FACTBOX: A merged Rio Tinto-Glencore to dominate global copper supply

Rio Tinto Group and Glencore PLC have entered preliminary talks about a megamerger, potentially creating a mining behemoth with diversified assets at a time when global miners are rushing to shore up production of critical minerals.

The two companies confirmed Jan. 9 a possible combination of some or all of their businesses, with Rio Tinto expected to acquire Glencore in a megadeal. Rio Tinto has until Feb. 5 to lodge a firm intention to make an offer for Glencore under the UK's takeover rules.

Rio Tinto and Glencore produce an array of minerals, including copper, a critical mineral used in electric vehicle batteries and energy storage. Copper prices have spiked recently amid a supply squeeze.

The following are key facts about the two companies:

Production profile

A blockbuster deal between Rio Tinto and Glencore would create a mining group with massive exposure to different metals.

• Rio Tinto is among the world's major producers of iron ore. The company produced 298.1 million metric tons of the steelmaking ingredient or 12% of the total supply in 2024, according to S&P Global Market Intelligence data.
• Rio Tinto also ranks among the world's top copper producers, ranking seventh in 2024 with an output of 649,720 mt, based on Market Intelligence data.
• Rio Tinto's portfolio also includes aluminum and lithium.
• Glencore ranked as the fourth-largest copper miner in 2024 with an output of about 1 million mt.
• Glencore is also a significant producer of cobalt, a key mineral in batteries and electronics. The company ranked second in global cobalt production with 32,712 mt in 2024, Market Intelligence data showed.
• Glencore's production profile also comprises coal, nickel and zinc.

Copper overlap

A deal between Rio Tinto and Glencore would catapult the combined company to global copper dominance.

• The aggregate 2024 copper output of Rio Tinto and Glencore totaled about 1.7 million mt, surpassing the output of industry leader BHP Group Ltd., which produced 1.5 million mt, and second-ranked Corporación Nacional del Cobre, with 1.4 million mt, based on Market Intelligence data.
• Rio Tinto and Glencore have interests in some of the top copper mines in Chile, creating potential synergies if a deal is finalized. Rio Tinto holds a 30% stake in the Escondida mine, the world's biggest copper mine by production, with a 5.5% global share in 2024, according to Market Intelligence data.
• Glencore owns a 44% interest in the Collahuasi mine, the third-largest copper-producing mine in 2024, Market Intelligence data showed.
• The potential megamerger comes amid the world's growing appetite for copper. The global supply deficit is forecast to reach 10 million mt by 2040—25% below projected demand, according to an S&P Global Energy study released Jan. 8.

• The study showed that global copper demand would soar 50% to 42 million mt by 2040 from current levels, while copper production is expected to peak at 33 million mt in 2030. Apart from the energy transition, the race for AI and rising defense spending are also driving copper demand, the study said.

  

• The blockbuster transaction is unfolding amid the recent surge in copper prices. The LME copper grade A cash price closed at 12,737.25/mt on Jan. 8 after reaching a new high of $13,240.98/mt on Jan. 6, according to Market Intelligence data.

• Platts, part of S&P Global Energy, assessed the CIF China clean copper concentrate treatment charge at minus $47.40/mt and the refining charge at minus 4.74 cents/lb on Jan. 8. Treatment and refining charges first turned negative on Dec. 30, 2024, and have held below -$40/mt since Sept. 29, reflecting tightness in the copper concentrate market.