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Rio Tinto chief fuels copper deal speculation after in-line half year

Published 31/07/2024, 08:47 pm
© Reuters.  Rio Tinto chief fuels copper deal speculation after in-line half year
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Rio Tinto Ltd (ASX:RIO) (LSE:RIO, ASX:RIO, OTC:RTNTF) has confirmed it would be open to a major acquisition, sending shares in London-listed copper miners jumping this mining.

Copper production is ramping up at the mining giant with Oyu Tolgoi in Mongolia and new ventures in Chile and Peru expected to boost output this year by 3%.

Rio was rumoured to be considering a rival offer for Anglo American (JO:AGLJ) to BHP (ASX:BHP), though ultimately that bid fell through.

Speaking to reporters, Jakob Stausholm said: "There's definitely the opportunity to grow further ... We are constantly looking for other opportunities,"

"On the other hand, it is a bit of a heated market, so that's not an easy market to just buy yourself into. While we are looking we are also saying, we are not prepared to pay those prices."

Stausholm was speaking after half-year results showed better revenues in copper and aluminium offset by lower prices for iron ore.

"We see the Chinese economy growing plus or minus 5% and that is very good for commodity markets.

“You also see the US growing. Not fantastic, but absolutely underpinning good markets and good demand for our products," Stausholm said.

Underlying interim earnings were flat at US$5.8 billion for the six months ended June 30.

The interim dividend was also unchanged at US$1.77 per share.

Shares rose 1.9% to 5,028p. while Chile-based copper miner Antofagasta (LON:ANTO) jumped 4% to 2,009p.

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