Rio Tinto sees share of capital investment around $10B per year from 2024-2026

Rio Tinto said it will hold its 2023 Investor Seminar in Sydney, where it will update on progress in its long-term strategy of investing with discipline to strengthen operations, deliver growth in a decarbonising world and continue to generate attractive shareholder returns. Rio Tinto Chief Executive Jakob Stausholm said: “We strongly believe we are well positioned in an opportunity rich world. There has never been greater demand for what we do, from mining to processing, and the work we are doing today is creating a stronger Rio Tinto for years to come. “The performance at our Pilbara iron ore and Oyu Tolgoi copper operations shows our path towards becoming best operator, and we are focussed on driving continuous improvement across our global portfolio. Our people are at the heart of lifting our performance, and we are continuing to invest time and energy in building a stronger culture with a learning mindset. “We are making real progress in shaping our portfolio for the future, through entering new markets like recycled aluminium in North America, developments in technology and one of the most exciting exploration pipelines we’ve had for many years. “Our purpose and long-term strategy make more sense than ever, as we ensure Rio Tinto remains a strong investment proposition. Profitable growth enables us to invest for the future while also paying attractive returns.” Executives will outline progress made in 2023, a pivotal year for Rio Tinto in which the Group’s Copper Equivalent production is expected to grow 4%. This included a 5 million tonne uplift from implementing the Safe Production System at the Pilbara iron ore business, where a further 5 million tonne uplift is targeted for 2024. The Safe Production System continues to be rolled out across the Group’s global operations to deliver further sustainable production improvement. Rio Tinto’s market outlook will highlight how the Group is strategically well-positioned to capitalise on the expected sustained commodity demand created by decarbonisation, shifting regional industrial policies and geopolitics, that is favourable to Rio Tinto’s globally diversified portfolio. Total copper equivalent commodity demand growth of ~4% CAGR is expected between 2022 and 2035 under a less than2 degrees C scenario4, with attractive long-term fundamentals across Rio Tinto’s product mix. Rio Tinto’s share of capital investment is expected to be around $10 billion per year from 2024 to 2026, including up to $3 billion per year of growth investment to meet this demand. The largest investment over the next three years is expected to be Rio Tinto’s equity share of the Simandou project once approved by the Rio Tinto Board, as spend starts to wind down at Oyu Tolgoi beyond 2024 with completion of the infrastructure. The remainder will be focussed on other copper and lithium projects, some of which are yet to be approved.