Rio Tinto faces $530m diesel cost hit from Middle East conflict
Summarised from 2 outlets · 3 reports · Updated 14 Oct, 03:03 · Archive
Rio Tinto says diesel price spikes linked to Middle East tensions could add $530 million to its full-year costs of mining in the Pilbara. The company stated that elevated fuel prices had increased unit costs at its Pilbara mines by $US90 cents a tonne so far in 2026. Assuming a $175 per barrel oil price for the final three months of the year, unit costs could rise by $US1.10 per tonne, adding about $534 million to full-year expenses if production reaches the top end of guidance.
Rio noted that higher oil prices create a competitive advantage for its Pilbara operations. As shipping costs rise for long-distance exports, rival iron ore producers like Brazil face reduced demand. Rio said long-haul iron ore shipments outside Western Australia and its Simandou complex in Guinea declined by an estimated 8 per cent month on month in September. The company said operational impacts from the Middle East conflict remained limited overall.
Rio sold 85.7 million tonnes of iron ore from the Pilbara in the third quarter, up 2 per cent from a year earlier and ahead of analyst expectations. The company maintained its 2026 sales forecast of 323 to 338 million tonnes and said it is on track to release about $US5 billion in capital by the end of 2026 under an optimisation programme.
How it is being reported
- Rio Tinto eyes $A7b capital release, iron ore sales upRio Tinto says it sold 85.7 million metric tonnes of iron ore from WA's Pilbara in the third quarter, a rise of two per cent from a year earlier.Perth Now · 14 Oct, 02:24
- Rio Tinto eyes $A7b capital release, iron ore sales upRio Tinto says it sold 85.7 million metric tonnes of iron ore from WA's Pilbara in the third quarter, a rise of two per cent from a year earlier.The West Australian · 14 Oct, 02:24
- Rio Tinto faces $530m hit on Pilbara iron ore costs from Middle East war-fuelled diesel price spikeThe price of diesel could add more than $500 million to Rio Tinto’s full-year costs of mining in the Pilbara, with no signs of an end to the US war with Iran that has roiled energy prices since February.The West Australian · 14 Oct, 00:06
In this story: Rio Tinto · Pilbara · Middle East · China · Brazil · Guinea
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