Rio Tinto share price lower despite Gudai-Darri update

a group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

a group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

The Rio Tinto Limited (ASX: RIO) share price is edging lower on Wednesday morning.

At the time of writing, the mining giant’s shares are down 0.3% to $110.72.

Why is the Rio Tinto share price falling?

Investors have been selling down the Rio Tinto share price today following a poor night of trade for the company’s NYSE listed shares and weaker commodity prices.

This has offset some positive news out of the mining giant this morning relating to its iron ore operations.

According to the release, Rio Tinto has delivered its first ore from the Gudai-Darri iron ore mine in the Pilbara, Western Australia. This is the company’s first greenfield mine in the region to come online in over a decade.

The first autonomous AutoHaul trains loaded with ore from Gudai-Darri’s process plant have travelled the new 166-kilometre rail line that connects to Rio Tinto’s existing rail and port infrastructure.

Management advised that production from the mine will continue to ramp up through the remainder of this year and is expected to reach full capacity during 2023. At which point, it will have an expected life of more than 40 years and an annual capacity of 43 million tonnes.

The release notes that Gudai-Darri will help underpin future production of the company’s flagship Pilbara Blend product. Rio Tinto’s Pilbara Blend products are the world’s most recognised brand of iron ore and are known for their high-grade quality and consistency. These products make up approximately 70% of the company’s iron ore product portfolio at present.

‘A new standard’

Rio Tinto’s Iron Ore chief executive, Simon Trott, commented “The commissioning of Gudai-Darri represents the successful delivery of our first greenfield mine in over a decade, helping to support increased output of Pilbara Blend, our flagship product. It sets a new standard for Rio Tinto mine developments through its deployment of technology and innovation to enhance productivity and improve safety.”

The post Rio Tinto share price lower despite Gudai-Darri update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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