Rio Tinto Hits 290M Tons of Iron Ore on Way to 360M Target


After reaching its targeted interim run rate of 290 million mt/y of iron ore from its Pilbara operations two months ahead of
schedule, Rio Tinto predicts that it will encounter some ‘variability’ in run rate in the near future as it incorporates its
AutoHaul autonomous rail haulage system.
Rio Tinto announced in mid-May that its Pilbara iron-ore mines, rail system, and ports in Western Australia had reached a targeted expansion run rate of 290 million metric tons per year (mt/y), two months ahead of schedule. In October 2010, starting from its then operating capacity of 220 million mt/y, Rio Tinto announced a planned expansion to 283 million mt/y. In 2012, the expansion target was increased to 290 million mt/y, followed by another hike to 360 million mt/y, with 60 million mt/y of capacity to be added between 2014 and 2017. Production during 2015 is targeted at 330 million mt. Infrastructure to support the 360-million-mt/y expansion will be completed by the end of the first half of 2015.

Commenting on reaching the 290-million-mt/y production rate, Rio Tinto Iron Ore Chief Executive Andrew Harding said, “We are now focused on the next phase of our expansion toward 360 million mt/y. The infrastructure is on schedule for completion in a little more than 12 months, and, from a base run rate of 290 million mt/y, we have a rapid, low-cost pathway to increase mine production capacity by more than 60 million mt/y between now and 2017.”

Rio Tinto’s announcement noted that there is likely to be some run rate variability in coming months as it realizes the integration of AutoHaul, the world’s first automated heavy-haul rail system, into its Pilbara rail network.

Rio Tinto’s Pilbara operations produced 63.4 million mt of iron ore during the first quarter of 2014, 10% higher than during the first quarter of 2013. However, firstquarter 2014 production was below fourthquarter 2013 levels due to disruption caused by seasonal weather patterns.

Severe tropical cyclone Christine closed Rio Tinto’s Pilbara ports and coastal rail operations in late December. Heavy rainfall associated with this cyclone and other adverse weather conditions in January and February impacted the company’s mine, rail and port operations.

As featured in Womp 2014 Vol 06 - www.womp-int.com