Rio Tinto iron-ore shipments fall on COVID delays, flags China concerns

Rio Tinto on Wednesday reported iron that is lower-than-expected shipments in the first quarter, and warned a resurgence of COVID-19 lockdowns in China and a prolonged Russia-Ukraine war could have risks.

The global miner’s efforts to ramp its Pilbara operations up in west Australian Continent had been influenced in the 1st 90 days associated with year by labour shortages and provide string snags.

The mineral-rich state lifted border that is hard-line put in place to curb the spread of COVID-19 only in early March, leaving companies to battle for months a dearth of mine workers and train drivers even as pent-up demand fuelled a rally in commodities.

“Production in the first quarter was challenging as expected, re-emphasising a need to lift our operational performance,” Rio Tinto Chief Executive Jakob Stausholm said in a media statement.

The World’s iron ore producer that is biggest delivered 71.5 million tonnes (Mt) regarding the steel-making product into the 90 days finished March 31, in contrast to 77.8 Mt a year previously and an obvious Alpha opinion estimation of 76 Mt.

Production for the one-fourth endured at 71.7 Mt, down 6.2percent from per year earlier.

The business stated it needs increased metal ore manufacturing ability and enhanced product blend into the half that is second the commissioning and ramp up of Gudai-Darri, a greenfield mine development in East Pilbara.

Rio said in its report that economic growth and commodity demand started positively this year as the world continues to recover from the pandemic downturn.

“However, market expectations have been revised downwards amidst sustained inflation that is high the outbreak for the Russia-Ukraine war and a resurgence of COVID-19 lockdowns in China,” the report said.

In March, Rio became the initial mining that is major to announce it was cutting all ties with Russian businesses. It has no operational assets in Russia or Ukraine, but owned an 80% stake in Queensland Alumina Ltd (QAL) in a venture that is joint Russia’s Rusal, the world’s second-largest aluminium producer.

Rio Tinto stated previously this thirty days it had taken charge that is sole of at QAL.

Global miner BHP Group is planned to report its third-quarter manufacturing outcomes on Thursday. (Reporting by Sameer Manekar in Bengaluru and Praveen Menon in Sydney; Editing by Sriraj Kalluvila and Cynthia Osterman)
Source: Reuters