While Rio Tinto has a smaller market capitalization than rival BHP — A$180 billion ($119bn) versus A$218 billion ($144bn) — the company is large enough to make an all-share offer for some or all of Anglo American.
Unlike BHP, Rio already has operations in South Africa, having bought Richards Bay Minerals from BHP itself in 2012.
It also has a presence in the diamond market, which could assist in the management of Anglo’s diamond unit, De Beers.
Another point in Rio’s favour is that, as Anglo American, it has a main listing in the UK, which could simplify any potential transaction.
In terms of copper, Rio Tinto is still working on the expansion of its Oyu Tolgoi copper mine in Mongolia. It also has a 30% stake in Escondida mine in Chile, the world’s largest copper operation, controlled by BHP.
Otherwise it has limited options to increase production of the coveted orange metal, demand for which is expected to boom…
