RIO.AX - Rio Tinto Group

ASX - ASX Delayed Price. Currency in AUD
99.10
+0.39 (+0.40%)
At close: 4:10PM AEDT
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Previous Close98.71
Open98.33
Bid98.96 x 0
Ask99.10 x 0
Day's Range98.33 - 99.10
52 Week Range73.27 - 107.99
Volume1092560
Avg. Volume1,447,483
Market Cap161B
Beta (3Y Monthly)0.82
PE Ratio (TTM)12.43
EPS (TTM)7.97
Earnings DateFeb 26, 2020
Forward Dividend & Yield4.38 (4.44%)
Ex-Dividend Date2019-08-08
1y Target Est60.42
  • Business Wire

    Rio Tinto Notes Mongolian Parliament Resolution on Oyu Tolgoi

    Rio Tinto notes the unanimous approval by the Mongolian Parliament of a Resolution that instructs the government to look for ways to improve the implementation of the Investment Agreement of 2009, the Amended & Restated Shareholder Agreement of 2011 and to improve the Underground Mine Development & Financing Plan of 2015.

  • First Quantum Says No Takeover Bid from Rio Tinto or Jiangxi
    Bloomberg

    First Quantum Says No Takeover Bid from Rio Tinto or Jiangxi

    (Bloomberg) -- First Quantum Minerals Ltd. says it hasn’t received any takeover approaches -- including from Rio Tinto Group -- since it last refuted “speculation” it had been in talks about a bid in September.The company’s president said that while executives were caught off guard by this week’s share purchase by Jiangxi Copper Co., there’s no chance that will lead to a takeover bid either.The Vancouver-based miner has been in talks with Jiangxi for roughly a year about selling a minority stake in its Zambian operations to the Chinese company, but there’s no deal on the table yet, Clive Newall said Tuesday in a phone interview.“It came as a bit of a surprise when they appeared on the shareholder register, but their intentions still seem to be genuine and we’re continuing our discussions,” Newall said of the report this week that Jiangxi paid $1.1 billion to acquire an 18% stake in First Quantum.First Quantum’s shares extended losses to an intraday low of C$13.03, down 3.6%, following the comments. The stock fell 2.7% Tuesday to close at C$13.15 in Toronto.Jiangxi initially approached the Canada-based miner about acquiring a minority stake in its Zambian assets, Newall said. As part of those talks, the company required Jiangxi to sign a non-disclosure agreement that restricts it from buying more than 20% of First Quantum’s shares, he said.‘Couple of Years’The share-buying restriction won’t expire for “at least a couple of years” and was negotiated to eliminate any possibility of a takeover play by the Chinese miner, he said. “We wanted to make sure they couldn’t do that by restricting the number of shares to 20%.”First Quantum has been the subject of takeover speculation, including the possibility it could be a target for Rio. Newall refused to discuss Rio directly but said the talk is just “scuttlebutt” and the company hasn’t received any takeover interest, from any company, since September when it previously denied takeover interest.On Monday, a Rio spokesman had no comment on the matter.‘No Great Desire’In September, First Quantum said “there has been speculation of a takeover bid.” It added that it “has not engaged in any discussions regarding a take-over bid or other change of control transaction and has no knowledge of potential take-over bids, change of control transactions or proposals.”If someone were to make a takeover play for the company “we would resist,” Newall said in the interview Tuesday. “There’s no great desire to be taken over, but under the circumstances where you haven’t got much choice then it’s all about price,” he said. Nor is First Quantum interested in making any acquisitions as its focus for the next two to three years will be reducing debt by at least $2 billion.The company also won’t be selling off assets, or majority stakes in assets, Newall said. “Our only intentions are to sell minority stakes for a variety of reasons: partly deleveraging and, in Zambia, to share some of the political risks with a partner,” he said.Talks with Jiangxi over a minority purchase in Zambia are set to resume in the New Year, he said.First Quantum controls the Kansanshi and Sentinel copper mines in Zambia, where it has been in protracted talks with the government over issues from royalty increases to the planned introduction of a sales tax. Its major focus for 2020 will be ramping up production at the giant Cobre Panama copper mine in the Central American country, Newall said.To contact the reporter on this story: Danielle Bochove in Toronto at dbochove1@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Steven Frank, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Gold’s Deal Blitz Could Draw In the Rest of the Mining Sector
    Bloomberg

