A train accident on the Pilbara network caused Rio Tinto to lose almost a week of rail capacity in May, but the major iron ore company was still able to slightly increase its quarterly deliveries.
Rio delivered 80.3 million tonnes of this steel additive in the three months to the end of July – 3 percent more than in the previous quarter. This means that exports in the first half of the year amounted to 158.3 million tonnes.
This represents a decrease of 2 percent compared to the total volume shipped in the previous year and corresponds to an annual rate of just under 317 million tonnes – well below the lower end of the annual target.
Production in the June quarter was 79.5 million tonnes – up 2 percent from the previous three-month period, but down 2 percent from the previous year. This means that production in the first half of the year was 157.4 million tonnes – also down 2 percent from the previous year.
About 80km from Karratha, a loaded Rio train went off the tracks on May 13 after crashing into stationary carriages carrying workers. The incident was the mining giant’s third driverless train derailment in the Pilbara within a year.
Rio said on Tuesday that production and shipping in the quarter were affected by the collision, resulting in rail capacity being out for about six days and overflowing inventories at some mines.
However, the mining group has maintained its full-year forecast of 323 to 338 million tonnes. Production costs also remain unchanged at between $21.75 and $23.50 per tonne.
The company reiterated its warning that export volumes of its lower-grade SP10 product are expected to remain higher until replacement projects are implemented, noting that construction of its majority-owned $3.1 billion Western Range mine is now 70 percent complete.
There’s more to come