According to analysts at Morgan Stanley, the halt in operations at a Rio Tinto (ASX:RIO) mining site in Pilbara is expected to have a negligible effect on production.
Rio Tinto (ASX:RIO), the world’s largest iron ore miner, paused its work after a scrub tree and a square meter rock fell from an overhang of a rock shelter near the site.
At this time, the company’s shares are trading down by 0.6% at A$113.9.
On Friday, the company announced the pause in operations after the geological incident.
Morgan Stanley adds that while the pit that was affected by the incident has been moved offsite, the medium-term impact will depend on the future of that pit.
Despite these circumstances, the brokerage maintains its ‘attractive’ rating and its price target of A$135 per share for Rio shares.
Among 14 analysts, nine rate the stock as ‘buy’ or higher, four recommend ‘hold’, and one advises to ‘sell’, with a median price target of A$122 according to LSEG data.
Rio Tinto (ASX:RIO) is the world’s largest iron ore miner known for its commitment to sustainable mining practices.