    Gold’s Deal Blitz Could Draw In the Rest of the Mining Sector

    (Bloomberg) -- A torrent of deal-making among gold producers that’s pushed M&A in the sector to an eight-year high is seen spilling over into the wider mining industry -- if there’s a rally in global growth.Pending and completed gold acquisitions have reached about $33 billion so far in 2019, the highest since 2011, according to data complied by Bloomberg. That’s as deals among all mining companies have declined about 29% from last year to $60 billion, the data show.A revival in the economic outlook, with higher interest rates and inflation, would prompt other metals producers to rethink their current strategy of cutting debt and lifting shareholder returns -- and focus again on pursuing growth, according to Christopher LaFemina, a New York-based analyst at Jefferies LLC.“Until now, the market has rewarded companies for austerity” amid a chase for yield, LaFemina said in a phone interview. “We will see a significant acceleration of M&A activity when global growth recovers.”In recent times, the biggest miners, including Rio Tinto Group and BHP Group, have made only some small investments in undeveloped projects and authorized new spending on expansions at existing operations.Larger-scale M&A could be an option for Rio next year, UBS Group AG analysts, including Glyn Lawcock, said in a report this month. “Will 2020 see the shackles come off? Growth in the portfolio is limited,” they said.Rio has a “watching brief for attractive M&A opportunities,” though intends to remain “absolutely disciplined,” Chief Executive Officer Jean-Sebastien Jacques told investors at an October seminar. The company has said its ventures team is evaluating opportunities in battery materials, including in nickel. There would be “plenty of logic” for Rio in adding copper producer First Quantum Minerals Ltd., according to Barclays Plc.BHP is also seeking to add oil, copper and nickel, and could consider deals that offer an early entry into high-quality resource bases, particularly before the value of a project is fully understood, Chief Financial Officer Peter Beaven said in May.Still, large companies and their investors continue to be chastened by past failed deals, according to Paul Mitchell, EY’s global mining and metals leader, and they remain cautious after a multi-year effort to repair balance sheets in the wake of the 2015 price collapse.Sectors such as base metals have fewer opportunities for consolidation than precious metals, and a price downturn hasn’t yet forced companies into distress, according to David Harquail, chief executive officer at Franco-Nevada Corp., a mine streaming and royalty company.Since January’s $10 billion gold mega-merger between then Newmont Mining Corp. and Goldcorp Inc., companies in the sector including Newcrest Mining Ltd. have added individual mines, while Kirkland Lake Gold Ltd. and Zijin Mining Group Co. acquired smaller rivals. Barrick Gold Corp. and a partner on Tuesday agreed to a $430 million deal to sell a 90% stake in a project in Senegal to with Teranga Gold Corp.Gold’s rally means there’s been “a slightly improved environment to be able to finally do transactions,” Harquail said. There’s a prospect of further activity among gold producers into next year, with investors ready to back proposals that reduce overheads and combine assets, he said.“I want to see smart consolidation, not the same thing that we’ve seen in the past” among gold producers, said Joe Foster, a New York-based portfolio manager at Van Eck. “There’s value to be created by consolidating some of these single-asset companies.”To contact the reporters on this story: David Stringer in Melbourne at dstringer3@bloomberg.net;Danielle Bochove in Toronto at dbochove1@bloomberg.netTo contact the editors responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net, Keith Gosman, Jake Lloyd-SmithFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Is Rio Tinto Group (RIO) A Good Stock To Buy?
    Insider Monkey

    Is Rio Tinto Group (RIO) A Good Stock To Buy?

