Rio Tinto aiming to become world’s top copper supplier, debunks BHP-Anglo bid
The mining major has refused to speculate on BHP ‘rumours’ and faced fresh questions on their environmental commitment.
Rio Tinto executives have remained tightlipped on whether the mining giant would make a rival bid for Anglo American, as the company faced fresh questions about its relationships with traditional owners in the Pilbara at its annual shareholder meeting in Brisbane.
Shareholders gathered in Brisbane for Rio Tinto’s 2024 annual meeting with investors raising issues about the company’s environmental commitments and future investment plans.
Chairman Dominic Barton refused to speculate on whether the mining giant would be making a rival bid for Anglo American following BHP’s $60bn offer.
Speculation is growing within the market that a string of heavyweight competitors including Rio, Glencore and Vale may be weighing rival takeover bids for Anglo given its attractive asset base spanning copper through iron ore.
“Our policy is that we don’t speculate or comment on M&A activity, that’s really my comment,” Mr Barton said.
Chief executive Jakob Stausholm dismissed any questions referencing BHP and Anglo American, saying he won’t comment on “rumours”.
“Obviously, I read newspapers as well, you will have to understand that we have had a very long-standing policy, we never comment on any rumours. I can’t provide you any answers,” he said.
Asked how he felt about competing against a bulked-up BHP in copper and iron ore, he said he “had not given it a lot of thought”.
“My job is about creating the best and the strongest Rio Tinto (and) that’s what I have been talking about here at the AGM.”
BHP is weighing a revised offer for the company, with the pressure also on Anglo American’s board to outline its strategy to improve its operating performance and share value after a horror 2023 that saw the company’s stock crumble.
Anglo American chairman Stuart Chambers reiterated the board’s unanimous rejection of the BHP offer at Anglo’s annual shareholder meeting on Tuesday night, Australian time.
Mr Chambers refused to rule out supporting a revised bid from BHP, saying its board would consider any revised off from on its merits.UK takeovers laws require BHP to make a firm offer for Anglo American by May 22, or declare its intention not to proceed with a bid.
Mr Stausholm said ramping up copper production in Mongolia was among his top priorities.
“We have been investing for a long time in Mongolia and now production is ramping up very well. When it’s ramped up fully, it’s going to be the fourth-largest copper mine in the world.
“We have spent $15bn in Mongolia, and while you’re building something, you don’t make money. But now it’s ramping up, and it’s going to be profitable.”
In his opening remarks at the AGM, Mr Barton said the company would double its production at Mongolia’s Oyu Tolgoi copper mine, one of the largest known copper and gold deposits in the world.
Pilbara concerns
Meanwhile, a Robe River Kuruma woman from the Pilbara told Rio’s board their country’s bloodlife was “sucked dry” by more than a decade’s worth of water extraction.
The West Pilbara (Bungaroo) Water Supply Scheme was established in 2011 to help supply water to five Pilbara coastal towns almost 200km away via a Rio Tinto borefield on Robe River Kuruma Country. Rio Tinto also uses the water from the system for mining related operations, including dust suppression.
The Robe River Kuruma People are named after the Robe River, and they describe it as their lifeblood. The Bungaroo feeds into the Robe, and they say the country has been drying up for years and is being destroyed.
Robe River Kuruma Aboriginal Corporation deputy chairwoman Leanne Evans took to her feet in the meeting to urge the Board to tell company management to turn off the pumps.
Ms Evans said they have made repeated requests to the company to stop the extraction and are trying to take their plea to the Board.
“The water you are pumping from the Bungaroo is killing our country, it’s sucked dry,” Ms Evans said.
“I came to Brisbane to speak with the board of Rio Tinto face-to-face, because the letters do not work. The Robe River is a bloodline for our culture, our heritage and our people.”
Mr Stausholm said he visited the Robe River site two months ago. “This is a very long and difficult history stemming back from the 1960s,” Mr Stausholm said.
“Yes, we have made agreements in the past, but the question is how do we make agreements as equals? I remain convinced that we can find a great pathway forward for the mutual benefits, and we’ll have a solution that can work for the Kuruma people as well.”
Rio Tinto has also ruled out new development of uranium at Jabiluka in the Northern Territory, which is also opposed by traditional owners.
“We support the Mirarr people in their strong opposition to the development of Jabiluka and our focus is only on rehabilitation,” Mr Burton said.
