Rio Tinto Launches Strategy to Boost Production, Cut Costs, Streamline Operations

06:18 AM EST, 12/04/2025 (MT Newswires) -- Rio Tinto Group (RIO.L) on Thursday outlined a new strategy at its 2025 capital markets day event, focused on improving production, slashing expenses, and simplifying operations to "deliver industry leading returns." The mining giant expects 7% growth in full-year 2025, along with a 3% compound annual production growth to 2030. The projected production increase is driven by ramp-ups of key developments, including the Oyu Tolgoi copper mine in Mongolia, the Simandou iron ore project in Guinea, and the Rincon lithium initiative in Argentina, as well as the lithium assets of Arcadium, a company it acquired. The group anticipates accelerating its 2025 output, including raising its copper forecast to a range of 860,000 tonnes to 875,000 tonnes from a previous range of 780,000 tonnes to 850,000 tonnes, and expects bauxite production to surpass the prior 59 million-tonne to 61 million-tonne range. Additionally, aluminium output is set for the top end of its guidance of between 3.25 million tonnes and 3.45 million tonnes. Looking ahead to 2026, Rio Tinto projects copper production to range between 800,000 tonnes and 870,000 tonnes, while bauxite production is forecasted between 58 million tonnes and 61 million tonnes. Output for aluminium is guided at 3.25 million tonnes to 3.45 million tonnes. Research firm RBC Capital Markets noted that Rio Tinto's 2026 production outlook slightly missed its estimates but was "roughly in line" with consensus expectations. Most of the 2025 guidance refinements were anticipated, except for copper, which RBC said "bucked the industry trend." Another aspect of the mining company's strategy is cost reduction, with unit costs expected to be 4% lower between 2024 and 2030. Rio Tinto added that it is exploring commercial, partnership, and ownership options across its existing land, infrastructure, mining and processing assets to release between $5 billion and $10 billion in cash. "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," Chief Executive Officer Simon Trott said. RBC called Rio's updated strategy "a more conservative approach," as the company takes measures to streamline the business. "With the Resolution copper project still stuck in the courts, the only excitement the company has to offer is that Nuton is producing its first copper and very attractive recovery rates (85%) and consumption parameters (80% less water and 60% less carbon emissions than traditional concentrator route). There is no [one-size-fits-all] to copper primary sulphides leaching technology, but Nuton has many positives." As of Thursday midday, Rio Tinto shares were trading marginally higher in London.