Anglo-Australian mining giant Rio Tinto has lowered its iron ore production forecast due to operational disruptions. The Iron Ore Corporation of Canada (IOC) unit forecast iron ore production of 9.3 to 9.8 million tonnes, down from its previous forecast of 10 to 11 million tonnes.
“IOC’s operations were impacted by extended plant shutdowns and conveyor belt failures while we recovered from the wildfires that occurred in northern Quebec last quarter,” the company said in a statement.
Rio Tinto is the world’s largest iron ore producer, with 70% of its profits coming from iron ore mining. The company’s third-quarter iron ore shipments rose 1.2% on higher output from its Gudai Darri mine in Western Australia’s Pilbara, despite forecast production declines. In the third quarter, the Pilbara shipped 83.9 million tonnes of iron ore, compared with 82.9 million tonnes in the same period last year.
Concerns about iron ore production also appeared to be offset by success in other areas of the business. On Tuesday, Rio Tinto announced quarterly production increases across its copper and aluminum portfolio.
Goldman Sachs analysts said that China’s copper demand will grow by 8% in 2023, driving the growth of Rio’s copper business.
Kyle Rodda, senior market analyst at Capital.com, said: “The market is seeing signs of strength in (Rio Tinto’s) copper business, reinforcing investor confidence that strategic pivots are in place to accommodate the structural changes in the economy. Confidence in change.” is moving in the right direction.
