Cyclones Impact Rio Tinto Q1 Pilbara Production And Shipment By 13 Millions Tonnes, Trigger $95 Million Recovery Plan
From Yahoo Finance: 2025-04-16 08:54:00
Rio Tinto Plc reported a 10% decline in Pilbara iron ore production to 69.8Mt, with shipments down 8% to 62.5Mt due to severe weather conditions and cyclones causing a loss of approximately 13 million tonnes. Bauxite production rose 12% to 15.0MT, and Alumina increased 3% to 1.9Mt.
For FY25, Rio reiterated guidance for Bauxite production of 57 to 59MT, Alumina production of 7.4 to 7.8MT, and Pilbara iron ore shipments to reach the lower end of 323-338MT. Mitigation strategies require an additional investment of around A$150 million to address the shortfall.
CEO Jakob Stausholm highlighted operational improvements at Oyu Tolgoi copper mine and bauxite operations, but noted the impact of extreme weather on Pilbara iron ore operations. The company achieved first iron ore at Western Range and is advancing a lithium business after acquiring Arcadium.
In March, Rio Tinto invested $1.8 billion in the Brockman Syncline 1 mine in Western Australia’s West Pilbara. Investors can access the stock through VanEck Steel ETF (NYSE: SLX) and NEOS ETF Trust Mast Global Battery Recycling & Production ETF (NYSE: EV). RIO shares were up 0.45% premarket at $57.52.