Copper, aluminium and lithium have driven Rio Tinto’s strong half-year performance, collectively contributing more than half of the miner’s underlying earnings before interest, taxes, depreciation and amortisation (EBITDA).
The result coincided with Rio’s Pilbara operations producing 162.3 million tonnes (Mt) of iron ore, a six per cent increase and the region’s strongest first-half production performance since 2018.
Rio’s underlying EBITDA rose 28 per cent to $US14.8 billion, with copper EBITDA surging 84 per cent to a record $US5.7 billion and aluminium and lithium EBITDA climbing 38 per cent to $US3.3 billion.
Rio Tinto chief executive Simon Trott said operational improvements and favourable market conditions drove the result.
“We achieved a step-change in performance in the first half, which, alongside favourable commodity prices, delivered a 28 per cent increase in underlying EBITDA and a 75 per cent rise in free cash flow,” Trott said.
Stronger commodity prices delivered a $US3.6 billion EBITDA uplift, led by 39 per cent growth in benchmark copper prices, a 53 per cent rise in gold prices and a 33 per cent increase in aluminium prices.
These gains were supported by $US1.5 billion from higher volumes and improvements in operating cash unit cost.
Rio generated $US31 billion in consolidated sales revenue, up 15 per cent, while net earnings increased 47 per cent to $US6.7 billion; likewise, free cash flow reached $US3.8 billion and operating cash flow rose 32 per cent to $US9.2 billion.
“Our strong cash flow and balance sheet allow us to declare a $3.4 billion interim ordinary dividend, up 43 per cent, as we continue to invest in high-returning growth,” Trott said.
Copper-equivalent production increased three per cent, with consolidated copper production reaching 442,000 tonnes, and lithium carbonate equivalent production rose 53 per cent to 27,300 tonnes, supported by a full six months of contribution from Arcadium Lithium and first production from Fénix 1B and Sal de Vida.
As for its Pilbara iron ore shipments, it increased five per cent to 157.7Mt, with Rio’s productivity program more than offsetting cyclone impacts during the March quarter.
The company said it is expecting to recover around half of the 8Mt in weather-related impacts recorded during the quarter over the remainder of 2026.
Pilbara EBITDA increased five per cent to $US7 billion, though underlying EBITDA across the wider iron ore division dipped one per cent to $US6.8 billion due to a reduced contribution from the Iron Ore Company of Canada and higher evaluation expenditure.
There was also an increase in Pilbara unit costs by $US0.70 per tonne to $US25 per tonne amid a stronger Australian dollar, inflation and elevated diesel prices.
Rio maintained its 2026 Pilbara sales guidance of 323–338Mt as construction of the Brockman Syncline 1, Hope Downs 2 and West Angelas replacement mines also remains on budget, with first ore expected from all three in 2027.
The miner has banked $US870 million in productivity benefits and is targeting an annualised run-rate of $US1.8 billion by the end of 2026.