Australia-based Rio Tinto, the world's second biggest iron ore producer, has announced that in the first quarter of the current year its global iron ore production increased by eight percent year on year to 66.4 million mt, achieving a new first quarter record. In the given quarter, the company's global iron ore shipments amounted to 66.7 million mt, up 16 percent year on year.
In the first quarter, Rio Tinto's iron ore production from its Pilbara operations increased by 10 percent year on year to 63.4 million mt, driven by productivity improvements and the continued ramp-up towards 290 million mt per year. However, the first quarter production volume was below fourth quarter levels due to disruption caused by seasonal weather patterns. The severe tropical cyclone Christine closed Rio Tinto's Pilbara ports and coastal rail operations in late December. Heavy rainfall associated with this cyclone and other adverse weather conditions in January and February impacted across mine, rail and port operations.
Rio Tinto's Australian hard coking coal production in the first quarter increased by 18 percent to 1.81 million mt, due to improved production from the Kestrel mine. The Kestrel mine coal handling preparation plant was shut for upgrade works in the first quarter of 2013 as part of the Kestrel mine extension that was completed during the second half of last year.
According to Rio Tinto's statement, 2014 production guidance remains unchanged. Rio Tinto expects to produce approximately 295 million mt from its global operations in Australia and Canada, subject to weather constraints. The full ramp-up in the Pilbara to nameplate capacity of 290 million mt per year is expected to be delivered by the end of the first half of 2014. The drawdown of iron ore inventories at the Pilbara mines will continue to allow shipments to ramp up ahead of production, with around five million mt of inventory drawdown expected during the year.