Rio Tinto Group $RIO (-5,11 %)
$RIO (-7,61 %) has held talks with the Democratic Republic of Congo about the possible development of one of the world's largest hard rock lithium deposits. This was reported by Bloomberg today. It is the latest sign of the mining giant's interest in the battery metal.

Talks with Congolese authorities in recent weeks have centered on Rio Tinto's potential involvement in converting the Roche-Dure resource into a lithium mine.

However, these discussions are still at an early stage and may not lead to a formal agreement, the report said. Development of the Roche-Dure resource could significantly increase the global supply of lithium, a key ingredient in electric vehicle batteries.

This move by Rio Tinto demonstrates the growing interest in lithium as demand for electric vehicles continues to rise. The Roche Dure resource represents a significant opportunity for the mining company to expand its battery metals activities.

The mining group Rio Tinto $RIO (-5,11 %)
$RIO (-7,61 %) is facing calls to reconsider its current dual listing on the London Stock Exchange and the Australian Securities Exchange. This structure is seen by some investors, led by London-based hedge fund Palliser Capital, as a hindrance to shareholder value and capital raising. Palliser Capital is calling for a unification of the listing, preferably in Australia, to increase efficiency.

Palliser Capital is supported by the influential proxy advisors Glass Lewis and Institutional Shareholder Services (ISS), who argue that the dual listing could slow down the share in the long term. Despite these claims, Rio Tinto's management is sticking to its strategy. The Board of Directors has unanimously voted against a review of the listing structure and emphasized that external advisors have assessed the current structure as beneficial to the company and its shareholders.

Rio Tinto argues that the dual listing allows it to take advantage of both markets and reach a wide range of investors. A change would incur immense costs and take the focus away from the long-term growth strategy. However, this stance has had an immediate impact on the share price: in London, Rio Tinto shares temporarily fell by 0.23 percent to 48.96 pounds.

Palliser Capital is disappointed by the decision and has announced that it will continue to exert pressure on the management. A spokesman for the hedge fund criticized Rio Tinto's management for ignoring clear signals from the market. The debate illustrates the growing tensions between shareholders and management, with investors calling for a new direction while Rio Tinto is focusing on stability.

In the long term, it remains uncertain whether Rio Tinto's strategy will be successful or whether it will have to bow to market pressure. The discussion about the future of the company will continue and could escalate again at the next Annual General Meeting. What is certain is that the management's decision will further fuel the debate about the company's value and Rio Tinto's future strategy.

The board of Rio Tinto $RIO (-5,11 %)
$RIO (-7,61 %) has unanimously recommended that shareholders vote against a resolution proposed by an activist investor calling for an independent review of the company's dual listing.

Palliser Capital, a London-based hedge fund, has called on the Anglo-Australian mining giant to consolidate its corporate structure into a single Australian company, arguing the current dual listing in London and Sydney diminishes value for shareholders.

Ahead of the AGMs scheduled for April 3, 2025 and May 1, 2025, Rio Tinto has issued a statement to all shareholders responding to the resolution tabled by Palliser Capital and other shareholders, as well as the related reports from Glass Lewis and ISS.

Leading international proxy advisory firm Glass Lewis and ISS recommended that Rio Tinto shareholders vote in favor of Palliser's proposal in order to conduct a proper review of the unification of Rio Tinto's dual listed company structure.

In the meantime, Rio Tinto explained that the rationale for unifying the structures of dual listed companies at other companies, such as BHP, is not applicable to its own situation. This is due to several factors, including the location, growth prospects and tax profile of the group's assets, as well as the size of the entity that would need to be absorbed in a potential dual-listed company unification.

In the Notice of Annual General Meeting 2025, Palliser Capital has proposed a resolution calling on Rio Tinto plc to establish a committee of independent directors, including an external shareholder representative. This committee will consider whether the combination of the two listed companies into one Australian-based holding company is in the best interests of shareholders. The resolution also calls for the committee to commission an independent report on this issue and publish a comprehensive report on its findings.

Rio Tinto has rejected Palliser Capital's claims of an alleged $50 billion loss in value due to the structure of the dual listed companies as unfounded and misleading. The company further argued that the combination of the two listed companies would be value destroying for the Group and its shareholders.

