Rio Tinto iron ore production hit by cyclone

Rio Tinto said iron ore shipments from Pilbara in Australia would be at the low end of guidance after a cyclone damaged a port used to transport the commodity.

Production from Pilbara will be about 14m tonnes lower than expected in 2019, the FTSE 100 miner said. As a result shipments of iron ore from the region will be at the low end of its guidance of 338m to 350m tonnes.

The company said it had declared force majeure on some contracts as a result of the damage caused by Tropical Cyclone Veronica and a fire at the port in January. Companies invoke force majeure when they cannot carry out business due to events beyond their control.

"Rio Tinto's iron ore operations in the Pilbara are progressively resuming following the passing of Tropical Cyclone Veronica," the company said. "Safety remains our top priority as we ramp up operations, and undertake the necessary remediation work, following the passing of the cyclone."