RIO Tinto (ASX: RIO) looks set to take top spot as 2019’s largest iron ore exporter.
Its Q3 results show that, after bouncing back from the June blow-out that saw the company lower its iron ore guidance for the second time in the year, the miner shipped 86.1mt of iron ore, up 5pc on Q3 2018, with 87.3mt coming from its Pilbara operations – 6pc higher than Q3 2018, and 10pc higher than Q2 2019 as the company bounced back from Q2.
The company has not changed its iron ore guidance, indicating it would ship between 320-330mt in Q4, and said that its unit cost guidance remained between $14-$15/t.
Rio has traditionally lagged behind Brazil’s Vale as the second largest iron ore producer, but in the wake of the Brumadinho disaster, Vale said it would resume about mid-point guidance of about 307-332mt, leaving Rio to take first place.
This comes somewhat ironically as the company will record its first downgraded iron ore exports for the first time in more than two decades.
Rio’s alumina and bauxite operations have not performed as strongly in Q3, as maintenance issues and high energy costs hit output.
The company has lowered its bauxite production to 54mt from 56-59mt, and alumina to 7.7mt from 8.1-8.4mt.
The company said that it was mainly due to maintenance activities at its Australian refineries.
