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Rio Tinto reported a 12% drop in quarterly iron ore shipments after storms hit its operations in Western Australia.

The company reported that it now expects to ship near the lower end of its range of 325 million tons and 340 million tons in 2021, meaning it could be overtaken by Vale.

Vale, which reports production at the end of this month, reported that it is on track to meet the upper end of its 2021 guidance of 315-335 million tons.

Rio shipped 76.3 million tons of the steel product for the three months ended June 30, down from 86.7 tons a year ago.

Rio on Friday also raised its guidance on iron ore production costs for the full year due to rising labor and input costs.

The miner expects unit costs of $18.00-$18.50 per tonne for the year, up from its previous estimate of $16.70-$17.70 per tonne.

Miners have faced labor shortages as Australia has closed international and state borders.

Rio also reported that it has delayed commissioning at its new Gudai-Darri iron ore hub later this year and the first production from its Winu copper discovery in Australia has been delayed to 2025 from the original estimates of 2023, in part due to hedging restrictions.

Pilbara’s iron ore production of 75.9 million tons was 9% lower than the second quarter of 2020. Bauxite production of 13.7 million tons was 6% lower than the previous quarter.

Mined copper production of 115.5 thousand tons was 13% lower than the second quarter of 2020.