SYDNEY, April 1 — Mining giant Rio Tinto said today its Australian iron ore production has been curtailed by a tropical cyclone that hit last month and it would be unable to fulfill some contracts.
In a statement, the world's second-biggest mining firm said operations in the Pilbara region of Western Australia were getting back to normal after Cyclone Veronica struck as a category 3 storm on March 24, but some damage had been found.
“Initial inspections uncovered some damage to the Cape Lambert A port facility,” the company said, announcing that it had “declared force majeure on certain contracts and is working with its customers to minimise any disruption in supply.”
Coupled with a fire at a Cape Lambert facility earlier this year, the cyclone “will result in a loss of approximately 14 million tonnes of production in 2019.”
Rio's total output from the Pilbara for this year was expected to be between around 338 and 350 million tonnes.
Iron ore prices have been on the rise of late, as Brazilian miner Vale trimmed production estimates and amid concerns about the impact of Cyclone Veronica. — AFP
