Released July 19, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Heavy rainfall at its Pilbara operations in Australia and other factors forced Rio Tinto (NYSE:RIO) (London, England) to cut iron ore production and shipments in the second quarter, the global metals mining giant reported last week.
The company also reported year-over-year reductions in copper and bauxite production.
Industrial Info is tracking 87 active mining plants by Rio Tinto and $26 billion worth of projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Database can click here for a list of active plants and click here for a list of detailed project reports.
Click on the image at right for a graph showing Rio Tinto's project activity by country.
"The global economy, in particular China, recovered strongly and we are intensely focused on servicing our customers with as much product as we can. However, we faced some challenges in the first half notably at our Pilbara operations, which were impacted by replacement mine tie-ins and materially higher rainfall," Rio Tinto Chief Executive Officer Jakob Stausholm said in a July 15 press release. Tropical Cyclone Seroja battered parts of Western Australia in April, bringing heavy rainfall and flashfloods. For more information, see April 12, 2021, article - Tropical Cyclone Seroja Impacts West Australia Coast.
Also, COVID-19 constraints and travel restrictions impacted the company's operations in Western Australia and Mongolia, Stausholm said.
As a result, "operationally, we are not where we want to be," he continued.
The Pilbara operation's iron ore production of 75.9 million metric tons in the just-ended quarter was 9% lower than the second quarter of 2020, while iron ore shipments were down 12%, according to the company, which also cited a tight labor market, shutdowns to enable replacement mines to be tied in, processing plant availability and indigenous cultural heritage site management. The company expects iron ore shipments to be at the lower end of its guidance of 325 million to 340 million metric tons this year. In comparison, Rio Tinto shipped 331 million metric tons last year.
Global demand for iron ore remains strong and is expected to remain that way through 2022.
Rio Tinto's mined copper production of 115,500 metric tons during the second quarter this year was 13% lower than the second quarter of 2020, with lower recoveries and throughput at the Escondida mine in northern Chile as a result of the continued impact of COVID-19, the company reported.
Another factor in the drop in copper production was a planned relocation of the in-pit crusher at Rio Tinto's Kennecott, Utah, mine in April, the company said. Also, an anticipated slope failure at the Bingham Canyon pit at Kennecott on May 31 will slow mining rates, with some high-grade production deferred to 2022.
Rio Tinto also reported a 6% year-over-year drop in bauxite production as a result of wet weather conditions during the first quarter in Eastern Australia. On the other hand, aluminum production was up 4%, with its smelters in Iceland and Quebec, Canada, running at full operation, and the Kitimat smelter in British Columbia nearing completion of its pot relining cycle.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The company also reported year-over-year reductions in copper and bauxite production.
Industrial Info is tracking 87 active mining plants by Rio Tinto and $26 billion worth of projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Database can click here for a list of active plants and click here for a list of detailed project reports.
"The global economy, in particular China, recovered strongly and we are intensely focused on servicing our customers with as much product as we can. However, we faced some challenges in the first half notably at our Pilbara operations, which were impacted by replacement mine tie-ins and materially higher rainfall," Rio Tinto Chief Executive Officer Jakob Stausholm said in a July 15 press release. Tropical Cyclone Seroja battered parts of Western Australia in April, bringing heavy rainfall and flashfloods. For more information, see April 12, 2021, article - Tropical Cyclone Seroja Impacts West Australia Coast.
Also, COVID-19 constraints and travel restrictions impacted the company's operations in Western Australia and Mongolia, Stausholm said.
As a result, "operationally, we are not where we want to be," he continued.
The Pilbara operation's iron ore production of 75.9 million metric tons in the just-ended quarter was 9% lower than the second quarter of 2020, while iron ore shipments were down 12%, according to the company, which also cited a tight labor market, shutdowns to enable replacement mines to be tied in, processing plant availability and indigenous cultural heritage site management. The company expects iron ore shipments to be at the lower end of its guidance of 325 million to 340 million metric tons this year. In comparison, Rio Tinto shipped 331 million metric tons last year.
Global demand for iron ore remains strong and is expected to remain that way through 2022.
Rio Tinto's mined copper production of 115,500 metric tons during the second quarter this year was 13% lower than the second quarter of 2020, with lower recoveries and throughput at the Escondida mine in northern Chile as a result of the continued impact of COVID-19, the company reported.
Another factor in the drop in copper production was a planned relocation of the in-pit crusher at Rio Tinto's Kennecott, Utah, mine in April, the company said. Also, an anticipated slope failure at the Bingham Canyon pit at Kennecott on May 31 will slow mining rates, with some high-grade production deferred to 2022.
Rio Tinto also reported a 6% year-over-year drop in bauxite production as a result of wet weather conditions during the first quarter in Eastern Australia. On the other hand, aluminum production was up 4%, with its smelters in Iceland and Quebec, Canada, running at full operation, and the Kitimat smelter in British Columbia nearing completion of its pot relining cycle.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
