Rio Tinto Reduces Iron Ore Shipment Guidance for 2020 Amid Cyclone Damien

Rio Tinto- has recently announced lowering in Pilbara iron ore shipment guidance for the year 2020 amid dealing with the aftermath of cyclone Damien.

The miner has reduced iron ore guidance to 324-334 MnT (100% basis) as against previously set guidance at 330-343 MnT (100% basis).

The cyclone caused infrastructure damage across entire Pilbara network, including impact to access roads, electrical and communications infrastructure and accommodation. All mine sites experienced some disruption and will take time to return to normal operations.

The cyclone affected Rio-Tinto's operational ports and then dumped heavy rains on its rail and mining network. The cyclone strengthened off the north of West Australia's coast, which lead to closure at port Hedland and port Dampier on Friday (7th Feb'20).

Rio Tinto CY'19 shipments down 3% Y-o-Y

Rio Tinto's Pilbara iron ore shipments witnessed at 327.4 MnT for CY19, down 3% as against 338.1 MnT in CY18. The shipments dropped amid weather disruption, fire at Cape Lambert A port facility, operational challenges, and also amid efforts to deliver higher quality Pilbara blend.

However, the mine depicted improved performance in both production and sales towards the second half of the year due to recovery post cyclone towards first half of 2019.