The promotion signals a strategic shift, placing Rio’s most profitable division at the helm. Analysts such as Glyn Lawcock of Barrenjoey suggest the appointment could mark a return to Rio’s former dominance. “It used to be best in class and lowest cost, but now they are number three on cost in the Pilbara. They have quite a journey to embark on,” he said. “But Trott is young. Hopefully that gives him a good runway to make change.”
Shipments lag despite production surge
Despite the surge in output, Rio shipped 79.9 million metric tons in the quarter, a 13% increase from the previous period but still below consensus estimates of 81.98 million. The miner maintains its full-year shipment forecast at the lower end of its 323–338 million ton range, reflecting the impact of four cyclones that disrupted logistics earlier in the year. For the half-year, shipments were the weakest since 2014.
Rio’s shares dipped 0.2% to A$110.08, outperforming the broader mining index which dropped more than 1%.
Copper strength and Simandou outlook
Elsewhere, Rio expects full-year copper production to hit the higher end of its guidance range, with unit costs likely at the lower end. Copper output rose 9% quarter-on-quarter to 229 thousand tons, buoyed by ramp-up activities at the Oyu Tolgoi underground mine in Mongolia.
The company reaffirmed plans to begin shipments from the vast Simandou high-grade iron ore project in Guinea around November.
Tariff troubles in Canada
In aluminium, Rio reported $300 million in costs at its Canadian operations due to U.S. tariffs, though higher American premiums helped offset part of the impact.
