Rio Tinto bags Chinese supplies for global mining

If you peeked into Rio Tinto's global "shopping cart" for 2025, you wouldn't just find the usual mining essentials.

You would see a record-breaking $4.3 billion receipt from Chinese suppliers, a clear sign that the world's mining giant has gone from being China's "favorite rock salesman" to one of its most enthusiastic business partners.

Rio Tinto's recent-year purchase in China, including massive 230-metric-ton mining trucks and high-horsepower graders for the Simandou project in Guinea, cutting-edge 90-ton battery-swap electric haulers for Oyu Tolgoi in Mongolia, and specialized railway components for the Pilbara in Australia, is evidence that China has transitioned from being Rio Tinto's largest customer to an indispensable architect of its global supply chain ecosystem.

The relationship between China, the world's largest importer and consumer of iron ore, and Rio Tinto, the world's largest seaborne iron ore producer, has officially entered its "upgrade" era as global mining giants are leaning into China's high-tech manufacturing and rapid-fire innovation to power its mines across the world, said industry experts.

"Made in China" is now the high-tech heartbeat of the world's most ambitious industrial projects, said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

It is no longer just about sending iron ore from the red dust of Australia to the steel mills of China, he said.

"China is our largest customer and also a vital supply base for us," said Jamie Sanders, head of global procurement at Rio Tinto. "We clearly see the distinct advantages of the Chinese supply chain."

Sanders noted that the capabilities of Chinese suppliers in terms of rapid response and fast-paced innovation are unique on a global scale.

The engagement model with Chinese firms has evolved from a traditional buyer-supplier relationship into a "much closer partnership" focused on cocreating value across the company's international project portfolio, he said.

According to Rio Tinto, Chinese enterprises have played a foundational role in the construction of massive infrastructure abroad.

The company recently announced the first shipment of high-grade iron ore from the Simandou deposit to Rizhao Port in Shandong province, another cooperation project between Rio Tinto and Chinese partners, including China Railway 18th Bureau Group, China Harbour Engineering Co Ltd and Chinese construction machinery manufacturer XCMG Group.

While China Harbour Engineering provided critical equipment and services to support the construction, XCMG provided essential engineering services and heavy equipment to bridge the gap between the inland mines and the coast, it said.

The deal with XCMG also includes an 800 million yuan ($110 million) order for a complete set of core mining equipment, including dozens of 230-ton mining trucks and massive 350hp and 550hp graders that will be serving as the high-tech muscles Rio Tinto has selected to build a new global resource hub from scratch.

In addition, Rio Tinto also bought eight battery-swap electric haul trucks from China's State Power Investment Corp for its Oyu Tolgoi copper mine, which is on track to become the world's fourth-largest copper mine by 2030.

The surge in procurement underscores a strategic pivot for the Anglo-Australian miner, which has increasingly looked to Chinese engineering and equipment to support massive infrastructure developments, said Zhao.

By leveraging Chinese supply chain advantages, the company aims to enhance operational efficiency while accelerating its transition toward lower-emission mining technologies, he said.

While China has long been a major market for global mining giants thanks to its vast market size, major players including Rio Tinto, BHP and Vale are keen to purchase equipment from Chinese manufacturers, he added.

"The capabilities of Chinese suppliers in terms of rapid response and fast-paced innovation are unique on a global scale," said Sanders.

As China accelerates its development of new quality productive forces, Rio Tinto is standing right at the front of the line to catch those new opportunities, he said.

For Rio Tinto, the $4.3 billion spent in 2025 isn't the finish line — it's the new baseline. The company is now on a mission to dig even deeper into the Chinese market, looking for regional partners who can solve the next generation of mining puzzles.

"We need to have a more profound understanding of which regions and which partners in China we can collaborate with more deeply," Sanders said.

"By merging Rio Tinto's century of mining experience with China's relentless drive for new quality productive forces, the two are doing more than just moving rocks, but building a faster, greener and more connected version of the global mining industry — one $4.3 billion shopping trip at a time."

zhengxin@chinadaily.com.cn