Rio Tinto CEO Simon Trott has disclosed a plan to generate up to AU$10 billion in cash proceeds through divestments as part of a strategy to focus operations on productivity and performance.
The new strategy will unlock Rio Tinto’s full potential by ensuring that the right assets are in the right markets and streamlining operations to focus on iron ore, copper, aluminium and lithium.
Rio Tinto will deliver value by selling non-core units and exploring commercial, partnership and ownership options across its diverse assets.
The company is already advancing the strategic reviews of its iron, titanium and borates assets, with the next phase focused on testing the market for these assets.
Rio Tinto Chief Executive 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 delivering strong early productivity benefits and cost savings with more to come. 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.”
Capital expenditure is projected to fall below AU$10 billion a year from 2028 as Rio Tinto completes its Oyu Tolgoi underground (copper), Simandou (iron ore) and lithium (predominantly Rincon) projects.
Decarbonisation spending has also been cut to AU$1-2 billion through 2030, down from an earlier target of AU$5-6 billion. The lower capital estimate reflects the company’s leveraging of third-party investment in renewables by energy developers and its disciplined allocation principles.
Rio Tinto has also raised its 2025 copper production forecast to 860,000-875,000 tonnes, up from a prior range of 780,000-850,000 tonnes.
Bauxite production guidance is also being upgraded to exceed the previous guidance of 59-61 million metric tonnes, with aluminium at the upper end of the 3.25-3.45 million tonnes guidance range.
Rio Tinto’s major division, Australian iron ore, is expected to deliver steady volume, with Pilbara production forecast at 323-338 million tonnes of iron ore in 2026.
