With Tropical Cyclone Veronica now having passed through Western Australia, Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) is advising that it experienced damage to its Cape Lambert A port facility.
According to the company, it has had to declare “force majeure” on some of its contracts and is working with customers to minimize any supply disruption.
As stated in the press release:
The impact of the disruption to production caused by the cyclone and repairing the damage sustained at the port facilities, combined with the damage caused by the fire at Cape Lambert A in January, will result in a loss of approximately 14 million tonnes of production in 2019. As a result Rio Tinto’s Pilbara shipments in 2019 are expected to be at the lower end of the 338 and 350 million tonnes (100 percent basis) guidance provided.