Rio Tinto chief executive Simon Trott has outlined a move to focus operations across the company’s portfolio in order to unlock its “full potential” to become the world’s most valued mining business.
Announced yesterday, the new strategy will start by ensuring “the right assets in the right markets”, streamlining operations to focus on the three key businesses of iron ore, copper and aluminium and lithium.
This streamlined approach will be complemented by creating opportunities for organic growth and capital discipline to maintain a strong and resilient balance sheet focused on leading returns.
Value is already being created, the company noted, through a seven per cent production growth expected this year – underpinned by a further three per cent compound production growth every year to 2030.
It’s expected Rio Tinto will produce 343–366 million tonnes of iron ore in 2026 – averaging around one million tonnes produced every single day.
“We are building from a position of strength for Rio Tinto’s next chapter, sharpening and simplifying the business to deliver leading returns. We will drive performance through discipline, productivity and unmatched growth to unlock the full potential of our diversified portfolio of world-class assets,” Trott said.
“We are delivering strong early productivity benefits and cost savings with more to come. Freeing up cash from our asset base where it makes sense will strengthen the balance sheet and maintain returns, as we invest for the future with discipline.
“Our experienced leadership team is committed to delivering against our mission to become the most valued metals and mining company – for shareholders, the people who work with us, our partners and the communities around us.”
It’s understood around $15 billion will be raised through the sale of “non-core projects”, according to The Australian Financial Review, signalling clear intent to focus on reducing cost and increasing upside potential, returning between 40–60 per cent to shareholders maintained over nine years.
Decarbonisation spending has also been drastically cut as a result, now sitting at $1–2 billion, down from $5–6 billion.
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