Rio Tinto cuts iron ore shipment forecast due to labour shortage

Mining giant Rio Tinto on Friday cut annual iron ore shipment forecasts, citing labour shortages in Western Australia.

The company said it now expected shipments from the Pilbara, its key production region be 320m - 325m tonnes for 2021, at the lower end of previous guidance for 325m - 340m tonnes.

The Anglo-Australian miner said “modest delays” to the completion of two mine sites due to a tight labour market in the state.

“It has been another difficult quarter operationally and despite improving versus the prior quarter, we recognise the opportunity to raise our performance,” said chief executive Jakob Stausholm.

Pilbara shipments rose 9% to 83.4m tonnes on a 100% ownership basis for the quarter to September 30 from the previous three months and 2% year on year.

Overall production from the region during the September quarter fell 4% year on year to 83.3m tonnes.