Rio Tinto has warned it may not be able to meet its 2030 emissions reduction target unless third parties get a wriggle-on with their renewable energy projects.
Rio Tinto has warned it may not be able to meet its 2030 emissions reduction target unless third parties get a wriggle-on with their renewable energy projects.
The Anglo-Australian miner on Thursday revealed a strong set of numbers in its full year 2025 results, underpinned by growing copper production and record iron ore output.
Rio’s earnings before tax rose 9 per cent to US$25.3b, while profit fell 14 per cent to US$9.9b.
Pilbara iron ore sales reached 326 million tonnes, within guidance, while total iron ore sales including Simandou fell a touch short at 342Mt.
The cost to produce iron ore in the Pilbara was within guidance at US$23.50 per tonne.
“Our strong cash flow and balance sheet enable us to sustain a 60 per cent payout ratio with a $6.5 billion ordinary dividend, making it the tenth consecutive year at the top end of the range,” Rio Tinto chief executive Simon Trott said.
Rio reported a 14 per cent reduction in its global emissions since 2018 but noted its ability to meet its targets depended on external factors.
“We have a pathway to our 2030 target of a 50 per cent reduction in Scope 1 and 2 emissions, however this is dependent on the timely delivery of third party projects to underpin those solutions and completion of commercial discussions, neither of which can be guaranteed by that date,” the company said.
In the Pilbara, delivery of transmission lines to carry power from proposed renewable energy projects to resources assets has been slow.
No major renewable energy project other than those built internally by Fortescue for its own mines has begun construction either.
Sluggish government approvals and securing of long-term offtake deals have been identified by proponents as key stumbling blocks.
Rio Tinto is in discussions with Yindjibarndi Energy and Ngarluma Aboriginal Corporation on potential offtake deals from their renewable energy projects.
Yindjibarndi’s is the most advanced major common-user renewable project in the region and it is hoped the project can break ground this year.
Rio and BHP are both relying on third parties to deliver emissions reduction. Fortescue is building its own power sources.
More to come.
