Rio Tinto starts iron ore deliveries from $3B Australia mining project

Jun. 15, 2022 7:19 AM ETRio Tinto Group (RIO)By: Carl Surran, SA News Editor2 Comments

Reclaimer working on an iron ore site under blue sky

CUHRIG/E+ via Getty Images

Rio Tinto (NYSE:RIO) said Wednesday it delivered first ore from the $3.1B Gudai-Darri iron ore mine in Western Australia, bringing online its first greenfield mine in the Pilbara in more than a decade.

Rio (RIO) plans to ramp up production from the mine through the rest of this year, with full capacity expected in 2023.

With an expected life of more than 40 years and a 43M metric tons/year capacity, Gudai-Darri will underpin future production of the company's Pilbara Blend product, Rio Tinto (RIO) Iron Ore CEO Simon Trott said.

Rio (RIO) maintained full-year guidance for iron ore shipments of 320M-335M tons, subject to risks around the ramp-up of new mines, weather and management of cultural heritage.

Rio Tinto (RIO) "offers something for everyone" - growth, income and diversification - and the stock "offers an exceptionally asymmetric risk/reward opportunity" at current levels, Brian Kapp writes in a bullish analysis posted recently on Seeking Alpha.

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