Rio Tinto cuts iron ore guidance after cyclone damage

The impact of March's tropical cyclone in Western Australia has forced miner Rio Tinto to cut its guidance for annual ore shipments.

The company on Tuesday said first quarter iron ore sales of 69.1m tonnes were 14% year on year due to lower production and damage to the port facilities caused by cyclone Veronica.

Annual iron ore shipments guidance was cut to 333m – 343m tonnes from a previous range of 338m – 350m.

Pilbara operations produced 76m tonnes in the first quarter, 9% lower than the same period in 2018, Rio said.

Production was also impacted by a fire at the company's Western Australia Cape Lambert port in January, which affected Robe Valley Lump and Fines production.

The impact of cyclones on Australian iron ore miners, combined with a waste dam burst at a Vale mine in Brazil, in January has caused a shortfall in the iron ore market.

Closures of other Vale mines and waste dams by authorities in Brazilian authorities has pushed iron ore prices more than $94 a tonne.