Why are Rio Tinto shares on the rise?
The iron ore miner’s shares rallied over 2% after it revealed plans to lower carbon steel emissions.
![rio tinto stocks share price target ratings analyst trade live chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG_rio_tinto_34234234.jpg/jcr:content/renditions/original-size.webp)
- Rio Tinto (ASX: RIO) share price closed over 1% higher on Thursday (14 October)
- The mining company unveiled a new technology with the potential of lowering carbon emissions in the steel value chain
- The stock is down some 4% in the last one month, amid falling copper prices
- Keen to take advantage of Rio Tinto’s rising share price? Open an account with us to long the stock now.
Rio Tinto stock price: why is it up?
Rio Tinto shares rallied as much as 2.3% on Thursday, after announcing that it is developing an innovative new technology that will be able to deliver low-carbon steel.
The iron ore miner hopes that the technology, which uses sustainable biomass in place of coking coal in the steelmaking process, could become a cost-effective option in cutting industry carbon emissions in the future.
Over the past decade, Rio Tinto has developed a laboratory-proven process that combines the use of raw, sustainable biomass with microwave technology to convert iron ore to metallic iron during the steelmaking process.
The patent-pending process, one of a number of avenues the company is pursuing to try to lower emissions in the steel value chain, is now being further tested in a small-scale pilot plant.
If this and larger-scale tests are successful, there is the potential over time for this technology to be scaled commercially to process Rio Tinto’s iron ore fines.
‘We are encouraged by early testing results of this new process, which could provide a cost-efficient way to produce low-carbon steel from our Pilbara iron ore,’ said Rio Tinto Iron Ore Chief Executive, Simon Trott.
‘More than 70 per cent of Rio Tinto’s Scope 3 emissions are generated as customers process our iron ore into steel, which is critical for urbanisation and infrastructure development as the world’s economies decarbonise. So, while it’s still early days and there is a lot more research and other work to do, we are keen to explore further development of this technology.’
Read more: Beginner’s guide to day trading
How do analysts view RIO?
The ASX-listed RIO counter has fallen around 4% in the last one month, thanks in part to declining copper prices. It has tumbled about 13% on a year-to-date basis.
As of last week, eight analysts said the shares were a ‘buy’, seven suggested ‘hold’, and only one gave a ‘sell’ call, according to Bloomberg data.
Their average 12-month target price stood at A$119.13 per share, which equates to a potential 18.5% upside based on the stock’s closing price.
Macquarie recommended ‘outperform’ alongside an A$148 target on 01 October, while Bernstein rated RIO ‘market perform’ with an A$127 target.
Feeling bullish or bearish about Rio Tinto shares?
Take your position on Rio Tinto and over 16,000 Australian and international shares via CFDs and trade it all seamlessly from one platform.
Learn more about trading share CFDs with us, or open an account to get started today.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.