Operational Concerns - Rio Tinto's Tomago aluminum smelter in Australia is considering closure due to projected power cost increases from 2029 [1] - The projected power cost increase would render the smelter's operations unviable [1]

Core Viewpoint - Rio Tinto is considering the possibility of ceasing operations at its Tomago aluminium smelter in New South Wales upon the expiration of its current electricity supply contract [1] Company Summary - The Tomago aluminium smelter is located in New South Wales and is operated by Rio Tinto [1] - The decision to potentially cease operations is linked to the end of the current electricity supply contract [1]

Core Insights - The Simandou iron ore project in Guinea is being developed in two main sections: the northern blocks (1 and 2) by a joint venture between Baowu and WCS, and the southern blocks (3 and 4) by a joint venture between Rio Tinto and Chalco [1][2] - The northern project is expected to reach an annual production of 15 million tons by 2026, with a target of 60 million tons by 2030, while the southern project is projected to produce 4.6 million tons in 2026 and reach full capacity by 2032 [2][3] - The official mining ceremony for the Simandou project is scheduled for November 11, marking a significant milestone in Guinea's mining development [1] Northern Project Details - The northern blocks will have a mining capacity of 60 million tons per year, with a 552 km railway and port system being constructed [1] - The estimated production costs for the northern project are projected to range between $61 and $65 per ton, including infrastructure costs [2] Southern Project Details - The southern blocks will also have a mining capacity of 60 million tons per year, with an estimated annual production of 24 million tons for the company's share [1] - Initial operating costs for the southern project are expected to be higher, starting at $137.19 per ton in 2026 and decreasing to $68.18 per ton by 2030 [2][3] Cost Breakdown - The total production costs for the northern project are expected to decrease from $64.00 per ton in 2026 to $61.83 per ton by 2029, with various components such as mining, transportation, and management fees detailed [3] - The southern project's costs are projected to decline significantly over time, with a notable reduction in operating costs as production ramps up [2][3]

Core Insights - The shift towards using the Chinese yuan for iron ore and soybean trade signifies a challenge to the long-standing dominance of the US dollar in global commodity pricing [1][6][20] - China's significant purchasing power as the largest importer of iron ore and soybeans is being leveraged to negotiate favorable trade terms, including yuan settlements [3][4][10] Iron Ore Trade - China imports over 70% of the world's iron ore, with Australia supplying more than 60% of that, traditionally priced in US dollars [3][4] - In August 2025, China proposed that long-term iron ore contracts be settled in yuan, leading to a significant concession from Australian companies like BHP and Rio Tinto, who agreed to a 30% yuan settlement for spot trades by Q4 2023 [3][4][6] - The proportion of iron ore trade settled in yuan has increased from 5% in 2023 to an expected 40% in 2024, indicating a shift in pricing power towards China [3][6][8] Soybean Trade - China has shifted its soybean imports from the US to South America, signing agreements for 9 million tons to be settled in yuan, which has drastically reduced US soybean exports to China [10][12] - The US soybean industry is feeling the pressure, with reports indicating a complete halt in soybean exports to China for the first time in seven years, prompting US farmers to seek flexible payment options, including yuan [10][12][14] - The transition to South American suppliers not only stabilizes China's supply but also mitigates currency exchange risks, enhancing operational efficiency for Chinese companies [12][14] Global Currency Dynamics - The acceptance of yuan in commodity trade is seen as a significant step towards reducing reliance on the US dollar, with the yuan's share in global transactions rising to 8.5% [6][14][16] - The trend is expected to influence other emerging markets, potentially leading to a broader adoption of yuan settlements in global trade [8][20] - The Chinese economy's strength and trade volume are key factors driving the yuan's internationalization, with a target for 10 major commodities to have over 30% of their trade settled in yuan by 2025 [16][20]

