Rio Tinto plans to significantly expand its metals trading operations. This strategic shift includes trading materials from third-party producers and dealing in derivatives.
CEO Simon Trott leads the initiative to increase agility and extract greater value from commercial operations. The company aims for a substantial expansion of its commercial business rather than replicating standalone trading houses like Glencore.
Initial efforts will focus on the alumina market and North American copper. Rio Tinto intends to utilize its spare smelting capacity in the North American region.
This departure from marketing only internal production follows unsuccessful takeover talks with Glencore. Glencore’s extensive trading network was a primary attraction during those negotiations.