Rio Tinto $RIO (-5,11 %)
$RIO (-7,61 %) invests in Exurban, a UK-based recycling company with plans to build a facility in the US to recover metals from cell phones, computers and other electronic waste (e-waste).

According to an investor newsletter seen by Bloomberg, Rio, along with recycling and circular economy company Giampaolo Group, will take a minority stake of 10-15%. They join other well-known investors such as Mitsubishi Materials and MKS PAMP.

Exurban was founded in 2022 by a group of well-known figures from the metals industry, including the former head of marketing for copper and cobalt at Glencore.

"We share a vision to supply the industry of the future with essential metals by using a new, waste-free recycling technology. I look forward to working together to make this vision a reality," said Stefan Boel, CEO of Exurban, in a statement.

The partnerships will help set new standards in e-waste recycling and related advanced technology projects, said Exurban, which plans to build a $340 million facility in Fort Wayne, Indiana, to recover metals such as copper, gold and silver.

The company had previously aimed to start construction in 2023, but this is now unlikely to happen before 2026, according to the newsletter. In the short term, Exurban plans to complete a feasibility study by the middle of this year.

The management of Rio Tinto Ltd $RIO (-5,11 %)
$RIO (-7,61 %) announced yesterday that it has signed two new solar and battery power contracts with Edify Energy. These will power the company's aluminum production facility in Gladstone, Queensland.

Under the terms of the agreement, Rio will purchase 90% of the electricity generated by Edify's Smoky Creek and Guthries' Gap solar power plants, as well as battery storage capacity, over a 20-year period. Edify will build, own and operate the plants itself. Construction is scheduled to start at the end of 2025, with completion scheduled for 2028.

The move is part of Rio's efforts to further decarbonize its aluminum production - particularly in light of an Australian government incentive program launched earlier this year to support the production of low-carbon aluminum.

Back in January, Rio entered into a partnership with aluminum producer Norsk Hydro to develop new carbon capture technologies for the industry.

The Rio Tinto Group $RIO (-5,11 %)
$RIO (-7,61 %) wants to sell bonds in the USA to raise a bridge loan to finance the 6.7 billion dollar takeover of Arcadium Lithium.

The world's second-largest mining company did not specify how much it plans to raise in its filings with the US Securities and Exchange Commission. A Rio spokesman declined to comment.

Rio recently abandoned plans to raise as much as $5 billion through a share sale after investors objected, according to people familiar with the matter.

The mining company completed its acquisition of Arcadium last week and said it was financing the acquisition by drawing down an existing $7 billion bridge loan, which it plans to replace with long-term debt financing. Goldman Sachs Group Inc. and JPMorgan Chase & Co. advised Rio on the acquisition.

"Market talk indicates that a benchmark-sized transaction with maturities of 2, 3, 5, 7, 10, 30 and 40 years is expected," CreditSights analysts, including Wen Li, said in a note published on Tuesday.

Mining giant Rio Tinto has today issued updated notices for its 2025 Annual General Meetings (AGMs) for both Rio Tinto plc $RIO (-5,11 %) and for Rio Tinto Limited $RIO (-7,61 %) have been published. The revised notices include a resolution requested by certain shareholders which will now be voted on jointly by shareholders of both businesses.

The resolution in question, identified as Resolution 21, has been added to the Rio Tinto Limited Notice to make it the same as the corresponding item in the Rio Tinto plc Notice. This makes it a joint resolution matter. This adjustment demonstrates how the Company is responding to shareholder demands and adopting a consistent approach to the voting process across both businesses.

All other agenda items for the meetings remain unchanged from the previous invitations dated 19.02.2025. The AGMs are scheduled for 03.04.2025 in London (Rio Tinto plc) and 01.05.2025 in Perth (Rio Tinto Limited). Shareholders can choose to attend the meetings in person or join virtually.

The updated invitations and proxy forms are now available on the company's website and have been submitted to the Australian Securities Exchange (ASX). In addition, the invitation for Rio Tinto plc will be lodged with the UK National Storage Mechanism.

