Rio Tinto Expects Q2 Iron-Ore Shipments At Top Half Of Guidance, Lowers Expectations For Bauxite & More

Rio Tinto PLC RIO provided the production update for the quarter.

The company stated Pilbara iron ore production of 81.3 metric tonnes (Mt), up 3% Y/Y, led by Gudai-Darri. 

The company witnessed shipments of 79.1 million tonnes, down 1% Y/Y, reflecting the impact of planned major maintenance at the Dampier port and a train derailment. 

Rio now expects full-year shipments for Pilbara to be at the upper half of the original guidance range of 320 to 335 million tonnes, on continued operational improvements across the Pilbara system and Safe Production System implementation.

Apart from this, Bauxite production declined 5% Y/Y to 13.5 MT as Weipa operations were impacted by the higher-than-average rainfall in Q1, which continued to reduce pit access and led to longer haul distances. Production was further affected by equipment downtime at both Weipa and Gove. 

Also, the company downgraded production expectations for Titanium dioxide and refined copper.

Consequently, Rio expects 2023 bauxite production to be at the lower end of the 54 to 57 MT range on planned investment to recover lost production.

Last month, Rio disclosed an investment of $1.1 billion to expand its AP60 aluminium smelter at Complexe Jonquière in Canada.

Price Action: RIO shares are trading lower by 2.23% at $65.66 premarket on the last check Wednesday.