Core Viewpoint - Rio Tinto and China's State Power Investment Corporation (SPIC) Qiyuan have initiated a trial of battery swap electric haul truck technology at the Oyu Tolgoi copper mine in Mongolia, marking a significant advancement in reducing emissions from mining operations [1] Group 1 - The trial represents Rio Tinto's first implementation of battery swap electric haul trucks in surface mining operations [1] - This initiative is aimed at developing cost-effective technology and operational insights necessary for minimizing emissions from mining haulage fleets, which are among the largest contributors to emissions in the industry [1]

Report Industry Investment Rating No relevant content provided. Core View of the Report - The iron ore price is under pressure due to the suppression of industrial chain profits and is expected to fluctuate at a low level. Although the downward space for downstream steel mill profits is limited and the iron water output has shown a downward inflection point, the strengthening of the coking coal and coke sectors has further eroded the industrial chain profits. However, potential macro - level positive factors may still materialize, so the iron ore price should be treated as fluctuating [3][5]. Summary by Directory Supply - Overseas shipments are relatively high year - on - year. Australian high - frequency shipment data shows both year - on - year and month - on - month increases. The global shipment volume in the recent week was 3333.5 million tons, a month - on - month increase of 126.0 million tons and a year - on - year increase of 446.2 million tons. Australian shipments were 1915.6 million tons, a month - on - month increase of 61.6 million tons and a year - on - year increase of 184.0 million tons. Brazilian shipments were 824.3 million tons, a month - on - month increase of 11.8 million tons and a year - on - year increase of 95.2 million tons. The shipments of Rio Tinto and Fortescue to China have increased significantly recently [4][5][15]. - Among non - mainstream mines, South African shipments have shown a seasonal decline. The capacity utilization rate of domestic mines in the southwest region has rebounded, bringing the overall operation back to a relatively normal level [20][27]. Demand - The iron water output has shown a downward trend at the inflection point, and the port cargo clearance volume has also declined recently. The iron water output of 247 enterprises was 239.90 million tons, a month - on - month decrease of 1.05 million tons but a year - on - year increase of 5.54 million tons. Recently, the price fluctuations of scrap steel and iron ore have been narrow, and the scrap - iron price difference has basically remained flat [4][29][33]. Inventory - The accumulation speed of port inventory has accelerated. The inventory of imported iron ore at 45 ports was 14423.6 million tons, a month - on - month increase of 145.3 million tons and a year - on - year decrease of 845.5 million tons [4][37][39]. Contract and Price Performance - The price of the main 01 contract fluctuated weakly, closing at 771.0 yuan/ton, with a position of 566,000 lots, an increase of 20,200 lots. The average daily trading volume was 281,000 lots, a week - on - week decrease of 88,200 lots. The spot price basically remained flat week - on - week [7][11]. Downstream Profit - The prices of coking coal and coke have rebounded, and the paper profit has been revised downwards [41]. Spot Category Spread - The inventory of fine ore has decreased recently, and the spread between PB lump and PB fine has slowly narrowed [43]. Futures Month Spread - The recent month spread has been relatively stable [48]. Basis Performance - The recent changes in futures and spot prices have been relatively consistent, and the basis has basically remained flat week - on - week [52].

