This story, from The West this morning, notes Rio is on target with production but cautions its’ exploration work at Winu may be impacted.
(But if WA continues to control the spread of CoVid 19 (only one community-based new case yesterday) this pandemic rain check may not apply?)
The mining giant has maintain full-year guidance from its Pilbara operations after revealing its first quarter results but cautioned global projects were starting to be affected by the coronavirus. Credit: Christian Sprogoe/Christian Sprogoe Photography
Mining giant Rio Tinto has brushed off the impact of tropical cyclone Damien in February and coronavirus-enforced restrictions to maintain full-year guidance from its Pilbara iron ore operations.
Rio this morning reiterated 2020 shipping guidance at 324-334 million tonnes after moving 73mt of ore in the first quarter.
The figure was up 5 per cent on the previous corresponding period but down 16 per cent on the December quarter.
Rio said the first quarter result was driven by a strong recovery across its Pilbara network in March following damage and disruptions caused by tropical cyclone Damien in February.
The company said demand for its iron ore remained strong in the first quarter, mainly driven by a combination of seaborne supply disruptions and solid demand from China’s steel mills despite the impact of COVID-19.
Rio reported previously it had changed rosters at its Pilbara iron ore operations, meaning fewer crew changeovers at its sites and operations centres to reduce the risk of transmission.
“The majority of employees and critical contractors on national fly-in,-fly-out (FIFO) arrangements have been relocated to WA,” the company said.
Rio said its Pilbara expansion projects including Koodaideri, Western Turner Syncline Phase 2 and Robe River were progressing well.
However, it cautioned that projects across its global portfolio were starting to be affected by COVID-19 including government-imposed restrictions on the movement of goods and people.
“Recovery rates may differ across regions — we will update the market once the situation stabilises,” Rio said.
As a result, full-year capital expenditure was expected to fall to $US5-6 billion from $US7 billion previously.
“Capital expenditure originally planned for 2020 may subsequently flow into 2021 and 2022, and we will provide a further update on capital re-phasing in due course,” the company said.
Chief executive Jean-Sebastien Jacques said in uncertain and unprecedented times, Rio continued to deliver products to its customers with a priority on protecting the health and safety its employees and communities.
“We are focused on maintaining a business-as-usual approach and have taken extensive measures to ensure we can do so safely,” he said.
Rio also cautioned that ongoing exploration work at its Winu copper discovery in the East Pilbara was likely to be affected by COVID-19 restrictions including the ability to move people and gain access to sites.
(20min delay)