Rio Tinto Charts New Course with Asset Sale and Green Power Milestone

Rio Tinto plans a $2B Borax sale to focus on core metals, while its South African solar farm cuts emissions. Strategic moves drive shares to a 52-week peak.

Rio Tinto is reshaping its portfolio with a major divestment and a significant renewable energy achievement, driving its shares to a new peak. The mining giant is preparing to sell its Borax operations in California, a deal that could fetch around $2 billion, while its South African subsidiary has powered up one of the continent's largest dedicated solar farms.

The sale of the California boron assets, which supply nearly a third of the world's refined boron, marks a strategic shift under CEO Simon Trott. The company is streamlining its portfolio to concentrate on core commodities like iron ore, copper, and aluminum. A diverse field of over a dozen bidders has emerged, including global soda ash producer WE Soda, Magris Resources Inc., and Apollo Global Management's US Silica Holdings. Binding offers are expected by June 2026.

Simultaneously, Rio Tinto's Richards Bay Minerals unit has brought the 148-megawatt Bolobedu Solar Farm in South Africa's Limpopo province fully online. The facility, ranking among the country's largest single-user solar parks, will generate approximately 300 gigawatt-hours of electricity annually under a 20-year power purchase agreement. This initiative is projected to cut the operation's greenhouse gas emissions by at least ten percent, saving over 237,000 tonnes of CO? equivalent each year.

The solar project is a cornerstone of a broader renewable portfolio designed to slash Richards Bay Minerals' Scope 1 and 2 emissions by roughly 60 percent from a 2018 baseline. In a parallel move to expand its green energy footprint, Rio Tinto has partnered with the International Finance Corporation to develop "Power-to-Mine" projects across Africa, aiming to connect more mining operations to renewables, storage, and hybrid solutions.

Beyond environmental impact, the Bolobedu project has delivered social benefits. Construction employed about 800 local residents from three communities, with 56 percent of workers being youth and 21 percent women. International partner Voltalia notes it is the region's first large-scale renewable energy project financed entirely by female investors.

On the commodity front, Rio Tinto and Century Aluminum recently pushed US aluminum premiums higher by approximately twelve percent. This increase is a direct response to supply disruptions in the Persian Gulf, which have impacted about 20 percent of US aluminum imports. The tightening supply drove the US Midwest premium to a record $1.1325 per pound.

These strategic and operational developments have fueled investor optimism. Rio Tinto's stock notched a new 52-week high of €102.90, having surged about 49 percent since the start of the year and more than doubling from its low in June 2025. Shareholders have a near-term payout to anticipate, with the final dividend for 2025 set for distribution on April 16, 2026, at 254.00 US cents per share (equivalent to 191.77 pence based on April 7 exchange rates).

Attention will soon turn to operational performance, with first-quarter 2026 production results due on April 20. Analysts will focus on the ramp-up of copper output at the Oyu Tolgoi mine and the impact of Tropical Cyclone Narelle on iron ore shipments from the Pilbara region early in the quarter. The potential $2 billion influx from the boron sale adds another layer of strategic interest, with funds likely earmarked for copper acquisitions, share buybacks, or enhanced shareholder returns.