Mining giant Rio Tinto has forecast greater iron ore exports in 2022 and is assuming the worst of the pandemic is over for its workers.
The company on Tuesday tipped exports of the steelmaking commodity would increase from 322 million tonnes in 2021 to a range of 320 million tonnes to 335 million tonnes this year.
Iron ore makes up about 80 per cent of earnings due to strong demand from China.
The 2022 forecast is based on there being no more highly contagious coronavirus variants which could make many workers sick or have to isolate.
Rio Tinto takes most of its ore from the Pilbara region of Western Australia, which has had some of the most onerous restrictions on movement during the pandemic.
The company revealed mine replacement projects in the Pilbara have been hampered by virus restrictions, including difficulty in accessing workers and supply chain delays.
The forecast is contained in a quarterly report which showed iron ore production and exports were down in the fourth quarter compared to the same period last year.
The iron ore price will be pivotal to Rio Tinto's fortunes. Last year the price rose to a record $US230 per tonne as China's economy recovered from the pandemic.
However, Australian Treasury officials last year forecast demand would wane and the price would fall to $US55 per tonne by March.
Iron ore's value has since eased and was trading at about $US130 per tonne on Tuesday.
RBC mining analyst Kaan Peker said the outlook for iron ore this year was challenging.
He said Rio Tinto had problems with projects overseas and BHP shares were better.
Rio Tinto also produces aluminium, copper, diamonds and minerals, but these are worth much less in sales.
Rio Tinto shares on the ASX were up 0.22 per cent to $110.27 at 1431 AEDT.
