...Competitive Cost Position: Most of Rio Tinto Plc/Ltd's (RT) mines are strongly positioned in the first and second quartiles of their respective global cost curves in 2017 according to CRU's cost model. RT's iron ore mines in Western Australia are among the lowest cost, and most had business costs between USD25/t and USD35/t. Most of RT's copper production comes from Escondida, which is well positioned in the second quartile of the cost curve, although CRU expects costs to increase in line with declining grades. CRU models costs for Oyu Tolgoi, which sits higher up the cost curve, to decline after 2018 but to remain above USD4,000/t. RT is the largest global producer of bauxite and the second-largest producer of aluminium, according to CRU. Most of its smelters were strongly positioned in the first quartile of the global aluminium cost curve in 2017. Improved Leverage Profile: Fitch Ratings expects RT's funds from operations (FFO) gross adjusted leverage to further decrease at end-2017 to...
