North American iron-ore pellets and concentrates producer Iron Ore Company of Canada (IOC) has reduced its full-year production guidance by 500 000 t as it grapples with the aftermath of devastating wildfires in northern Quebec.
The miner, a subsidiary of diversified mining group Rio Tinto, reduced its production guidance to between 10-million and 11-million tonnes, from the previous forecast of 10.5-million to 11.5-million tonnes.
The updated guidance remains subject to further disruption from fire conditions, Rio Tinto said on Thursday.
IOC operations are integrated across a mine and processing plant in Labrador City, Newfoundland and Labrador, a port and stockpile in Sept-Iles, Quebec, and a 418-km railway that joins these two parts of the operation.
The company lost three-and-a-half weeks of production last month, owing to the wildfires in northern Quebec.
IOC’s iron-ore pellets and concentrate production fell by 21% year-on-year to 2.1-million tonnes and half-year output was 8% down at 4.6-million tonnes.
Shipments were higher in the second quarter, as IOC drew down inventory. However, loading restrictions at the rail and port remain a risk as the rail line had been damaged by fire and repairs remain under way.