Rio Tinto is set to boost iron ore shipments during the second half of the year after maintaining its 2016 guidance of 350 million tonnes, despite posting slightly weaker-than-expected June quarter volumes.
The world's second largest iron ore producer lifted shipments from its giant Western Australian operations by six per cent, to 82.2 million tonnes, for the three months ending June 30. Production of the steelmaking ingredient was up eight per cent to 80.9 million tonnes.
Analysts had expected a greater boost to the miner 's shipments to make up for a weak March quarter that was marred by bad weather disruptions. The mining giant now will have to significantly increase production in the remaining two quarters to meet its full-year guidance.
"I am quite comfortable with the likelihood that they will be able to meet their guidance. They generally tend to do better in the second half," CMC Markets chief analyst Ric Spooner said.
Rio expects to ship 330 million tonnes this year from its Pilbara operations in WA, and another 20 million tonnes from its smaller Canadian facilities.
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It trimmed its 2017 guidance of 350 million by up to 20 million tonnes in April because of delays in the AutoHaul driverless trains project in the Pilbara.
"We continue to focus on value and maximising cash flow from our assets, through both commercial and operational excellence while maintaining capital discipline," newly-appointed chief executive Jean Sebastien Jacques said.
Iron ore majors, under pressure to maintain profitability amid an extended slump in commodities prices, have recently shown the first concrete signs of moving away from the volume game.
The discipline comes amid a partial rebound in iron ore prices so far in 2016 that has boosted profits following 2015's commodities rout. Iron ore has largely stayed above $US50 a tonne since March but is still down more than two thirds from its 2011 peak value.
BHP Billiton, which will outline its quarterly numbers on Wednesday, is expected to miss its production target. However, smaller rival Fortescue Metals Group last week said it had topped its full-year guidance of 165 million tonnes.
On Tuesday, Rio slightly raised its full-year guidance for thermal coal, trimmed its forecast for diamond production, but reaffirmed expectations for all other commodities.
Rio's thermal coal production was up six per cent to 4.3 million tonnes for the quarter, but hard coking coal production was down 14 per cent to 1.80 million tonnes.
Copper production was nearly flat at 141,000 tonnes, bauxite production jumped 13 per cent from a year ago to 12.07 million tonnes, while aluminium production rose 11 per cent to 911,000 tonnes.
At 1424 AEST, Rio Tinto shares were down 94 cents, or 1.87 per cent, at $49.20.