    How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]

  • Financial Times

    Bougainville island faces copper ‘curse’ amid independence vote

    An independence vote that could lead to the creation of the world’s newest nation wrapped up on Saturday in Bougainville, an island in Papua New Guinea that witnessed a brutal civil war linked to one of the world’s largest copper deposits. The referendum has raised hopes for a better future among Bougainville’s “lost generation” of youth, who missed out on education during the decade-long war that cost 20,000 lives — about a tenth of the population — before a peace agreement in 2001. Fortescue, the world’s fourth-biggest iron ore producer, controlled by Australian billionaire Andrew Forrest, is among half a dozen miners building relationships with landowners and politicians who could hold the key to securing mining leases.

  • Apple Buys First Carbon-Free Aluminum from Rio-Alcoa Venture
    Bloomberg

    Apple Buys First Carbon-Free Aluminum from Rio-Alcoa Venture

    (Bloomberg) -- Apple Inc. is taking delivery this month of the first batch of carbon-free aluminum produced by a Montreal-based venture, helping move the iPhone maker closer to its greenhouse-gas reduction goal.Elysis, a joint venture between Rio Tinto Group and Alcoa Corp. backed by Apple, uses new technology that emits pure oxygen when producing aluminum. Apple has said in an environment report that 80% of its emissions from an iPhone 8 came during the production phase. The metal is also used in iPads, Macs and Apple watches.“For more than 130 years, aluminum — a material common to so many products consumers use daily — has been produced the same way,” Lisa Jackson, vice president of environment, policy, and social initiatives at Apple, said in an emailed statement.Rio’s commercial network is handling the first delivery to Apple, a Rio spokesman said in an email.“This is another important step towards zero carbon aluminum and a more sustainable future,” said Alf Barrios, Rio Tinto Aluminium chief executive officer.The metal being shipped to Apple was produced at the Alcoa Technical Center in Pittsburgh.“This first sale is tangible evidence of our revolutionary work to transform and disrupt the conventional smelting process by making a process that is both more efficient and more sustainable,” Benjamin Kahrs, an Alcoa executive vice president and Chief Innovation Officer, said in a statement.\--With assistance from Mark Gurman and Steven Frank.To contact the reporter on this story: Joe Deaux in New York at jdeaux@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Apple buys first-ever carbon-free aluminum from Alcoa-Rio Tinto venture
    Reuters

    Apple buys first-ever carbon-free aluminum from Alcoa-Rio Tinto venture

    The metal is being made by Elysis, a Montreal-based joint venture of Alcoa Corp and Rio Tinto announced last year with $144 million in funding from the two companies, Apple and the governments of Canada and Quebec. The aluminum will be shipped this month from an Alcoa research facility in Pittsburgh and used in Apple products, although the technology company did not say which ones.

  • Reuters

    Alcoa's Australian smelter needs cheaper power to stay open past 2021 - partner

    Alcoa Corp will need cheaper, more reliable power to keep its Portland smelter in Australia open beyond 2021 when its current supply deal ends, the aluminium major's partner said on Thursday. Alumina Ltd, Alcoa's partner in the Alcoa World Alumina and Chemical joint venture, would have a veto over any decision to shut the plant, its Chief Executive Mike Ferraro said, adding it was too early to predict the smelter's future. "We would ideally like to find a solution," Ferraro told reporters on the sidelines of a mining event in Melbourne.

