The Rio Tinto Limited (ASX: RIO) share price is charging higher in early afternoon trade, up 3.2% to $100.06 per share.
The broader S&P/ASX 200 Index (ASX: XJO) is in the green as well, up a more modest 1.42% at this same time.
Today’s gains will come as welcome news to shareholders who’ve seen the Rio share price struggle over the past 2 months. We take a brief look at that below, but first…
What’s this about critical minerals?
When you think about Rio Tinto, you likely think of iron ore. And for good reason. The company is one of the world’s top producers of the key steel-making ingredient.
But the ASX 200 mining giant also produces a range of other metals including aluminium and copper.
It’s this copper production that has Rio’s CEO, Jakob Stausholm, engaging his company in talks with the White House in the United States.
Why?
To explore the potential to process critical minerals from the copper waste produced at its mining plant in the US state of Utah.
These minerals are crucial to the production of numerous tech items, and vital to many military applications. Yet, as it stands, China has a near monopoly on many of these minerals, potentially putting the US in a rather sticky situation.
Stausholm said that his company has been engaged in talks with the White House to secure US-based critical mineral manufacturing capabilities.
As Bloomberg reports, “the company is currently figuring out ways to extract up to 10 so-called critical minerals from copper waste”.
Stausholm told Bloomberg:
There are a lot of by-products coming from copper production. It’s an area that’s had very little focus in the US and if we put some focus on it, I do see some opportunities.
Rio share price snapshot
The Rio share price has been under pressure this year, with strong headwinds coming from a steeply falling iron ore prices.
Rio’s shares remain up 6% over the past 12 months. But Rio’s share price has fallen sharply over the last 2 months, down 25% since 30 July.
The ASX 200 is down just over 1% in that same time.
The post Rio Tinto (ASX:RIO) share price lifts as CEO eyes critical minerals expansion appeared first on The Motley Fool Australia.
Should you invest $1,000 in Rio Tinto right now?
Before you consider Rio Tinto, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rio Tinto wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
- How China’s energy crisis could be good for BHP (ASX:BHP) and Rio Tinto (ASX:RIO)
- ASX 200 (ASX:XJO) midday update: Fortescue jumps, Wesfarmers dealt takeover blow
- Here’s why the Rio Tinto (ASX:RIO) share price is down 20% in 3 months
- 5 things to watch on the ASX 200 on Monday
- Is this ASX 200 miner one of the best value shares to buy today
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3kToADp
Leave a Reply