Rio Tinto keeps 2025 iron ore target unchanged despite weak Q1 result

The world's top iron ore miner, Rio Tinto, is keeping its target for Pilbara iron ore shipments for 2025 unchanged at 323-338 million tonnes, but expects shipments to be at lower end of the guidance, considering the weaker results during this year's January-March quarter, according to the miner's quarterly results released on April 16.

During Q1, Rio Tinto shipped a total of 70.7 million tonnes of iron ore (on a 100% basis) from its operations in Western Australia's Pilbara region, with the volume slumping 17% from the prior quarter and also being 9% lower than that in Q1 2024.

Meanwhile, the mining giant's iron ore production in the first quarter also dropped by a substantial 19% on quarter to reach 69.8 million tonnes (also on 100% basis), logging an on-year decline of 10%.

Rio Tinto attributed the weak iron ore production and shipping in Q1 to extreme weather events. Operations of many ports in the Pilbara region – such as Port Hedland and Dampier Port – were suspended during the past quarter as no fewer than four tropical cyclones battered the region, as Mysteel Global reported.

The losses in iron ore shipments caused by the cyclones in Q1 reached about 13 million tonnes, and mitigation plans are in place to offset around half of the losses, according to the report. Significantly, an additional investment of around A$150 million will be required for rectification works – a railcar dumper at the East Intercourse Island port was flooded by Cyclone Sean in January, for example – and contracting mining activities.

Rio Tinto's iron ore sales at China's ports increased to 8.6 million tonnes during the March quarter, compared to the 6.5 million tonnes recorded in the same period last year, the report indicated.

With regards to its iron ore projects, Rio Tinto said that the Simandou project in Guinea, scheduled to start production this year, is "proceeding at an impressive pace". Meanwhile, in the Pilbara region, Western Range achieved first ore on plan through the new crushing and conveying circuit, and the $1.8 billion investment for its Brockman Syncline 1 mine project was approved, as reported.

The miner also noted a limited impact on iron ore from the trade tensions sparked by U.S. President Donald Trump's tariff bombardment during January-March but added that the future impact from tariffs is uncertain.

Written by Irene Zhuang, zhuangailing@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com