- Palliser calls for Rio Tinto to follow rival BHP and consolidate in Australia
Rio Tinto will tell shareholders today it has a new ‘clear plan for a decade of profitable growth’, as pressure grows for the mining giant to dump its London stock market listing.
The group, whose profits primarily come from iron ore, is increasingly focusing efforts on the energy transition, with plans to boost investment in the production of critical metals like copper, lithium and aluminum.
Rio Tinto will outline plans for ‘sustained growth over three time horizons until 2033’, targeting an expected compound annual growth rate of around 3 per cent.
The miner said ahead of its AGM on Wednesday it was on track to produce significantly more copper in 2025 as it upped guidance on capital expenditure for next year.
It expects overall spending to rise to $11billion in 2025, $1billion ahead of a previous forecast and compared to to $9.5billion in 2024.
Rio Tinto aims to reach annual copper production of 1 million metric tons by 2030, thereby bolstering its position in the clean energy supply chain with high-quality, low-emission raw materials.
The group, which is being boosted by bumper production in its Mongolian Oyu Tolgou copper operation, expects to produce 780,000-850,000 tonnes of the metal next year, compared with 660,000-720,000 tonnes in 2024.
Growth mode: Rio Tinto will tell shareholders at its Investor Seminar today of its ‘clear plan for a decade of profitable growth’
Separately, Rio Tinto highlighted a significant lithium brine deposit at its Rincon Project in Argentina.
Rincon aims to produce approximately 53,000 tonnes of battery-grade lithium carbonate annually for 40 years, with potential to expand to 60,000 tonnes.
Back in October, Rio Tinto agreed to acquire Arcadium Lithium in a £5.1billion deal, which is set to make the FTSE 100 group the world’s largest lithium producer.
On Rio Tinto’s eco strategy, the group’s chief executive, Jakob Stausholm, said: ‘We have reached a new era in our decarbonisation journey.
‘This year we have committed to carbon abatement projects representing more than 3million tonnes of annual emissions, accelerating our progress toward our targets while also investing for the necessary net zero breakthroughs.’
Palliser reignites calls for London exit
Palliser Capital on Wednesday refreshed its demands for Rio Tinto to scrap its primary London listing and focus on Australia.
The activist investor called on the metals and minerals firm to drop its ‘outdated’ dual listing structure across the London and Sydney financial markets.
The UK-based hedge fund, which has a £197million stake in Rio Tinto, has called for it to follow rival BHP, which moved its primary listing to Sydney in 2022.
Australian investment firm Blackwattle Investment Partners has also backed the plans to unify around a main listing in Sydney, according to the Financial Times.
Rio Tinto shares would still trade in London under Palliser’s plans, but as part of a secondary listing.
It comes amid a period of pressure for the London markets, with a raft of other firms, including travel company Tui and Paddy Power owner Flutter, shifting their main listings overseas in recent years.
In July, Rio Tinto rejected calls from Palliser Capital to ditch its UK listing and concentrate on Australia – in a boost for the London Stock Exchange.
Rio Tinto shares fell 1 per cent to 4,970.00p on Wednesday.
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