Rio Tinto Copper Output Rises as Oyu Tolgoi Offsets Lithium Weakness

Rio Tinto

Rio Tinto copper output increased in the first quarter as stronger production from the Oyu Tolgoi mine in Mongolia lifted the group’s global copper performance. The UK-Australian miner produced 229,000t of consolidated copper in January-March, up 9% from a year earlier.

Rio Tinto copper output growth was driven mainly by copper in concentrates from Oyu Tolgoi, where production rose by 56% to 102,000t. The ramp-up helped offset weaker concentrate output at Escondida and lower refined copper production at Kennecott.

The first-quarter result shows the changing shape of Rio Tinto’s portfolio. Copper is gaining strategic weight as electrification, grids and industrial infrastructure support long-term demand, while lithium remains more exposed to weather, ramp-up timing and early-stage project execution.

At the same time, Rio Tinto reported higher alumina production but weaker bauxite and lithium output. Heavy rainfall and cyclone-related disruptions affected Australian bauxite mines, while weather events in Argentina reduced lithium carbonate equivalent production.

Copper Growth Strengthens Despite Mixed Mine Performance

Oyu Tolgoi was the strongest contributor to Rio Tinto copper output in the first quarter. Its continued ramp-up in Mongolia lifted copper in concentrates production to 102,000t, reinforcing the mine’s role as one of the group’s most important growth assets.

The result matters because large copper projects are increasingly difficult to bring into stable production. Oyu Tolgoi gives Rio Tinto a major long-life copper source at a time when global mine supply remains vulnerable to grades, permitting delays and operational disruptions.

Escondida delivered a mixed quarter. Refined copper output at the Chilean operation rose by 21% to 16,000t, but concentrates production fell by 14% to 77,000t.

Kennecott in the US was weaker. Refined copper production fell by 20% to 34,000t because of lower anode inventories after unplanned smelter maintenance and reduced concentrator throughput caused by geotechnical constraints.

Rio Tinto kept its full-year copper production guidance unchanged at 800,000-870,000t. This suggests the company sees first-quarter disruptions as manageable within its broader 2026 plan.

The company also began drilling at the Resolution Copper project in Arizona after completing the land exchange in March. Resolution remains strategically important because it could become a major US copper source if development advances.

Rio Tinto copper output therefore carries both short-term and long-term significance. Oyu Tolgoi is already lifting production, while Resolution represents future supply optionality in a market increasingly focused on domestic and allied copper sources.

Lithium Falls as Weather Disrupts Argentina Operations

Rio Tinto’s lithium performance weakened sharply in the first quarter. Attributable lithium carbonate equivalent production fell by 26% on the year to 12,700t.

The decline was caused by heavy rainfall and weather events that disrupted operations at Olaroz and Fenix in Argentina. These disruptions show that lithium brine and carbonate operations remain sensitive to weather, water balance and site logistics.

The continued ramp-up at the Rincón starter plant partly offset the production impact. Rincón is important for Rio Tinto’s lithium strategy because it supports the company’s expansion into battery materials.

Rio Tinto maintained its 2026 LCE production guidance at 61,000-64,000t. First production from Fenix 1B and Sal de Vida remains on track for the second half of 2026.

The aluminium chain also showed mixed results. Primary aluminium output rose by 1% on the year to 835,000t, but fell by 2% from the previous quarter.

Alumina production increased by 6% to 2.04mn t, while bauxite production fell by 11% to 13.28mn t. Heavy rainfall at Weipa in Queensland and cyclone-related shutdowns at Weipa and Gove reduced bauxite output.

Recycled aluminium production also fell by 8% to 61,000t. Rio Tinto kept 2026 guidance unchanged for primary aluminium, alumina and bauxite, indicating confidence in recovery through the year.

The first-quarter data show a portfolio with different operating pressures. Copper is benefiting from major mine ramp-up, lithium is facing weather disruption, and aluminium raw materials are exposed to Australian climate events.

The Metalnomist Commentary

Rio Tinto’s first quarter shows why diversified miners need both growth assets and operational resilience. Oyu Tolgoi is strengthening Rio Tinto copper output, but weather-linked lithium and bauxite disruptions show that energy-transition supply chains remain exposed to physical operating risk.