  • Buying Iron Ore Is Getting More Like Shopping on Amazon
    Bloomberg

    Buying Iron Ore Is Getting More Like Shopping on Amazon

    (Bloomberg) -- The world’s biggest iron ore miners are looking for novel ways of satisfying their customers and protecting market share in the $150 billion global industry.From selling through a mobile app to portside sales, the likes of BHP Group, Rio Tinto Group and Vale SA are looking for an edge with buyers of the steelmaking raw material in China, the top customer. The need to retain their business is becoming ever more critical amid forecasts that the market is around its peak.“For miners, Chinese import volumes are basically not going to grow the way they used to,” said Tomas Gutierrez, analyst at Kallanish Commodities Ltd. “Any increase in value for iron ore will come from either adding service to mills or from cutting out the traders.”Rio and rivals -- who have spent more than a decade pumping billions into expansions to keep pace with China’s fast-rising appetite for iron ore -- are now preparing for an era of slower growth and an eventual high point in the nation’s steel output.They are introducing a range of initiatives to retain existing sales and add new customers -- from Rio’s development of a mobile app, to portside sales, and selling directly from China’s ports in yuan instead of shipping cargoes from Australia or Brazil that are sold in dollars.New Strategies“Our China portside customers will be able to order via a mobile app,” Rio’s Chief Commercial Officer Simon Trott told an investor seminar in October. “You can order a few tons of ore, in the same way you’d place an order on Amazon.”Rio has started portside sales, while BHP also has been testing “spot sales during transport to China as well as sales in smaller quantities with shorter lead times from bonded stockpiles in China,” Rod Dukino, vice president for sales and marketing iron ore, said at a conference in September.Selling at ports allows miners to blend different types of ore, and means “more money in the miners’ pockets,” according to UBS Group AG managing director and global head of mining, Glyn Lawcock. “We have seen over the last few years increasing sales to traders and now the miners are clawing back some of that lost margin essentially.”In particular, the use of the Chinese yuan is a breakthrough for an industry dominated by the dollar. For mills, this eliminates currency risks. For miners, this broadens their customer base and again cuts out the traders, said Lawcock.In June, Fortescue Metals Group Ltd. set up a sales office in China, offering direct supply of smaller volumes in the yuan. “This represents a new sales channel for Fortescue to complement our existing seaborne trade,” Chief Executive Elizabeth Gaines said in an email.BHP sees “huge potential in the digitization of our post-trade processes across our portfolio, both for customers and suppliers alike, through increased visibility and traceability of goods” Dukino said in an email.Large and medium-sized steel mills in China generally support the miners’ new sales strategies, according to a survey by Bloomberg of five executives at mills and industry groups.“As producers get closer to a diverse range of end customers, they understand their needs more, to facilitate an evolution in interaction and even digitalization,” according to Andrew Glass, founder of Avatar Commodities Pte and formerly head of iron ore financial trading at Anglo American Plc.Still, launching new sales channels also has its risks, and companies need to be mitigating them at the same time as extending their supply chain, Glass warned.Tight RaceThe initiatives follow similar strategies adopted by Vale since 2015. The Brazilian miner, which is still grappling with the effects of a fatal dam disaster earlier this year, blends and sells from 16 ports in China. It also has a center in Malaysia, where ore can be stored and blended.In the first for a foreign miner, Vale signed a deal with a Chinese steel mill based on prices of iron ore futures on the Dalian Commodity Exchange.While Vale has had a headstart in sales efforts, Rio is catching up, according to Kallanish’s Gutierrez. “Now that the port stock market is more developed, and the sales mechanisms are developed, then all the miners will need to compete in this area.”“The enhancement of having things like port stocks and port trade allows flexibility, and allows smaller parcel deliveries to customers,” Rio’s iron ore Chief Executive Officer Chris Salisbury said in a interview last week.\--With assistance from David Stringer, Winnie Zhu and Alfred Cang.To contact the reporter on this story: Krystal Chia in Singapore at kchia48@bloomberg.netTo contact the editor responsible for this story: Phoebe Sedgman at psedgman2@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Investopedia

    10 Bargain Blue Chips with Improving Growth Prospects

    Even as the market soars to new record highs, these stocks still have significant upside potential, per research by Bernstein.

