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Rio Cuts Pilbara Ore Forecast as Auto Train System Delayed

  • Output from Australia in 2017 may be 330mt-340mt range
  • Co. continues to see volatility in prices across all markets
A digger loads ore onto a dump truck at a mine pit in the Pilbara region, Western Australia.

A digger loads ore onto a dump truck at a mine pit in the Pilbara region, Western Australia.

Photographer: Philip Gostelow/Bloomberg
Updated on

Rio Tinto Group, the world’s second-largest mining company, cut its forecast for production next year from its Australian mines by as much as 6 percent because of delays implementing an autonomous railway system in the remote Outback.

Production from the Pilbara region will be between 330 million metric tons and 340 million tons in 2017, down from an earlier forecast of 350 million tons, the London-based company said Tuesday in a statement. It maintained its 2016 global shipments forecast at 350 million tons.