Rio Tinto to offload up to USD10b of assets, cut decarbonisation spending
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The news: CEO of Rio Tinto, Simon Trott, outlined the miner’s plans to raise as much as USD10 billion ($15.1 billion) in asset sales and pull back from lithium and decarbonisation ambitions, focusing on core areas like iron ore and copper.
The numbers: Trott used Rio’s Capital Markets Day to outline his new strategy for a “stronger, shaper and simpler Rio Tinto”, announcing plans to sell between USD5 billion and USD10 billion across its land, infrastructure and mining and processing assets.
The miner said that it aims to trim its average operating unit costs by 4% annually until 2030 and that USD650 million in productivity benefits are expected to be realised by the end of Q1 2026, through internal streamlining and pausing non-core projects. The productivity benefits include actions already realised (USD370 million) and actions which will be delivered by end of Q1 2026 (USD280 million).
Rio said that total group capital expenditure in 2026 is set to remain close to 2025 levels of up to USD11 billion, but should fall back to below USD10 billion from 2028.
The context: Rio said that it has reduced its capital estimate for decarbonisation efforts from between USD5 billion and USD6 billion to between USD1 billion and USD2 billion. The miner said that it is maintaining its target of reducing emissions by 50% by 2030.
Rio said that it is leveraging third party contracts to pass on spending risk and deliver decarbonisation benefits for the company.
What they said: Rio chief Simon Trott said: “We are building from a position of strength for Rio Tinto’s next chapter, sharpening and simplifying the business to deliver leading returns. We will drive performance through discipline, productivity and unmatched growth to unlock the full potential of our diversified portfolio of world-class assets. [We are] freeing up cash from our asset base where it makes sense will strengthen the balance sheet and maintain returns as we invest for the future with discipline.”
The source: Rio Tinto ASX
