Rio Tinto (ASX:RIO) on target to supply iron ore

Rio Tinto (ASX:RIO) is projected to deliver on its iron ore commitments, despite the environmental challenges of Tropical Cyclone Seroja stagnating export activity from Western Australia.

Rio reported a total exported iron ore volume of 77.8 million tones in the March quarter of FY21, marking the best quarterly performance by its iron ore section in 3 years.

The Australian mining heavyweight sources a large proportion of its iron ore from the Pilbara region in Western Australia. The state’s iron ore industry experienced geological difficulties and logistical delays in mid April this year, as Cyclone Seroja hit the coastal areas of Western Australia in the second week of April.

Rio Tinto has reiterated its determination to meet the company’s guidance of delivering 325 million to 340 million tonnes of iron ore this year.

The ASX-listed mining giant intends to capitalise on Brazilian competitor Vale’s underperformance in iron ore production by 4 million tonnes in early 2021.

Rio Tinto (ASX:RIO) is expected to fill the 90-million-tonne gap left by its depleted mines in the Pilbara region and Western Turner Syncline hubs. As a solution to the supply equation, Australian iron ore producer plans to launch its mining operations at its Gudai-Darri iron ore project and allocate a $US1.6 billion budget to acquire new iron ore production assets this year.

Shares in Rio Tinto (ASX:RIO) last traded at $120.85
 
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Source: Finance News Network