Rio Tinto sells more iron ore in Q3, guidance unchanged
Rio Tinto has announced that in Q3 2023, Pilbara iron ore shipments totalled 83.9 million tonnes (Q3 2022: 82.9 million tonnes) and production was 83.5 million tonnes (Q3 2022: 84.3 million tonnes).
The company said that Pilbara shipments guidance is unchanged for 2023 and remains in the upper half of the 320 to 335 million tonne range, while Pilbara unit cost guidance for 2023 remains at $21.0 to $22.5 per wet metric tonne.
Rio Tinto added that 2023 shipments include 45 to 50 million tonnes of SP10 product, 13 to 15% of total tonnes (previously >10%).
“This is higher than forecast, reflecting overall production in the upper half of guidance and delayed access to some mine areas,” the company said.
The company also provided shipments guidance for 2024 of 323 to 338 million tonnes.
“SP10 levels are expected to remain elevated for the next few years as we work through the next tranche of mine replacement projects. Levels are dependent on the timing of approvals for planned mining areas,” Rio Tinto said.
Importantly, the company noted that the Gudai-Darri mine reached its 43 million tonne per year nameplate capacity on a sustained basis in the second quarter of 2023.
“We are now targeting a 7 million tonne uplift to capacity towards 50 million tonnes per year and aim to achieve this during 2025 for incremental capital of $70 million,” it added.
Rio Tinto Iron Ore Chief Executive Simon Trott said, “As we head into the fourth quarter of 2023 we are in a strong and stable position. We have systematically improved our operating performance, reset relationships with external stakeholders and established a foundation for the future. We understand our strengths and challenges, and are making good progress as we continue to reflect and learn.”
