Rio Tinto Posts $11.5B EBITDA, Advances Simandou, Completes Lithium Acquisition

Strong Financial Performance Amid Market Challenges

Rio Tinto has delivered a resilient set of financial results for the first half of 2025, posting an underlying EBITDA of US$11.5 billion and generating operating cash flow of US$6.9 billion. This performance was achieved despite a 13% decline in iron ore prices and the operational disruptions caused by four cyclones in the Pilbara region during the first quarter. The company’s diversified portfolio, particularly its growing Aluminium and Copper businesses, helped offset these headwinds.

Underlying earnings attributable to Rio Tinto’s owners stood at US$4.8 billion, with a 6% increase in copper equivalent production year-on-year. The company maintained its disciplined capital allocation approach, investing US$4.7 billion in property, plant, and equipment, while declaring an interim dividend payout of 50%, amounting to US$2.4 billion.

Strategic Growth Through Project Delivery and Acquisitions

Rio Tinto’s operational progress was marked by key milestones across its portfolio. The Simandou iron ore project in Guinea accelerated its first shipment target to November 2025, with construction advancing on schedule. In Western Australia, the Western Range mine opened on time and on budget, while construction commenced at Hope Downs 2 and Brockman Syncline 1 following receipt of all necessary approvals.

Significantly, Rio Tinto completed its $6.7 billion acquisition of Arcadium Lithium plc in March 2025, establishing itself as a major player in the lithium market. This acquisition, combined with new joint ventures in Chile with Codelco and ENAMI, enriches Rio Tinto’s lithium pipeline, positioning the company to capitalize on the growing demand for energy transition materials.

Operational Highlights and ESG Commitments

The company reported record bauxite production and a 54% year-on-year increase in copper production at the Oyu Tolgoi underground mine, reflecting strong operational execution. Despite losing the US tariff exemption on primary aluminium exports, Rio Tinto’s Aluminium segment saw a 50% increase in underlying EBITDA, driven by higher volumes and improved market premiums.

Rio Tinto remains committed to its environmental, social, and governance (ESG) objectives, including a target to reduce Scope 1 and 2 emissions by 50% by 2030 relative to its 2018 baseline. The company is advancing decarbonisation projects such as the Gladstone energy solution and NeoSmelt technology for low-emission iron production. Social licence initiatives continue with co-management agreements with Indigenous groups in the Pilbara, underpinning sustainable community relationships.

Leadership Transition and Outlook

In a significant leadership development, Rio Tinto announced Simon Trott as its new Chief Executive, effective 25 August 2025, succeeding Jakob Stausholm. The Board reaffirmed its commitment to maintaining a strong balance sheet and disciplined investment strategy, with net debt rising to US$14.6 billion primarily due to the lithium acquisition and bond issuance.

Production guidance for 2025 remains unchanged, with some unit cost adjustments reflecting cyclone recovery efforts and cost discipline in copper operations. The company anticipates a higher effective tax rate of approximately 33% for the year, driven by profit mix and tax jurisdiction factors.

Market conditions remain mixed, with commodity prices influenced by geopolitical tensions and evolving demand patterns, particularly in China and the Global South. Rio Tinto’s diversified portfolio and project pipeline provide a solid foundation to navigate these dynamics and pursue long-term growth.