Rio Tinto Eyes $10 Billion in Asset Sales Amid Strategic Overhaul

Melbourne/London, December 4, 2025 – Rio Tinto (ASX: RIO, LSE: RIO), the world’s largest iron ore miner, announced plans to streamline its operations and focus on productivity improvements during its first strategy day under CEO Simon Trott. The mining giant revealed that it could generate between $5 billion and $10 billion through divestments, including the potential sale of non-core assets such as its titanium and borates businesses.

Trott emphasized the company’s intent to simplify its structure and concentrate on its most profitable units while maintaining existing high-performing assets. “Across each of our three product groups – copper, aluminium, lithium, and iron ore – we’ve identified growth projects that will compete for capital, ensuring we prioritize the best opportunities,” he stated during a media briefing.

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Strategic Divestments and Commercial Partnerships

Rio Tinto’s strategic review has identified assets it no longer needs to own, opening the door for potential sales and commercial partnerships. These divestments will focus on land, infrastructure, mining, and processing assets, aiming to unlock significant shareholder value.

The company also set an ambitious goal to reduce unit costs by 4% from 2024 to 2030, complementing its divestment strategy with efficiency improvements across operations.

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$650 Million in Productivity Gains Announced

In addition to divestments, Rio Tinto highlighted $650 million in annualized productivity gains and cost savings, with $370 million already realized in the first three months. Trott confirmed that these gains include headcount reductions, although specific job cuts were not disclosed.

RBC analysts described the announcement as a “decent release” but noted that it was unlikely to trigger a major market reaction. Shares of Rio Tinto opened over 2% higher in London following the strategy update.

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Capital Discipline and Commodity Growth Boost Earnings Prospects

Rio Tinto stressed that capital discipline, rising commodity prices, and a projected 20% increase in copper production could substantially enhance earnings by the end of the decade. Strategic reviews of iron, titanium, and borates are progressing, with the next step focused on testing market interest in these assets.

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Copper Takes Center Stage

While iron ore remains Rio Tinto’s primary profit driver, the miner is increasingly shifting focus toward copper production to capitalize on the global energy transition. The company raised its 2025 copper production forecast to 860,000–875,000 metric tons, up from an earlier estimate of 780,000–850,000 tons, thanks to ramped-up operations at the Oyu Tolgoi project in Mongolia.

For 2026, Rio Tinto projects copper production to range between 800,000 and 870,000 tons, aiming to reach 1 million tons per year by 2030. This move aligns with growing global demand for copper, a critical component in green energy technologies. The company plans to increase Oyu Tolgoi copper output by more than 50% this year, with an additional 15% rise anticipated in 2026.

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Looking Ahead

Rio Tinto’s strategy highlights a dual focus on unlocking value through divestments while driving efficiency and productivity across its core operations. By concentrating on high-growth commodities like copper and optimizing its asset portfolio, the mining giant is positioning itself for long-term sustainable growth and enhanced shareholder returns.