter, but rose 12% from the prior quarter. Aluminium production rose 11% annually to 814,000 tonnes, and 4% from the prior quarter. Mined copper on a consolidated basis dropped 1% from the prior year to 145,000 tonnes, flat from the first quarter. In contrast to its upbeat outlook for Pilbara iron ore shipments, Rio Tinto reduced guidance for annual alumina production to a range of 7.4 to 7.7 million tonnes from a range of 7.7 to 8.0 million tonnes previously. This is due to initiatives at Queensland Alumina Ltd which are aimed at improving plant stability and production rates. Rio also lowered guidance for refined copper to a range of 160,000 to 190,000 tonnes, from the prior guidance of 180 to 210,000 tonnes - due to the extension of the Kennecott smelter rebuild. Kennecott located outside Salt Lake City, Utah in the US. ‘Iron ore shipments and bauxite production guidance remain subject to weather impacts,’ it said. ‘The ramp-up of the Oyu Tolgoi underground mine progressed ahead of plan, and we remain on track to more than triple its copper production by the end of the decade. Production downgrades during the quarter highlight that we still have much more to do elsewhere, as we roll out the ’safe production system’ to create stability and achieve excellence across our global portfolio,’ said Chief Executive Jakob Stausholm. The Oyu Tolgoi copper and gold mine is in Mongolia. Shares in Rio Tinto were down 0.5% to A$116.26 each in Sydney on Wednesday afternoon. They had closed up 0.7% to 5,120.85 pence each in London on Tuesday. Speaking to the broader market view, Rio Tinto cited a slowing in China’s reopening recovery, and the weakness in its export and property sectors as a ‘drag to growth’. ‘Although commodity prices remain at elevated levels, they declined during the second quarter as global demand slowed,’ the miner said. In addition to weakness in China, manufacturing data from other advanced economies showed a ‘further slowdown’, and ‘recessionary risks remain’, the firm warned. Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
