World’s second largest iron ore miner- Rio Tinto has recorded increase in its CY18 shipments. Rio Tinto’s Pilbara iron ore shipments reported at 338.2 MnT, up against 330.2 MnT shipments in CY17 The rise owes to ramp of expanded mines and minimal weather disruptions. Rio Tinto’s Pilbara iron ore production increased on yearly basis to 337.8 MnT, compared to CY17 production which was at 329.8 MnT.
The miner achieved average pricing of $57.6/wmt, FoB in CY18 against $59.6/wmt in previous year.
2019 Guidance – Rio Tinto 2019 Pilbara iron ore shipment guidance is expected to be between 338-350 MnT. At IOC, the expected iron ore pellet and concentrate production guidance for 2019 is between 11.3-12.3 MnT.
Performance in Q4 CY18 – In last quarter of CY18, the Pilbara iron ore shipment witnessed at 87.4 MnT (on 100% basis), up by 7% against 81.9 MnT in last quarter. Also Pilbara iron ore production witnessed increase by 5% to 86.6 MnT against 82.5 MnT in Q3 CY18.
IOC pellet output down 20% in CY18 – Rio Tinto’s iron ore & pellet concentrate production from Iron Ore Company of Canada (IOC) in CY’18 was recorded at 9 MnT, down 20% as compared to 11.17 MnT in CY17. The production dropped amidst labor strike in second quarter CY18 and due to maintenance and productivity improvement project at Spiral plant in third quarter. However, in Q4 CY18 production dropped compared to 2.9 MnT in Q3 CY18.
Rio Tinto productivity projects –
- The miner announced investment approval at Koodaideri iron ore replacement mine with annual capacity of 43 MnT. The production is expected to start in late 2019.
- The miner completed automation of Pilbara train system (Autohual – world’s first automated heavy-haul, long distance rail network) in Dec’18.
- Rio Tinto announced investment to sustain capacity at Robe river joint venture.
How will rising global iron ore supplies impact seaborne market in 2019 and how will be the iron ore demand in China in 2019? To know more – book your seat at the 3rd Indian Iron Ore & Pellet Summit to be held in Delhi NCR on 18 & 19 February, 2019.