Rio Tinto Group (RIO): Business Model Canvas [Dec-2025 Updated]

You're looking at a mining giant actively reshaping its future, and honestly, understanding the mechanics behind Rio Tinto Group's current strategy is key to valuing it right now. We've broken down their Business Model Canvas, showing how they are balancing the massive cash flow from Pilbara iron ore-which still delivered $26.9 billion in consolidated sales revenue in H1 2025-with a sharp pivot toward Energy Transition metals like Copper and Lithium. They are pouring capital, with guidance around $11 billion for 2025 CapEx, into ramping up projects like Oyu Tolgoi and decarbonization efforts, all while simplifying the portfolio. It's a complex, capital-intensive balancing act, and you'll defintely want to see the nine blocks that drive their value proposition below.

Rio Tinto Group (RIO) - Canvas Business Model: Key Partnerships

You're looking at the network of alliances Rio Tinto Group is building to secure future growth and meet aggressive decarbonization targets, which is key to understanding their long-term capital allocation strategy. This partnership ecosystem is designed to de-risk technology adoption and unlock capital from non-core assets.

Strategic Alliances for Low-Carbon Steelmaking

Rio Tinto Group is actively partnering across the steel value chain to ensure its iron ore remains viable as the industry shifts away from blast furnaces. This involves both direct supply agreements and technology co-development.

The company is committed to supplying 70% of the iron ore for a groundbreaking hydrogen-based steel plant in Linz, Austria, in collaboration with Voestalpine, Primetals Technologies, and Mitsubishi Corporation. This facility is set to launch mid-2027 with the goal of near-zero CO2 production.

Further supporting this transition, Rio Tinto Group is exploring technologies that can process lower-grade ores, ensuring products from Pilbara, IOC, and eventually Simandou remain relevant. This includes work with Primetals Technologies and Mitsubishi Corporation on fluidised bed and smelter technologies.

Specific low-carbon initiatives include:

• Partnering with Calix on the ZestyTM project, with Rio Tinto investing more than A$35 million (subject to milestones).
• Collaborating with BlueScope, BHP, and Woodside on the NeoSmelt pilot plant in Kwinana, targeting 30,000 to 40,000 tonnes of molten iron production annually.
• Working with GravitHy to supply IOC pellets for a hydrogen-based DRI plant, aiming for up to 90% emissions reduction compared to a blast furnace, with production targeted by 2028.
• Exploring low-carbon pathways with China Baowu Steel Group and Nippon Steel Corporation.

Technology Partners for Digital and Energy Solutions

Digital transformation relies heavily on external expertise to drive productivity gains, which Rio Tinto Group has quantified as realizing $650 million in annual productivity benefits through autonomous systems and supply chain digitization.

A landmark deal was signed with Ideon Technologies for a five-year enterprise agreement to deploy its REVEAL™ subsurface intelligence platform across six of Rio Tinto Group's largest global operations.

Other key technology and energy partners include:

• Agilitus on a three-year agreement for engineering programs across fixed plant mechanical, structural, and marine categories.
• Caterpillar to help develop and validate 220-tonne zero-emissions autonomous haul trucks.
• bp for a 12-month trial using marine biofuels on the RTM Tasman vessel.
• ARENA and Sumitomo Corporation for a first-of-a-kind hydrogen pilot plant at the Yarwun alumina refinery.

Joint Ventures in Major Projects

Major growth is underpinned by significant joint ventures, particularly in copper and iron ore, where capital and risk are shared with partners.

The Simandou iron ore project in Guinea is a cornerstone, where Rio Tinto Group holds a 53% stake in the Simfer joint venture with China's Chalco Iron Ore Holdings (CIOH) and the government of Guinea. Rio Tinto Group plans to contribute approximately $6.2 billion to the initial development of the mine, rail, and port infrastructure.

The table below summarizes key project joint ventures:

Project/Venture	Partner(s)	Rio Tinto Group Stake/Role	Key Metric/Capacity
Simfer (Simandou Iron Ore)	CIOH, Government of Guinea	53% Equity Stake	First production expected in 2025; ramp-up to 60 million tonnes per year total capacity.
ELYSIS (Aluminum Smelting)	Alcoa	Joint Partnership since 2018	Technology eliminates all greenhouse gas emissions, emits oxygen.
Escondida Copper Mine	(Not specified in detail)	(Not specified in detail)	Ideon's REVEAL™ platform deployed here.

