Iron ore price weakens as Australia flags return to sub-$100 prices
Futures dropped for a fourth day in Singapore, to trade about 3% lower for the week.
Rio Tinto (ASX: RIO) said on Tuesday that an unloaded autonomous train derailed on Sunday evening about 120km (75m) from Western Australia’s Dampier port, where Rio Tinto ships iron ore through Cape Lambert.
The world’s largest iron ore miner said no one was injured in the accident, which involved about 38 wagons of the self-driving train.
It noted the derailment happened on a dual track section, which means that trains can continue to operate in the area, limiting disruption.
“An investigation has begun, and the appropriate regulators have been notified. Work to recover derailed wagons has also commenced,” a Rio Tinto spokesperson said in an email.
A similar incident occurred with an autonomous Rio Tinto train in June last year, when as many as 30 wagons left the tracks about 12 miles from Dampier.
Rio Tinto’s peers, BHP (ASX: BHP) and Fortescue (ASX: FMG) have also reported derailments at their iron ore operations in recent months.
The most infamous Pilbara train derailment took place in 2018 when BHP was forced to deliberately push a runaway train off its track. The machine was almost 2 miles long with its four locomotives and 268 wagons fully laden and, at one point, reached average speeds of about 110km/h (68m/h) on the track between Newman and Port Hedland.
The company operates about 14,000 ore cars across its Pilbara rail network, each of which can hold an estimated 118 tonnes of iron ore.
