Rio remains resilient

Rio Tinto (ASX: RIO) has reported a 13% year-on-year increase in copper production for Q2 CY25, despite price fluctuations amidst rising trade tensions.

Driven by strong performance from its copper assets, the company produced 229,000t of copper for the quarter, a 6% year-on-year increase in H1 performance.

The economic uncertainty that followed the introduction of US tariffs at the start of the quarter saw copper prices fall before recovering in the second half, driven by US-China de-escalation.

Copper production is expected to be at the higher end of guidance following the continued successful ramp up of operations at Oyu Tolgoi underground copper mine in Mongolia and performance at Escondida copper project in Chile.

Rio Tinto chief executive Jakob Stausholm says the company continues to make strong progress in production and growth projects.

“We delivered excellent operational performance from our mine operations with record production from our bauxite business and from Oyu Tolgoi as it ramps up to become the world’s fourth largest copper mine before the end of the decade,” he said.

Rio reported that copper concentrate market tightness intensified in Q2, with spot treatment and refining charges slipping further into negative territory.

While some smelters outside China have reduced production, Chinese smelters have ramped up refined output, further exacerbating the supply strain.

The company also reported its highest Q2 Pilbara iron ore production since 2018, a swift recovery from Q1 extreme weather impacts.

Overall bauxite production for Rio is now expected to be in the higher end of the full year production guidance range.