Collaboration on Carbon Capture for Aluminum Smelters

To address the 75% of direct CO2 emissions from anode consumption in aluminum smelting, Rio Tinto Group is partnering with Hydro.

The companies expect to invest approximately $45 million over five years to evaluate and pilot carbon capture technologies, with most work conducted at Rio Tinto Group's facilities in Europe and Hydro's in Norway.

Exploring Asset Partnerships for Capital Release

Rio Tinto Group is actively seeking to streamline its portfolio, targeting an "opportunistic release of $5-billion to $10-billion" from its existing asset base.

This capital release is to be achieved by exploring commercial, partnership, or ownership options across various assets, including infrastructure, land, mining, and processing assets.

Strategic reviews are advancing for assets such as:

• Iron and Titanium operations.
• Borates operations.
• Infrastructure assets where Rio Tinto Group needs access but not sole ownership, citing an example of an asset valued around $500 million.

This strategy is part of a broader goal to become "stronger, sharper and simpler," focusing on Iron Ore, Copper, and Aluminium & Lithium.

Rio Tinto Group (RIO) - Canvas Business Model: Key Activities

You're looking at the core actions Rio Tinto Group is taking right now to drive performance and shape its future portfolio, which is a lot of heavy lifting across its major commodities and big projects.

Large-scale mining and processing of Iron Ore, Copper, and Aluminium & Lithium is the foundation, with 2025 guidance showing a clear focus on copper growth and stability elsewhere.

Commodity/Metric	2025 Guidance (Latest Update)	Comparative Data Point
Copper Production (Consolidated)	860-875 thousand tonnes	Unit Cost guidance revised down to 80-100 c/lb
Bauxite Production	Exceed previous guidance of 59-61 million tonnes	Amrun operating above nameplate capacity
Aluminium Production	Upper end of the 3.25-3.45 million tonnes range	NZAS operations ramped up to full production rates in Q3 2025
Iron Ore (IOC) Production	Downgraded to 9.0-9.5 million tonnes	Pilbara shipments expected to be at the lower end of guidance

Project execution is centered on major growth drivers that underpin the 3% compound annual production growth outlook to 2030.

• Oyu Tolgoi underground ramp-up is on track to boost copper output by more than 50% this year (2025).
• Simandou (SimFer joint venture) expects first production at the mine gate in 2025, ramping up over 30 months to a 60 million tonne per year capacity (Rio Tinto share: 27 million tonnes).
• Arcadium Lithium acquisition completed in March for $6.7 billion.
• Rincon project expansion expected to reach 60,000 tons per year of battery grade lithium carbonate, with first production from the expanded plant expected in 2028.
• In-flight lithium projects are set to deliver approximately 200ktpa capacity by 2028.

Operational excellence is being driven by a systematic approach, which has already delivered tangible results.

• The Safe Production System (SPS) deployment was at 31 sites (~80%) by the end of 2024.
• This focus delivered $650 million of annualised productivity benefits in the first three months.
• The executive team targets a 4% reduction in unit costs over the period from 2024 to 2030.

Portfolio simplification is a key activity to free up capital and focus on the core three businesses: Iron Ore, Copper, and Aluminium & Lithium.

Rio Tinto is looking to release up to $5 billion to $10 billion from its existing asset base through divestments and other measures. The strategic reviews for the Iron and Titanium, and Borates businesses are advancing, with the next phase focused on testing the market for these assets.

Decarbonisation involves a more selective capital approach to meet the 50% emissions cut by 2030 target.

The revised capital requirement for achieving this 50% Scope 1 & 2 emissions reduction by 2030 is now estimated at USD 1 billion to USD 2 billion, a significant reduction from the previous USD 5-6 billion projection. Finance: draft 13-week cash view by Friday.

Rio Tinto Group (RIO) - Canvas Business Model: Key Resources

You're looking at the core assets that make Rio Tinto Group a powerhouse in global resources, focusing on the numbers that define their competitive edge as of late 2025.

World-class, long-life mineral reserves (Pilbara iron ore, Oyu Tolgoi copper)

The foundation of Rio Tinto Group's value rests on massive, high-quality reserves. The Pilbara iron ore operations are the cash engine, with a clear path to maintain high output levels. The Oyu Tolgoi copper project in Mongolia is central to the company's future growth in energy transition materials.

