Rio Tinto, Almonty Industries, Energy Fuels – Markets Hesitate, but Demand for Raw Materials Is Growing

Rio Tinto: Copper Production Gathers Momentum

While commodity stocks are under pressure on the stock market, Rio Tinto is delivering operational progress. The Anglo-Australian mining giant reported new production figures last week. The copper business performed particularly strongly. At the Oyu Tolgoi mine in Mongolia, production rose 27% year on year in the third quarter. Over nine months, the increase was as much as 29%. During the quarter, the mine reached an annualised production rate of around 450,000 tonnes of copper.

Rio Tinto is also making progress in other commodities. Global iron ore sales rose 3% to 90.8 million tonnes in the third quarter. The Simandou project in Guinea reached an annualised production rate of around 10 million tonnes. Capacity is expected to rise to 60 million tonnes by the second half of 2028.

Lithium offers additional growth opportunities. In the first nine months, Rio Tinto's production rose by 33%. The group is therefore expanding its position in a growth market likely to benefit from long-term battery storage expansion.

At the same time, Rio Tinto is working on its cost structure. By the end of 2026, management is targeting an annual productivity contribution of USD 1.8 billion. The current correction on commodity exchanges therefore does little to alter the operational progress.

Almonty Industries: Next Milestone Reached

The recent correction in commodity stocks has also affected Almonty Industries. After a strong share price rally and an all-time high of USD 24.41, profit-taking and fluctuating metal prices put pressure on the stock, driving a decline of almost 60% to the current USD 9.83. By contrast, the Canadian tungsten specialist's long-term prospects remain intact; indeed, they have improved significantly in recent weeks.

In the CEO newsletter dated October 11, Lewis Black announced that the first commercial tungsten shipment from the Sangdong mine in South Korea is scheduled to be shipped on October 24. After 33 years of inactivity, the mine is back in operation. According to Black, the grinding circuit is already operating at full throughput, and the recovery rates achieved are in line with expectations. Even technical problems affecting three water treatment pipelines have now been resolved.

Almonty also confirmed that the second development phase is already under way and fully funded. By 2027, annual processing capacity is expected to increase to up to 1.2 million tonnes. This could enable annual production of more than 460,000 MTUs of tungsten, making Sangdong one of the largest tungsten mines outside China.

In addition, the company is planning a facility in South Korea to further process tungsten concentrate into APT and oxides. Construction is targeted to begin in 2027. Almonty is also advancing beyond its major project in South Korea. In Rwanda, starting in November, more than 100 tonnes of tungsten material per month will be shipped.

Management sent another signal with share buybacks. By the end of September, Almonty had repurchased 2,914,739 shares for around USD 48 million.

The outlook therefore remains promising. While China dominates the tungsten market, Almonty is expanding its production and processing capacity outside China.

Energy Fuels: America's Answer to China's Commodity Dominance

Energy Fuels is working to eliminate one of the biggest weaknesses in America's raw material supply. The US group has traditionally operated in the uranium sector, but is increasingly building a second business in rare earths. The focus is on the White Mesa facility in Utah, which can process both uranium and certain rare earths.

Progress was reported in heavy rare earths. For the first time, Energy Fuels succeeded in producing high-purity terbium oxide from American raw materials. Previously, the company produced dysprosium oxide with 99.9% purity. Both metals are critical for high-performance permanent magnets. These are used in electric vehicles, robots, drones and military applications, among other things.

Energy Fuels is positioning itself in a market that has long relied heavily on Chinese supply chains. The US aims to reduce this dependence and is increasingly supporting the development of its own raw materials industry through government programmes and strategic initiatives.

The expansion plans are ambitious. As early as 2027, an expanded processing facility could enter operation, provided that permits and sufficient quantities of raw materials are available. Annual capacities of up to 35 tonnes of dysprosium, 12 tonnes of terbium and 850 to 1,000 tonnes of neodymium-praseodymium oxide are planned.

Over the long term, Energy Fuels is planning a further expansion phase. From 2029, capacity could rise to more than 6,000 tonnes of neodymium-praseodymium oxide annually. However, this would require substantial investment and additional raw material supplies.

Conclusion

Rio Tinto is expanding its copper and lithium production, while Energy Fuels is working on an American supply chain for rare earths. Almonty Industries has already taken a decisive step with the start of production at Sangdong. The recent stock market correction does show how volatile commodity stocks remain. Yet long-term demand for strategic metals continues to grow. Companies with their own production capacity, secure supply outlets and access to critical raw materials could benefit in particular.