UK-Australian mining firm Rio Tinto expects to come in at the bottom of its 320mn-335mn t guidance for 2022, after shipping 82.92mn t on a 100pc basis from its Western Australian (WA) operations during July-September.

 

The firm has a target of 85.71mn t for October-December to hit the bottom of its 2022 guidance, which is more than the 84.1mn t it shipped in October-December 2021 but not as much as the 88.87mn t in October-December 2020. July-September shipments were 1pc lower than the same period last year but 4pc higher than April-June. Australia is facing an early above average cyclone season, which could disrupt shipments late in October-December.

 

The ramp-up of the 43mn t/yr Gudai-Darri mine added to a 7pc increase in production compared with April-June but two derailments cut exports. Rio Tinto continues to investigate the 3 September Gudai-Darri derailment. The mine is expected to reach full capacity by the end of this year.

 

Rio Tinto and Wright Prospecting, which is owned by the descendants of Peter Wright who worked with Lang Hancock in exploring the Pilbara in the 1960s, have altered the terms of their joint venture to allow the Rhodes Ridge deposit to be developed using Rio Tinto's existing rail and port infrastructure. The joint venture plans to build a 40mn t/yr mine at Rhodes Ridge by the end of the decade, subject to approvals. Rio Tinto already operates the Hope Downs joint venture with a firm owned by Hancock's daughter Gina Reinhart.

 

The firm maintained its commitment to start building early next year the 25mn t/yr Western Range mine with Chinese steel producer Baowu, despite still waiting for approvals from Rio Tinto shareholders, the Australian government, Chinese regulatory agencies and the WA government, among others.

 

Iron Ore Company of Canada (IOC) shipped 4.7mn t of pellet and concentrate during July-September on a 100pc basis, up from 4.37mn t for April-June and 4.14mn t in July-September 2021, with both prior periods subject to annual maintenance closures. Rio Tinto owns 58.7pc of IOC.

 

Argus ICX iron ore was last assessed at $93.45/dry metric tonne (dmt) cfr Qingdao on a 62pc Fe basis on 17 October, down from $160.30/dmt on 8 March. The 58pc Fe assessment was at $83.45/dmt cfr Qingdao on 14 October, down from $142/dmt on 8 March. Argusmedia