Zhi Tong Cai Jing·2026-01-09 12:15Core Viewpoint - Rio Tinto is open to retaining Glencore's substantial coal business if merger talks succeed, indicating a significant strategic shift for the company, which had previously agreed to sell its last coal mines in 2018 [1] Group 1: Merger Discussions - Rio Tinto and Glencore are in discussions regarding a potential merger of part or all of their businesses, driven by a wave of transactions in the mining sector as major producers seek to expand their copper operations [1] - The structure and scope of any potential deal are still under discussion, with one key option being a full acquisition of Glencore, including its coal business [2][1] Group 2: Market Context - Glencore remains heavily invested in coal, contrasting with competitors like Rio Tinto, which have exited the coal sector due to investor pressure [1] - The willingness of Rio Tinto to re-enter the coal market reflects a broader reversal in the business and political climate, particularly in the context of U.S. policies under President Trump that resist green initiatives [3] Group 3: Financial Performance - Glencore's coal business has historically been its largest profit driver, although it has underperformed in the past year due to falling coal prices [4] - In 2023, Glencore announced plans to spin off its coal business into a separate company after acquiring a series of steelmaking coal mines from Teck Resources, but this proposal was abandoned following opposition from major shareholders [4]