Rio Tinto Projects Surge in Copper Production and Expands Lithium Presence
Australian mining giant Rio Tinto has forecast a significant increase in consolidated mined copper production for fiscal year 2025, driven largely by a projected 50% surge in output from its Oyu Tolgoi operation in Mongolia. The company, traditionally reliant on iron ore profits, is pivoting its focus towards copper, anticipating a 3% annual growth from 2024 onwards. This growth will come from existing projects, including partnerships with Codelco in Chile and First Quantum in Peru, in addition to Oyu Tolgoi.
Rio Tinto aims to achieve annual copper production of 1 million metric tons by 2030, striving to become a key player in the clean energy supply chain by focusing on high-quality, low-emission raw materials essential for energy transition. "We are executing our strategy of delivering a stronger, more diversified, and growing business, underpinned by our belief in the demand for materials which are essential for the global energy transition," CEO Jakob Stausholm stated.
The company has also projected an increase in overall capital expenditures for fiscal 2025, estimating $11.0 billion compared to the $9.5 billion forecasted for 2024. In October, Rio Tinto made a strategic move to enhance its presence in the electric vehicle battery supply chain by agreeing to acquire U.S.-based Arcadium Lithium for $6.7 billion, positioning itself as the world's third-largest lithium miner.
For fiscal year 2025, Rio Tinto expects copper production to range between 780,000 and 850,000 metric tons, compared with an expected 660,000 to 720,000 tons in fiscal 2024. Meanwhile, the company's Rincon 3000 starter project in Argentina achieved its first lithium production last week, setting the stage for a final investment decision by year-end.
Rio Tinto maintains its projected capital expenditure for decarbonization initiatives through 2030 at the lower end of the $5-$6 billion range, reinforcing its commitment to supporting the global energy transition.
