Rio and Glencore are in talks about an all-share combination that would create a US$200-plus billion mining giant.
A statement by Rio Tinto last week noted 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. 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.
Glencore made a similar statement confirming it is in preliminary discussions with Rio Tinto plc and Rio Tinto Limited (together, “Rio Tinto”) about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore. 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.
Mining industry journal Fat Tail Daily says the goal is a dominant copper position just as demand surges from renewables, EVs, AI data centres and grid upgrades.
Copper is the prize because it sits at the junction of three powerful trends: decarbonisation, re-industrialisation and the AI build-out.
Glencore’s Mt Isa Mines has come under close scutiny for threatening to close Mt Isa copper smelter and holding the federal and state governments over a barrel for a $300m bailout but with copper prices surging and a possible merger with Rio Glencores threats and demands have become somewhat puerile.
Copper is up to around US$6 per pound that’s all-time high territory.
AI data centres are a big part of this.
A study of Microsoft’s Chicago facility found it used about 2,177 tonnes of copper or roughly 27 tonnes per megawatt of applied power.
High-end AI racks draw four to six times the power of traditional servers, driving much heavier copper busbars and power distribution units.
Cooling systems account for about 40% of copper usage in AI-focused data centres.
Copper saturates the EV ecosystem too.
A typical battery-electric car contains around 80–83 kilograms of copper.
Then you have the charging network.
Each charger adds roughly 0.7 kilograms of copper for a slow 3.3 kW unit and up to 8 kilograms for a 200 kW fast charger.
In short: Rio knows its future cannot hang on iron ore alone.
Glencore brings a huge copper portfolio across the DRC, Zambia and South America, while Rio contributes Oyu Tolgoi and Resolution.
The logic is simple: lock up copper now, before supply deficits bite harder later in the decade.
Zinc matters more than you think
Zinc will never grab headlines like copper, but it’s just as essential.
Zinc is trading at around US$3,230 per tonne, over the last 7 months, the trend is steadily up.
Source: TradingEconomics
Most of that metal stops everything else from rusting.
Global zinc use is primarily tied up in galvanisation processes (60%).
Zinc is a corrosion insurance policy for steel.
Think bridge girders, transmission towers, solar frames, offshore wind foundations.
Construction accounts for about half of global zinc demand, with transport and broader infrastructure soaking up much of the rest.
More importantly, Zinc is leveraged to many of the same themes driving copper: grid expansion, renewable roll-outs and heavy infrastructure stimulus across Asia and the Middle East.
It’s “boring” only because demand is embedded in engineering standards.
