Inside Trott’s Rio
When Simon Trott stepped into the role of chief executive at Rio Tinto (ASX: RIO) late last year, he had a vision for a simplified business — and a plan to back it up.
Within days of assuming the head role at Rio, Mr Trott announced ambitions to initiate possibly the most significant restructuring the company had ever seen.
Since then, from the C-suite down to on-site operations, Mr Trott has led major changes to streamline processes and drive long term value creation. His first move was to roll out a simplified operating model that saw Rio consolidate into three divisions — iron ore, aluminium & lithium, and copper — as part of a portfolio wide effort to consolidate the business.
The goal was to boost efficiency, improve accountability and focus capital in areas that could deliver the most value. Following the delivery of the company’s first annual results under the new operating structure, it is safe to say that Mr Trott’s vision is being realised.
“Our winning formula is delivering growth today, and the proof is in our performance,” he said.
“In 2025 we increased our copper equivalent production by 8%, driven by record output in both copper and bauxite.
“And these robust figures flowed through into our results, with EBITDA up 9% to $25.4b and underlying earnings at $10.9b.”
At Rio Tinto’s annual general meeting in May, Mr Trott reiterated the company was working to unlock $5-10b from its asset base through divestments and improved operational efficiencies after delivering about $650m in productivity benefits so far.
“Last year, we outlined a plan to really drive decision-making as close to the point of impact as we could,” he said.
“And that’s about having a stronger company. That’s about having a simpler company, reducing complexity, being really clear around where accountabilities lie and making sure that people are where the decisions are made.”
Mr Trott said the company’s exposure to iron ore, lithium, aluminium and copper positioned the company to benefit from long-term demand tied to electrification and energy security.
“I believe in the diversified model, and we’ve got a fantastic iron ore business,” he said.
Another major change has seen Rio Tinto merge its lithium assets into its aluminium business unit. With both markets facing increased scrutiny over sustainability and ethical sourcing, Rio Tinto positions itself to offer greater transparency and control over these supply chains.
“We’ve brought lithium [online] and we’ve got some amazing assets and development assets in lithium, aluminum and copper.
“When you take those together across the three product groups that we really want to focus on, we think that positions us really well for the future.”
A new era for iron ore
Now unified under Rio Tinto iron ore chief executive Matthew Holcz’s leadership, iron ore remains at the centre of Rio’s revamped business model. The restructure saw the company’s existing WA operations merge with its Canadian operations as well as the recently active Simandou project in Guinea.
The formation of this broader global business integrates Rio’s established sites with its new and emerging projects. This is designed to better align operational processes, transfer technical expertise and roll out proven systems, such as Rio’s Safe Production System, across its entire iron ore portfolio.
Iron ore remains a critical component in global steelmaking and construction and, by unifying its supply chain and tightening leadership focus, Rio positions itself to offer greater reliability and consistency across its iron ore delivery commitments.
“A simplified business structure, grounded in our fundamental commitment to safety and with sharper focus on the most compelling opportunities we have, will enable us to deliver new standards of operational excellence and value creation,” Mr Trott said.
The Pilbara pillar
Rio Tinto mines about 330mt of iron ore from the Pilbara alone each year. Its flagship Pilbara operations comprise 18 iron ore mines, four independent port terminals and a rail network stretching about 2000km.
The company has maintained its status as a leading operator as it continues to bring new sites online throughout the region. Continuing with this strategy, Rio has allocated $19.5b between now and 2028 for new Pilbara iron ore mines, plants and equipment.
Gudai-Darri is Rio’s newest and most technologically advanced iron ore mine located about 110km north-west of Newman. The $3.1b mine began production in 2022 and reached its planned capacity of 43mtpa in less than 12 months of operating. Rio now plans to increase capacity to 50mtpa through incremental upgrades, including chutes, conveyors and additional crushing facilities.
Gudai-Darri sets new benchmarks for safety, efficiency and sustainability, with more than 70 design innovations and a large-scale solar farm that will supply about one-third of the mine’s electricity needs. Future plans include introducing battery-electric and zero-emission autonomous haul trucks.
West Angelas is another one of Rio’s technologically advanced sites located about 110km west of Newman. West Angelas was the first Rio mine to trial autonomous haul trucks and today operates one of the largest autonomous mining fleets in the region.
Rio continues major expansion projects across the West Angelas hub, with the development of new pits expected by 2027.
With the potential to produce 100mtpa, Rhodes Ridge possibly the most significant upcoming asset in Rio’s iron ore portfolio. The site is regarded as one of the world’s best undeveloped iron ore deposits in WA with the potential to support a long-term major mining hub.
