Rio Tinto to Pivot Towards Critical Minerals
Rio Tinto plans to significantly increase its copper output by 2030 as part of its strategy to lead in energy transition minerals. Speaking at the 2024 Investor Seminar in London, CEO Jakob Stausholm emphasised the company’s shift from iron ore to critical minerals.
Stausholm stated, “We have all the building blocks we need to become a global leader in energy transition materials.”
Copper: A Key Growth Driver
Rio Tinto’s copper production is expected to rise by 18% in 2025, reaching approximately 850,000 tonnes. By 2030, the company aims to produce around one million tonnes annually.
The Oyu Tolgoi mine in Mongolia is central to this growth. Production at this site is projected to increase by over 50% in 2025, making it the cornerstone of Rio’s copper strategy.
“We are moving the dial on impeccable ESG, excelling in development, and deepening our social licence,” Stausholm added.
Expansion Plans in Australia
Rio Tinto announced a partnership with Sumitomo Metal Mining to develop the Winu copper-gold project in Western Australia. While Rio does not currently mine copper in Australia, this project signals its intent to expand operations domestically.
This move aligns with Rio’s broader strategy of diversifying operations and investing in minerals critical to the energy transition.
Focus on Aluminium, Lithium, and Iron Ore
In addition to copper, Rio plans to grow its aluminium investments and advance lithium projects acquired through its Arcadium takeover. The company also aims to increase iron ore production by 15 million tonnes over three years.
The Simandou iron ore mine in Guinea remains on track to commence operations next year, further boosting Rio’s output.
Stausholm remarked, “We are executing our strategy of delivering a stronger, more diversified, and growing business.”
Shifting Revenue Streams
Rio’s focus on copper and critical minerals marks a departure from its reliance on iron ore, which has historically contributed 77% of its earnings. This figure is expected to drop to 55% by the mid-2020s as demand for energy transition materials rises globally.
The shift reflects growing global interest in materials essential for renewable energy infrastructure, including batteries and electric vehicles.
Economic and Environmental Impact
Rio’s ambitious plans aim to balance growth with environmental stewardship. The company has committed to integrating ESG principles into its operations while maintaining profitability.
“With improved performance, we can afford both growth and decarbonisation,” Stausholm said.
Investor Confidence Remains Strong
During the seminar, Stausholm reassured investors of Rio’s robust financial position. He emphasised the company’s ability to deliver dividends, fund growth projects, and preserve its strong balance sheet.
“Our strategy underwrites a decade of profitable growth,” Stausholm concluded.
The Road Ahead
Rio Tinto’s focus on critical minerals positions the company as a key player in the global energy transition. By doubling down on copper and diversifying its portfolio, Rio aims to remain at the forefront of sustainable mining.
The next few years will prove crucial as Rio executes its ambitious growth plans and navigates the challenges of a rapidly evolving industry.
