Rio iron ore production takes a hit

Mining power house Rio Tinto can’t seem to cop a break, after posting a $3 billion loss earlier this year its West Australian iron ore production has now taken a hit in the June quarter.

According to the Australian unseasonal wet weather and a conveyor outage has seen output drop sparking concern about whether the miner will meet its full-year guidance.

Rain and downtime resulted in weaker shipment numbers for Rio but the company is not alone with Fortescue Metals Group also contending with adverse weather impacting production.

Rio’s second quarter production isn’t due to be reported until early next week.

However The Australian reports figures are expected to come in below the 61 million tonnes many analysts have predicted.

Traditionally quarter two is a period of heightened production with good weather conditions boosting output levels.

Fortescue cut its 2012-2013 iron ore production guidance in June by two million tonnes to 80-82 million tonnes, while BHP has not said to what extent its production has been affected by inclement weather.

Rio last month cut staff from its WA iron ore operations as part of an ongoing effort to cut about $5 billion worth of expenses out of the business over the next two years.

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