Rio Tinto is undertaking one of the most significant transitions in the history of its Pilbara iron ore operations, reshaping the system to protect margins and sustain output as its long-life mines move deeper into replacement territory.
At its Capital Markets Day, the company confirmed 2025 Pilbara sales guidance of 323–338 million tonnes, but said maintaining this range will require a coordinated wave of new replacement mines and operational streamlining.
Rio Tinto chief executive Simon Trott said the renewed focus is central to delivering stronger long-term returns.
“We will drive performance through discipline, productivity and unmatched growth to unlock the full potential of our diversified portfolio of world-class assets,” he said.
Rio Tinto has already realised $US650 million in annualised productivity benefits within three months, driven by delayering the iron ore business, simplifying decision-making and stopping non-core programs. Additional gains are expected as new replacement mines come online and legacy assets wind down.
The company is targeting a four per cent reduction in unit costs between 2024 and 2030, an ambition underpinned by automation, tighter mine scheduling, improved orebody knowledge and efficiency programs rolled out across Pilbara hubs.
Rio said embedding operational excellence is critical as Pilbara transitions from growth-heavy expansion to a more capital-efficient sustaining phase.
“Freeing up cash from our asset base where it makes sense will strengthen the balance sheet and maintain returns, as we invest for the future with discipline,” Trott said.
While Simandou is drawing global attention, the Pilbara remains Rio Tinto’s financial backbone. Rio Tinto’s strategy signals that the next decade will be defined not by expanding volumes, but by protecting the Pilbara’s position at the low end of the global cost curve.
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