Commodities giant Rio Tinto (WKN 852147) reported strong operational performance for the second quarter of 2025, with the group’s copper-equivalent production increasing by 13% compared to the same period last year. This growth was supported by solid gains in the copper, bauxite, iron ore, and titanium business segments, further strengthening the diversified portfolio’s resilience and strength.
Rio Tinto reaffirmed its 2025 production and cost guidance for all key commodities and raised its copper forecast to the upper end of the previously stated range.
Pilbara iron ore shipments reached 79.9 million tonnes, a 13% increase from the prior quarter, but a 1% decrease year-on-year due to weather-related disruptions early in the year. Total iron ore production for the quarter was 83.7 million tonnes, representing a 5% increase year-on-year and a 20% increase quarter-on-quarter – marking Rio’s strongest second-quarter iron ore production in seven years. Despite the recovery, full-year shipments are expected to be at the lower end of the company’s guidance of 323 to 338 million tonnes, with Rio citing ongoing weather risks and regulatory approval timelines as key factors.
Rio Tinto Expects 2025 Copper Production at Upper End of Range
Copper production increased 15% year-on-year to 229,000 tonnes, driven by increased production at Oyu Tolgoi in Mongolia and stable performance at Escondida in Chile. Rio Tinto announced that full-year copper production is now expected to be at the upper end of its guidance of 780,000 to 850,000 tonnes. Unit costs are expected to be at the lower end of the $1.30 to $1.50 per pound range, due to increased volumes and gold by-product credits.
Bauxite production reached a new quarterly record of 15.6 million tonnes, a 6% increase year-on-year, and is expected to be at the upper end of the 57 to 59 million tonne guidance range by year-end. Alumina production increased 8% to 1.8 million tonnes, while aluminium production rose 2% to 0.84 million tonnes.
Rio Tinto incurred gross costs of approximately $300 million in the first half of 2025 due to US tariffs on Canadian aluminum. Initially, the costs from the 25% tariffs introduced in March were largely offset by higher premiums on US sales. However, the company noted that the recent increase in tariffs to 50% has significantly reduced these offsetting effects and now represents a growing headwind.
Titanium dioxide slag production increased 13% year-on-year to 0.3 million tonnes. Nevertheless, due to softening market demand, Rio expects full-year production to be at the lower end of its guidance range of 1.0 to 1.2 million tonnes.
Pellet and concentrate production at the Iron Ore Company of Canada increased 14% year-on-year to 2.5 million tonnes. Full-year guidance remains unchanged at 9.7 to 11.4 million tonnes. Boron oxide production rose 6% and is on track to meet the annual target of 0.5 million tonnes.
The company highlighted ongoing internal cost discipline and favorable exchange rate developments in Australia, which are helping to support margins across several business segments, particularly in copper.
The company also reported further progress in integrating its lithium business, a strategic component of its long-term diversification efforts given the increasing demand for energy transition materials.
