Rio Tinto has obtained a A$2 billion government bailout to sustain operations at its Boyne aluminum smelter until at least 2040, driven by increasing demand for aluminum and lithium. The funding, spread over a decade starting in 2030, will support investments in renewable energy worth A$7.5 billion. As Rio Tinto expands its lithium and copper portfolios, it remains poised to benefit from the electrification trend, despite challenges posed by fluctuating iron ore prices and recent weather-related disruptions to shipments.
“So as just mentioned iron ore 59% of the revenue comes from iron ore. Another huge factor is aluminum 24% and of course obviously those numbers hugely fluctuate with both the price of iron ore and also of aluminum... and then those three in total make up total of 90%.”
“Rio Tinto is the fourth biggest mining company in the world it offers everything from aluminum copper lithium to diamonds gold and salt”
“If we were to invest $1,000 into each of those companies 10 years ago today our shares of Rio Tinto would be worth $1,228 and our shares of Vale would be worth $830 so it's a win for Rio Tinto”
“for the last 10 years we would get $850 in dividends from Rio Tinto and $526 from Vale so also here it's a win for Rio Tinto”
“individual insiders own 0.05% of Rio Tinto and 0.00% of Vale so the difference is extremely small but rules are rules it is a check for Rio Tinto”
“the dividend yield for Rio Tinto is 7.6% and for Vale it is 5.2% so it's a check for Rio Tinto”
“Rio Tinto also to watch up 4% today. They're not a pure play aluminum, they do several other other metals, but aluminum is a big part of their book.”
“Even as Rio Tinto (NYSE:RIO) and Vale (NYSE:VALE) scramble to expand their critical mineral portfolios to include lithium and copper for the energy transition, the 'refined' end of the magnet funnel remains dangerously narrow.”
“On January 1, 2027, the Pentagon’s DFARS rules will require defense contractors to prove where every rare earth input comes from — Chinese-sourced materials will be banned at every step.”
“Earlier on March 16, Rio Tinto announced that it had gained control of 2,400 acres of land in Arizona for a copper production project. It had been pursuing this land for many years, and finally got it for its Resolution Copper mine project after the courts ruled in its favor. The company plans an initial $500 million investment in the project.”
“In another update, Rio Tinto announced on March 11 that it had secured $1.2 billion in financing for its Rincon lithium project in Argentina.”
