Rio Tinto cuts 2017 iron production

Rio Tinto cuts 2017 iron production

Rio Tinto (LSE:RIO) has cut its 2017 iron production guidance, despite announcing year-on-year gains yesterday.

The miner’s iron ore production for the first quarter of the year was at 84(mt), a 13 per cent increase from last year.

Figures for the first quarter’s iron ore production exhibits a four per cent decrease compared with the previous quarter.

Rio Tinto said 79.9mt tonnes of iron ore was generated at its Pilbara facilities, a 12 per cent rise on the same quarter in 2015.

The firm stated they expect to produce 350mt tonnes globally this year, up from 328mt from 2015. It has also cut its production target in 2017 to between 330-340mt, dropping from 350mt.

In the first quarter of 2016, sales were three million tonnes below production due to January’s “seasonal re-stocking and weather disruptions from Tropical Cyclone Stan.”

“These results demonstrate our commitment to operational excellence in 2016, with notable improvements in several important areas,” said Sam Walsh, Rio’s chief executive. “However, we continue to experience volatility in commodity prices across all markets.”