Core Points - Rio Tinto announces several changes to its Board of Directors as part of a transition phase that has now concluded [1] - The Board size previously peaked at 14 Directors to retain the expertise of longer-serving members while newer Directors acclimated to the Group [1] - Sam Laidlaw and Kaisa Hietala have stepped down from the Board following the conclusion of the 2025 AGMs [1]

Core Viewpoint - Rio Tinto is exploring a potential asset swap with China Aluminum, which could reduce China Aluminum's 11% stake in Rio Tinto and allow the company to restart buybacks and pursue new strategic transactions [2][3] Group 1: Asset Swap Details - The asset swap may involve China Aluminum exchanging part of its stake for collaboration in Rio Tinto's mining assets, potentially ending governance restrictions that have limited Rio Tinto's flexibility for 15 years [2] - Potential assets of interest for China Aluminum include the Simandou iron ore project in Guinea and the Oyu Tolgoi copper mine in Mongolia [2] - Another possible swap could involve Rio Tinto's titanium business, which is under strategic review by the new CEO Simon Trott [2] Group 2: Impact on Capital Management - The swap could reduce China Aluminum's stake by 2-3 percentage points, enabling Rio Tinto to conduct buybacks and large-scale mergers without diluting the largest shareholder's equity [3] - The discussions are occurring as CEO Simon Trott pushes for enhanced cost control and a restructuring of the company from four core business units to three, focusing on profitable assets [3] Group 3: Future Updates - Further updates regarding the restructuring may be announced in the next two weeks, with an investor day scheduled for December 4 [4]

消息人士透露，力拓集团正在评估与中国铝业集团进行资产换股权的可能性，借以削减中铝所持的11% 股份。中铝集团将用其部分持股，换取力拓部分矿业资产的合作关系。互换可以让力拓更果断地配置资 本并进行并购。(格隆汇) 力拓(RIO.US)涨约2.6%，报70.11美元，创历史新高。 ...

Core Viewpoint - Mining giant Rio Tinto is considering an asset-for-equity swap with Chinalco to reduce the Chinese investor's 11% stake in the company [1] Group 1: Asset Swap Details - Rio Tinto is evaluating the possibility of an asset-for-equity swap with China Aluminum Group [1] - Chinalco may exchange part of its shares for a cooperative relationship involving some of Rio Tinto's mining assets [1] - Potential assets of interest for Chinalco include the Simandou iron ore project in Guinea and the Oyu Tolgoi copper mine in Mongolia [1] Group 2: Strategic Implications - The swap could enable Rio Tinto to allocate capital more decisively and pursue mergers and acquisitions [1] - Another possible asset exchange could involve Rio Tinto's titanium business [1]

Core Viewpoint - Rio Tinto is exploring the possibility of an asset swap with China Aluminum Corporation (Chinalco) to reduce the latter's 11% stake in the company [1] Group 1: Asset Swap Details - Chinalco will exchange part of its shares for a cooperative relationship involving some of Rio Tinto's mining assets [1] - Potential assets of interest for Chinalco include the Simandou iron ore project in Guinea and the Oyu Tolgoi copper mine in Mongolia [1] - Another possible exchange could involve Rio Tinto's titanium business [1]

Rio Tinto may do an asset-for-equity swap with Chinalco that would cut the state-owned miner’s 11% stake in Rio, Reuters reports https://t.co/nS2XLPXsg7 ...

Core Insights - Rio Tinto has been actively investing to increase production and enhance its competitive position in the mining industry [1] Group 1: Company Strategy - The company is focused on ramping up production to strengthen its market presence [1] Group 2: Market Performance - Despite the aggressive investment strategy, the stock has not delivered significant returns recently [1]

Rio Tinto is exploring a potential asset-for-equity swap with Chinalco that would trim the Chinese investor's 11% stake, freeing up Rio to resume buybacks and pursue new strategic deals, three people ... ...

