Rio Tinto plc Sponsored ADR (RIO.US) fourth-quarter iron ore exports fell, while copper production surged 26%.

The world's largest iron ore exporter, Rio Tinto plc Sponsored ADR (RIO.US), stated that iron ore shipments in the fourth quarter declined due to low demand and decreased production at some mines. Rio Tinto plc Sponsored ADR exported 85.7 million tons of iron ore in the three months ending on December 31, a 1% decrease from the same period last year. Meanwhile, Rio Tinto plc Sponsored ADR reported in a filing on Thursday that copper production surged by 26% as they mined higher grade copper at the Escondida mine in Chile and continued to increase production at the Oyu Tolgoi project in Mongolia. Increased exports of steel to other Asian countries partially offset the decreased demand in construction. With the threat of increased tariffs in Trump's second term looming, analysts from Goldman Sachs Group, Inc. warned that if global economic growth is affected by rising inflation, iron ore prices could be impacted. Rio Tinto plc Sponsored ADR disclosed a total iron ore shipment of 328.6 million tons for the whole year, meeting expectations. Iron ore was one of the worst performing commodities in 2024, with prices falling by 28%. However, after dropping below $90 per ton at the end of September, prices received more support in the last quarter of the year, closing at $101.45 per ton in Singapore on Wednesday. Like other operators in the region, Rio Tinto plc Sponsored ADR faces challenges in ensuring sufficient grade for its iron ore business in the remote Pilbara region of Western Australia. Part of the solution is to develop the Western Range mine, which is set to start production this year. However, Rio Tinto plc Sponsored ADR previously stated that it needs to start a new mine every year until 2030 to match its current production levels. The company stated on Thursday, "A 10 million tonne increase in production efficiency has not fully offset resource depletion, mainly at Yandicoogina and Paraburdoo." Pilbara Plan Rio Tinto plc Sponsored ADR is advancing the next round of Pilbara mine replacement studies, planning to develop at least four new large mines. The target for its Rhodes Ridge project is to reach an initial capacity of 40 million tons. Apart from Australia, Rio Tinto plc Sponsored ADR's large Simfer mine at the West Mangadu iron ore project in Guinea, Africa, will also start production later this year. The project is ultimately expected to export 60 million tons of iron ore per year, but initial exports will be small during the expansion of the mine's production. Iron ore remains Rio Tinto plc Sponsored ADR's main source of revenue, but it is also one of the world's largest aluminum producers, and its copper asset portfolio is continually growing. The company will announce its fourth-quarter performance on February 20. Quarterly bauxite production for Rio Tinto plc Sponsored ADR grew by 2% from the same period last year, while aluminum production decreased by 1%. CEO Jakob Stausholm stated in a press release, "We have made significant progress in achieving organic growth through major projects. The underground copper mine at Oyu Tolgoi in Mongolia continues to be successfully operated, while the high-grade iron ore project in West Mangadu, Guinea, and the Western Range mine in Pilbara, are set to start production as planned this year."