Rio Tinto increased Pilbara iron ore shipments in the second quarter of 2026, while weaker copper production highlighted operational pressure elsewhere in the group. The company shipped 85.3 million tonnes of Pilbara iron ore during the quarter, 7% above the 79.9 million tonnes recorded in the same period a year earlier and ahead of market expectations of approximately 83.6 million tonnes. The result represented Rio Tinto’s strongest second-quarter shipment performance since 2020 and lifted its Australian-listed shares by as much as 2.8%.
The stronger shipment figure did not correspond to higher mine production. Pilbara output was 83.5 million tonnes, broadly unchanged year on year and 7% lower sequentially. Shipments rose 18% from the first quarter, when cyclone disruption affected operations, as Rio Tinto reduced inventories and restored rail and port logistics.
Pilbara shipments strengthen in the first half
Rio Tinto’s first-half Pilbara shipments reached 157.7 million tonnes, representing a 5% year-on-year increase. The company has retained its annual shipment guidance of 323 million–338 million tonnes, requiring substantially higher volumes during the second half. Reaching the lower end of that range would require approximately 165 million tonnes over the remaining six months, while achieving the upper end would require more than 180 million tonnes. The quarterly shipment increase therefore reflected improved logistics and inventory utilisation rather than a similar increase in underlying mine production.
Pricing also supported the iron ore business. Rio Tinto’s average realised Pilbara price rose to US$85.20 per wet metric tonne FOB in the first half, compared with US$83.20 per tonne a year earlier. Pilbara cash-cost guidance remains at US$23.50–US$25.00 per tonne. Higher diesel costs associated with the Middle East conflict are expected to add approximately US$0.80 per tonne. Rio Tinto reported no material disruption to its operations or supply chains, while continuing to monitor shipping and fuel exposure around the Strait of Hormuz.
Copper production declines at Escondida and Kennecott
Copper provided a weaker operating picture in the second quarter. Group copper production fell 7% to 213,000 tonnes, slightly below market consensus. Lower grades reduced concentrate production at Escondida, while a furnace outage at Kennecott in Utah in late June added another operational constraint. The Kennecott interruption is expected to limit copper and gold production during the second half of 2026.
Despite the production decline, Rio Tinto reduced its copper net-unit-cost guidance from US$0.65–US$0.75 per pound to US$0.30–US$0.50 per pound. The revision reflects productivity measures and stronger gold prices for gold recovered as a by-product. The lower cost guidance improves the reported economics of copper production, although the quarter also showed the importance of by-product credits. Copper operating performance weakened even as the reported unit-cost outlook became more favourable.
Iron ore logistics improve as copper reliability becomes a focus
The second-quarter figures leave Rio Tinto balancing stronger iron ore shipments against weaker copper production. The Pilbara business has recovered from first-quarter weather disruption through improved logistics and inventory drawdown, while the company still needs significantly higher shipments in the second half to remain within its annual guidance range.
Copper operations face a different set of constraints, with lower grades at Escondida and the Kennecott furnace outage affecting production. The company’s reduced copper cost guidance therefore sits alongside an operating requirement to restore production reliability and maintain performance through the remainder of the year.