For Pilbara iron ore, Rio Tinto Group maintained its 2025 production guidance in the range of 323 million-328 million mt. This supports a medium-term system capacity target of 345 to 360 million tons per year. New projects like Hope Downs 2, a joint venture, are set to add a combined annual production capacity of 31 million tons, with first ore expected in 2027. The West Angelas Sustaining project, a $733 million investment including Rio Tinto Group's share of $389 million, aims to maintain that hub's capacity at 35 million tonnes annually, with first ore by 2027.

Oyu Tolgoi is on track to deliver an average of around 500,000 tonnes per year of copper from 2028 to 2036. For the first half of 2025, copper production from Oyu Tolgoi jumped 54 per cent year-on-year, contributing to a consolidated copper output of 438,000 tonnes for the half-year. The 2025 copper production guidance remained at the upper end of the 780,000 to 850,000 tonnes range.

Here's a look at the scale of these key assets:

Asset/Metric	Scope/Capacity/Guidance	Timeframe/Context
Pilbara Iron Ore Production Guidance	323 million-328 million mt	2025
Pilbara Medium-Term Capacity Target	345 to 360 million tons per year	Medium-term
Oyu Tolgoi Copper Production Guidance	780,000 to 850,000 t	2025
Oyu Tolgoi Future Average Copper Production	Around 500 ktpa	2028 to 2036
Gudai-Darri Annual Capacity	43 Mtpa (incremental increase to 50Mtpa planned)	Current/Future
Western Range Annual Production Capacity	25 million tonnes per year	Current/Sustaining

Autonomous fleet technology: operating one of the world's largest autonomous mining systems

Rio Tinto Group is a pioneer in deploying large-scale automation, which directly impacts safety and operational efficiency. The company runs one of the world's largest autonomous mining systems across its Pilbara iron ore operations.

The Autonomous Haulage System (AHS) involves a fleet of autonomous trucks. While the fleet size is continually updated, data from 2022 indicated Rio Tinto Group had 187 autonomous trucks in operation. More recently, the company stated it runs more than 130 autonomous trucks across its Iron Ore operations. These systems have delivered clear productivity benefits, with each autonomous truck estimated to have operated about 700 hours more than conventional haul trucks in 2018, alongside 15% lower load and haul unit costs.

The automation extends beyond trucks to rail with the AutoHaul™ system, the world's first heavy-haul, long-distance autonomous rail operation. This network includes about 200 locomotives on more than 1,700 kilometres of track in the Pilbara. This system alone saves almost 1.5 million kilometres of road travel each year by eliminating the need to transport drivers mid-journey.

Integrated infrastructure: owned rail, port, and power assets for logistics

The integrated nature of the Pilbara operations is a critical resource, linking mines to export facilities efficiently. This infrastructure is designed to respond rapidly to demand shifts.

Rio Tinto Group's Pilbara network includes:

• 18 mines
• 4 independent port terminals
• A rail network spanning nearly 2,000 kilometres (or nearly 1,700 kilometres for the autonomous rail portion).

The company also made strategic moves in power, delivering the third tranche of its Gladstone operations energy solution, signing agreements to purchase 90% of 600MWac solar and 600MW/2,400MWh battery storage capacity.

Strong balance sheet with a conservative net debt position

Financial strength allows Rio Tinto Group to fund large capital programs and weather commodity cycles. While net debt increased significantly year-over-year, the overall leverage remains manageable relative to its asset base and earnings power.

Key financial metrics as of mid-2025:

• Net debt as of H1 2025 was $14,597 million USD. This represented a substantial increase, nearly tripling from $5.08 billion year-over-year, pushing the debt-to-EBITDA ratio to approximately 1.27x.
• Underlying EBITDA for H1 2025 was $11.5 billion.
• Net earnings for H1 2025 were reported at $4.53 billion.
• The company maintained a dividend payout of 50% for the interim period, resulting in a $2.4 billion ordinary dividend.

The company plans to invest more than $13 billion in new mines, factories, and equipment over the three years from 2025-2027.

Human capital and technical expertise in complex global mining

The specialized knowledge required to operate and develop world-class assets like Oyu Tolgoi and manage the integrated Pilbara system is an intangible but vital resource.

