Glencore and Rio Tinto strike gold on high commodity prices
Rio Tinto and Glencore have posted near-record updates thanks to this year’s sky-high commodity prices and the uncertainty wrought by the Middle East conflict.
Mining juggernaut Rio Tinto notched a 43 per cent jump in profit over the first six months of the year, pointing to persistently elevated metals prices and the ambitious efficiency programme it launched in 2025.
Glencore – the world’s largest miner that also boasts an enormous commodity trading arm – said its trading division made $2.9bn (£2.4bn) between January and July, putting it on track to eclipse its annual record $6.4bn haul in 2022. The wider company generated close to $3.5bn, nearly beating its forecast for the full year in just six months.
Rio Tinto boss Simon Trott hailed what he said was “step-change performance” so far this year, pointing to the 75 per cent jump in free cash flow as signs the productivity drive was bearing fruit.
Both firms, which earlier year were poised to join forces in a $260bn megamerger before the pair abandoned talks in February, have benefited from the twin tailwinds provided by the artificial intelligence roll-out and electrication drive.
Both megatrends have have prompted enormous rises in the spot price of base metals like copper and precious metals like silver. Copper prices have risen by more than 66 per cent since 2023 despite mining juggernauts racing to bolster supply.
Glencore and Rio both posted higher production. The former posted a 15 per cent jump in copper output having set out a plan nearly to double its annual production of the red metal in the next decade. Output at Anglo-Australian juggernaut Rio rose by three per cent year on year.
Volatility caused by the Iran war was the core force contributing to Glencore’s near-record half for its marketing division, which specialises in trading commodities. The whipsawing of developments in the Middle East led to higher trading volumes, acting as a major leg up for the Swiss firm. Shares popped more than 4.4 per cent at market open in London.
Boss Gary Nagle pointed to higher production volumes in zinc, nickel and gold as helping the miner’s “strong production performance” in the first six months.