Rio Tinto Q1 iron ore shipments lower than expected

Anglo-Australian mining giant Rio Tinto on Wednesday reported lower-than-expected iron ore shipments in the first quarter as it warned of inflationary risk, a resurgence of Covid lockdowns in China and the impact of a prolonged Russia-Ukraine war.

Rio shipped 71.5m tonnes (Mt) of iron ore in the three months to March 31, compared with 77.8 Mt a year earlier and consensus estimates of 76 Mt.

Production for the quarter stood at 71.7 Mt, down 6.2% from a year earlier and 15% from the previous quarter.

The company was also hit by labour shortages and supply chain constraints as it tried to increase production at its Pilbara operations in Western Australia during the quarter.

"Production in the first quarter was challenging as expected, re-emphasising a need to lift our operational performance," said chief executive Jakob Stausholm.