Rio Tinto releases Q1 2026 production results

Rio Tinto reported a 1% year-on-year increase in aluminium production for the first quarter of 2026, reaching 835,000 tonnes.

While alumina production rose by 6%, bauxite output fell by 11% due to weather disruptions at Weipa and Gove (Australia), including the impact of Cyclone Narelle.

Despite these impacts, production guidance remains unchanged.

Regarding market conditions, Rio Tinto said the Middle East conflict has removed considerable ex-China aluminium supply.

With smelter curtailments in the region, which accounts for 23% of ex-China production, there are expectations of an enhanced global deficit in 2026.

Logistics and bauxite supply disruptions, specifically involving the Strait of Hormuz and war risk insurance, lifted seaborne freight costs and China bauxite CIF prices toward the end of the quarter.

Consequently, LME aluminium prices reached nearly four-year highs in March, while the US Midwest duty-paid premium hit a record $2,523/t.

Australian FOB alumina price remained subdued due to weaker Middle East alumina demand and higher output in Indonesia and China.

In operational developments, Rio Tinto reported strong performance in alumina as Queensland Alumina Limited (QAL) is now 100% owned.

In the aluminium sector, the Kitimat smelter in Canada continued its ramp-up following improved power supply, and New Zealand's Aluminium Smelter (NZAS) maintained high production rates.

Operational transitions at the Arvida smelter in Québec, Canada, progressed in March with the closure of one potline as part of a planned phase-out.

At the same time, the new AP60 expansion achieved first hot metal and began commissioning.

The investment includes up to $113 million of financial support from the Quebec government.

While the project is expected to be fully ramped up by year-end, gross costs have risen from approximately $1.3 billion to $1.5 billion, due to challenges in construction productivity.

Additionally, Rio Tinto secured a A$2 billion joint funding package from the Australian and Queensland Governments to extend operations at Boyne Smelters (BSL) until at least 2040.

Furthermore, the company is progressing with its Arctial project to study a low-carbon greenfield opportunity in Finland, using its AP60 technology.