Rio Tinto pushes for stronger, diversified portfolio with new investments

LONDON: In a bid to strengthen its portfolio, Rio Tinto announced its ambitious growth plans today during its 2024 Investor Seminar in London. The company aims to enhance its position as a global leader in energy transition materials and ensure long-term shareholder returns.

Jakob Stausholm, Rio Tinto’s Chief Executive, stated, “We have all the building blocks to lead in energy transition materials, with a clear plan for a decade of profitable growth. We are focused on our four key objectives which align with societal interests.”

Stausholm highlighted the company’s commitment to impeccable environmental, social, and governance (ESG) standards, and its ongoing efforts to excel in development and deepen its social license. As Rio Tinto ramps up operations at the Oyu Tolgoi underground copper mine, the Simandou iron ore project in Guinea, and expands its lithium business through the proposed acquisition of Arcadium, the company is laying the groundwork for a decade of profitable growth.

“We are entering a new era in our decarbonisation journey,” Stausholm said. “This year, we’ve committed to carbon abatement projects representing over 3 million tonnes of annual emissions, advancing towards our net-zero targets.”

Executives will detail the progress made in 2024 and outline ambitions for sustained growth up to 2033, with an expected Compound Annual Growth Rate (CAGR) of around 3%.

Portfolio Highlights:

– Iron Ore: The Pilbara business aims for a system-wide improvement, targeting a cumulative 15 million tonne uplift over three years.

– Aluminium: Stabilising assets with a focus on growth and decarbonisation.

– Copper: Aiming for 1 million tonnes of annual production by the end of the decade, with significant increases from Oyu Tolgoi.

– Minerals: Accelerating investments in Arcadium’s projects in Argentina and Canada.

– Simandou: Significant progress in infrastructure, with first ore expected next year.

– Decarbonisation: Substantial strides towards meeting targets, with capital spending on decarbonisation projects maintained at $5 to $6 billion by 2030.

Rio Tinto’s strategy underscores its belief in the growing demand for essential materials for the global energy transition. With a focus on improved performance and decarbonisation, the company aims to sustain its dividend policy while preserving a strong balance sheet.