The Rio Tinto Limited (ASX: RIO) share price is down around 1% after the miner released its September 2021 quarterly update.
Rio Tinto’s September 2021 quarter
The miner said that its quarterly Pilbara iron ore shipments of 83.4 mt were up 2% year on year and up 9% on the second quarter.
Turning to production, quarterly Pilbara iron ore production of 83.3 mt was down 4% year on year, but up 10% on the June 2021 quarter.
The business also disclosed how its other resources performed. The following numbers are the year on year changes:
Bauxite production was down 3% to 14 mt, aluminium production was down 3% to 774 kt, mined copper production was down 3% to 125.2 kt, titanium dioxide slag production fell 29% to 209 kt and Iron Ore Company of Canada (IOC) pellets and concentrate production dropped 8% to 2.2 mt.
Lower iron ore production
Rio Tinto said that it’s now expecting Pilbara shipments to be between 320 million tonnes to 325 million tonnes. Previously, the guidance was at the low end of 325 mt to 340 mt.
This is due to “modest” delays to completion of the new greenfield mine at Gudai-Darri and the Robe Valley brownfield mine replacement project due to the tight labour market in Western Australia. It also reduced its IOC and copper guidance.
Management comments
Rio Tinto CEO Jakob Stausholm said: “The third quarter has demonstrated the resilience of our people in dealing with ongoing COVID-19 challenges. It has been another difficult quarter operationally and despite improving versus the prior quarter, we recognise the opportunity to raise our performance. We have consequently modestly adjusted our guidance.
“We are progressing against our four pillars and striving to make Rio Tinto even stronger, notably to become the best operator.”
Green partnerships
Interestingly, Rio Tinto said it has entered into three partnerships to progress its work to decarbonise its value chain.
One is with Komatsu to fast-track the development and implementation of zero-emission mining haulage solutions, one with Sumitomo Corporation to study the construction of a hydrogen pilot plant at our Yarwun alumina refinery in Gladstone, Queensland and one with Caterpillar for the development of zero-emissions autonomous haulage trucks for use at one of the WA mining operations.
Summary thoughts on Rio Tinto and the share price
Rio Tinto is making some interesting moves like the green partnerships and its Jadar lithium project.
With the iron ore price a lot lower, it could be one to watch. But it’s possible that iron ore could fall further if China’s economy goes through a rough patch with its real estate industry (like Evergrande).
Rio Tinto is an interesting one, though there are other ASX dividend shares I’d rather be looking at which aren’t as focused on commodities.