Summary of J.P. Morgan Aluminium Dashboard Industry Overview - **Industry**: Aluminium - **Global Demand**: Increased by 2% year-to-date (YTD) through August, with China up 3% and the Rest of the World (RoW) up 1% [1][2] - **Production**: China's aluminium production is approximately 44 million tonnes per annum (Mtpa), nearing its production cap [1] - **Inventories**: Global visible aluminium inventories stand at 1,130 kilotonnes (kt), remaining below 2024 levels despite a recent increase of about 300 kt over the past three months [1] Key Insights - **Price Dynamics**: Aluminium prices have risen by 12% YTD, underperforming copper, which has increased by 22% [1] - **Alumina Prices**: Alumina prices have decreased by 50% YTD, positively impacting margins, with the alumina/aluminium linkage rate at historical lows of 11% compared to a long-term average of 17% [1] - **Future Market Outlook**: The forward curve indicates a slight contango, with expectations of a looser market by 2026 due to significant supply additions from Indonesia [1][2] Production and Demand Forecast - **2026 Projections**: Global primary aluminium production is expected to rise by 2.7% year-over-year (YoY), driven by a 5% increase in ex-China output, particularly from Indonesia, which is projected to add over 1.2 million tonnes of new supply [2] - **Market Surplus**: Anticipated modest surplus of approximately 400 kt in 2026 as demand growth slows to 2.1% YoY [2] Investment Recommendations - **Overweight Calls**: J.P. Morgan's key Overweight recommendations for aluminium exposure include: - Rio Tinto (RIO AU/RIO LN) - Norsk Hydro (NHY NO) - Press Metal (PMAH MK) [1] Financial Metrics of Key Companies - **Rio Tinto Ltd.**: Market cap of $118.2 billion, EV of $136.6 billion, with a target price of $137.0, indicating a 5% upside [5] - **Norsk Hydro**: Market cap of $13.8 billion, EV of $15.9 billion, with a target price of $74.0, indicating a 6% upside [5] - **Press Metal**: Market cap of $12.2 billion, EV of $13.1 billion, with a target price of $6.8, indicating a 9% upside [5] Additional Insights - **Alumina Production**: China's alumina production is projected to increase from 79.8 million tonnes in 2023 to 83.7 million tonnes in 2024 [19] - **Global Production and Demand Summary**: Global aluminium production is expected to rise from 143.3 million tonnes in 2023 to 146.9 million tonnes in 2024, with a corresponding increase in demand [17] This summary encapsulates the key points from the J.P. Morgan Aluminium Dashboard, highlighting the current state and future outlook of the aluminium industry, along with investment recommendations and financial metrics of key players.

Group 1 - Iron ore is a crucial raw material for steel production, with China accounting for over half of global steel output and importing more than a billion tons annually, primarily from Australia and Brazil [2] - Major Australian companies like BHP and Rio Tinto dominate the global iron ore market, leading to a situation where Chinese steel mills have historically faced low profit margins, averaging less than 1% net profit [2] - In response to the unfavorable pricing dynamics, China has diversified its iron ore sources, focusing on the Simandou project in Guinea, which is the largest undeveloped iron ore mine globally, with an annual capacity of 120 million tons [4] Group 2 - China's steel production surged from 270 million tons in 2003 to 510 million tons within five years, causing iron ore prices to rise from under $40 per ton to over $140, resulting in significant financial outflows to Australian mining companies [5] - In 2022, the establishment of China Mineral Resources Group centralized 40% of iron ore import procurement, allowing for unified negotiations and reducing the fragmentation of previous purchasing strategies [4] - By 2024, China's crude steel production is projected to reach nearly 1 billion tons, with iron ore imports accounting for 72% of global seaborne trade, yet profit margins for Chinese steel mills remain low [7] Group 3 - In August 2023, negotiations between China and BHP for long-term contracts for 2026 stalled over currency settlement preferences, with China pushing for RMB settlements while BHP insisted on USD [9] - Following a suspension of all BHP's USD iron ore purchases, BHP's stock price fell, highlighting its dependency on the Chinese market, which accounts for 60% of its exports [11] - A subsequent agreement allowed for 30% of fourth-quarter transactions to be settled in RMB, marking a significant shift in pricing dynamics and reducing exchange rate risks for Chinese steel mills [11][13] Group 4 - The shift to RMB settlements represents a broader change in pricing rules, reducing costs for Chinese steel mills and increasing their profit margins, while also weakening the pricing power of Australian exporters [13] - With the full production of Simandou, global iron ore supply is expected to increase by 10%, further diminishing the monopoly held by Australian companies [13] - The move towards RMB in iron ore trade is expected to enhance China's position in resource trade and promote the internationalization of the RMB [13]