LONDON, March 11, 2026, 14:51 GMT
Rio Tinto shares lost ground in London on Wednesday, despite the company locking in $1.175 billion in funding for its Rincon lithium venture in Argentina and confirming the project’s first commercial lithium carbonate shipment. By 12:26 GMT, the stock had fallen 1.2% to 6,754 pence. It had ended Tuesday up 3.04% at 6,837 pence.
This shift is key for Rio, which faces calls to prove it can drive growth beyond iron ore—and do it with its own money, not fresh acquisitions. The company just posted annual earnings that came in flat and fell short of forecasts last month. Iron ore’s slump dragged on results, and copper’s gains couldn’t fully make up for it.
The shift is already clear in the numbers. Iron ore now makes up about 60% of group earnings, down from 70% a year ago, while copper’s contribution has jumped to nearly 30%. Over at BHP, copper earnings have, for the first time, edged past iron ore—evidence that the sector’s giants are pushing deeper into metals tied to electrification and surging data-center demand.
Rincon is positioned close to the heart of Rio’s site. According to the company, loans arranged with the IFC, IDB Invest, Export Finance Australia, and the Japan Bank for International Cooperation are set to back the $2.5 billion development. The plan calls for about 60,000 tonnes a year of battery-grade lithium carbonate, the key refined chemical battery manufacturers buy. First output is penciled in for 2028, with a ramp-up phase stretching three years. As for the mine itself, Rio has set a 40-year lifespan.
Jérôme Pécresse, who heads aluminium and lithium at Rio, called the package a move that “broadens our funding sources” as the company pushes deeper into lithium. To some investors, that’s easier to stomach than another acquisition spree. After Rio dropped its Glencore bid back in February, Jefferies analyst Christopher LaFemina predicted Rio would “go it alone.” Rio Tinto
Rio’s main iron ore business keeps humming. For January and February, China brought in 210.02 million metric tons, marking a 10% rise year-on-year—lifted by robust Australian shipments and steady local demand. Alexis Ellender at Kpler pointed to “strong December exports from Australia” as the primary driver behind the increase. Reuters
Aluminium is getting a lift too. According to Reuters, investment firm Ninety One boosted its allocation to the metal, citing concerns over supply disruptions linked to unrest near the Strait of Hormuz. The firm also named Rio Tinto as a producer with relatively limited exposure to the chokepoint.
But Rio’s path has been anything but smooth. Mongolian officials want the miner to overhaul the terms at the $18 billion Oyu Tolgoi copper project, calling the current deal “unfair” and pushing for the interest rate on a development loan to drop below 6% from its present level of over 11%. They’re also after reduced management fees. The report noted that if negotiations break down, export taxes might head higher. Reuters
At this stage, markets are viewing the Argentina financing as helpful, but not enough to spark a valuation reset. Iron ore remains Rio’s main earnings engine. Investors are watching to see if Rincon and Oyu Tolgoi can push that mix further—without piling on the cost and execution headaches tied to big mergers.
