Rio Tinto Group$RIO (-0,46%)the world's second largest mining company, has successfully fended off a challenge from activist investor Palliser Capital UK Ltd. to review its dual-listing structure.
A significant proportion of shareholders, almost 20%, voted in favor of the proposal. However, the resolution did not receive sufficient support to be adopted.
Despite the outcome, Rio Tinto has indicated its intention to continue discussions with shareholders on the subject of its dual listing agreement.
The company had previously encouraged its shareholders to reject the proposal put forward by Palliser Capital UK Ltd.
In addition, Rio Tinto's CEO, Jakob Stausholm, stated that the long-term outlook remains positive.
He expressed his confidence in the company's strategy and objectives to create value now and in the future. Stausholm also pointed to the growing world population and increasing demand for energy, which will increase the need for the materials produced by Rio Tinto.
During the meeting, Dominic Barton, Chairman of Rio Tinto, announced that the company is targeting 4% production growth this year, supported primarily by the Oyu Tolgoi underground project.
Oyu Tolgoi has a Mongolian workforce of 97.5%. To further support local expertise, the South Gobi Underground Mass Mining Institute was recently established to focus on promoting technical, technological and safety skills in the region.