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Dragline maintenance weighs Rio's coking coal result

PROLONGED dragline maintenance issues at Rio Tinto's Hail Creek mine in Queensland have taken the company's coking coal performance below Macquarie Private Wealth forecasts.

Lou Caruana
Dragline maintenance weighs Rio's coking coal result

Rio’s coking coal fourth quarter production performance was 23.2% below Macquarie’s forecast at 1.9 million tonnes.

“Coking coal was the disappointment,” Macquarie Private Wealth said.

“Hail Creek dragline maintenance took longer, which hit volumes.

“What's more, this disappointing result saw Rio miss its own 4Q production

guidance issued in October by 26%, and 18% for hard coking coal and semi-soft coking coal, respectively.”

While Rio is attributing the weak coking coal production to dragline maintenance at Hail Creek and the Kestrel plant shutdown, both of these issues were known when last guidance was given, Macquarie said.

“It appears that the dragline maintenance has taken longer than anticipated,” it said.

A Rio spokesman confirmed to ILN that dragline maintenance was being carried out at Hail Creek.

“There was some unplanned dragline maintenance, which was finished last year,” he said.

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