The Rio Tinto Ltd (ASX: RIO) share price is marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $114.92. In morning trade on Friday, shares are changing hands for $115.47 apiece, up 0.5%.
For some context, the ASX 200 is down 1.0% at this same time.
This comes as iron ore edged back above US$100 per tonne. And it follows on two separate multi-billion-dollar announcements from the miner.
Here's what's happening.
Image source: Getty Images
Rio Tinto share price lifts amid $1.8 billion development
Shortly before market close on Thursday, the Rio Tinto share price was in the spotlight after the company announced it would invest $1.8 billion to develop its Brockman Syncline 1 (BS1) mine project, located in Western Australia.
According to the release, BS1 will have the capacity to process up to 34 million tonnes per annum (Mtpa) of iron ore, leveraging existing plants. First ore is now scheduled for 2027 rather than 2028.
Construction of the project will kick off this year. Rio Tinto estimates 1,000 jobs will be created during the construction phase. Once operational, it said that BS1 will sustain a workforce of about 600.
Commenting on the $1.8 billion project development that could help support the Rio Tinto share price longer-term, Rio Tinto Iron Ore CEO Simon Trott said, "Brockman 4 produced 43 million tonnes of iron ore in 2024."
Trott added:
Securing this project extends the life of the Brockman hub. This is good for our business, good for Western Australia and good for the Australian economy.
Rio Tinto has been mining iron ore in the Pilbara for almost six decades and our tranche of new mines will ensure we can continue to supply the globe's ongoing need for iron ore, for decades to come.
ASX 200 miner completes $10.8 billion acquisition
The Rio Tinto share price could also benefit longer term from the company's US$6.7 billion (AU$10.8 billion) acquisition of Arcadium Lithium (ASX: LTM).
Rio Tinto first announced its acquisition intentions back on 10 October.
After market close on Thursday, the ASX 200 miner reported that the acquisition has completed following the sanctioning of the Scheme of Arrangement by the Royal Court of Jersey on 5 March.
Arcadium Lithium will now be renamed Rio Tinto Lithium, which will also include the Rincon lithium project.
Arcadium Lithium shareholders will receive $5.85 for each share held at the scheme record date.
Commenting on the completed deal, Rio Tinto CEO Jakob Stausholm said:
By combining Rio Tinto's scale, financial strength, operational and project development experience with Arcadium's Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations.
We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders.
With today's intraday boost factored in, the Rio Tinto share price is down 4% in a year.
