The exploratory talks have apparently ended, but the holding of such serious discussions has revived speculation that mining companies may once again reconsider transformational mergers like the 2001 coming together of Australia’s BHP and South Africa’s Billiton.
The market capital of Rio Tinto, listed in both London and Sydney, currently stands at USD103bn, substantially ahead of Glencore’s USD55bn.
Freeport McMoRan, one of the world’s largest copper miners, is considered a possible target by major gold producers, such as Barrick.
First Quantum’s problems in Panama have made the Canadian company vulnerable, with China’s Jiangxi Copper increasing its equity stake.
The share structure of Canada’s Teck Resources makes it a likely acquirer of some assets made available as a result of other large mergers.
