Global mining companies are facing rising demand for strategic metals alongside persistent supply constraints, prompting major groups to explore scale and portfolio expansion. In this context, a merger between Rio Tinto and Glencore could create the world’s largest mining company.
According to Ecofin Agency, Rio Tinto and Glencore confirmed this week that they have begun preliminary discussions regarding a possible combination of some or all of their businesses. Both companies emphasised the exploratory nature of the talks and stated that no firm offer exists at this stage, either in principle or in structure.
In separate statements, the groups noted that there is no certainty the discussions will lead to a transaction and that any potential deal would be subject to strict regulatory approval.
Glencore said the scenario under consideration would involve its acquisition by Rio Tinto through a court-approved scheme of arrangement, a structure commonly used in UK transactions. Rio Tinto confirmed the discussions and said it reserved the right to adjust the form and composition of any potential consideration if it proceeds with an offer.
Under the current regulatory framework, Rio Tinto has until February 5, 2026, at 5:00 p.m. London time, to announce either a firm intention to make an offer or a decision not to proceed.
The discussions come amid growing investor focus on copper and other metals critical to electrification, energy infrastructure, and the energy transition. Sustained copper price gains and concerns over global supply growth have increased the strategic value of large-scale mining assets.
In this environment, consolidation has emerged as a tool to secure volumes, share capital-intensive investments, and strengthen resilience against volatile commodity cycles.
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For comparison, Canada’s Teck Resources and the UK’s Anglo American have spent several months pursuing a merger aimed at creating one of the world’s five largest copper producers, with a market capitalization exceeding $50 billion.
Jefferies analysts told Reuters, “The structure of a potential merger between these two groups remains uncertain and would likely be complex, but we believe a path exists toward significant value creation for both parties.” Reuters added that a deal could create “the world’s largest mining group, with a combined market capitalization close to $207 billion.”
Both Rio Tinto and Glencore operate diversified and potentially complementary portfolios, including significant African exposure. Glencore is among the leading copper and cobalt producers in the Democratic Republic of Congo, holding stakes in several mining complexes in the country’s south.
In 2024, combined copper output from its Kamoto Copper Company and Mutanda mines reached 224,500 tonnes, while cobalt production totaled 35,100 tonnes.
Rio Tinto operates in Guinea in bauxite and iron ore, where its Simandou project, which entered production in late 2025, ranks among the world’s largest iron ore developments. The group also has operations in South Africa and Madagascar through mineral sands and ilmenite activities.
In December 2025, Rio Tinto announced plans to raise between $5 billion and $10 billion through a portfolio review aimed at divesting non-strategic or underperforming assets and refocusing on iron ore, aluminium, lithium, and copper.
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Image Credit: Al Mayadeen
