Mining giant Rio Tinto (ASX:RIO) has reported a slight increase in iron ore production and shipments in the third quarter, maintaining stability in its production forecasts despite ongoing challenges due to inflation. Iron ore production at its Pilbara mine in Western Australia edged up by 1%, reaching 84.1 million tonnes, according to the latest data from the company. Shipments followed a similar trend with a 1% increase, totalling 84.5 million tonnes in the past three months.
Facing global inflationary pressures, Rio Tinto expects its operating costs for the Pilbara site to be in the upper half of the forecasted $21.75 to $23.50 per tonne range. Despite these cost escalations, the firm’s bauxite production from Australian mines has risen by 8% thanks to better utilisation rates and increased plant availability.
However, it’s not all an upward trend for Rio Tinto’s production. The company reported a slight drop in mined copper with a 1% decline to 168,000 tonnes. This reduction has been attributed primarily to decreased production at the Kennecott mine, affected by significant highwall movement. In another setback, Rio Tinto’s Iron Ore Company of Canada (IOC) saw pellet production fall by 11% to 2.1 million tonnes following an 11-day operational pause caused by forest fires in July.
Adapting to these changes, Rio Tinto has adjusted its forecast for IOC iron ore pellets, now expecting an output between 9.1 million and 9.6 million tonnes. CEO Jakob Stausholm has emphasized the company’s dedication to safe production and continued operational improvements across its portfolio, indicating a focus on efficiency and safety amid the other production shifts.
Rio Tinto is preparing for the inaugural production phase of its Simandou high-grade iron ore project in Guinea slated for next year. Further expansion is anticipated with its Rincon lithium project in Argentina expected to commence by the end of this year. These projects highlight Rio Tinto’s strategic growth initiatives and its commitment to diversifying its mineral portfolio.
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The market reacted positively to the news, with Rio Tinto’s London-listed shares experiencing a 0.62% rise to 5,072 pence as of early trading, with the ASX listing (ASXL RIO) down 1.06% on the day. This resilience in performance has been shown over the past month of trading, with RIO’s share price gaining 9% over the period.
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