The technical expertise is evident in project execution, such as the Oyu Tolgoi underground expansion, which uses block-caving mining techniques. Furthermore, the company's copper division achieved a 12 per cent return on capital employed, supported by strong cost control and higher volumes from Oyu Tolgoi and Escondida. The company is also focused on human capital development, launching the South Gobi Underground Mass Mining Institute in March 2025.

Finance: draft 13-week cash view by Friday.

Rio Tinto Group (RIO) - Canvas Business Model: Value Propositions

You're looking at the core value Rio Tinto Group delivers to its customers and shareholders as of late 2025, based on their stated strategic objectives and recent performance metrics. It's about supplying the building blocks for the modern world while focusing on financial discipline.

Reliable, high-volume supply of essential raw materials to global industry.

Rio Tinto Group is focused on being a top-tier supplier, evidenced by their production guidance and growth targets. They expect overall production to grow by 7% in 2025, underpinning a longer-term outlook of 3% compound annual production growth through to 2030. This supply is anchored by major assets like the ramping-up Simandou iron ore mine.

The expected 2025 production volumes for key materials include:

Commodity	2025 Production Guidance	Context/Growth Driver
Copper	860-875 kilotonnes (kt)	Upgraded from prior 780-850 kt guidance
Bauxite	To exceed 61 million tonnes (Mt)	Upgraded from previous 59-61 Mt target
Aluminium	Upper end of 3.25-3.45 million tonnes (Mt) range	Part of the streamlined Aluminium & Lithium division

Strategic focus on 'Energy Transition' metals: Copper and Lithium.

The company is actively shifting its portfolio to align with the global energy transition, with copper seeing a significant guidance upgrade for 2025. The 2025 copper production guidance is now 860-875 kt, with unit costs revised down to 80-100 cents per pound (c/lb). Looking out, Rio Tinto Group has a target of producing 1 million tonnes of copper annually by 2030, and they anticipate copper equivalent production could increase by 20% by 2030. For lithium, they project capacity to reach ~200 ktpa by 2028 from their in-flight projects like Arcadium and Rincon.

Low-carbon/Responsibly sourced metals for green supply chains (e.g., low-carbon aluminum).

Rio Tinto Group is working to lower the carbon intensity of its products. The greenhouse gas emissions intensity of their managed Atlantic Operations smelters is less than one-fifth of the industry average. They are also advancing specific projects to grow this low-carbon footprint. For instance, they are assessing a potential first phase primary aluminum smelter in India targeting 500,000 tonnes per annum, powered by renewable energy. Furthermore, they are expanding recycled aluminum output with 30,000 tonnes of new recycling capacity at their Arvida facility, expected operational by Q4 2025.

Industry-leading shareholder returns via consistent 40-60% payout policy.

Rio Tinto Group maintains a clear framework for returning capital to owners. The dividend policy targets a payout ratio between 40-60% of underlying earnings, on average through the cycle, a policy maintained for nine years. For the first half of 2025, the interim ordinary dividend declared was $2.4 billion, representing a 50% payout. Analysts project a prospective dividend yield for the next 12 months around 5.5%, and based on adjusted earnings, the payout ratio is reported at 64%.

Key financial discipline metrics supporting this include:

• Targeting an A grade credit rating.
• Planned generation of $5-10 billion from project partnerships/asset release.
• Capital expenditure guidance for 2025 is $11 billion.

Operational efficiency: delivering $650 million in annualised productivity benefits.

A key part of the current value proposition is simplifying the business to drive down costs. Rio Tinto Group is targeting $650 million in annualized productivity benefits, with early moves already realizing $370 million in cost savings, and an additional $280 million targeted by the end of Q1 2026. This is tied to a broader goal to lower unit costs by 4% between 2024 and 2030.

Rio Tinto Group (RIO) - Canvas Business Model: Customer Relationships

You're looking at how Rio Tinto Group (RIO) manages the crucial relationships that keep its massive operations running and its future projects funded. Honestly, for a company this size, customer relationships aren't just sales; they are about long-term supply security, social acceptance, and capital alignment.

Dedicated account management for large, long-term industrial contracts

For the big industrial buyers, especially in the transition metals space, the relationship is highly tailored. It's less about a transactional sale and more about securing future supply chains. This is evident in the focus on major project delivery and strategic resource agreements.

