Rio Tinto pans to boost iron ore production

Author: Paul Ploumis21 Jan 2015 Last updated at 06:41:38 GMT

CANBERRA (Scrap Monster): The company’s share in the production increased by about 12 percent, and reached to 233.6 million tonnes, which was mostly driven by the completion of the company’s expansion of a project based in Australia, which added in an extra 30 million tonnes.

The company, Iron Ore Co, based in Canada, of which the majority is owned by the Rio Tinto, saw that, the overall production of the company decline by about 4 percent in the year 2014 to about 14.8 million tonnes as the lower concentrate from due to the cold weather of the last winter and also the quality issues in the end of last year which was far more higher than the pellet output.

The company said that it had realized the 84 dollars per tonne of iron ore from the sales in the year 2014, which has declined to one third from the 126 dollars per tonne in the year of 2013. The spot price for the raw material based in steel making has declined and diminished to about 68 dollars per tonne on Tuesday.

The company as well as the other large producers, which also includes BHP Billiton, have increased their production, which caused the price of the commodity to decline, which will put pressure on the small scale producers.