  • Violent Protests Shut Down Key Rio Tinto Mine in South Africa
    Bloomberg

    Violent Protests Shut Down Key Rio Tinto Mine in South Africa

    (Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterViolent protests, often characterized by deadly shootings and barricades of burning tires, are making it harder for the world’s biggest mining companies to operate in South Africa.Rio Tinto Group shuttered its Richards Bay Minerals unit on Wednesday and paused a $463 million expansion project amid escalating violence in surrounding communities that led to an employee being shot and injured. The stoppage will further sap investor sentiment in a country where business confidence is near the lowest level in two decades.The freezing of the Zulti South project comes as President Cyril Ramaphosa battles to stimulate growth and retain the nation’s last investment-grade credit rating. South Africa’s economy contracted for a second quarter this year in the three months through September as farming, mining and factory output slumped.The decision to halt operations was preceded by weeks of community protests in the area around the mine, causing “on-and-off disruptions,” said RBM Managing Director Werner Duvenhage. The demonstrations aren’t related to the company, but endanger employees’ lives and require government intervention, he said.Losses will be “significant,” according to Duvenhage, who said he doesn’t know when RBM will resume operations.Community disruptions around mines are leading to huge losses for producers, Anglo American Platinum Ltd. Chief Executive Officer Chris Griffith said in October. Many protests relate to the provision of municipal services and housing, while some communities also complain they get few benefits from mines, even as their lives are disrupted by relocations and pollution.Crime WaveSouth Africa has also been plagued by xenophobic attacks and violence against women. While Ramaphosa has made combating crime a top priority since taking office, the number of murders climbed to the highest level in at least a decade in the 12 months through March.Smelters at the site in the KwaZulu-Natal province are operating at a reduced level after an escalation of criminal activity directed at staff, London-based Rio said Wednesday in a statement.Rio shares were little changed in London trading.Output for 2019 is expected to be at the low end of a guidance range of 1.2 million to 1.4 million tons and Rio is contacting customers to minimize disruptions. RBM employs about 5,000 staff and contractors, and exports titanium dioxide slag, used to create ingredients for products including paint, plastics, sunscreen and toothpaste.“We have taken decisive action to stop operations to reduce the risk of serious harm to our team members,” Bold Baatar, Rio’s CEO for energy & minerals, said in the statement.To contact the reporters on this story: Felix Njini in Johannesburg at fnjini@bloomberg.net;David Stringer in Melbourne at dstringer3@bloomberg.netTo contact the editors responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net, Dylan Griffiths, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times

    Rio Tinto halts work at South African mine over escalating violence

    Rio Tinto has ceased mining at its flagship project in South Africa due to escalating violence in a sign of the mounting security risks facing investors in the country. The decision to stop mining operations at the Richards Bay Minerals business in South Africa’s KwaZulu-Natal came after an employee was shot and seriously injured in one of a series of incidents in the past few days, the company said on Wednesday. President Cyril Ramaphosa, a former businessman and mining trade union leader, was elected in 2018 promising to revive the economy, attract investment and create jobs.

  • Reuters

    U.S. copper frenzy grows as Rio Tinto plans $1.5 bln Utah mine expansion

    Rio Tinto Plc said on Tuesday it would spend $1.5 billion to expand its Kennecott copper mine in Utah, part of a growing trend by miners to invest in strategic mineral projects across the United States. The move more than doubles the mining industry's recent investment in U.S. copper projects, as Tesla Inc and other automakers demand more of the red metal for electric vehicle motors and other components. The expansion project, which Rio said will generate "attractive returns" without elaborating, is set to get underway next year.

  • Canada's First Quantum may team-up with Rio Tinto to develop Peru copper mine
    Reuters

    Canada's First Quantum may team-up with Rio Tinto to develop Peru copper mine

    Canadian miner First Quantum Minerals Ltd is looking for strategic partners to develop new copper projects and a joint venture with Rio Tinto in Peru could be on the cards, First Quantum's chief executive officer said on Wednesday. "That is what we are going to explore and it just depends on what kind of partner we get," First Quantum CEO Philip Pascall said on the sidelines of a conference in London, referring to the company's plans to find strategic partners.

  • Reuters

    REFILE-Canada's First Quantum may team-up with Rio Tinto to develop Peru copper mine

    Canadian miner First Quantum Minerals Ltd is looking for strategic partners to develop new copper projects and a joint venture with Rio Tinto in Peru could be on the cards, First Quantum's chief executive officer said on Wednesday. "That is what we are going to explore and it just depends on what kind of partner we get," First Quantum CEO Philip Pascall said on the sidelines of a conference in London, referring to the company's plans to find strategic partners.

