Australia’s Rio Tinto said on Monday it expects iron ore shipments of 323 million to 338 million tons in fiscal 2024 at Pilbara, marginally above its forecast for 2023, as operating conditions continue to improve.

The company said Pilbara’s shipments guidance is unchanged for 2023 and remains in the upper half of the 320 million- to 335 million-ton range.

Rio also said it is targeting a 7 million toncapacity uplift towards 50 million tons per year at its $3.1 billion Gudai-Darri greenfield mine, which opened in 2022.

The rise in shipments of steel-making raw materials works in the favour of Rio’s financial results as the company makes 70% of its profits from the iron ore division.

Rio highlighted continued investments in the company’s Pilbara operations over the next two years, adding that it expects sustaining capital to average $1.8 billion a year from 2024 to 2026.

Rio is aiming for mid-term iron ore unit costs of $20 per ton at Pilbara, slightly below its 2023 iron ore unit cash costs guidance of $21.0 to $22.5 per ton.

So far through the first half of 2023, the company has shipped 161.7 million tons of iron ore from its Pilbara operations, a 7% jump from a year earlier.