Rio Tinto Forecasts increased Pilbara iron ore shipments for 2024

Optimistic outlook for iron ore exports

{reg}Rio Tinto, the Australian mining giant, anticipates a slight upturn in its iron ore shipments from the Pilbara region in fiscal year 2024. The projected range is between 323 million and 338 million tons, showing marginal growth compared to the 2023 forecast, thanks to improving operational conditions.

For 2023, Rio Tinto maintains its shipments guidance within the range of 320 million to 335 million tons, situated in the upper half of that spectrum. Additionally, the company is aiming for a 7 million ton capacity increase to reach 50 million tons per year at its Gudai-Darri greenfield mine, which commenced operations in 2022.

This increase in the shipment of iron ore, a crucial raw material for steel production, bodes well for Rio's financial performance. The iron ore division currently accounts for 70 percent of the company's profits.

Rio Tinto emphasized its continued investments in Pilbara operations over the next two years, anticipating sustaining capital expenditures to average USD 1.8 billion annually from 2024 to 2026.

The company's mid-term goal is to achieve iron ore unit costs of USD 20 per ton at Pilbara, slightly below the 2023 iron ore unit cash costs guidance of USD 21.0 to USD 22.5 per ton.

In the first half of 2023, Rio Tinto already shipped 161.7 million tons of iron ore from its Pilbara operations, marking a 7 percent increase from the previous year. This positive trajectory suggests a promising outlook for the iron ore sector.[/reg]