  • Rio Tinto Declares Force Majeure on Canadian Aluminum Sales
    Bloomberg

    Rio Tinto Declares Force Majeure on Canadian Aluminum Sales

    (Bloomberg) -- Rio Tinto Group declared force majeure on its aluminum shipments from its Canadian operations as a result of backlogs created by a week-long rail strike.“The current situation constitutes an event of force majeure under the terms of the sales arrangements we have with you for aluminum sourced at our Canadian operations,” Rio Tinto said in a letter to customers seen by Bloomberg News. “Our ability to deliver under sales arrangements in accordance with volumes and schedules agreed to prior to the rail strike may be affected.”The week-long rail strike that began Nov. 19 at Canadian National Railway Co. halted shipments of metals, oil, grains and potash. Operations are expected to return to normal Wednesday after the union reached a tentative deal with the company.“Rio Tinto declared force majeure on contracts prior to Canadian National Railway confirming the strike was ending,” the company said in an email to Bloomberg News Tuesday. “We are working closely with customers to minimize any impacts as services resume.”The force majeure notice confirms the warning last week by supply-chain management and consulting company Mercury Resources that aluminum deliveries from Quebec into the U.S. will likely be delayed as the strike results in backlogs.Last week, the Union Pacific Corp., the largest freight rail provider in the U.S. West region, said it stopped accepting shipments into or from CN Railway’s Canada locations until CN operations return to normal.To contact the reporter on this story: Joe Deaux in New York at jdeaux@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Steven FrankFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Rio Spending $4 Billion on Iron Ore Pipeline Amid China Demand
    Bloomberg

    Rio Spending $4 Billion on Iron Ore Pipeline Amid China Demand

    (Bloomberg) -- Rio Tinto Group lifted its spending on new iron ore projects in Australia to more than $4 billion with the approval of a replacement mine at a key hub, providing a further sign of the industry’s confidence in demand led by China.London-based Rio will invest $749 million to bring the Western Turner Syncline Phase 2 project into production from 2021, according to a statement Wednesday. It will help extend the life of operations around the Tom Price mine, which began exporting in 1966.While the new project is aimed only at replacing output that’ll be lost from aging pits, Rio will have options to boost volumes from its $2.6 billion Koodaideri development, Chris Salisbury, iron ore chief executive officer, said in a phone interview. The Western Turner project was accounted for under capital expenditure guidance outlined last month, he said.Australia’s top miners continue to see potential to leverage low production costs and a dominant position in the seaborne trade to generate strong profits from iron ore, even as they forecast China’s steel output to reach a peak.Demand for ore is being supported by infrastructure projects in China launched earlier in 2019 and by ongoing property development, Salisbury said. There’s also been a more limited impact from the nation’s traditional winter output curbs on steel mills intended to limit pollution, he said.“We haven’t seen significant effects of those so far in the season,” Salisbury said. “We are pleased with the level of demand at the moment.”Rival BHP Group is spending about $3 billion on its South Flank mine and Fortescue Metals Group Ltd. is investing more than $3 billion in two developments, including the Iron Bridge project that’ll add output of higher-quality materials. Rio last year approved the Koodaideri project and also $820 million of spending for its share of work to sustain output from the Robe River joint venture.The latest investment by Rio highlights “the ongoing commitment toward capital required to maintain existing” volumes and product quality in Australia’s Pilbara region, RBC Capital Markets analyst Paul Hissey said in a note. Potential for an iron ore surplus from 2020 and the prospect of continued slowing in China’s economy mean RBC was cautious about the market over the medium and long term, he said.Rio forecasts its iron ore shipments to rise as much as 5% in 2020 and expects to have capacity to hit a long-standing target for annual cargoes of 360 million tons by 2022. Iron ore accounts for about 43% of its revenue.“Our iron ore business does continue to deliver industry leading margins,” Salisbury said. The investments are “a commitment to the importance of iron ore to the overall Rio portfolio,” he said.Rio’s investment in the Western Turner project will add a new crusher and a 13-kilometer (8-mile) long conveyor belt, trimming the need for road haulage and helping cut the mining hub’s greenhouse gas emissions, the producer said. The plan will also protect the future of the company’s flagship Pilbara Blend iron ore product. The investment means Rio’s approved spending on new iron ore projects is more than A$6 billion ($4 billion), according to Salisbury.To contact the reporter on this story: David Stringer in Melbourne at dstringer3@bloomberg.netTo contact the editors responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net, Keith Gosman, Jason RogersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Here's Why I Think Rio Tinto Group (LON:RIO) Is An Interesting Stock
    Simply Wall St.

