Rio Tinto and Glencore back in the ring for talks to form global mining behemoth

Rio Tinto and Glencore are back in negotiations for a merger that would create the world’s biggest mining company.

Both companies confirmed the talks in separate statements on Friday morning, saying any merger between the groups would likely happen via a scheme of arrangement but that there was no guarantee of a deal.

Talks between the Anglo-Australian mining giant and the diversified Swiss miner come after they walked away from discussions over a potential transaction last year.

“Rio Tinto note the announcement by Glencore and confirm that Rio Tinto and Glencore have been engaging in preliminary discussions about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore,” Rio Tinto said.

“The parties’ current expectation is that any merger transaction would be effected through the acquisition of Glencore by Rio Tinto by way of a court-sanctioned scheme of arrangement.”

Rio, the bigger of the two by market value, would be required to make a bid or say that it does not intend to by February 5 under UK takeover rules.

Investors took cautiously to the news with Rio stock falling sharply on open. The company was trading 4.6 per cent lower just after 8am AWST at $145.52.

The renewed talks come as the world’s biggest mining companies race to secure more copper resources.

Rivals Anglo American and Teck Resources combined at the end of 2025 to become one of the biggest producers of the metal in the world.

BHP, also eager to make advances in copper, made several plays for Anglo but failed to get a deal.

Iron ore is Rio Tinto’s highest earning segment but the group had made large advances into lithium under former chief Jakob Stausholm, who stepped down as chief executive in 2025.

Up for grabs at Glencore are the company’s copper assets, including the Mt Isa copper mine in Queensland and operations in the Democratic Republic of Congo and South America.

The company also has a significant reserves of coal, a commodity Rio exited years ago, with open cut and underground operations in New South Wales and Queensland.

New chief executive Simon Trott made clear in his first presentation to investors In December that he wanted to make the business more agile to put Rio in “the best possible position to take advantage of whatever opportunities” came its way.

Mr Trott moved to axe further development of the Jadar lithium development in Serbia in November.

The two London Stock Exchange-listed miners have a combined market value of about $US207 billion ($308b).