Rio Tinto PLC (LON:RIO) said production in the first quarter was in line with guidance despite significant rainfall hampering iron ore output in Australia.
The international mining group also retained its output expectations for the year and continued to show contrition for the destruction of a 46,000-year-old Aboriginal heritage site in Juukan Gorge.
"It has been a period of deep reflection for the company, and I have personally spent a significant amount of time listening, learning and taking actions, in particular to better manage Traditional Owner partnerships and cultural heritage,” said Jakob Stausholm, who took over as chief executive of the Anglo-Australian miner on January 1.
Stausholm’s appointment was one of a number of executive changes made after the outrage over the heritage site’s destruction.
READ: Rio Tinto chairman to step down in wake of Aboriginal cave destruction
“I have appointed a new leadership team and the transition is progressing well,” he said.
Iron ore shipments rose 7% from the first quarter of 2020 to 77.8 million tonnes, although iron ore production dipped 2% to 76.4 million tonnes due to above average wet weather in the mines through February and fixed plant reliability.
Bauxite production declined 2% to 13.6 million tonnes due to wet weather in Eastern Australia and aluminium output climbed 3% to 0.8 million tonnes.
Mined copper production was the worst performer, dropping 9% to 120,500 tonnes with lower recoveries and throughput at Escondida and Kennecott. This was partly offset by the anticipated higher grade from the Oyu Tolgoi open pit in Mongolia. Oyu Tolgoi shipments have been affected by Chinese border restrictions due to increased cases of Coronavirus (COVID-19) in Mongolia.
Weather also affected operations elsewhere, with production of pellets and concentrate at Iron Ore Company of Canada (IOC) falling 8% due to the weather, loading unit availability on mine feed and reduced concentrator mill availability.
Overall, the miner said production guidance for the year was unchanged, although it warned that iron ore shipments and bauxite output guidance remain subject to weather and market conditions.
“The future impact on our Pilbara iron ore operations, mine developments and heritage approach from the reform of the Aboriginal Heritage Act 1972 (WA) remains unknown,” added CEO Stausholm. “We will maintain a high level of engagement with Traditional Owners regarding current and proposed plans for mining activities.”
On the onlook for its markets, Rio Tinto said it expects robust global economic growth in the near term, particularly in the US and China, fuelled by strong fiscal spending and monetary policy and expanding vaccine deployment.