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Rio Tinto announces production results for Q1 2019

Mining News - Published on Wed, 24 Apr 2019

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Pilbara operations: Pilbara operations produced 76.0 million tonnes (Rio Tinto share 64.1 million tonnes) in the Q1, nine per cent lower than the same period in 2018. Production was impacted by a fire at Cape Lambert A in January, which affected Robe Valley Lump and Fines production, and significant disruptions caused primarily by Tropical Cyclone Veronica in March.

Q1 sales of 69.1 million tonnes (Rio Tinto share 58.2 million tonnes) were 14 per cent lower than the same period of last year due to the lower production and damage to the port facilities caused by the cyclone.

Approximately 16 per cent of sales in the first quarter were priced by reference to the prior quarter’s average index lagged by one month. The remainder was sold either on current quarter average, current month average or on the spot market.

Approximately 33 per cent of sales in the quarter were made free on board (FOB), with the remainder sold including freight.

Pilbara projects
Following approval of the $2.6 billion investment in the Koodaideri replacement mine in November 2018, the project is now progressing to plan with engineering and procurement activities on schedule and site construction works commenced.

The two Robe River Joint Venture projects (West Angelas and Robe Valley), which will sustain production capacity, are progressing. The projects are currently in the process of seeking environmental approvals. Engineering and procurement activities are on schedule and establishment activities at both locations have commenced.

2019 guidance
On 1 April 2019, Rio Tinto announced that the impact of the disruption caused by Tropical Cyclone
Veronica in March, combined with the impact of the fire at Cape Lambert A in January, was expected to result in a loss of approximately 14 million tonnes of production in 2019.

Following further assessment, the damage to the port from Tropical Cyclone Veronica is expected to result in ongoing disruption to shipments, with recovery work further hindered by Tropical Cyclone Wallace. As a result, Rio Tinto’s Pilbara shipments in 2019 are now expected to be between 333 and 343 million tonnes (previously at the lower end of the guidance range of between 338 and 350 million tonnes, 100 per cent basis). The recovery in the second quarter will remain subject to weather.

On 6 April 2019, a minor fire occurred in a screen house at the East Intercourse Island port. Operations at the facility have restarted.

Rio Tinto’s Pilbara unit cost guidance in 2019 remains at USD 13 – USD 14 per tonne.

IRON ORERio Tinto interestQ1 2018Q2 2018Q3 2018Q4 2018Q1 2019Full Year 2018
Hamersley mines(b)5363156034545835636451218220612
Hamersley - Channar60.00%1136122760413379314304
Hope Downs50.00%5342578357135845595722684
Iron Ore Company of Canada59.00%23648712880283624818952
Robe River - Pannawonica (Mesas J and A)53.00%4672404842084004187016932
Robe River - West Angelas53.00%4290437340214631412517316
Rio Tinto iron ore production 7143672336720107501866581290800

(In '000 tonnes)

Breakdown of Production:Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Full Year 2018
Pilbara Blend Lump207142190120554216741997884843
Pilbara Blend Fines2976931239299213165228779122582
Robe Valley Lump15871431147014096355897
Robe Valley Fines3086261727382595123511035
Yandicoogina Fines (HIY)139161427714446148521347357491
Pilbara iron ore production6907271465691297218264101281848
IOC Concentrate799572113114338903934
IOC Pellets15662991750140315905018
IOC iron ore production23648712880283624818952

(In '000 tonnes)

Breakdown of Sales:Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Full Year 2018
Pilbara Blend Lump180621942417967184391577273892
Pilbara Blend Fines (c)3074635158314323520528406132541
Robe Valley Lump12231264117412194574881
Robe Valley Fines2996325528392996130812085
Yandicoogina Fines (HIY)135781438814583148311229457380
Pilbara iron ore sales6660473489679957269058236280778
IOC Concentrate74662152115585163887
IOC Pellets15742021659151615764950
IOC Iron ore sales ('000 tonnes)23202633180307320928837
Rio Tinto iron ore sales 6892573752711757576360328289614

(In '000 tonnes)

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Posted By : Rabi Wangkhem on Wed, 24 Apr 2019
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