Rio Tinto PLC has welcomed a long-term power agreement that will keep Australia's largest aluminium smelter operating until 2038, backed by A$1.1 billion of investment and a transition to 100% renewable electricity from 2033. The agreement between Tomago Aluminium, the Australian Government and the New South Wales Government provides a pathway for the smelter to remain internationally competitive after its existing electricity contract expires on December 31, 2028.
Rio Tinto remains a buy, trading at a forward P/E of 11, 27% below the sector average, despite a 35.5% share price rise since November 2025. Strong 2026 H1 results show free cash flow up 75% to $3.8B and underlying earnings up 43% to $6.9B, enabling a $3.4B dividend payout. AI infrastructure demand is driving copper and aluminium EBITDA to 57% of total, with copper EBITDA up 84% and aluminium up 38%, reducing reliance on iron ore.
Rio Tinto Group remains a compelling buy, driven by strong segment performance and attractive valuation after a 49.9% share price surge. Recent results show significant revenue and profitability growth, notably in Aluminum & Lithium and Copper, supported by tight supply and rising prices. RIO's diversified exposure to iron ore, aluminum, lithium, and copper positions it to benefit from structural supply deficits and energy transition trends.
| Metals & Mining Industry | Materials Sector | Simon Callas Trott CEO | XFRA Exchange | 767204100 CUSIP |
| GB Country | 56,890 Employees | 14 Aug 2026 Last Dividend | 30 Apr 2010 Last Split | - IPO Date |
Rio Tinto Group is a global leader in the mining and processing of mineral resources, with a diverse portfolio that spans across iron ore, aluminium, copper, and various minerals. Founded in 1873 and headquartered in London, United Kingdom, the company has established a strong presence worldwide through its comprehensive operations that include exploration, mining, refining, and development of metal and mineral products. Its extensive network of open pit and underground mines, along with refineries, smelters, processing plants, and integrated power and shipping facilities, underscores its capability to meet global demand for essential materials. The firm is also actively involved in developing projects that focus on battery materials such as lithium, reflecting its commitment to addressing the needs of emerging technologies.
The Iron Ore segment of Rio Tinto involves mining iron ore, and producing salt and gypsum in Western Australia. These activities are fundamental to the global steel manufacturing industry, with iron ore being the primary raw material used to produce steel.
This segment covers the entire aluminium production process, from bauxite mining, to alumina refining, and ultimately aluminium smelting. Aluminium, lightweight yet strong, is a crucial material for a variety of industries including automotive, aerospace, packaging, and construction.
Rio Tinto's Copper segment focuses on the mining and refining of copper, along with gold, silver, molybdenum, and other by-products. Copper's excellent conductivity and malleability make it indispensable for electrical wiring, plumbing, and renewable energy applications.
This segment is engaged in the mining and processing of borates, titanium dioxide feedstock, and iron concentrate and pellets. Additionally, it oversees diamond mining, sorting, and marketing activities. The segment is notable for its venture into the development of battery materials, including lithium, which is essential for electric vehicles and renewable energy storage solutions.