Strong mine performance and rising sales volumes in the third quarter will enable the company to free up around $5 billion in capital by the end of 2026. As part of its optimisation programme, which has a total value of between $5 billion and $10 billion, Rio Tinto has already freed up over $2 billion. These funds will be used to finance high-return development projects.

Rio Tinto has maintained its annual sales forecast for iron ore from the Pilbara at 323–338 million tonnes. As at the end of September, 243.4 million tonnes had already been shipped. To meet the lower end of the company’s annual target, it needs to sell 79.6 million tonnes in the fourth quarter, which is traditionally Rio Tinto’s most productive period.

In addition, the Simandou project in Guinea sold 1.7 million wet tonnes of ore in the first nine months. To meet the minimum annual target of 5 million tonnes, a further 3.3 million tonnes must be sold in the fourth quarter.

As reported by GMK Center, in early September, China’s state-owned iron ore importer — China Mineral Resources Group (CMRG) — recommended that a number of Chinese steelworks refrain from purchasing the key Pilbara Blend ore from Rio Tinto Group. This is because contract negotiations with the Australian mining giant have reached a critical stage.

Source:reuters