Rio Tinto trims copper production target

Paterniano Del Favero
Aprile 21, 2017

It still, however, expects refined copper production of 185,000 to 225,000 tonnes.

Australian mining giant Rio Tinto posted quarterly production results Thursday, failing to meet market expectations after bad weather affected operations.

The company has been one of the biggest innovators in "Industrial Metals & Minerals" employing approximately 51018 full time employees.

Under the joint venture, Rio has rights to a 40 percent share of production above certain levels until 2021 and 40 percent of all production after 2021.

The company said the new regulations obstruct Freeport's right to continue to export concentrate without restriction, which may have a significant impact on Rio's share of production in 2017.

Other research analysts also recently issued reports about the stock.

Regulations introduced in January to relax a ban on shipments of raw mineral ores triggered a standoff with United States miner Freeport-McMoRan, halting shipments at its vast copper and gold mine Grasberg, in which Rio has a stake.

Rio Tinto said Pilbara iron ore shipments in the quarter were 76.7 million tonnes, unchanged from the prior year, but down 13% from the fourth quarter of 2016.

Pilbara iron ore production was 77.2 million tonnes, down 3% year on year and down 10% from the previous quarter.

Rio Tinto's iron ore shipments guidance for 2017 remains on track despite a challenging first quarter, the company said in its quarterly production results released Thursday.

The worldwide iron ore surplus reached 70 million tonnes last year - more than total USA consumption last year - and could balloon to 90 million tonnes in 2017, according to Citigroup.

CEO says Rio is managing costs.

. "These actions support the delivery of strong cash returns to shareholders in the short, medium and long term", said Chief Executive Jean-Sebastien Jacques in a statement.

The world's biggest copper mine, Escondida, is still months away from producing at full capacity despite a strike ending there nearly one month ago.

The company's mined copper production fell 37% due to a 43-day labour strike at its Escondida mine in Chile, and curtailment of production at its Grasberg mine in Indonesia.

Rio Tinto plc with EPIC/TICKER LON:RIO had its stock rating noted as "Reiterates" with the recommendation being set at "SELL" this morning by analysts at Liberum Capital.

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