Australia cyclone hits Rio Tinto iron production

By Agence France Presse. Published at Apr 1, 2019, in Mining

Mining giant Rio Tinto said on Monday its Australian iron ore production has been curtailed by a tropical cyclone that hit last month and it would be unable to fulfil some contracts.

In a statement, the world's second-biggest mining firm said operations in the Pilbara region of Western Australia were getting back to normal after Cyclone Veronica struck as a category 3 storm on March 24, but some damage had been found.

"Initial inspections uncovered some damage to the Cape Lambert A port facility," the company said, announcing that it had "declared force majeure on certain contracts and is working with its customers to minimise any disruption in supply".

Coupled with a fire at a Cape Lambert facility earlier this year, the cyclone "will result in a loss of approximately 14 million tonnes of production in 2019".

Rio's total output from the Pilbara for this year was expected to be between around 338 and 350 million tonnes.

Iron ore prices have been on the rise of late, as Brazilian miner Vale trimmed production estimates and amid concerns about the impact of Cyclone Veronica.

arb/grk/jah

© Agence France-Presse

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Thanks for subscribing!

X