This announcement underlines Rio Tinto's commitment to transparency and active shareholder engagement. It also emphasizes the importance of shareholder involvement in company decisions.

The update is part of regular corporate communications and is based on a Rio Tinto press release. This will ensure that all shareholders are aware of the latest developments regarding the forthcoming AGMs.

Palliser Capital has published a letter to the Board of Rio Tinto $RIO (-5,11 %)
$RIO (-7,61 %) seeking an independent, comprehensive and transparent review of the Board's anomalous decision to retain the dual listed company ("DLC") structure.

The letter questions the Board's mindless decision to reject the shareholder resolution co-promoted by Palliser calling for such a review, despite the process called for being entirely in line with best practice for a matter of such critical importance.

Worse still, Palliser notes that the Board has gone so far as to deliberately omit the resolution from Rio Tinto Limited's Annual General Meeting:

"23% of Rio Tinto shareholders were prevented from voting on the simple question of whether Rio Tinto's decision to retain its archaic structure requires a full and proper review"

Palliser calls on the Board to bring the resolution it has co-sponsored to Rio Tinto Limited's Annual General Meeting without delay and to apply the principles of transparency, accountability and fairness to the unification debate.

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"Be greedy when others are fearful and fearful when others are greedy." - Warren Buffett

The current fall in the share price of Rio Tinto ($RIO (-7,61 %) ) shows how strongly the commodities sector is characterized by uncertainty. But it is precisely moments like these that open up opportunities when the fundamental strength of a company is intact. Rio Tinto is a global player in essential industries such as iron ore, aluminum, copper and minerals, all commodities that are vital to the global economy.

Rio Tinto: A global player in essential industries

-Iron ore: Indispensable as the main ingredient for global steel production, important for infrastructure and construction projects worldwide

-AluminumFrom bauxite mining to aluminum production, Rio Tinto covers the entire value chain. Aluminum is essential for lightweight construction, the transport industry and many technological applications

-CopperCopper : A core material for electrification and renewable energy that plays a central role in the global energy transition

-MineralsMinerals : These include diamonds, titanium and borates, which are used in high-tech industries and agriculture

Strategic partners

-Sumitomo Metal Mining ($5713 (-7,95 %) )

Rio Tinto is working with Sumitomo Metal Mining on the Winu copper-gold project in Western Australia. This project secures access to raw materials that are essential for technological progress and electrification worldwide. The partnership demonstrates the strategic focus of both companies on global demand and modern technologies

-Green Lithium Refining Ltd

The cooperation with Green Lithium Refining Ltd highlights Rio Tinto's commitment to strengthen the European lithium market for the growing demand in the battery industry. The collaboration demonstrates the company's ability to support innovative solutions and sustainable projects that are critical to the future of energy

-BMW ($BMW (-3,54 %) )

Working with BMW on sustainable supply chains that include aluminum and other raw materials. This partnership underlines Rio Tinto's position as a trusted partner for some of the world's most prestigious brands. The ability to respond to BMW's high standards is a testament to the company's quality and commitment

Investor base

-Shining Prospect Pte. Ltd (14.02 percent share)

A significant strategic shareholder that supports the long-term growth and stability of Rio Tinto

-BlackRock, Inc. ($BLK ) (8.38 percent stake)

As the world's largest asset manager, BlackRock only invests in companies with a solid financial base and long-term potential. The investment underlines its confidence in Rio Tinto's management strategy and profitability

-The Capital Group Companies, Inc. ($CGHC ) (4.1 percent stake)

As one of the leading US asset managers, Capital Group stands for a long-term investment horizon. The investment in Rio Tinto shows that the company is perceived as a stable market leader even in uncertain times

This investor base shows that Rio Tinto is backed by some of the most experienced and trusted players in the financial world. Institutional investors with a clear focus on long-term value creation see the company as a reliable player in a globally critical market.

Conclusion

Rio Tinto supplies the essential raw materials that form the backbone of modern economies. Through strategic partnerships with leading companies such as BMW or Sumitomo and a strong investor base, Rio Tinto remains a key player benefiting from global trends such as electrification and infrastructure development. The current setback could be an opportunity to take a closer look at a company that is indispensable in key industries, in line with Buffett's quote.