VANCOUVER — Despite setting a variety of production records during the first quarter, major Rio Tinto (NYSE: RIO; LON: RIO) is not off to the best start to 2014. The company struggled with weather issues at its iron ore operations in Western Australia, and experienced poor sales volume at its Oyu Tolgoi copper operation in Mongolia. Though it was not the best quarter overall for Rio, the company does appear to remain on track to hit its annual guidance.
Global iron ore production on a 100% basis came in at 66.4 million tonnes, which set a new first quarter production record for the company and represented an 8% year-on-year increase. Production was 6% lower than the fourth quarter of 2014, however, and fell short of Rio's quarterly guidance estimate of roughly 70 million tonnes.
The company's Pilbara iron ore operations in Western Australia were negatively hit by extreme weather conditions due to cyclone Christine. Severe tropical storms closed Rio's Pilbara ports and coastal rail operations in late December. Heavy rainfall and other adverse weather conditions in January and February continued to impact all facets of the supply chain.
Read the entire story at NorthernMiner.com/news/rio-tinto
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