By Rhiannon Hoyle
SYDNEY--Rio Tinto PLC (RIO) said iron-ore output fell in the
first quarter of its fiscal year due to bad weather that swept
across Australia's Pilbara mining hub.
Rio Tinto--the world's second-largest producer of iron ore after
Brazil's Vale SA (VALE)--said production of the steelmaking
ingredient at its mines was down 6% on-quarter at 66.4 million
metric tons. Still, output was 8% higher than the same period a
year earlier.
Rio Tinto has been expanding its mines in the Pilbara region in
a bet that China will need vast quantities of iron ore to make
steel for its skyscrapers and industries like auto manufacturing.
However, bad weather in the Pilbara--including tropical cyclone
Christine which closed ports and coastal rail operations in late
December--has hampered efforts to increase iron-ore output
quickly.
"Heavy rainfall associated with this cyclone and other adverse
weather conditions in January and February impacted across mine,
rail and port operations," Rio Tinto said in a quarterly statement
to the Australian Securities Exchange.
The company said it continues to expect iron-ore production in
the Pilbara to reach 290 million tons on an annual basis by the end
of June.
Copper output was also lower on-quarter, falling 6% to 156,000
tons as production fell at Escondida--the world's largest copper
mine in Chile, owned jointly with BHP Billiton Ltd. (BHP) and a
Japanese consortium led by Mitsubishi Corp. (8058.TO)--due to lower
ore grades.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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