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Rio Tinto's iron ore deliveries slip, miner sees global financial durability

Rio Tinto on Thursday reported its least expensive annual iron ore shipments in two years, partly as heavy rains in Western Australia impacted output in the December quarter, but said the international economy was showing signs of strength.

Its fourth-quarter iron ore shipments decreased 1%, falling somewhat short of market expectations.

For the calendar year, Rio Tinto delivered 328.6 million metric tons of iron ore from Pilbara, the lowest since 2022. It is under hazard of Brazilian competing Vale possibly retaking its crown as the world's greatest manufacturer. Vale expects to produce 323-330 million tonnes for 2024.

The international economy is revealing resilience with inflation moderating and growth stabilising, although dangers of geopolitical tensions and persistent labour lacks stay, Rio Tinto said in a statement.

Rio is contending with the exhaustion of some of its main mines and has actually been keeping production with greater levels of its lowgrade SP10 item, which represented a quarter of its deliveries in the fourth quarter.

Raised levels are expected to be sustained until its replacement jobs come online towards completion of the decade.

We are reviewing our future product method, having regard to consumer requirements and offered ore grades, Rio Tinto said.

Steel consumption in China, its primary market, has actually eased due to a slowdown in the country's residential or commercial property sector.

The company anticipates iron ore production expenses in the Pilbara area to be towards the higher end of its 2024 assistance of $ 21.75 to $23.50 per tonne, primarily due to the fact that of increasing input expenses and lower production.

For the quarter, Rio shipped 85.7 Mt of the steel-making commodity in the three months ended Dec. 31, down from 86.3 Mt. in the very same duration in 2015. That missed a Visible Alpha. agreement quote of 87.5 Mt.

Rio projection deliveries between 323 Mt and 338 Mt for 2025.

The business stated it stayed on track for first. production from its Simandou top-quality iron ore project in. Guinea this year.

Rio Tinto's mined copper production grew 13% to 697,000. metric loads in 2024, thanks to increased output from the Oyu. Tolgoi underground mine and higher-grade ore processing at. Escondida.

Its shares increased 0.7% to A$ 120.12 by 1115 GMT, their greatest. since Dec. 13, mostly in line with a 0.8% dive in the mining. subindex.

(source: Reuters)