Rio Tinto iron ore exports rebound; diesel costs jump $180M

Rio Tinto shipped 85.3 million tonnes of iron ore from its Pilbara operations in the June quarter, up 7% from a year earlier and ahead of market expectations. The result marked the strongest June-quarter export performance since 2020 and lifted first-half sales to 157.7 million tonnes, 5% higher than the same period last year.

Shipments rose 18% from the March quarter, when cyclone activity disrupted rail and port movements, the company said in a statement to shareholders. Rio credited improved productivity and the recovery of tonnes lost during the March quarter for the rebound.

Full-year guidance remains at 323 million to 338 million tonnes, which means Rio needs a solid second half to hit the target. The company did not adjust its Pilbara unit cost guidance of US$23.50 to US$25 per tonne, even as diesel costs climb.

Higher global oil prices driven by Middle East conflict have added about US$0.80 to the cost of producing each tonne of Pilbara iron ore. At current production levels, that translates to roughly $180 million in extra annual costs, the company said.

Copper production fell 7% to 213,000 tonnes in the quarter, hit by lower output at Escondida and Kennecott, including an unplanned furnace outage at the Utah operation. Rio lowered its expected copper unit costs for 2026, helped by stronger gold prices, which are treated as a credit against operating costs.

AlphaScala gives Rio Tinto an Alpha Score of 62 out of 100, a Moderate rating. The stock page for the over-the-counter listing is available here.

Rio shares gained on the session as the stronger-than-expected iron ore shipments outweighed the fuel cost pressure. The market will track whether export momentum holds through the second half.

For broader context on mining and commodity markets, see the commodities analysis section. The gold profile covers the by-product credits that are helping Rio's copper unit costs.