Here are some concrete examples of these deep customer/partner engagements as of late 2025:

• Secured two new agreements in Chile with Codelco and ENAMI to enrich the lithium pipeline.
• Accelerated the first shipment from the Simandou iron ore project to around November 2025.
• Engaging with several potential customers in the U.S. to support the domestic copper supply chain using the new Nuton® Technology.

The development of proprietary technology like Nuton® is a direct play to secure future customer relationships by offering a cleaner product; the copper produced is anticipated to have a mine-to-metal carbon footprint of 0.82-kilogram CO₂-e per kilogram copper, the lowest in the U.S.

Direct engagement with governments and local communities for social license to operate

Social license is non-negotiable; without community and government support, projects stall. Rio Tinto Group is formalizing these relationships with specific, measurable targets, though you'll notice some targets have been extended, which is common in large-scale operations.

The company has a set of Communities and Social Performance (CSP) targets, now extended to conclude in 2027. Key relationship milestones and metrics include:

Relationship Focus Area	Target/Metric	Status/Date
Cultural Heritage Co-management	All sites to co-manage cultural heritage with communities and knowledge holders	By 2027
Strategic Social Investment	70% of total community investment through strategic, outcomes-focused partnerships	By 2027
Local Supplier Spend	Year-on-year percentage increase in contestable spend sourced from local suppliers	Sourced 14.75% in 2024 (down from 16.80% in 2023)
Indigenous Partnership Formalization	Co-management agreement signed with Puutu Kunti Kurrama and Pinikura (PKKP)	May 2025

Also, government engagement is critical for project progression; for instance, the Brockman Syncline 1 & Hope Downs 2 iron ore projects received all necessary State and Federal Government approvals by June 2025. It's defintely a tightrope walk between development and local consent.

Investor relations focused on transparency and capital discipline

For investors, the relationship is built on a clear capital framework designed to deliver predictable returns, even when commodity prices are volatile. The focus is on financial discipline and returning capital, which is a direct message to the market.

Here's the quick math on their capital discipline framework announced in late 2025:

• Shareholder Returns Policy: Paying 40% to 60% of underlying earnings.
• Asset Base Cash Release Target: Opportunistic release of $5 billion to $10 billion.
• Mid-term Capital Expenditure (CapEx) Guidance (post-2027): Expected to decline to less than $10 billion.
• Credit Rating Focus: Maintaining a single A grade credit rating.
• Investment Hurdle: Projects must exceed WACC (estimated at 6-8%) by typically 300-500 basis points.

Financial performance underpins this: Underlying EBITDA for H1 2025 was $11.5 billion, with net earnings attributable to owners of $4.5 billion. Plus, they delivered $650 million in annualized productivity benefits in the first three months of the new strategy.

Collaborative partnerships with customers on decarbonisation pathways

Since Scope 3 emissions-largely from customers using their products, especially steel-are the largest part of their footprint, collaboration is key. Rio Tinto Group is actively working with customers and suppliers to lower these downstream emissions.

Scope 3 emissions from steelmaking were a massive 395.9 MtCO2e in 2024, representing 69% of the company's total emissions footprint. To tackle this, they are partnering across the value chain:

• Supplier Engagement: Actively partnering with 50 of its highest-emitting suppliers to improve energy efficiency.
• Steel Decarbonisation Spend: Committed $200 million to $350 million between 2025-2027 in steel decarbonization initiatives.
• Green Iron Pilot: Announced plans to invest more than A$35 million in a green iron demonstration plant (ZestyTM) in Kwinana in late 2025.
• Aluminium Partnership: Partnering with Hydro, expecting to invest approximately USD 45 million over five years to assess carbon capture for smelters.
• Operational Progress: H1 2025 Scope 1 & 2 emissions were 15.6 Mt CO2e, a 14% reduction versus the 2018 baseline, supporting the 2030 target of a 50% reduction.

In the Pilbara, they are working with BHP and Caterpillar to test battery-electric haul trucks, showing that industry-wide collaboration is necessary to move away from diesel. Finance: review the CapEx allocation for the $1 billion to $2 billion decarbonization capital estimate for 2025-2027.

Rio Tinto Group (RIO) - Canvas Business Model: Channels

You're looking at how Rio Tinto Group moves its massive output from mine to customer, which is all about scale and logistics in late 2025. The company's consolidated sales revenue for the full year 2024 was $53,658 million.

