Dumper incident-Rio's force majeure on iron ore export

The company said that an "incident" occurred at the Cape Lambert operation in the Pilbara on August 31, damaging a rail car dumper and resulting in the partial suspension of iron ore unloading activities.

Rio Tinto said it had "advised its customers of this incident under its force majeure provisions" and rail and shipping schedules would be amended to minimise any capacity loss.

"I don't think it is (material to Rio Tinto), I'm sure they have stockpiles they can re-route to other customers," DJ Carmichael analyst James Wilson said.

Rio Tinto shares shed 93 cents to close at $111.59.

The damaged dumper is one of five operated by Rio Tinto in the Pilbara and one of two at Cape Lambert.

It is believed that the car dumper will be out of service for between two and three weeks.

The Cape Lambert port operation, one of two operated by Rio Tinto in the Pilbara, has the capacity to export 55 million tonnes of iron ore per year and is ramping up to an 80 million tonne capacity, which is expected at the end of the year.

Rio Tinto is ramping up its Pilbara operations and expects to have the capacity to export 220 million tonnes per year by the end of 2008.