Rio Tinto: Iron Ore Production Up 10% In Q3 2019

World's second largest iron ore miner- Rio Tinto's Pilbara iron ore production witnessed at 87.3 MnT for Q3 CY19, up 10% as against 79.7 MnT in Q2 CY19. On yearly premises miner depicted 6% increase in production when compared to Q3 CY18 output at 82.5 MnT.

IOC production increased 17% in Q3 CY19

Rio Tinto's iron ore & pellet concentrate production in Q3 CY'19 was recorded at 3 MnT, up 17% as against 2.5 MnT in Q2 CY19 amid resumption and recovery from floods which affected production in June'19 quarter. The production increased slightly compared to 2.9 MnT in Q3 CY18.

Iron ore shipment up 5% in Q3 CY19

Rio Tinto's Pilbara depicted rise of 5% in iron ore shipment to 86.1 MnT in Q3 CY19 as against 81.9 MnT in Q3 CY18. The shipments reflected recovery from operational and weather challenges experienced towards beginning of the year. However, the planned rail maintenance shut from 25th Sep to 6th Oct affected the shipments adversely.

On quarterly basis, the shipment recorded only marginal rise as compared to Q2 CY19 shipment at 85.4 MnT.

For CY19 (Jan-Sep), the total shipment recorded at 240.6 MnT down 4% against 250.7 MnT same period last year. The sales drop is due to reduced mine production and damage to port facilities caused by the cyclone.

Rio Tinto guidance for 2019

o Rio Tinto 2019 Pilbara iron ore shipment guidance remains intact at 320-330 MnT. However, the miner had previously reduced the guidance owing to planned rail maintenance in Q3 CY19.

o At IOC, the iron ore pellet and concentrate production guidance for 2019 remains unchanged at 10.7- 11.3 MnT. The miner had reduced guidance in last quarter amid adverse weather conditions in first quarter and flooding incident in June.

Rio Tinto recent updates

o The Koodaideri iron ore mine project and Robe River Joint Venture (West Angelas and Robe Valley) project are working on schedule. The first ore from both the project is expected in 2021, in line with previous guidance.

o Rio Tinto's Pilbara iron ore unit cost guidance in 2019 remains at USD 14-15/MT.