Rio Tinto has outlined its strategy to deliver returns by being a "stronger, sharper and simpler" company, including streamlining the firm into three business.

The British-Australian mining firm will look to unlock its full potential through a strategy that has introduced three strategic pillars to drive a change in performance and returns.

These include streamlining the firm into three business; iron ore, copper, and aluminium and lithium. These sectors will focus on productivity and leveraging best in class ore body knowledge.

Its other pillars are project execution, which will create new opportunities for organic growth, and capital discipline, which will see the firm continue to allocate capital and maintain a strong balance sheet.

The mining firm added that value is being delivered through immediate focus areas, with 7% production growth expected in 2025 and 3% compound annual production growth estimated in its outlook to 2030.

Chief executive at Rio Tinto, Simon Trott, said: "We are building from a position of strength for Rio Tinto's next chapter, sharpening and simplifying the business to deliver leading returns. We will drive performance through discipline, productivity and unmatched growth to unlock the full potential of our diversified portfolio of world-class assets.

"We are delivering strong early productivity benefits and cost savings with more to come. Freeing up cash from our asset base where it makes sense will strengthen the balance sheet and maintain returns, as we invest for the future with discipline.

"Our experienced leadership team is committed to delivering against our mission to become the most valued metals and mining company - for shareholders, the people who work with us, our partners and the communities around us."

The firm also announced that it is aiming for unit costs to fall by 4% between 2024 and 2030 and its EBITDA is estimated to increase by as much as 40% to 50% by 2030, driven by copper equivalent production growth of 20%.

Following the announcement, shares in Rio Tinto increased by almost 4%. This follows a 19% jump in its share price in the year to date.

Investment director at AJ Bell, Russ Mould, said that the mining sector has two types of leaders’ one hungry for an "empire building mentality" and the other with an eye on costs and efficiencies.

He concluded: "It’s clear in which category Rio Tinto’s new boss Simon Trott lies, as the company’s capital markets day announcement is all about numbers. He wants to simplify the business and ‘discipline’ looks to be his favourite word.

"In an industry renowned for overpaying for acquisitions and having volatile earnings, Trott’s management style might not be a bad thing. He is focused on increasing production, cutting costs and reviewing the asset portfolio. A lid is being put on capital expenditure.

"Rio Tinto should have learned from its mistakes of the past, and shareholders might now prefer a slow and steady approach compared to the grand days of old."

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