Rhodes Ridge is critical to maintaining Rio’s pathway to achieve and sustain mid-term capacity of 345-360mtpa from its Pilbara iron ore business. Subject to relevant regulatory approvals, first ore from the initial development, is expected by 2030.
Simandou: the new kid on the block
Late last year, Rio and its partners, Chinalco and the Guinea Government, celebrated the highly anticipated commencement of operations at the Simandou iron ore project in Guinea.
The Simandou deposit contains about 2.4bt of high-grade iron ore, averaging 65% iron content, positioning it as one of the largest high-quality iron ore mines globally.
The project is divided into four blocks, with blocks one and two controlled by WCS and supporting Chinese companies, including China Baowu Steel Group. Rio Tinto serves as majority shareholder and managing partner for blocks three and four with its partner. Blocks three and four contain the majority of Simandou’s resources, boasting about 1.5bt in reserves.
Though dubbed the ‘Pilbara killer’, Simandou’s peak production capacity is expected to be 120mtpa, significantly lower than the annual output from Rio’s Pilbara iron ore mines. The effects Simandou will have on the Pilbara are more likely to be indirect as the project is set to be the primary catalyst for long-term supply growth of seaborne iron ore, according to Wood Mackenzie.
Rather than simply adding volume, Simandou is expected to displace higher-cost supply, tightening the competitive landscape and reinforcing a sharper cost and quality hierarchy across the seaborne market, according to Wood Mackenzie.
Wood Mackenzie iron ore research director David Cachot says Simandou will become the single biggest driver of seaborne supply growth over the coming decade.
“These tonnes will increasingly displace higher-cost supply, reshape the cost curve and reinforce the market’s shift toward higher-quality material,” he said.
For Australian producers, near-term impacts remain manageable as the Pilbara continues to benefit from blending optionality, with lower-grade ores clearing the market efficiently when combined with higher-quality material, according to Wood Mackenzie.
However, Wood Mackenzie expects this advantage to erode over time and, as Simandou ramps up and demand preferences shift toward higher-quality feedstocks, competitive pressure is likely to emerge first in lower-grade supply.
“This does not imply an abrupt displacement of Pilbara volumes,” Mr Cachot said.
“Rather, it highlights where pressure will emerge first, as marginal tonnes become increasingly vulnerable in a more quality-sensitive market.”
Critical copper
With copper demand expected to rise from 28mt in 2025 to 42mt by 2040, according to S&P Global, Rio has wisely chosen to maintain its focus on copper as a standalone product group.
Rio Tinto’s copper portfolio extends across three major global operations: its standout Oyu Tolgoi mine in Mongolia, its Kennecott operations in Utah and the Escondida mine in Chile.
After years of development and underground expansion, the Oyu Tolgoi site has become the cornerstone of Rio’s copper operations. In 2025, the site produced 345,000t of copper concentrate, representing a 61% increase from the previous year. At peak production, Rio expects Oyu Tolgoi to produce 500,000tpa — making it one of the world’s largest copper operations.
Rio’s Kennecott mine accounts for about 25% of total US copper production. It is a fully integrated copper mining operation encompassing surface and underground mines, concentrator, smelter and refinery as well as railway and tailings infrastructure. Kennecott has been mining and processing minerals from the rich ore body of the Bingham Canyon Mine since 1903 and remains a cornerstone of Rio Tinto’s copper business.
Rio owns a 30% in the Escondida copper mine in northern Chile. The site is the world’s largest copper mine and produces about 1mtpa, which accounts for about 6% of global production, according to Rio.
The future of Resolution
The Resolution copper project is a proposed underground copper mine that has the potential to become one of the largest copper mines in the US. The project, owned by Rio Tinto (55%) and BHP (45%), has been tied up in litigation and permitting disputes for years despite the land exchange mechanism dating back to 2014.
In March this year, the project cleared a major legal hurdle when the Ninth Circuit upheld a lower court decision denying a preliminary injunction that had sought to stop the land exchange — clearing the way for the US Forest Service and Resolution Copper to complete the transfer.
Following the milestone, Resolution Copper announced an additional US$500m in preliminary spending over the next two years to support enabling works, including surface drilling to gather more resource information, funding for Native American Tribes and local communities, upgrades to project infrastructure and initial underground development activities.
Resolution, once operational, is expected to solidify Rio’s copper portfolio well into the future with an estimated mine life of about 40 years.
