LONDON, March 25, 2026, 11:55 GMT
Rio Tinto plc gained roughly 1.6% in London Wednesday morning, following news of a A$2 billion rescue package from Australia’s federal and Queensland governments aimed at extending operations at the Boyne aluminium smelter until at least 2040. Shares hovered near 6,590 pence, climbing from the previous close of 6,481 pence. 1
Why does the deal matter? Boyne’s current power contract runs out in 2029, and Rio has been looking for a long-term fix to keep its Queensland aluminium business competitive. According to Rio, this package—combined with renewable power deals it’s inked already—guarantees production until at least 2040 and bumps its total contracted renewables in Queensland above 2.8 gigawatts. 2
The move comes with Rio looking to push a more diversified pitch to investors beyond just iron ore. Back in February, the miner posted flat annual underlying earnings—falling iron ore prices weighed on the company’s main business, but copper provided some insulation. Reuters noted then that BHP, a key competitor, saw its own earnings composition tilt, with copper surpassing iron ore for the first time. 3
Rio’s copper chief Katie Jackson told Reuters this week the miner is “quite committed” to fast-tracking Arizona’s Resolution project, aiming for first production in the early- to mid-2030s. Over its lifespan, the mine is set to deliver more than a quarter of U.S. copper demand. 4
On aluminium, Jérôme Pécresse—who heads Rio’s aluminium and lithium division—described the Boyne deal as a “transformative partnership”. According to Rio, the smelter is part of a rare, fully integrated aluminium chain, stretching from bauxite mines in Queensland to alumina refining and, finally, smelting. 2
Some of Wednesday’s jump was broad-based. The FTSE 100 advanced 1.1% by 1028 GMT, according to Reuters, with miners up 3.4% as traders chased a Middle East ceasefire story. Rio Tinto rallied along with the sector, but despite the lift, shares stayed far off their February 25 peak of 7,557 pence. As MarketWatch pointed out, the stock ended Tuesday 14.24% below that level. 5
But risks linger. Jackson pointed out that treatment and refining charges—the money smelters make to convert copper concentrate—have slipped below zero lately. He added, “current structures” aren’t enough to sustain Rio’s Kennecott smelter, which is still partly offline after a fatal accident and ongoing safety probe. 4
Rio shares climbed as investors seemed to favor the stronger power position for Boyne, though there’s still plenty of curiosity around copper. Iron ore, however, continues to deliver close to 60% of total earnings, and with London stocks moving higher across the board, this uptick felt more like a sigh of relief than a judgment on Rio’s overall earnings lineup. 3
