RBC Upgrades Rio Tinto to Sector Perform, Trims PT

BHP requested mediation to delay a strike at its Escondida copper mine in Chile, involving 900+ workers. The union rejected BHP's offer, seeking higher pay and better conditions. A strike could impact copper supply and prices, affecting BHP (BHP) and Rio Tinto (RIO), both listed in NY.

Singapore's sovereign wealth fund GIC is considering a bid for Rio Tinto's infrastructure assets in Australia and Canada, valued at about $7 billion. GIC has engaged JPMorgan to assist with the potential bid, according to anonymous sources.

Vale's shares rose 2.3% to $13.76, and Rio Tinto gained 1.44% to $94.21 on Oct 2, 2026, despite weak Chinese steel demand. CSN Mineração cut its 2026 production target, supporting prices. China's steel output fell 3.7% YoY in August, but supply discipline offset demand concerns.

Rio Tinto has extended the operation of its Bell Bay Aluminium smelter in Tasmania until 2031, with Hydro Tasmania providing electricity. The agreement follows government support for energy-intensive metals assets, including a A$2.5 billion pledge for Tomago Aluminium. Bell Bay produces 190,000 tons of aluminium annually and supports around 1,750 jobs.

Rio Tinto and RevoCast have formed a long-term partnership to supply low-carbon aluminum billet in North America. Rio Tinto will market the product, combining its low-carbon primary aluminum with RevoCast's recycled aluminum. The Langley, British Columbia facility can produce over 80,000 tons annually, serving various industries. According to Rio Tinto, this partnership ensures a reliable supply for North American manufacturers.

Rio Tinto, the Tasmanian and Australian governments agreed to keep the Bell Bay aluminium smelter operating until 2031. The deal includes a five-year power supply agreement with Hydro Tasmania and a AU$200 million support package. The smelter produces 190,000 tons of aluminium annually and contributes AU$260 million to the local economy. Rio Tinto also recently acquired the Aurukun bauxite project in Queensland.