Direct sales and long-term supply agreements with global industrial customers

Rio Tinto Group relies heavily on securing volumes through agreements with major industrial users globally. The structure of these sales dictates pricing mechanisms and volume certainty. For instance, in the second quarter of 2025, 9% of sales were priced by reference to the prior quarter's average index lagged by one month.

The sales terms show a mix of delivery arrangements:

• 24% of second quarter sales were made on a free on board (FOB) basis.
• The remainder of sales included freight costs.
• For iron ore, realised pricing in 2024 was strong at 99% of the index.
• The company projects 7% production growth in 2025, much of which feeds these agreements.

Global shipping and logistics network for bulk commodity transport

Moving millions of tonnes of material requires a dedicated logistics backbone. The company's Q2 2025 portside sales in China reached 7.8 million tonnes, with 96% of that volume being either screened or blended in Chinese ports, showing direct control over the final leg of distribution in a key market.

Shipment performance in Q3 2025 showed Pilbara iron ore shipments at 84.3 million tonnes.

The 2025 production and shipment guidance highlights the scale managed through this channel:

Commodity/Operation	2025 Guidance (Volume)	Notes
Pilbara Iron Ore Shipments	323 million to 338 million tonnes	Steady volume expected in the year ahead.
Simandou Iron Ore Shipments	0.5 to 1.0 Mt expected in 2025	First shipment targeted around November 2025.
Copper Production	860 kt to 875 kt	Upgraded guidance driven by Oyu Tolgoi ramp-up.
Bauxite Production	Exceed previous 59-61 Mt range	Upwards revision to guidance.
Aluminium Production	Upper end of 3.25 Mt to 3.45 Mt range
IOC Production	9.0 Mt to 9.5 Mt	Downgraded from previous 9.7 Mt to 11.4 Mt.

Commodity exchanges (e.g., LME) for pricing and sales of metals like Copper and Aluminium

While much of the bulk commodity sales are contract-based, the pricing for metals like Copper is benchmarked against global exchanges. The market for these metals directly influences realized pricing.

As of December 4, 2025, LME three-month copper futures were quoted at $11,426 a metric ton.

For other sales not indexed or on long-term contracts, the remainder of Rio Tinto Group's Q2 2025 sales were priced on the current quarter average, month average, or the spot market.

Regional sales offices managing local market distribution

Rio Tinto Group uses regional offices to manage localized distribution and market access, particularly in Asia. The focus on the Chinese iron ore market is evident in their portside operations there.

In Q2 2025, Rio Tinto Group's portside sales in China totaled 7.8 million tonnes.

The company's strategic simplification into three core business units-Iron Ore; Copper; and Aluminium & Lithium-as of late 2025 suggests a sharpening of focus for these regional sales teams to align with the most strategically important commodities.

Finance: draft 13-week cash view by Friday.

Rio Tinto Group (RIO) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Rio Tinto Group's output as of late 2025, which is definitely a mix of traditional heavy industry and the new energy transition players.

Global Steel Producers: Primary buyers of iron ore (e.g., China).

This segment remains the bedrock, though the reliance is actively being managed down. For the year ended December 31, 2024, Iron Ore contributed $31.33 billion to consolidated sales revenue, representing 66.3% of the total $47.29 billion revenue reported in one filing. Geographically, Greater China accounted for $30.81 billion, or 61.9% of total revenue in 2024.

Production-wise, Pilbara operations shipped 328.0 million tonnes (Mt) in 2024. Looking ahead, Rio Tinto Group has set its 2026 total iron ore sales guidance at 343 Mt - 366 Mt on a 100% basis. This includes an expected 323-338 Mt from the Pilbara and an initial 5-10 Mt from the Simandou project, which began its first ore loading in October 2025.

Automotive/EV Manufacturers: Key consumers of Lithium and Copper.

This is where Rio Tinto Group is strategically pivoting for long-term growth, targeting a copper production of 1 million tonnes annually by 2030. The company upgraded its 2025 consolidated copper production guidance to 860 kt to 875 kt. This is up from the 2024 consolidated mined copper production of 697 kt. The Oyu Tolgoi mine is a key driver, with output expected to rise more than 50% in 2025.

For lithium, the acquisition of Arcadium Lithium closed in March 2025 for $6.7 billion. The 2026 guidance for Lithium LCE (Lithium Carbonate Equivalent) is set at 61-64 kt.

