Rio Tinto seen raising 2009 iron ore output target
Wednesday, 14 Oct 2009
Reuters reported that Rio Tinto may be set to lift its 2009 production guidance by as much as 7% to reflect improving conditions for steelmakers.
The company's Q3 production report scheduled for released is likely to include an upward revision by as much as 14 million tonnes for iron ore output from the June 16 projection for 200 million tonnes.
Mr Matthew Whittall mining analyst of Hong Kong based CLSA said that "BHP and Fortescue shipments in the September quarter have been very strong and it's fair to say Rio's will be up as well."
Mr Glyn Lawcock mining analyst of UBS said that "We expect a strong result from Rio as the company continues to ramp up its production numbers post the global financial crisis."
He said that "Importantly, we believe the report may suggest that Rio may need to upgrade its 2009 full year production guidance for iron ore of 200 million tonnes globally.”
Rio Tinto's production is more difficult to gauge QoQ because it exports material exclusively from 2 private ports Lambert and Dampier on the fringe of the Pilbara iron ore belt. Other miners use public terminals. Rio Tinto's privately owned ports and railways in the Pilbara can move about 220 million tonnes leaving them under utilized and capable of transporting added tonnage.