    Here's Why I Think Rio Tinto Group (LON:RIO) Is An Interesting Stock

    Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...

  • Business Wire

    Rio Tinto and EdTech Sector to Invest in Developing the Skills of Young Australians for the Future

    Rio Tinto will work with leaders in Australia’s education and innovation sectors in a new, disruptive approach designed to tackle a looming skills gap in the nation’s future workforce. The company will invest A$10 million in a four-year national programme, targeted at school-age learners, that aims to fast-track the development of skills needed for the digital future, including critical thinking, problem-solving, automation, systems design, and data analytics. Launched today at the Rio Tinto Centre for Mine Automation at the University of Sydney, and developed in partnership with leading startup accelerator BlueChilli and Amazon Web Services (AWS), the programme will crowd-source and fund ideas from start-ups and schools.

  • Reuters

    Rio Tinto faces having to renegotiate terms of Mongolian copper project

    Rio Tinto faces renegotiating the terms of an agreement underpinning its Mongolian copper mine project, after lawmakers on Thursday approved plans to revise the deal to make it more beneficial for Mongolia. The Oyu Tolgoi mine, Mongolia's biggest foreign investment project, has already been subject to delays and ballooning costs, leaving Mongolian lawmakers impatient for income, while Rio Tinto says it has invested billions.

  • Rio Tinto’s Giant Mongolia Project Dealt Another Blow
    Bloomberg

    Rio Tinto’s Giant Mongolia Project Dealt Another Blow

    (Bloomberg) -- Rio Tinto Group has another headache to deal with in Mongolia, as the government looks set to lose a legal challenge to its agreement with the world’s second-biggest miner.Rio is building a giant underground copper mine, known as Oyu Tolgoi, in the country. Yet the project has been beset by delays, legal probes, cost overruns and government pressure.Rio said Tuesday that early reports suggest an administrative court has upheld claims by the Darkhan Mongol Nogoon Negdel non-governmental organization that Mongolia didn’t follow due process on the agreement that underpins its development of the asset.The group, which promotes ecological balance and economic independence, had disputed the Dubai agreement signed in 2015, as well as the authority of Mongolian government officials involved in the negotiations.It’s not yet clear what the implications will be. But with the court’s formal written ruling expected to be released in the coming weeks, it adds a fresh element of uncertainty to an already difficult project.“The Dubai agreement is not annulled by the court decision. However, this decision raises questions about due authorization and capacity of those who signed the Dubai agreement,” said lawyer Solongoo Bayarsaikhan, a managing partner of Avinex Partners LLP in the capital, Ulaanbaatar, who is not involved in the case. “We need to see the actual court decision.”Earlier this year, Rio warned that its flagship growth project could cost as much as $1.9 billion more than forecast and faces potential delays to full production of as long as two and a half years. The expansion of the mine has run into difficulties after potential stability risks were identified within the planned underground operation, and it could now cost as much as $7.2 billion.The overruns will mean Mongolia must wait longer before profits start flowing from the mine to the government.On top of the actual problems building the project, there have been numerous controversies in the country. A parliamentary working group recommended in April that Mongolia review the 2009 deal that launched construction and revoke a 2015 agreement allowing for an underground expansion to tap into most of its mineral wealth. The mine has also been at the center of tax disputes and a probe into allegations of corruption.Rio said that it “strongly refutes” any suggestion that its agreement is illegal.(Updates with lawyer comment in sixth paragraph.)To contact the reporters on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net;Terrence Edwards in Ulaanbaatar at tedwards100@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Liezel Hill, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.