Rio Tinto posts higher iron ore output in Jan-Mar

The crisis in the Middle East has yet to impact UK-Australian miner Rio Tinto's cost guidance, while iron ore output rose on the year, the firm said today in its January-March results.

The company produced 82.8mn t in the quarter (see table), up by 12pc from a year earlier. Pilbara output was at 78.8mn t, up by 13pc from January-March 2025.

Rio Tinto missed 13mn t of iron ore shipments in January-March 2025 because one of its railcar dumpers at the port of Dampier was flooded during Cyclone Sean.

The firm's 2025 volumes of iron ore fell slightly on the year, because of weather-related disruptions early in the year.

Tropical cyclones impacted its Pilbara shipments by about 8mn t this year, and around half is expected to be recovered, Rio Tinto said.

Sales rose by 2pc to 75.7mn t, while the firm's full-year guidance for 2026 is unchanged at 343mn-366mn t.

First sales for Rio Tinto's Simandou operation in Guinea occurred this month, including the first spot cargo. Production was 600,000t for the quarter.

On the demand side, China's crude steel and pig iron production dipped by 1pc compared to the previous year, but other nations' output was up 1pc for January-February, before the US-Iran war disrupted this recovery.

Cost guidance unchanged

Rio Tinto uses about 28,000 b/d of gasoil, two-thirds at its Pilbara iron ore mine. Its 2026 cost guidance of $23.50-$25/wet metric tonne would not change despite rising fuel prices, the firm said.

But energy costs are rising on the iron ore cost curve for higher-cost suppliers whose cost base is typically more sensitive to the gasoil price, Rio Tinto said. Each $10/bl movement in oil prices is expected to raise Pilbara iron ore unit costs by around $0.15/t from May.

By Tom Major and Lawrence Wen