Australia: Rio Tinto's iron ore shipments fall marginally y-o-y in CY'24

• Production guidance for CY'25 stands firm at 323-338 mnt
  
  
• Shipment guidance remains subject to weather conditions
  
  

Rio Tinto, the world's leading iron ore miner, recorded shipments for the same at 328.6 million tonnes (mnt) in calendar year 2024 (CY'24), down by 1% y-o-y as compared to 332 mnt in CY'23. Shipments increased by 1% to 85.7 mnt in the fourth quarter of CY'24 (Q4CY'24) against 84.5 mnt in Q3CY'24.

All construction milestones for SimFer's infrastructure, including 8.5 kilometres (km) of rail installation, the completion of the 275-metre Milo River bridge, and over 75% progress in tunnel excavation, were achieved, ensuring the TransGuinean railway and port facilities are on track to support increased iron ore shipments in Q4.

All figures mentioned are on 100% basis, which means that the shipments include material transported from the Pilbara mines to the portside trading facility in China, which may not be sold onward by the group during the same period.

Iron ore production dips 1% y-o-y in CY'24

Total iron ore production dropped 1% to 328 mnt in CY'24 as against 331.5 mnt in CY'23. Production was affected by depletion, predominantly at the Paraburdoo mines, amid the ongoing transition to the Western Range and Yandicoogina mines, as well as higher than average rainfall. While Gudai-Darri achieved a production rate of 50 mnt per annum and the Safe Production System target of 5 mnt was met, these gains were insufficient to counterbalance the overall depletion impact.

However, production increased by 3% to 86.5 mnt in Q4CY'24 as compared to 84.1 mnt in Q3CY'24.

IOC's pellet, concentrate output falls y-o-y in CY'24

The iron ore pellet and concentrate production of the Iron Ore Company of Canada (IOC) in CY'24 was recorded at 9.4 mnt, falling by 2% from 9.7 mnt in CY'23. This decrease was primarily due to an 11-day site-wide shutdown caused by forest fires in mid-July, which necessitated a revised mine plan and maintenance schedule. Additionally, operational challenges in the mine and concentrator impacted overall performance.

On a q-o-q basis, output increased by 19% as compared to 2.1 mnt in Q3CY'24.

IOC is a joint venture between Rio Tinto, Mitsubishi, and the Labrador Iron Ore Royalty Income Corp.

Key updates

• The company's Pilbara iron ore production guidance for CY'25 remains stable from December 2024 at 323-338 mnt. This guidance is subject to timely approvals of planned mining areas and heritage clearances. Elevated SP10 levels are expected to persist until the completion of replacement projects.
  
  
• At IOC, the iron ore pellet and concentrate production guidance for CY'25 has been set at 9.7-11.4 mnt as compared to 9.8-11.5 mnt earlier.
  
  
• The iron ore shipment guidance remains contingent on weather conditions.