Here's a quick look at the performance shift:

• Copper division underlying EBITDA surged 69% to $3.10 billion in H1 2025 compared to H1 2024.
• The 2025 copper unit cost guidance was slashed to 80-100 c/lb from 110-130 c/lb.

Construction and Power Infrastructure: Major users of Copper and Aluminium.

Aluminium demand ties directly into infrastructure build-out. For 2024, Aluminium contributed $3.7 billion in underlying EBITDA. The 2026 production guidance for Aluminium is set at the upper end of the 3.25 Mt to 3.45 Mt range.

The customer base for these materials is geographically diverse, though China remains dominant. The breakdown of 2024 revenue by region shows:

Geographic Region	2024 Revenue (US$ Billions)	Percentage of Total Revenue
Greater China	$30.81B	61.9%
United States	$9.01B	18.1%
Japan	$3.47B	7.0%

The United States is a significant customer, accounting for $9.01 billion in 2024 revenue.

Industrial Manufacturers: Buyers of bauxite, alumina, and other industrial minerals.

This segment covers the inputs for various industrial processes. In 2024, the Aluminium segment (which includes bauxite and alumina) generated underlying EBITDA of $3.7 billion. For the year ended December 31, 2024, revenue from Aluminium, Alumina, and Bauxite was $12.99 billion, or 27.5% of total revenue.

Production metrics for 2025 show an upgraded Bauxite production guidance to exceed the previous 59-61 Mt range. The 2026 guidance for Bauxite is 58-61 Mt and Alumina is 7.6 Mt to 8.0 Mt. Industrial Minerals specifically contributed $2.68 billion in revenue, or 5.7% of the total in 2024.

Financial Markets: Shareholders seeking strong, consistent returns.

For investors, the focus is on capital discipline and returns. Rio Tinto Group maintained a policy of returning 40% to 60% of underlying earnings to shareholders over the cycle. For the full year 2024, the ordinary dividend was $6.5 billion, representing a 60% payout.

The first half of 2025 saw an interim ordinary dividend of $2.4 billion, which was a 50% payout. This was based on H1 2025 underlying earnings of $4.8 billion. The company projects EBITDA could rise by as much as 40-50% by 2030 based on long-run consensus prices. Finance: draft 13-week cash view by Friday.

Rio Tinto Group (RIO) - Canvas Business Model: Cost Structure

You're looking at the cost side of Rio Tinto Group's operations as of late 2025. This structure is heavily weighted toward long-term asset ownership and large-scale project execution, which means significant upfront and ongoing fixed commitments.

High fixed costs from owning and operating integrated infrastructure (rail, ports).

The nature of tier-one mining means Rio Tinto Group must maintain extensive, dedicated infrastructure, like the rail networks and port facilities in the Pilbara region, to move massive volumes of product. These assets represent a substantial, relatively fixed cost base, regardless of short-term commodity price fluctuations.

Significant capital expenditure: guidance of approximately $11 billion for 2025.

Capital allocation remains a major cost driver as Rio Tinto Group continues to fund its growth pipeline, particularly in copper and lithium. The guidance for the full year 2025 is firm on this front, though future spending is being tightened.

The capital expenditure outlook shows a clear focus on major projects:

• Guidance for Group capital expenditure in 2025 is approximately $11 billion.
• Guidance for Group capital expenditure in 2026 is also about $11 billion.
• Mid-term capital expenditure guidance (2028+) is set to revert to less than $10 billion annually as major projects complete.
• Growth capital directed in H1 2025 was $1.6 billion.

Operating costs: labor, energy, and maintenance for global mining operations.

Labor, energy for processing and transport, and routine maintenance form the bulk of day-to-day operating expenses. Rio Tinto Group is actively targeting efficiency gains to manage these costs, especially as energy prices fluctuate.

Here's a look at the recent operational cost data and targets:

Cost Metric	Amount / Guidance	Period / Basis
Operating Expenses	$19.78B	Fiscal semester ending June 2025 (H1 2025)
Operational Expenditure (Decarbonization related)	$181 million	H1 2025
Pilbara Iron Ore Unit Cash Costs	$24.30 per ton	H1 2025
Copper Unit Cost Guidance	80 c/lb to 100 c/lb	2025
Targeted Unit Cost Reduction	4% reduction	From 2024 to 2030

The company reported achieving $650 million in annualized productivity gains in the first quarter following its restructuring, with $370 million already realized.

