Rio Tinto says its iron division will bounce back from recent low output. 

The company has made a vow to export at least 320 million tonnes from Western Australia, after it delivered its weakest annual output since 2015. 

Rio’s output has been hampered by a skills shortage in Western Australia, an increased focus on preservation of Aboriginal cultural heritage and challenges in completing several new mines.

Additionally, Rio’s production of bauxite, aluminium and copper was lower in 2021 than the previous year. The drop was blamed on a combination of weather, industrial action and the pandemic.

Rio Tinto claims it will boost its Australian iron ore exports by as much as 4 per cent in 2022, if the COVID-19 pandemic does not worsen. 

Its latest vow is a downgrade on previous targets, and has been seen by some analysts as a sign it is no more confident in its WA iron ore division as it was a year ago.

There is significant concern that the arrival of the COVID-19 omicron variant in WA will lead to higher absentee rates for sickness or furlough.

Chinese demand for iron ore is expected to rise in the wake of the Winter Olympic Games in Beijing in late February.