Core Viewpoint - The Simfer mine in the Simandou project has confirmed a reserve of 1.5 million tons of iron ore, with the first batch of ore set to be loaded for rail transport starting in October 2025 [1][3]. Group 1: Project Overview - The total stockpile on-site is approximately 2 million tons, with plans to complete the first shipment by mid-November [3]. - The Simandou iron ore project is located in southeastern Guinea, covering an area of 738 square kilometers, divided into northern and southern sections [3]. - The proven resource amount is about 2.4 billion tons, with an estimated total resource of 5 billion tons and an average iron grade of 66-67%, making it a rare high-quality open-pit hematite mine globally [3]. Group 2: Historical Context - The project has faced nearly 30 years of development challenges, with initial discovery in 1997 and subsequent delays due to infrastructure investment needs and political instability in Guinea [5]. - In 2008, the Guinean government revoked some mining rights, which were transferred to BSG Resources, but the partnership was dissolved in 2014 due to bribery allegations [5]. - The project gained momentum in 2019 when the Winning Consortium acquired the northern section mining rights for $14 billion [5]. Group 3: Infrastructure Development - Infrastructure is a critical breakthrough for the project, with a joint venture established in July 2022 to build a 600-kilometer heavy-haul railway and the Maribaya deep-water port [7]. - The railway, designed with a capacity of 120 million tons per year, includes 205 bridges and 4 tunnels, with construction utilizing Chinese technical standards [7]. - Significant progress was made in 2025, including the completion of T-beam installation and the first heavy-haul train transporting ore from the mine to the port [7]. Group 4: Ownership Structure - The ownership structure is complex, with the Guinean government holding a 15% stake in all blocks [9]. - The Winning Consortium holds 85% of the northern block, while Simfer, which is responsible for the southern block, has Rio Tinto holding 53% and Chalco holding 47% [9]. Group 5: Market Impact - The project is expected to have a direct impact on the global market, with an anticipated annual production of 120 million tons by 2028, potentially increasing seaborne iron ore supply by 8% [9]. - The CFO of Rio Tinto indicated that this increase in supply could force high-cost suppliers out of the market [11]. Group 6: Economic Context - The Chinese steel industry is facing profit pressures and a downturn in the real estate market, with crude steel production expected to decline by 4% from its peak in 2020 [12]. - The expected landed price of Simandou ore is $70-80 per ton, which is 15-20% lower than Australian ore prices, making it attractive for Chinese steel mills [12]. - The project is also facilitating the use of RMB for transactions, with significant agreements being made for RMB settlements in mineral resource trading [12]. Group 7: Investment and Employment - The total investment required for the Simfer project is approximately $11.6 billion, with Rio Tinto responsible for $6.2 billion [14]. - The project has created jobs locally, benefiting 12 provinces along the railway with new economic opportunities [13]. - The development model of "resource for infrastructure" allows for mutual benefits, with China gaining resources and Guinea receiving fiscal revenue and employment opportunities [16].

Group 1 - The Trump administration has overturned a Biden-era air pollution regulation that imposed stricter emission limits on copper smelters, known as the "copper rule," which was set to be finalized in May 2024 [1] - The new announcement provides a two-year compliance exemption for affected fixed pollution sources, aiming to reduce regulatory burdens on domestic copper producers and enhance mineral security in the U.S. [1] - The White House stated that imposing such requirements on a limited and already burdened domestic industry could accelerate factory closures, weaken the national industrial base, and increase reliance on foreign-controlled processing capacity [1] Group 2 - The announcement specifically mentions the two existing copper smelters in the U.S., operated by Freeport-McMoRan (FCX.US) and Rio Tinto (RIO.US), with the order applying to Freeport-McMoRan's facility, while the impact on Rio Tinto's plant remains unclear [1] - Earlier this year, Trump signed an executive order designating copper as a critical material needed for defense, infrastructure, and emerging technologies, including clean energy and electric vehicles [1] - The administration initiated a Section 232 investigation to determine if copper imports pose a national security threat, leading to a 50% tariff on certain imported copper and requirements for a higher proportion of domestically produced high-quality scrap copper to be sold domestically [2]

Industry Investment Rating - No relevant content found Core Viewpoints - No relevant content found Summary by Directory Second Part: Q2 Global Iron Ore Production and Sales Combing - The report presents multiple graphs related to the production and sales of four major global mining companies including VALE, Rio Tinto, BHP, and FMG [5][16][27][31] - For VALE, there are graphs showing production and sales statistics, sales by variety, production and sales of the S11D mining area, and production share by region [6][12] - For Rio Tinto, graphs display overall production and sales, production and sales of PB powder, and production and sales shares by variety [16][21] - For BHP, there are graphs about production and sales and production share by mining area [27] - For FMG, graphs show production and sales and the production of the Iron Bridge project [31]

Core Points - Rio Tinto announces several changes to its Board of Directors as part of a transition phase that has now concluded [1] - The Board size previously peaked at 14 Directors to retain the expertise of longer-serving members while newer Directors acclimated to the Group [1] - Sam Laidlaw and Kaisa Hietala have stepped down from the Board following the conclusion of the 2025 AGMs [1]