Rio Tinto lifts ore output despite cyclone hits

<p>Rio Tinto’s iron ore operations have taken their annual hit from another unpredictable cyclone season, with its Pannawonica operation recording a 23% fall in production for the March quarter. </p> <p>Yesterday (Thursday, April 19), Woodside Petroleum and Fortescue Metals Group both reported diminished returns and potential losses in future earnings, collectively estimated at close to $1bn. </p> <p>Later yesterday, Rio Tinto confirmed that it would declare <em>force majeure</em> on some of its Pilbara iron ore contracts after cyclones disrupted its port, rail and mining operations. </p> <p>Cyclone George, which closed BHP Billiton’s facilities at Port Hedland for several days in March, was not as crippling to Rio’s operations at Dampier. </p> <p>Rio’s iron ore production dropped by 8% from the December quarter, but Rio said its share of iron ore production had increased by 12% since the first quarter of 2006 to 32.2m tonnes.</p> <p>Robe River production fell by 12% and Hammersley was down 3% since December.</p> <p>Copper is still Rio Tinto’s showpiece commodity, with production of refined copper soaring by 88% compared with the December 2006.</p> <p>Bauxite also rose 10%, but Rio’s coal arm &#8211 Coal &#38 Allied &#8211 saw a drop off in production because of congestion at the port of Newcastle. </p> <br />