Article by Simon Johanson, courtesy of The Sydney Morning Herald
19.02.2026
Mining giant Rio Tinto is relying on its huge Oyu Tolgoi copper mine in Mongolia to satisfy growing global demand for copper, a key commodity in electrification, renewable energy, and the AI digital infrastructure boom, as it ramps up its search for other sources of the red metal.
Rio Tinto chief executive Simon Trott said the company was on track to achieve 3 per cent growth in copper production each year to 2030. Marking how important copper has become in miners’ portfolios, Trott said Rio’s exploration team has narrowed its scope to “put copper front and centre, and as a result, we’re now directing 85 per cent of our exploration budget towards copper.”
But the miner’s reliance on Oyu Tolgoi is not without risk.
Mongolia’s government, a joint owner of the mine, last year made an unproven claim of corruption against the dual Australian and London-listed miner in the British High Court and, in a separate matter, the pair were in arbitration over a long-standing tax dispute.
The breakdown in $300 billion merger talks between Rio and resources giant Glencore earlier this month to create a mining powerhouse will also weigh on Rio’s copper aims.
Trott, who took over from Jakob Stausholm in August last year under the mantra of delivering a “stronger, sharper and simpler way of working,” said Rio’s full-year profit was $US10 billion ($14.1 billion).
The company will pay shareholders 60 per cent of that profit as dividends, the tenth consecutive year at the top end of its payout range, Trott said.
“We’re growing, and we’re growing now. The main drivers are Oyu Tolgoi, the lithium projects and Simandou,” Trott said.
Rio said its “strong operational performance” over 2025 lead to it increasing copper output by 8 per cent. It has also produced record amounts of iron ore from its Pilbara operations in West Australia since April and has been shipping high-grade iron ore from its Simandou mine in Guinea since December.
“This strong operational performance, together with a diversifying portfolio and firm cost discipline, underpinned a 9 per cent increase in underlying EBITDA to $US25.4 billion and operating cash flow of $US16.8 billion,” said Trott.
Rio’s rival, BHP, declared on Tuesday it had hit a new milestone. Its copper output over the half-year to December contributed 51 per cent of the group’s underlying earnings, overtaking revenue from the vast iron ore reserves dug out and shipped from its huge Pilbara operation. BHP reported a 28 per cent jump in its half-year profit to $8 billion.
Resource companies are riding a surge in global commodity prices.
Copper has soared about 55 per cent over the last two years and gold, silver and uranium are on a tear. Rio shares have surged 38 per cent in a year, BHP’s are up 30 per cent, while gold miner Evolution Mining jumped 137 per cent. Rio’s shares rose 2 per cent to $168.55 on Thursday.
The global iron ore price is currently trading just under $US100 per tonne after sliding from $US108 in early January. Rio said it achieved a realised price for its ore of $US90 over the year.
Demand from the world’s largest iron ore buyer, China, where vast mills churn out metal products made from the key steelmaking ingredient, is expected to remain resilient, supported by the Asian giant’s strong steel exports and solid manufacturing by its automobile and machinery makers.
But China’s steel exports are alarming trade partners. The Australian government this month slapped a 10 per cent tariff on ceiling frames from China after local manufacturers complained a flood of cheap imports had left them uncompetitive.
Analysts and mining companies expect China’s seaborne iron ore demand to plateau at current levels over the next few years at the same time as shipments of high-quality ore are rising as the new supply from Rio’s Guinea mine comes online.
Rio will pay a fully franked 2025 final dividend of $US2.54 per share on 16 April.
