Rio Tinto and Glencore have restarted talks over a merger that would create the world’s largest mining company.
If a deal is agreed it would come almost a year after previous discussions between the two mining companies collapsed and create a global mining business with an enterprise value of more than $260bn (£193bn).
The two companies said on Friday that they were in “preliminary discussions” about a “possible combination of some or all of their businesses, which could include an all-share merger”.
Rio Tinto, which has an enterprise value of $162bn, said the deal under discussion would potentially result in it acquiring 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,” the company said in a statement. “There can be no certainty that an offer will be made or as to the terms of any such offer, should one be made.”
The resumption of the talks follows the $53bn merger of the London-listed miner Anglo American with its Canadian rival Teck in September, combining two of the world’s largest copper producers.
Anglo had previously rebuffed a £39bn takeover proposal from BHP Group, while Teck rejected a buyout offer from Glencore in 2023 for £16.6bn.
Copper prices hit an all-time high of more than $13,300 a tonne this week, as analysts predict that there could be a supply shortfall of as much as 10m tonnes by 2040.
In December, Gary Nagle, Glencore’s chief executive, said the company’s aim was to become “the biggest copper producer in the world”. It is currently the world’s sixth-largest copper producer and the largest listed coal producer.
Rio Tinto and Glencore held talks over a tie-up in 2024 but they failed on issues including valuation, who would run the combined company and the future of Glencore’s coalmining operations.
In May, Glencore confirmed a restructure of its business to move its coal operations into a separate Australian-based entity. Rio Tinto sold its last coalmine in 2018.
Under UK takeover rules, Rio Tinto has until 5 February to either make a formal offer for Glencore or confirm it is not proceeding with a deal.
Rio is listed on the FTSE 100 and on the Australian stock exchange. Its shares fell 6% in Australia on Friday.