Rio Tinto has announced an increase in iron ore shipments for Q3, aligning with expectations, and reaffirmed its commitment to the Simandou high-grade iron ore project in Guinea, which is set to begin production in 2025. Key details include:
Q3 Shipments: The company shipped 84.5 million tonnes (Mt) of iron ore from its Pilbara operations, slightly below the consensus estimate of 84.74 Mt but higher than 83.9 Mt from the previous year.
Simandou Development: The Simfer mine is expected to ramp up to an annual capacity of 60 Mt over 30 months following its first output next year.
Lithium Production: Rio Tinto is also on track to commence lithium production from its Rincon project in Argentina by the end of this year. The recent acquisition of Arcadium Lithium for $6.7 billion positions Rio Tinto as the world’s third-largest lithium miner.
Operational Challenges: The unit cash costs for Pilbara iron ore are expected to be at the upper end of the forecast due to inflation. Additionally, production from the Iron Ore Company of Canada (IOC) has been affected by forest fires, leading to an 11% decrease in output.
Despite a slight drop in share prices, Rio Tinto continues to focus on expanding its production capabilities and transitioning into battery metals.