Rio Tinto

(AI video summary)

This video was created on 9 January 2026 for IG audiences by ausbiz.

ASX code: RIO

Rio Tinto slides as Glencore merger talks resurface

Shares in Rio Tinto fell sharply after the miner confirmed it has reopened merger discussions with Glencore, reviving talks that collapsed more than a year ago. The companies said discussions include a possible all-share merger that would create the world’s largest mining group, with a combined market value above US$300 billion.

Markets reacted quickly. Rio Tinto shares fell more than 5% locally, while Glencore’s shares listed in the United States (US) rose about 6% reflecting expectations that Rio would be the buyer. Rio’s market capitalisation is around US$145 billion, compared with Glencore’s US$67 billion.

Copper in focus

The renewed talks highlight a strategic shift as iron ore demand tied to China’s industrialisation moderates. Both miners are increasingly focused on copper, supported by electrification, energy transition and infrastructure demand. A merged group would rank among the world’s largest copper producers, increasing competition with BHP Group, which is also expanding its copper exposure.

Investment outlook

Despite the share price weakness, analysts suggest holding the stock. Rio Tinto offers leveraged exposure to copper and aluminium, with aluminium prices often moving in line with copper as a substitute metal.