AI boom makes Rio Tinto a hot commodity

By the Editorial Team · Thursday, July 30, 2026

Rio Tinto reported a 39 percent rise in pre-tax profits for the first half of 2026, reaching $9.3 billion, driven by strong growth in copper, lithium, and aluminium earnings that surpassed those from iron ore for the first time. This shift highlights increasing demand for metals essential to AI and energy transition technologies, with Rio Tinto planning substantial asset sales to generate $5 billion to $10 billion in cash by year-end.

Rio Tinto, the world’s largest iron ore producer, reported a 39 percent increase in pre-tax profits for the first half of 2026, reaching $9.3 billion, driven in part by growing demand for metals linked to artificial intelligence and electric vehicles. This marks the company’s highest half-year profit in four years.

For the first time, earnings from copper, lithium, and aluminium—which are critical to energy transition technologies and AI infrastructure—exceeded profits from Rio Tinto’s traditional iron ore operations. More than half of the company’s overall earnings stemmed from these non-iron ore metals.

Simon Trott, Rio Tinto’s chief executive, described the results as a “step-change in performance,” attributing the improvement to higher commodity prices, increased copper production, and productivity gains across its operations. He pointed to strong demand for copper and lithium from sectors such as data centers and grid storage batteries as key drivers.

The copper division saw its earnings surge 84 percent to $5.7 billion, supported by a 39 percent rise in benchmark copper prices and a 53 percent increase in gold prices. Output from the Oyu Tolgoi mine in Mongolia expanded by 31 percent as its ongoing development continued.

By contrast, profits from Rio Tinto’s iron ore operations fell slightly, declining 1 percent to $6.8 billion. While shipments from its Pilbara mines in Western Australia reached their highest first-half level since 2018, the benefit of higher prices was tempered by rising costs, including diesel expenses, inflationary pressures, and a stronger Australian dollar.

Rio Tinto’s shares rose 1.6 percent to £69.77 following the earnings announcement. In December, the company announced plans to generate between $5 billion and $10 billion in cash through asset sales. Trott indicated that the company expects to realize approximately half of that target by the end of 2026, including proceeds from the agreed sale of its share in a seawater desalination plant in Dampier, Western Australia, though he did not specify the amount involved.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.