Rio Tinto 1Q Pilbara Iron Ore Output Second-Highest Since 2018 — Commodity Comment

By Rhiannon Hoyle

Rio Tinto, the world's second-largest miner by market value, reported a 9% increase in first-quarter group copper-equivalent production from a year earlier. Production at its Pilbara iron-ore mines rose by 13%, while copper output increased 9%. Bauxite output fell 11% on year. Here are remarks from the company's quarterly operational report.

On iron-ore operations:

Rio Tinto said first-quarter production at its Pilbara operations in Australia was the second-highest for the period since 2018. Output rose 13% from a year earlier, "driven by continued investment in mine health and productivity, and fewer weather impacts," it said.

Sales from its Pilbara mines increased 2% on year, "driven by strong mine performance," it said. "Tropical Cyclones Mitchell (February) and Narelle (March) impacted shipments by approximately 8 Mt [million metric tons], with effects extending into early Q2." Around half of weather losses are expected to be recovered, it said.

At Simandou in Guinea, about 600,000 tons was shipped to China during the quarter. First sales were realized in April, it said.

On iron-ore market:

The miner said China's first-quarter crude steel and pig iron production declined by 1% compared to the prior year. Outside of China, "steel output was on a trajectory of gradual recovery (up 1% year over year during January and February), before being disrupted by events in the Middle East," it said.

China's first-quarter steel exports declined by 10% year over year, it said, in part due to a new licensing regime that took effect Jan. 1, it said. "Steel trade-flows began to be redirected due to the Middle East conflict, given the region's significant imports and exports," it said.

"On seaborne iron ore supply, multiple cyclones disrupted Australian operations while heavy rainfall in Brazil slowed production and shipments," the company said. Shipments from the major producers declined by 17% on aggregate quarter over quarter and were flat on year, it said.

"Higher energy costs are resulting in a lifting of the global iron ore cost curve, particularly for higher cost suppliers whose cost base is typically more sensitive to the diesel price," it said.

On copper operations:

At the Kennecott mine in the U.S., the company reported lower cathode production due to low anode inventory impacted by unplanned maintenance at the smelter. "Higher concentrator throughput combined with higher grades partially offset by lower recovery rates," it said.

At Escondida in Chile, lower production was driven by planned lower copper grades in line with mine sequencing, it said.

At the Oyu Tolgoi mine in Mongolia, Rio Tinto reported an increased contribution from underground material, combined with higher grades from the open pit and underground.

"Our engagement with the government continued, including for the Entree license transfer," it said. "We continue to maintain flexibility and options in the mine plan, including bringing Panel 1 or Panel 2 South into production first, depending on the timing of the license transfer."

On copper market:

Rio Tinto highlighted a jump in London Metal Exchange, or LME, copper prices to a record high in late January, "supported by a weaker U.S. dollar, positive sentiment around AI-driven electricity demand and market expectations of limited supply growth in 2026."

Copper retreated by the end of the quarter "amidst a broader market sell-off in response to the war in the Middle East," but recovered by mid-April, Rio Tinto said. "Although the war has had limited direct impact on copper supply or demand, some copper leaching operations in Africa and the Americas face disrupted supply of sulfuric acid," it said.

Rio Tinto said the U.S. continues to import more copper cathode than is required to meet demand.

"This is despite the Chicago Mercantile Exchange price now trading at close to parity with the LME price, as markets await clarity on a potential future refined copper import tariff," it said.

"The copper concentrate market remained extremely tight in Q1, with spot treatment and refining charges ending he quarter at a record low," the miner added.

On aluminum operations:

"Production remained resilient, despite planned ramp-down at Arvida, demonstrating underlying portfolio improvement," Rio Tinto said.

At Kitimat, there was a "continued ramp-up following improved hydrological conditions and power supply which resulted in improved operational performance," it said. Production rates at New Zealand's Aluminium Smelter, or NZAS, remain high following a full ramp-up in the fourth quarter of 2025, it said.

On aluminum market:

"The Middle East conflict has removed significant ex-China aluminium supply, with smelter curtailments resulting in expectations of an enhanced global deficit in 2026," Rio Tinto said.

"Logistics and bauxite supply disruptions (Strait of Hormuz, war risk insurance) lifted seaborne freight costs and China bauxite CIF prices towards the end of the quarter. In addition, prices were supported on higher Guinean export control uncertainty."

The LME aluminum price reached a nearly four-year high in March, underpinned by supply disruption in the Middle East, which accounts for 23% of production outside of China, it said.

"Visible aluminium inventories tightened outside China as demand held broadly stable," it said.

"The strength of our vertically integrated value chain, with our business advantageously positioned across the Americas, Asia Pacific and Europe, has ensured security of supply to our customers" during the Middle East conflict, Rio Tinto added.

On lithium market:

"Lithium carbonate prices continued to rally in Q1, driven by growing expectations of market tightness in 2026 amid strong demand for Battery Energy Storage Systems, policy-related mine curtailments in China and export restrictions in Zimbabwe," Rio Tinto said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

April 20, 2026 23:06 ET (03:06 GMT)