New Phase of Competition in Iran and Global Mining / Iron Ore Giants Unlock Capital from Operations to Protect Profits

Global mining giants, facing rising operating costs, volatile raw material prices, and shifting investment priorities that have made cash-flow management a central axis of competition in the industry, are seeking to free up capital from existing assets and boost operational efficiency.

According to Ambassador Arjan, this process is particularly important for the global iron ore market and steel exporters, including Iran; Because the investment decisions of mining giants can affect the supply capacity, production cost and competition in the global steel chain.

Rio Tinto's latest move to release 5-10 billion dollars of capital is an example of the changing approach of the world's iron ore giants; A strategy that, along with maintaining the profitability of current activities, provides more financial resources for development projects with higher returns.

Freeing up billions of dollars of capital

In its latest quarterly performance report, Rio Tinto announced that it has released more than $2 billion in capital since the beginning of 2026 and is still on track to release $5-10 billion in capital. This program, which has been on the agenda since 2025, is followed with the aim of optimally managing the portfolio of assets and financing projects with higher returns.

According to this company's report, Rio Tinto's global sales of iron ore reached 90.8 million tons in the third quarter of 2026 with a growth of 3% compared to the same period last year. Pilbara iron ore sales also increased by 2%. This performance shows that freeing up capital does not necessarily mean withdrawing from core activities; Rather, large mining companies are trying to increase their financial power to develop more profitable activities by increasing the productivity of existing assets and reviewing the allocation of resources.

Rio Tinto has previously emphasized the need to improve productivity, control costs and disciplined capital management. In the first half of 2026, this company increased its free cash flow by 75% to 3.834 billion dollars; A figure that, along with a 32% increase in operating cash flow, strengthened the company's capacity to finance development projects and maintain shareholder returns.

Why have mining giants turned to capital liberalization?

Capital liberalization in the mining industry should not be limited to selling assets or cutting costs. This approach is part of the effort of large companies to increase investment returns, reduce unnecessary costs and transfer financial resources to projects that generate more profit in the long term.

Mining projects require heavy initial investment, transportation infrastructure, specialized equipment, and a long time to reach production capacity. In such a situation, inappropriate capital allocation can create a significant opportunity cost for the company; Especially when new projects in areas such as copper become investment priorities, given the demand outlook from electrification and energy infrastructure development.

Along with iron ore activities, Rio Tinto also pursues the development of copper and lithium projects. Therefore, freeing up capital from existing assets allows the company to provide more financing for new projects without relying entirely on raising debt.

Of course, this strategy does not mean reducing the importance of iron ore in the company's portfolio. Iron ore is still one of Rio Tinto's main sources of income and cash flow, and the performance of this segment can enable the financing of other activities.

cost pressure; The common challenge of large manufacturers

Along with the change in investment priorities, the increase in operating costs has also led mining companies to review their cost structure.

Reports published in October 2026 indicate increasing pressure on wages, fuel and operating costs in Australian mines. In such an environment, even companies with high production volumes and high-quality assets must increase productivity to maintain profit margins.

In the same framework, BHP has emphasized on improving productivity and controlling operational costs. In the performance report of the financial year ending June 2026, the company announced that despite the pressures caused by inflation, the increase in diesel prices and the disruption in the global supply chain, it was able to strengthen its production performance and achieve a record production of iron ore.

However, increased production alone does not guarantee profit growth. If the cost of extraction, transportation and processing increases faster than the income from sales, the profit margin of the companies will be under pressure. For this reason, cost management and targeted investment have become more important along with increasing production.

The effect of mining giants' strategy on the global iron ore market

The decision of large companies to increase productivity and release capital can affect the iron ore market in several ways.

First, improving the productivity of existing mines may provide the possibility of maintaining or increasing production without the need for proportionate investment in new capacity. If this trend is realized on a large scale, the supply of iron ore can increase even in the conditions of limited new investment.

Second, the transfer of capital to new projects may change the composition of global mineral supply in the long run. New iron ore projects, including the Simando project in Guinea, along with the capacity of large producers based in Australia and Brazil, could affect competition in the global market.

Third, increasing financial discipline in large mining companies may lead to lower production costs and strengthen their competitive position. Of course, the effect of these factors on the price of iron ore depends on other variables such as China's steel demand, crude steel production status, port inventory level and transportation cost.

Therefore, the liberalization of capital by itself does not mean a decrease in the price of iron ore. To evaluate the final effect of this strategy on the market, it should be determined how the freed resources will be consumed, how much new capacity will enter the circuit, and in which direction the demand of the main consumers will move.

The importance of global developments for Iran's steel exports

For Iran's steel industry, changing the investment strategy of mining giants is important because the competition in global markets is not limited only to the selling price of the final product; The cost and access to raw materials also play a decisive role in the competitive power of steelmakers.

If increased productivity at the world's major mines leads to lower iron ore production costs and supply continuity, steelmakers with cheaper raw materials and more efficient supply chains may gain a better competitive position. On the other hand, if capital liberalization leads mainly to the development of new projects and the increase of supply capacity in the coming years, the competitive pressure on steel producers and exporters can increase.

For Iran, the review of these developments should be done taking into account the specific conditions of the country's steel production and export. The cost of energy, transportation, trade restrictions, access to export markets and exchange rate fluctuations all play a role in determining the competitiveness of Iranian steel products.

On the other hand, increasing the supply of iron ore in the world market does not necessarily mean a proportional decrease in the price of steel products; Because the price of steel, in addition to the cost of raw materials, depends on the state of global demand, production capacity, commercial policies and competition conditions among exporters.

As a result, in addition to monitoring the price of iron ore, Iranian exporters should also follow the investment developments of large companies such as Rio Tinto and BHP. The development process of new projects, changes in production costs and the amount of export supply of these companies can be useful for evaluating the conditions of competition in regional and global markets.

Does capital liberalization mean a reduction in investment?

The important point in the analysis of this trend is the distinction between reducing unnecessary costs and withdrawing from the development of production capacity. Capital release can be done with the aim of selling low-performing assets, improving productivity or financing new projects; Therefore, without examining the details of each company's investment plan, it cannot be considered as a sign of a decrease in production or supply of iron ore.

In the case of Rio Tinto, the capital release program is being followed along with the continuation of iron ore activities and the progress of development projects. This shows that the main goal is to access more financial resources and increase the yield of the asset portfolio.

However, the ultimate effect of this policy on the market depends on how resources are allocated. If the freed capital is spent on low-cost and high-yield projects, the company can strengthen its position in the market while maintaining cash flow. But if operating costs increase or new projects face delays and unexpected costs, financial goals will become more difficult to achieve.

The strategy of the mining giants to free up capital is a reflection of the change of approach in the management of large mining businesses; An approach where increasing production alone is not enough and capital return, cost control and cash flow generation power are also very important.

Rio Tinto's experience shows that large companies try to provide more financial resources for development projects by actively managing assets. However, the impact of this trend on the global iron ore market and Iran's steel exports will depend on how the freed capital is used, the supply growth rate, China's demand conditions, and cost developments in the steel chain.

For Iranian exporters, the main message of these developments is the need to simultaneously pay attention to the price of raw materials, production efficiency and the total cost of exports; Factors that can play a role in determining the market share as much as the selling price in the competitive steel market.