Rio Tinto Shares Rose 2.3% on Simandou Update, Investor Seminar

The Rio Tinto plc (LON: RIO) share price rose 2.29% after releasing an update regarding operations at its world-class Simandou iron ore project in Guinea. The mine is being developed with Winning Consortium Simandou (WCS), CIOH, a Chinalco-led consortium, the Republic of Guinea and Baowu.

The Simandou project, known as the world's largest undeveloped high-grade iron ore deposit, has an estimated Total Mineral Resource of 2.8 billion tonnes as of December 31, 2022, under the Simfer joint venture. Rio Tinto has announced the conversion of approximately 1.5 billion tonnes of this into Ore Reserves, ensuring a mine life of 26 years. 

The reserves boast an average iron content of 65.3% and minimal impurities. In addition to these Ore Reserves, Rio Tinto reports an exclusive Mineral Resource of 1.4 billion tonnes with an iron content of 66.1%, also characterised by low impurities.

The company estimates its initial investment in the Simfer mine, alongside the associated rail and port infrastructure projects, to be around $6.2 billion.

Rio Tinto is set to conduct its 2023 Investor Seminar in Sydney, where it will discuss advancements in its long-term strategy. This strategy focuses on disciplined investment to bolster operations, foster growth in a decarbonising environment, and generate attractive shareholder returns.

The market outlook suggests Rio Tinto is well-placed to benefit from sustained commodity demand driven by decarbonisation, changing industrial policies, and geopolitics. Rio Tinto anticipates annual capital investments of about $10 billion from 2024 to 2026, including up to $3 billion yearly for growth investments. 

Rio Tinto Chief Executive Jakob Stausholm said: “We strongly believe we are well positioned in an opportunity-rich world. There has never been greater demand for what we do, from mining to processing, and the work we are doing today is creating a stronger Rio Tinto for years to come. The performance at our Pilbara iron ore and Oyu Tolgoi copper operations shows our path towards becoming the best operator, and we are focused on driving continuous improvement across our global portfolio. Our people are at the heart of lifting our performance, and we are continuing to invest time and energy in building a stronger culture with a learning mindset.”

Rio Tinto share price. 

The Rio Tinto share price rose 2.29% to trade at 5541.0p from Tuesday’s closing price of 5417.0p.