Rio Tinto (ASX:RIO) will need additional copper projects beyond 2030, with UBS warning that the miner’s current development pipeline may not be enough.
In a note published last week, the Swiss bank said Rio’s existing projects are expected to support copper production growth only through the end of the decade.
Beyond 2030, UBS believes additional developments will be needed as global demand for copper continues to increase.
UBS identified the Los Azules mine in Argentina as an option — one of the world’s largest undeveloped copper deposits.
Rio already has exposure to Los Azules through its Nuton leaching technology business, which holds a 17.2% stake in project developer McEwen Copper following a US$100 million ($144 million) investment earlier this year.
Located in San Juan province, Los Azules is expected to begin production around 2030. A 2025 Feasibility Study outlines a 21-year mine life with average annual production of about 148,200 tonnes of copper cathode, rising to 204,800 tonnes a year during the first five years.
The project aligns with Rio’s strategy of expanding its copper business to supply growing demand from electrification, renewable energy, AI infrastructure, and data centres.
Rio has steadily increased its exposure to copper in recent years. Its largest development project is the Oyu Tolgoi underground mine in Mongolia, which the company expects will become the world’s fourth-largest copper producer once fully ramped up.
Another major development is the Resolution Copper project in Arizona, US, a joint venture between Rio and BHP Group (ASX:BHP).
Rio Tinto is a leading global mining group that focuses on finding, mining, and processing the Earth’s mineral resources.
Write to Jackson Chen at Mining.com.au
Image: McEwen Mining
