Copper Giants: The Untold Tale of Glencore and Rio Tinto's Mining Merger Talks

Glencore and Rio Tinto held merger discussions last year to combine their copper production efforts, potentially forming the largest entity in the mining industry. However, the talks are no longer active. The focus on copper, a crucial market resource, underscores the companies' importance and standing within the sector.

Glencore and Rio Tinto, two giants of the mining industry, engaged in merger talks last year with the aim of consolidating their copper production, according to a source familiar with the discussions. Although the talks have since stalled, such a merger could have created the largest entity in the mining sector.

Glencore, listed in London, produces a diverse range of metals including copper, zinc, and cobalt, with operations spanning Chile, Peru, and the Democratic Republic of Congo. It generates significant revenue from copper, with a production of 1 million metric tonnes in 2023 and substantial profits complementing its $55 billion market value.

Rio Tinto, known as the world's second-largest miner, also has a strong focus on copper. With significant operations in Western Australia and plans to ramp up production in Mongolia, Rio Tinto sees an estimated annual production rate of 500,000 tonnes of copper from 2028 to 2036. The company boasts a market valuation of $103 billion and impressive annual profits.

(With inputs from agencies.)