Rio iron ore industry is in a healthy state With the miners signaling that it could capitalize on stratospheric iron ore prices by shipping record volumes of the steel-making commodity this year, Rio Tinto's biggest profit in nine years could be just the beginning.
T
he largest iron ore miner in Australia is on track to post a full-year underlying profit of nearly US$12 billion next month, but with iron ore prices 76 percent higher than the average price received by Rio over the past year, the record US$15.5 billion profit set in 2011 appears to be vulnerable in the coming year.
with earnings of more than $US29 billion. But Rio warned investors that while record exports of iron ore were possible in the year ahead, an increased focus on indigenous heritage following the Juukan Gorge scandal last year and difficulties with the delivery of new mines within the hard border of Western Australia could hamper export rates.
While demand from other Asian markets was recovering from pandemic lockdowns, Rio said Chinese buying patterns remained strong, creating boom conditions despite trade tensions between Australia and China.
Rio said that between 325 million and 340 million tonnes of iron ore would be shipped in 2021.
Peter O'Connor, Shaw and Partners analyst, said that if iron ore prices stayed at the price of $US174.07 per tonne on Monday night for the rest of this year, Rio would almost double its best ever result
That target range straddles last year's 330.6 million tonnes shipped by Rio from Western Australia, but implies that there is more room for growth than a reduction in production. According to analysts, Rio is expected to ship 336 million tonnes in 2021. Rio has www.skillings.net | 35
