RE:RE:RE:RE:RE:Rio Tinto Refocusses " Rio, which derives the majority of its profit from iron ore production, is
considering more spending on exploration and processing of copper. It is also developing new technology to extract metal discovered decades ago but thought too deep or risky to mine." (source: ft)
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// Some of the world’s biggest mining groups, such as Australia’s BHP, Swiss-based Glencore and Newmont of the US, are also weighing up plans to expand their production of copper, which is used in car batteries, electric motors, charging infrastructure and underwater cabling to supply power to homes.
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// RBC analyst Tyler Broda said Rio’s expanding copper production would help to compensate for lower earnings from its iron ore division. Many analysts expect iron ore prices to fall in coming years.
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// Dominic Barton, chair of Rio Tinto, says the company needs to consider more spending on copper
// By 2027, Rio’s earnings from copper could be about $6bn, up from $2bn this year, according to Broda’s model, largely because of expected increases in the price of the metal. By contrast, earnings from iron ore will fall to $11bn by 2027 from $16bn today, he said.
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