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Mar.28.2024 1USD=7.0948RMB
  SteelHome >>Raw Material>>Market Info>>Special Studies
 
Rio Tinto's 2021 Pilbara Iron Ore Production Down 4% to 319.7 Million Tonnes

https://en.steelhome.com [SteelHome] 2022-01-18 09:50:50

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Rio Tinto produced 319.7 million tonnes of iron ore in Pilbara 2021, 4% lower than 2020, setting 2022 production guidance at 320 to 335 million tonnes. Full iron ore part is shown below.

Pilbara operations

2021 shipments of 321.6 million tonnes (Rio Tinto share 267.9 million tonnes) were 3% lower than 2020. Shipments included 36.6 million tonnes of SP10 products. There was 8.8 million tonnes of Pilbara product retained as working capital at China portside (1.7 million tonnes in 2020). SP10 products comprised a higher share of shipments in the fourth quarter as a result of delays in growth and brownfield mine replacement tie- in projects. As those mines ramp-up through the first half of 2022, we will see SP10 gradually decrease and return to levels around 6% of shipments in the medium term.

Pilbara operations produced 319.7 million tonnes (Rio Tinto share 266.8 million tonnes) in 2021, 4% lower than 2020. This was due to above average rainfall in the first half of the year, cultural heritage management and delays in growth and brownfield mine replacement tie-in projects. Ongoing COVID-19 restrictions and a tight labour market have further impacted our ability to access experienced contractors and particular skill sets.

Production from the new greenfields mine at Gudai-Darri and brownfield mine replacement project at Robe Valley, was delayed due to COVID-19 impact on labour availability and an inability to conduct pre-delivery quality assurance and control at international steel manufacturers due to limitations on travel. First ore from Gudai-Darri was railed in December from the modular crushing and screening plant installed to supplement production and mitigate commissioning delays. Robe Valley production was significantly impacted by the Mesa A wet plant commissioning delays.

Approximately 11% of sales in 2021 were priced by reference to the prior quarter’s average index lagged by one month. The remainder was sold either on current quarter average, current month average or on the spot market. Approximately 28% of sales in the fourth quarter were made on a free on board (FOB) basis, with the remainder sold including freight.

Achieved realised pricing in 2021 was $132.3 per wet metric tonne on an FOB basis (equivalent to $143.8 per dry metric tonne, at 8% moisture assumption). This compares to the monthly average Platts index for 62% fines converted to an FOB basis of $146.9 per dry metric tonne. In 2020, average realised pricing was $91.0 per wet metric tonne ($98.9 dry metric tonne).

China Portside Trading

We continue to increase our iron ore portside sales in China, with 5.1 million tonnes of sales in the fourth quarter of 2021 (1.8 million tonnes in the fourth quarter of 2020), leading to a total of 14.0 million tonnes in 2021 (5.5 million tonnes in 2020). We experienced increased inventory levels at the port due to higher volumes of SP10 and constrained availability of high grade blending stocks in the fourth quarter.

Our portside operation handles product from the Pilbara and Canada as well as third party product, and provides blending and screening capabilities. Approximately 81% of portside sales in 2021 were either blended or screened in Chinese ports.


(To contact the reporter on this story: cody.wang@steelhome.cn or 86-555-2238837 18725550282)
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