Rio Tinto increased ore production in Q2 to its highest level since 2018

In the second quarter of 2025, mining company Rio Tinto achieved its highest level of iron ore production in Australia’s Pilbara region since 2018. Total production amounted to 83.7 million tons, which is 20% more than in the previous quarter and 5% more year-on-year. This is stated in Rio Tinto’s quarterly report.

The company also noted an increase in raw material shipments – by 13% quarter-on-quarter, to 79.9 million tons, although on an annual basis, the figure decreased by 1% due to weather challenges and scheduled maintenance of port infrastructure. Production exceeded shipments by 3.9 million tons, and part of these stocks remained in warehouses.

The results were made possible by recovery from cyclones that affected operations in the first quarter, as well as the successful launch of the new Western Range deposit. In addition, the company continues to implement the large-scale Simandou project in Guinea. The first deliveries of high-quality ore from this deposit are expected as early as November 2025.

At the same time, Rio Tinto has updated its product strategy. Since July, the company has begun supplying low-grade Pilbara Blend ore with an average iron content of 60.8% instead of the previous 61.6%. This will allow for more effective management of raw material quality in the face of growing demand variability.

The average selling price of ore in the first half of the year was $82.5/t (FOB, including moisture), which is lower than $97.3/t for the same period in 2024 and slightly below the Platts market index ($92 FOB/dmt).

The company noted that despite pressure on global steel prices and declining margins for Chinese steelmakers, demand for raw materials remains stable. Ore production and exports from China increased, while stocks at the country’s 47 main ports fell by 5 million tons to 145 million tons.

Rio Tinto confirmed its forecast for 2025, with shipments expected to be in the range of 323-338 million tons, although more likely closer to the lower end due to challenging weather and restrictions on access to new mining areas.

In the first quarter of 2025, Rio Tinto recorded its lowest supply volume since 2019 – only 70.7 million tons from deposits in the Pilbara region (Australia). This is lower than both last year’s figure of 78 million tons and Visible Alpha’s market forecast of 73.6 million tons. Cyclones in Australia have disrupted the company’s plans, which warns of the risk of missing its 2025 forecast.