Rio Tinto’s iron ore operations in the Pilbara, Western Australia, are progressively resuming following the passing of Tropical Cyclone Veronica.
However, initial inspections uncovered some damage to the Cape Lambert A port facility. As a result, Rio Tinto has declared force majeure on certain contracts and is working with its customers to minimise any disruption in supply.
The impact of the disruption to production caused by the cyclone and repairing the damage sustained at the port facilities, combined with the damage caused by the fire at Cape Lambert A in January, will result in a loss of approximately 14 million t of production in 2019. As a result, Rio Tinto’s Pilbara shipments in 2019 are expected to be at the lower end of the 338 million t and 350 million t (100% basis) guidance provided.
Safety remains the company’s top priority as it ramps up operations and undertakes the necessary remediation work, following the passing of the cyclone.