RIO readies iron ore deluge mark II

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RIO has released its Q3 production update and disappointed on volume:

Pilbara operations First quarter production of 71.1 million tonnes (Rio Tinto share 57.3 million tonnes) was 12 per cent higher than the same period in 2014 following commissioning of the Nammuldi wet plant and the ramp up of Hope Downs 4.

First quarter production was six per cent lower than the fourth quarter of last year due to the impact of wet weather throughout the quarter.

Pilbara sales Quarterly sales of 69.3 million tonnes (Rio Tinto share 55.4 million tonnes) were eight per cent higher than in the first quarter of 2014 but 12 per cent lower than in the fourth quarter of last year.

This was a result of weather impacts from Tropical Cyclone Olwyn and a train derailment which temporarily blocked the inload train circuit at Dampier.

Pilbara expansion Expansion infrastructure is nearing completion and remains on track for delivery by the end of the first half of 2015. As previously announced, all major rail, marine and wharf works are now in place.

Shipped volumes are down but don’t be fooled, within 8 weeks RIO will be in a position to mine and ship 80mt per quarter and rising quickly to 90mt.

Lifejackets!

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.