Rio Tinto will suffer a significant production loss from its iron ore operations in the Pilbara, Western Australia due to damages caused by tropical cyclone Veronica.
Rio Tinto said the impact of the disruption to production caused by the cyclone, combined with the damage caused by the fire at Cape Lambert A in January, will result in a loss of approximately 14 million tonnes 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 and 350 million tonnes (100 per cent basis) guidance provided,” the company said in a statement.
Rio Tinto, which is focused on progressively resuming operations following the passing of the cyclone, said initial inspections uncovered some damage to the Cape Lambert A port facility.
This prompted the company to declare force majeure on certain contracts and to work with its customers to minimise any disruption in supply.
“Safety remains our top priority as we ramp up operations, and undertake the necessary remediation work, following the passing of the cyclone,” reads the statement.