London, March 3, 2026, 09:02 GMT — Regular session
- Rio Tinto shares dropped over 2% at the open in London trade.
- A miner has restarted its $473 million mineral sands project in South Africa.
- Canada has thrown its support behind Rio’s gallium pilot, as the West hunts for alternative supply sources.
Rio Tinto Plc dropped 2.1% to 7,181 pence as London opened Tuesday, with shares sliding 155 pence from their previous 7,336 close. Heavyweight miners saw losses across the board.
European stocks slid further, weighed down by worries over a prolonged conflict in the Middle East and the impact of rising energy prices. Early trading saw the pan-European STOXX 600 off by 1.3%, according to Reuters.
Oil and gas shipping rates have jumped to all-time highs as tanker movement through the Strait of Hormuz has ground to a near halt—a crucial chokepoint for global energy shipments. Roughly a fifth of the world’s oil supply typically moves through the strait, according to Reuters.
Rio gave the green light on Monday for Richards Bay Minerals’ $473 million Zulti South mineral sands project in South Africa—signing off six years after shelving the development amid local unrest. Construction is due to kick off in the first quarter of 2026, with initial commercial output targeted for the last quarter of 2028, according to the company. “The decision to proceed also reflects improved security conditions and strengthened community partnerships,” said managing director Werner Duvenhage. Reuters
Rio announced late Monday that it secured conditional approval from the Canadian government for a non-repayable grant of up to C$18.95 million backing its gallium metal R&D project. The miner aims to set up a pilot plant in Saguenay capable of producing as much as 4 tonnes per year, targeting a 2027 launch. “Extracting gallium from our existing refining process would create additional value,” said Jerome Pecresse, Rio’s aluminium and lithium chief. The company noted that scaling up to a commercial facility could push output to 40 tonnes annually, or roughly 5% of global supply. Reuters
Fresh project news hasn’t really shifted Rio’s status; the stock remains tied to the industrial cycle, which is really all about China. Reuters flagged a snag: Chinese steel exports to the Middle East are getting caught up in the conflict, with tougher insurance and booking for shipments through Hormuz prompting exporters to hold off on offers.
Rio shares slipped in Australia on Tuesday, dropping with BHP and Fortescue after the Reserve Bank kept rates steady and investors digested Middle East tensions, according to local media.
Oil’s proving to be a key swing factor for sentiment. Citi, according to Reuters, is calling for Brent crude to stick mostly in the $80 to $90 range per barrel over the next week or so, but said a fall toward $70 could happen if tensions cool off.
Still, persistent fuel and freight expenses have investors on edge about the risk of stubborn inflation and shakier growth—a tough mix for miners linked to manufacturing and construction sectors. According to Reuters, Europe’s move away from Russian energy following Moscow’s invasion of Ukraine has pushed the region to lean more heavily on Gulf suppliers.
At this point, Rio’s price is moving more in response to oil swings, shipping rates, and shifts in risk appetite than to the long timelines of its big projects. If Chinese steel prices or production take a dip, the sector could feel the impact almost immediately.
Up next on the company front: Rio’s dividend schedule. According to Fidelity, shares go ex-dividend March 5. Investors holding at the close of trading that day qualify for the next payout, which lands April 16.
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