Rio Tinto Group (ASX:RIO) expects production from its new Simandou mine in Guinea to lift its overall iron ore grades in the coming years, while the ramp-up of fellow resources firm BHP's (ASX:BHP) Samarco mine in Brazil could produce similar results, according to a Tuesday note by Argus.
Rio Tinto's average realized iron ore grade fell to a decade low of about 60.5% this year, data from its 2025 Capital Markets Day presentation show, but the company expects the high-grade Simandou mine in Guinea to increase its average product ore grades to around 61.7% by 2032, the note said.
Argus added that BHP is in a similar situation to Rio Tinto, as BHP's typical Australian ore grades have declined over recent years, dropping below 62%, but increased production at the higher-grade Samarco operations within the year likely supported overall ore grades.
BHP and Rio Tinto offset declining Pilbara ore grades in 2025 by selling more lump and fewer fines, helping sustain realized prices, but the shift reflects potentially temporary Chinese demand factors, making overseas mines a more reliable long-term offset than increased lump sales, Argus added.
Rio Tinto's and BHP's shares rose past 1% each in recent Tuesday trade.
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