Rio Tinto plans to increase iron ore sales this year to 350 million tonnes, despite prices being at decade lows and surprisingly weak quarterly production.
The world's second largest iron ore miner shipped 12 per cent less ore during the March quarter compared to the previous period.
Rio and BHP Billiton have been blamed by critics for over-supplying the market and pushing down the price of Australia's top export earner during the period from above $US70 a tonne to below $US50.
But Rio's latest quarterly iron ore shipments of 72.5 million tonnes fell short of analysts' expectations of more than 80 million.
With three quarters of the year left, Rio is still forecasting shipments of nearly 350 million tonnes, up 17 per cent, for 2015.
It will draw down on inventory if needed to hit that target.
Quarterly production was down six per cent at 74.7 million tonnes, with cyclone Olwyn and a train derailment blamed.
Rio chief executive Sam Walsh said it was a solid first quarter production performance.
"By making best use of our high quality assets, low cost base and operating and commercial capability our aim is to protect our margins in the face of declining prices and maximise returns for shareholders throughout the cycle," he said.
The comments showed Rio was unfazed by the political pressure on it to cull production, as smaller Australian miners such as Atlas Iron lose money and struggle to survive, IG market strategist Evan Lucas said.
"They have got a longer game, which is to be one of the three producers left (with BHP and Vale) when margins return," he told AAP.
Rio is estimated to be still making a profit close to $US20 at the current low prices, giving it room for more price falls.
Those falls could occur, given that iron ore prices dropped during a period when Rio sold less, and more supply is due later this year from the majors and Gina Rinehart's Roy Hill project.
Chinese demand was crucial, said UBS analyst Glyn Lawcock, with that country's moves to provide economic stimulus at the weekend giving miners some hope.
"What this does show you is that it has been very much a demand issue right now causing the iron ore price weakness, not so much excess supply," he told AAP.
In an indication of Rio's views about where future growth will come from, copper had the biggest share of the $126 million spent on exploration for the quarter.
Iron ore has represented 90 per cent of Rio's profits in recent years, but Rio's chairman Jan du Plessis has previously said its many other businesses such as copper, coal and aluminium all "had their time in the sun".
Rio's shares were 93 cents, or 1.7 per cent, higher at $55.59 at 1456 AEST.
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