Exploration and evaluation costs: $334 million pre-tax in H1 2025.

Spending on finding new resources is being prioritized toward copper and lithium. The reported expense for the first half of 2025 shows a shift due to capitalization changes at the Rincon project.

• Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in H1 2025 was $334 million.
• This compares to $487 million in H1 2024.
• Full year 2025 exploration and evaluation expense is expected to be slightly below the guided $1 billion.

Cost of compliance with environmental and regulatory standards.

Compliance costs are material, spanning both ongoing operational environmental spend and significant capital allocated for decarbonization targets, plus costs related to trade policy.

• Tariff-related costs faced by Rio Tinto Group in H1 2025 amounted to $321 million, largely due to US import duties on Canadian aluminium.
• Scope 1 & 2 CO2 emissions in H1 2025 were 15.6 Mt CO2e.
• Capital estimate for decarbonisation to 2030 has been revised to $1 billion to $2 billion.

Finance: draft 13-week cash view by Friday.

Rio Tinto Group (RIO) - Canvas Business Model: Revenue Streams

You're looking at the core ways Rio Tinto Group brings in money, which is heavily weighted toward bulk commodities but clearly shifting, so let's map out the numbers from the first half of 2025.

Iron Ore Sales remain the dominant revenue driver, but the realized price was $\mathbf{13\%}$ lower in H1 2025 compared to the prior period, which pressured earnings in that segment, with underlying EBITDA for Iron Ore dropping $\mathbf{24\%}$. Still, the operational recovery in the Pilbara, despite four cyclones in Q1, was strong. For the full year 2025, Pilbara iron ore shipment guidance remains in the range of $\mathbf{323-338 \text{ million mt}}$ on a 100 per cent basis, expected toward the lower end of that range.

The revenue stability seen in H1 2025, with consolidated sales revenue at $\mathbf{\$26.873 \text{ billion}}$, is a direct result of the increasing contribution from other areas, showing the diversification strategy is working.

Here's a snapshot of how the key commodity segments performed in H1 2025 relative to their underlying EBITDA contribution and 2025 outlook:

Commodity Segment	H1 2025 Underlying EBITDA Change (YoY)	2025 Production Guidance Status/Range
Iron Ore	Down $\mathbf{24\%}$	Shipments towards lower end of $\mathbf{323-338 \text{ Mt}}$
Copper	Up $\mathbf{69\%}$	Upgraded to $\mathbf{860-875 \text{ thousand tonnes}}$
Aluminium	Up $\mathbf{50\%}$	Expected at upper end of $\mathbf{3.25-3.45 \text{ million tonnes}}$

Copper Sales are a growing part of the revenue mix. The company upgraded its 2025 copper production guidance to a range of $\mathbf{860,000 \text{ to } 875,000 \text{ tonnes}}$. This segment saw a $\mathbf{69\%}$ rise in underlying EBITDA for the half. Furthermore, the unit cost guidance for copper was revised down to $\mathbf{80-100 \text{ c/lb}}$ for 2025. Copper equivalent production overall rose $\mathbf{6\%}$ year-on-year.

Aluminium Sales also contributed strongly to the resilient financials, with underlying EBITDA for the segment increasing by $\mathbf{50\%}$ in H1 2025. For the full year 2025, aluminium production is expected to hit the upper end of the $\mathbf{3.25-3.45 \text{ million tonnes}}$ guidance range.

Lithium Sales represent a new, strategic revenue stream following the $\mathbf{\$6.7 \text{ billion}}$ acquisition of Arcadium Lithium in March 2025. The company is ramping up its pipeline, with projections for lithium capacity to reach approximately $\mathbf{200 \text{ ktpa}}$ by 2028.

The overall financial picture from the first half of 2025 included these key figures:

• Consolidated sales revenue was $\mathbf{\$26.873 \text{ billion}}$.
• Underlying EBITDA was $\mathbf{\$11.547 \text{ billion}}$.
• Net cash generated from operating activities was $\mathbf{\$6.924 \text{ billion}}$.
• The interim ordinary dividend declared was $\mathbf{\$2.4 \text{ billion}}$.

Finance: draft 13-week cash view by Friday.