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Date : 06/04/2023

Rio Tinto (ASX: RIO) Shares Rise Following Announcement Of Copper Project Development

Rio Tinto Ltd (ASX: RIO) is a multinational mining company specialising in finding, mining, and processing various minerals, including aluminium, copper, diamonds, and iron ore.

The company operates on several continents and is one of the world’s largest mining companies. Rio Tinto Australia’s strong focus on sustainability and responsible mining practices has made it a leader in the industry. The company is committed to reducing its carbon footprint and minimising its environmental impact.

Despite some setbacks and controversies, Rio Tinto Limited has a strong track record of delivering value to shareholders and is expected to continue performing well in future years.

All eyes are on Rio Tinto Limited (ASX: RIO) as the RIO ASX share price takes centre stage today following the exciting announcement of the advancement of its Peru La Granja copper project. While Rio Tinto Limited has a strong reputation in the iron mining industry, it is also making significant strides in sustainable resources, including copper and lithium. The ASX:RIO news of the move towards “green resources” highlights the company’s commitment to responsible mining practices and aligns with the growing global demand for environmentally conscious business operations.

RIO: Rio Tinto Stock Performance Overview

The Rio Tinto share price has been steady in recent months, with a 3% increase since the beginning of 2023, remaining unchanged year-on-year. This is an impressive performance considering the current market conditions. The broader market ASX 200 index has also seen a 3% rise since the start of the year but has dropped 4% over the last 12 months. This ASX:RIO news and forecast shows that the Rio Tinto stock has been a stable investment option, outperforming the market during the ongoing volatility.

rio tinto asx shares news

RIO: Rio Tinto And First Quantum To Develop La Granja Copper Project In Peru

Rio Tinto Limited has partnered with First Quantum to establish a joint venture to develop the La Granja copper project in Peru. The La Granja deposit is one of the largest undeveloped copper deposits globally. It is a complex orebody located high altitude in Cajamara, Northern Peru. The project holds the potential to become a large, long-life operation, with a published Indicated and Inferred Mineral Resource totalling 4.32 billion tonnes at 0.51% copper.

The project has undergone significant drilling since Rio Tinto Ltd purchased it from the Peru Government in 2006, which has expanded the declared resource and the understanding of the orebody. The transaction is expected to complete by the end of Q3 2023, subject to regulatory approvals.

RIO: Costs And Funding

First Quantum will acquire a 55% stake in the project for $105 million and has committed to invest up to $546 million into the joint venture to “sole fund capital and operational costs to take the project through a feasibility study and toward development.” After completing the sole funding commitment, all subsequent spending will be applied between the two partners based on their ownership stakes in the project.

RIO: Implications For Rio Tinto

Rio Tinto Ltd’s diversification away from iron ore is a positive move, as it reduces risks and improves its long-term potential. The La Granja copper project is a complex undertaking, making the partnership with First Quantum a good idea, with them doing most of the starting work. Although this news alone may not be sufficient to buy Rio Tinto shares, it is still a step in the right direction for the company’s long-term prospects.

Final Thoughts

Rio Tinto’s venture with First Quantum to develop the La Granja copper project is a positive move for the company’s long-term prospects. This news of a partnership reduces risks and shares costs, and the project holds great potential. While the recent ASX:RIO news alone may not make Rio Tinto shares a buy, the move towards diversification is still a step in the right direction. As the RIO share price rise following the announcement of the La Granja copper project development, it is worth considering if the iron ore price falls below US$100 per tonne.

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