Rio Tinto's strongest Pilbara half since 2018

About Rio Tinto

Rio Tinto Limited (ASX: RIO) is one of the world’s largest diversified mining and metals companies, with a primary listing on the ASX and a co-primary listing on the London Stock Exchange. Founded in 1873 and incorporated in Australia, the company operates across six product groups — iron ore, copper, aluminium, lithium, borates and titanium dioxide with assets spanning more than 35 countries. Its Australian operations are anchored in the Pilbara region of Western Australia, home to one of the world’s largest iron ore systems, while its global portfolio extends to copper mines in Mongolia, Chile and the United States, aluminium and lithium assets across the Americas and bauxite operations in Australia, Guinea and Brazil.

Rio Tinto’s Pilbara iron ore operations produce and export ore through the ports of Dampier and Cape Lambert, underpinned by a company-owned rail network spanning more than 1,700 kilometres. In copper, the 2023 acquisition and subsequent underground ramp-up at Oyu Tolgoi in Mongolia has become a defining growth story for the group. In lithium, the March 2025 acquisition of Arcadium Lithium added a vertically integrated portfolio of brine and hard-rock assets across Argentina, Canada and beyond, transforming Rio Tinto into one of the largest lithium producers in the world.

The quarter

Rio Tinto’s second quarter 2026 production report, released on 15 July, covers operations across all major product groups and confirms a group in deliberate growth mode despite a volatile geopolitical backdrop shaped by the prolonged closure of the Strait of Hormuz.

In iron ore, Pilbara production of 83.5 Mt on a 100% basis was broadly stable year-on-year, with Q2 sales of 85.3 Mt (100% basis) up 7% year-on-year and 18% on the prior quarter, supported by strong system performance and healthy stock levels. The SimFer mine at Simandou in Guinea continues to advance, with both mine construction and port infrastructure now more than three-quarters complete and full rail commissioning achieved in Q1. First ore through the primary crusher is expected in Q4 2026, with commissioning of the SimFer port targeted for Q1 2027.

In copper, group production on a consolidated basis was 213,000 tonnes in Q2, down 7% year-on-year, with the result reflecting a planned concentrator maintenance shutdown at Oyu Tolgoi, geotechnical management adjustments at Kennecott and a flash converting furnace breach at the Kennecott smelter in late June. The smelter breach is expected to reduce refined copper and gold production in H2 2026, though full-year copper production guidance of 800,000–870,000 tonnes is unchanged, as matte, a marketable intermediate copper product, will be produced in the interim and converted to cathode in 2027. Oyu Tolgoi itself produced 96,900 tonnes of copper in concentrates in Q2, up 12% year-on-year, with the underground ramp-up continuing to track its long-run target of around 500,000 tonnes per year on a 100% basis from 2028 to 2036.

In lithium, Q2 LCE production of 14,600 tonnes was up 20% year-on-year and 15% on Q1, with the Rincon starter plant in Argentina continuing to ramp up and first production achieved ahead of plan at both Sal de Vida and Fénix 1B in Q2. The Rincon full-scale expansion, targeting 60,000 tonnes per year of battery-grade lithium carbonate at a capital cost of US$2.5 billion, remains in early execution. Full-year LCE guidance of 61,000–64,000 tonnes is unchanged.

Strategic significance

The Q2 report lands at a point of significant strategic momentum for Rio Tinto. Simandou, the high-grade Guinea iron ore project that has been decades in the making, is now in active ramp-up following first shipment in December 2025, and its 60 Mtpa nameplate capacity at full run rate will materially expand the group’s iron ore exposure. In copper, the Resolution project in Arizona has commenced initial underground development following completion of the congressionally mandated land exchange in March, while the Winu feasibility study in Western Australia is on track for completion by end-2026.

In lithium, Rio Tinto is building one of the most diversified production bases in the sector. The two new Argentine brine projects joining Rincon in production are Sal de Vida at 15,000 tonnes per year LCE and Fénix 1B at 10,000 tonnes to expand the group’s Argentine lithium output materially, and the Nemaska Lithium hydroxide project in Québec, 53.9% owned by Rio Tinto, remains targeted for first production in 2028. Lithium carbonate prices rose 13% quarter-on-quarter in Q2, supported by supply disruption concerns and rapidly expanding battery energy storage system demand, which now accounts for around 30% of global lithium consumption.

Conclusion

Rio Tinto’s H1 2026 result demonstrates a group executing across multiple growth fronts simultaneously: record Pilbara first-half volumes, an Oyu Tolgoi underground ramp-up delivering as promised, lithium assets coming online ahead of schedule and Simandou transitioning from construction to production. With all major guidance ranges unchanged and copper unit cost guidance sharply reduced, the company enters the second half in a strong operational position. The market will look to the H1 2026 financial results for confirmation that volume growth is converting into earnings and cash flow momentum.