Rio Tinto flags Q1 shipments hit after cyclone-induced rail disruptions

(Reuters) -Rio Tinto warned on Friday that its first-quarter shipments could be affected by disruptions to its rail operations following record rainfall along Western Australia’s Pilbara coastline due to tropical cyclone Sean.

A railcar dumper at the East Intercourse Island (EII) port facility, which handled 45 million metric tons of total iron ore shipments in 2024, had experienced severe flooding, the producer of the steel-making commodity said.

The situation is currently under assessment with preliminary findings indicating that the EII dumper may be out of operation for three to four weeks for repair work, Rio said.

“Recovery works within the broader Iron Ore system are progressing, with the majority of rail and port operations now returned to operations,” the company said, adding it was maintaining its overall shipment forecast for 2025.

Heavy rains led Rio Tinto to report a 1% fall in its iron ore shipments in the December quarter, highlighting the recurring impact of severe weather conditions on production, particularly in the rain-stricken Pilbara region.

Meanwhile, Port Hedland, which is integral to iron ore shipments from miners such as BHP Group and Fortescue, reopened on Monday after the threat posed by the cyclone subsided, with operations resuming following clearance from the Pilbara Ports Authority.

(Reporting by Roushni Nair in Bengaluru; Editing by Alan Barona)

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