**Perth**: At its AGM, Rio Tinto revealed plans to deepen involvement in critical minerals and rare earths, backed by a $20 billion investment over three years focused on its Pilbara operations, aiming for 4% production growth, increased local supplier engagement, and strong shareholder returns.
At its annual general meeting held in Perth, Rio Tinto (ASX: RIO) explored the potential for expanding into critical minerals and rare earth elements, an area increasingly central to global trade discussions and market transformations. This meeting came against a backdrop of heightened trade tensions, particularly following the implementation of tariffs by the United States and export restrictions by China.
Rio Tinto’s chief executive, Jakob Stausholm, indicated that the company is evaluating the role of critical minerals within its future portfolio. He acknowledged that these essential materials are already integrated into Rio Tinto’s current operations and suggested that a more deliberate approach to processing these resources could be its next logical step.
The company’s chairman, Dominic Barton, reported positive forecasts for production growth, projecting an increase of 4% for the current year, primarily driven by operations at the Oyu Tolgoi underground mine. This follows a modest overall production growth of 1% in 2024.
In terms of financial commitments, Rio Tinto plans to invest over $20 billion in the resource sector over the next three years, particularly focusing on the Pilbara region in Western Australia. This investment strategy aims to boost operations and contribute to local economies.
Mr Stausholm further elaborated on the company’s community engagement, stating, “Last year, we boosted spending with suppliers in WA by $1.5 billion to a record $10.3 billion, as we continue to support local businesses to develop our pipeline of new Pilbara mining projects such as Western Range.” He highlighted the collaboration with approximately 2,400 suppliers annually, reflecting Rio Tinto’s commitment to job creation and shared success in Western Australia.
In a summary of the company’s financial performance, Mr Barton noted that Rio Tinto returned $6.5 billion in dividends to shareholders over the last year, demonstrating the company’s robust financial health amidst evolving market conditions.
Source: Noah Wire Services
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