Rio Tinto plc (LON:RIO) jumped on Friday after announcing it is continuing to operate in most of its locations in respect of local lockdown rules during the coronavirus pandemic.
The miner said it has reduced operations at Richards Bay Minerals in South Africa, which remains open for shipments, is also working towards slowing down activity in Quebec, and has halted an aluminum smelter in New Zealand.
READ: Rio Tinto slows operations in Quebec and South Africa
The FTSE 100-listed group said demand in China continues to recover but supply in the rest of the world has been hit by travel restrictions.
Commodity prices are in part driven down by supply costs, which are falling due to a strong US dollar and lower energy and freight expenses, the company added.
In the quarter to March 31, Rio Tinto said iron ore shipments from the Pilbara mine in Australia rose 5% to 73mln tonnes compared to last year due to a “strong” recovery following the cyclone in February.
It noted that bauxite production jumped 8% to 14mln tonnes due to the ramp-up of the Amrun mine in Australia, but aluminum dipped 2% to 783,000 tonnes, while copper dropped 8% to 133,000 reflecting lower grades.
Shares surged 6% to 3,905p on Friday morning.
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