Rio Tinto: Pilbara Iron Ore Shipments Up 5% Y-o-Y in Q1 CY'18

World's second largest iron ore miner- Rio Tinto recorded decline in Q1 CY'18 shipments. Rio Tinto's Pilbara iron ore shipments witnessed at 80.3 MnT, down 11% on quarterly basis as against Q4 CY'17 at 90 MnT. It has witnessed a rise of 5% in shipments as against Q1 CY'17 at 76.7 MnT, owing to the implementation of productivity projects, fewer weather disruptions and ramp up of Silvergrass iron ore mine.

Rio Tinto's Pilbara iron ore production for the first quarter CY'18 depicted marginal decline on quarterly basis at 83.12 MnT, compared to Q4 CY'17, at 87.87 MnT. The Pilbara iron ore production in first quarter CY'18 recorded an increase of 8% against first quarter CY'17 at 77.17 MnT.

However, the sales stood at 2.8 MnT lower than the production owing to tropical cyclone in Mar'18, causing disruption at ports.

Rio Tinto's iron ore & pellet concentrate production for the Q1 CY'18 recorded at 2.36 MnT, down 13% against Q4 CY'17 at 2.73 MnT. The Q1 CY'18 results recorded downfall of 8% against Q1 CY'17 at 2.58 MnT.

Rio Tinto iron ore shipments guidance for 2018

Rio Tinto's Pilbara shipments are expected to be between 330 to 340 MnT in 2018, in line with laid guidance. This is subject to market conditions and any weather constraints.

The share of iron pellets & concentrates production for CY'18 has been revised to 10.3 MnT to 11.3 MnT against the previously laid guidance of production between 11.5 MnT to 12.5 MnT.

The Pilbara train system automation is in progress with around 65% of trains already automated. The project is scheduled to be completed by the end of 2018.