Rio Tinto will cut iron ore production at its Pilbara operations by about 10% due to reduced demand from customers.
Rio revised its estimate of iron ore shipments from the Pilbara region of Western Australia to between 170 million tonnes and 175 million tonnes in 2008.
The company’s chief executive Tom Albanese said while operations continue to perform well, demand has continued to decelerate.
“This reduction is a prudent move to align production with revised customer delivery requirements in the light of the fourth quarter drop in Chinese demand,” he said.
“We believe this will be a short, sharp slowdown in China, with demand rebounding over the course of 2009, as the fundamentals of Chinese economic growth remain sound.”