Key facts
- Rio Tinto is advancing construction at its Brockman Syncline 1, Hope Downs 2, and West Angelas iron ore mines.
- Production is anticipated to commence at these three mines in 2027.
- These new mines are intended to replace the company's older, depleting mines.
- Rio Tinto's Pilbara capital investment saw a 34% year-on-year increase in January-June.
- Underlying ebitda for Pilbara iron ore operations increased by 5% to $7bn in the first half of the year.
- Full-year iron ore sales guidance for Pilbara operations is set between 323mn and 338mn tonnes for 2026.
Rio Tinto has advanced construction at its Brockman Syncline 1, Hope Downs 2, and West Angelas iron ore mines in Australia, with production expected to commence in 2027. These projects are designed to replace the company's older, depleting mines.
The company reported a 34% year-on-year increase in its Pilbara capital investment for the January-June period, reflecting ongoing investment in these projects. Rio Tinto's iron ore operations in Western Australia's Pilbara region achieved higher profitability in the first half of the year, with underlying earnings before interest, taxes, depreciation, and amortisation (ebitda) rising 5% to $7bn. This improvement was attributed to higher realised iron ore prices and increased production.
Rio Tinto received an average of $105 per dry metric tonne (dmt) cfr China for its 61% ore and $122/dmt cfr China for its 65% product in January-June. Unit costs rose to $25/t, influenced by a stronger Australian dollar and higher diesel prices. However, productivity initiatives that boosted plant operating time helped offset these cost headwinds and enabled higher volumes. The firm achieved its highest half-year iron ore production result in eight years.
Full-year iron ore sales guidance for the Pilbara operations remains between 323 million and 338 million tonnes for 2026. The Argus ICX iron ore index for 61% Fe basis was last assessed at $97.10/dmt cfr Qingdao on July 28, and 65% Fe fines at $113.75/dmt cfr Qingdao on the same day.