Rio Tinto CEO Signals Potential for Major M&A to Boost Lithium and Copper Ventures
Stu Shaun Staushorn, CEO of Rio Tinto, has suggested that the company may pursue significant mergers and acquisitions (M&A) as it looks to expand its lithium and copper operations. This marks a notable shift in strategy for the mining giant amid a broader trend of consolidation within the industry, as reported by local newspapers on January 1.
At the annual shareholders meeting in 2023, CEO Staushorn had expressed a preference for organic growth over major acquisitions, indicating that the company intended to focus on its own development projects. However, the recent statements suggest a change in attitude towards M&A, with Staushorn emphasizing the potential value such deals could bring.
Staushorn explained that while M&A activity can result in both good and bad outcomes, the key factor is whether a deal adds value to the company. "We want to strengthen our lithium business and there are opportunities to grow our copper business as well," he stated, highlighting these areas as focal points for potential expansion.
In its financial results for the first half of fiscal 2024 (January-June), Rio Tinto reported sales of US$26.8 billion, a 1% increase from the same period last year, with a net income of US$5.8 billion, up 14%. The company's performance was bolstered by improved profits in the copper and aluminum sectors, although the iron ore business remained the primary contributor to profits, generating an EBITDA of US$8.8 billion, despite a 10% decrease compared to the previous year.
