The world-leading mining company that is the world’s biggest, Rio Tinto, faces a huge challenge as the mining boom in Asia continues to drive up costs.
Rio Tinos shares have lost about 10% of their value over the past year.
The Rio Tins are the largest private mining company in Australia and are based in the South Australian city of Adelaide.
They employ about 4,500 people and mine more than $40 billion worth of copper and gold each year.
Rio’s shares fell to $16.45 on Thursday after it announced its first quarterly loss of more than a billion dollars.
It has also reported a $6.8 billion loss in its latest financial year.
It was the third consecutive quarter of losses for Rio, which also includes a $2.6 billion write-down of its stake in Rio Tinas iron ore business.
Rio is facing the prospect of being forced to sell assets, or even close down altogether, as its share price continues to slide.
“We have some difficult decisions ahead for us and we are working hard to achieve a resolution that is in the best interests of our shareholders,” Rio chairman Greg McLeod said in a statement.
Rio said its copper and iron ore businesses were expected to post a net profit of $3.3 billion in the first half of the financial year, down from a forecast of $6 billion.
“Our mining operations in China and India are providing us with growth opportunities in emerging markets,” Mr McLeod added.
Rio’s losses come after Rio Tino reported an adjusted loss of $4.6 million, or 8 cents per share, for the first quarter. “
While we are focused on our core business, we recognise that the world continues to change, and this is something we need to adapt to.”
Rio’s losses come after Rio Tino reported an adjusted loss of $4.6 million, or 8 cents per share, for the first quarter.
Its net income fell from $3 billion to $2 billion, or 1 cent a share, due to a $5.5 billion writedown of its copper business.
The company has also suffered a drop in revenue from mining projects in India, which have been the largest drivers of its operating profit.
The loss is a setback for the company, which was once viewed as a safe haven for investors looking to buy gold in Australia’s mining boom.
The downturn is likely to hit Rio Tines shares as it looks to sell some of its assets.
Rio shares are down 10% since the start of the year.
The company said its coal business has posted a loss of 1 cent per share.
Rio also reported its second quarterly loss in three years, falling from $2 to $1.9 billion.
It is also losing money from mining leases in India and South Africa.
Rio, the world champion in mining in Asia, has a long history of mining assets in China, India, and South Korea.
The world mining industry in Australia has exploded in the past decade, with new discoveries and mines in Indonesia and Thailand.
Rio has also invested in copper mines in Australia, South Africa, India and the United States.
Rio was set to open a mine in South Africa in 2021.