-- Rio Tinto (ASX:RIO) said the direct impacts of the Middle East conflict on its operations have been limited, while commodity prices have responded favorably, though it has relatively limited visibility of how the ongoing conflict will affect supply chains in the second half of the year, according to a Tuesday Australian bourse filing.
The company said it consumes about 1.6 billion liters of diesel annually, around two-thirds in the Pilbara, and that despite higher diesel prices steepening the cost curve, its cost position remains resilient, underpinned by scale and global supply chain leverage.
The company said that its vertically integrated value chain, with operations across the Americas, Asia Pacific, and Europe, has ensured security of supply to customers, with iron ore, copper, and lithium operations remaining largely unaffected with no material disruption to supply chains.
The company's shares rose 1% in recent Tuesday trade.