Cyclones Hamper Rio Tinto's Q1 Iron Production

Rio Tinto RIO, the world's second-largest mining company, said its first-quarter iron ore production will be impacted by the spate of cyclones that struck Australia last month. Rio rival BHP Billiton BHP and other Australian iron ore miners are also expected to say their first-quarter production will be lower due to the cyclones. Most of the iron ore mined in Australia's Pilbara region is shipped to China, followed by Japan and South Korea, Reuters reported. Rio also said its expansion plans could be impacted by Japan's rebuilding efforts if access to mining equipment and trucks becomes crimped. Still, the company is bullish in its outlook for the future of the iron ore industry. Rio's Simandou iron ore mine project in Guinea -- touted by Rio Tinto as the single largest iron ore mine -- would be developed ahead of the current end-2015 target date if infrastructure restraints such as rail line construction could be overcome, Reuters reported, citing the company. Brazil's Vale VALE is the world's largest iron producer.