Rio Tinto Faces Calls to Ditch London Listing for Australia
Rio Tinto, the mining giant, is facing mounting pressure from investors to abandon its primary London listing and consolidate operations around a single listing in Sydney, Australia. The call comes as Rio Tinto lays out ambitious plans for a decade of growth, driven by a surge in copper production.
Investor Push for Australian Focus
Palliser Capital, a UK-based hedge fund holding a $250 million (£197 million) stake in Rio Tinto, is leading the charge, arguing that the company’s current dual listing structure across London and Sydney is “outdated.” The fund advocates for Rio Tinto to follow suit with its rival BHP, which shifted its primary listing to Sydney in 2022.
Blackwattle Investment Partners, another Australian investment firm, has also endorsed the proposal for a unified listing in Sydney, according to reports. While primary listing in Australia is the preferred plan, Rio Tinto shares would continue to trade in London as a secondary listing under Palliser Capital’s proposal.
London Stock Exchange Feeling the Pressure
The push to ditch London comes at a time of increasing strain on the UK capital’s stock market. Several major companies, including travel giant Tui and Flutter, the owner of Paddy Power, have moved their primary listings overseas in recent years.
Rio Tinto Confident in Growth Trajectory
Despite the external pressure, Rio Tinto presented a bullish outlook at its investor day in London. CEO Jakob Stausholm confidently declared that the company has a “clear plan for a decade of profitable growth.”
Copper Production to See Significant Boost
Central to Rio Tinto’s growth strategy is a significant ramp-up in copper production. The company forecasts that copper production will reach between 780,000 and 850,000 tonnes in 2025, a substantial increase from the 660,000 to 720,000 tonnes expected in the current year. Rio Tinto attributes this anticipated surge to strong performance at its Oyu Tolgoi operation in Mongolia, with hopes for an even more impressive 1 million tons by 2030.
Staking a Claim in the Green Revolution
“We have all the building blocks we need to become a global leader in energy transition materials, and we have a clear plan for a decade of profitable growth,” Jakob Stausholm asserted. “We are executing our strategy of delivering a stronger, more diversified, and growing business, underpinned by our belief in the demand for materials which are essential for the global energy transition.”
Stausholm emphasized the company’s commitment to both growth and decarbonization, declaring that improved performance will enable Rio Tinto to pursue both goals while maintaining its dividend policy and preserving a strong balance sheet.
What are the potential implications of Rio Tinto’s decision for both the London Stock Exchange and the Australian Securities Exchange?
## Rio Tinto: London Listing on the Chopping Block?
Today, we’re discussing the growing pressure on mining giant Rio Tinto to ditch its London listing in favor of a single listing in Sydney, Australia.
Joining us to discuss this development is [Guest Name], a [Guest Title] with expertise in the mining industry. Welcome to the show.
**Host:** So, [Guest Name], there seems to be a growing movement among investors to see Rio Tinto consolidate around a single listing in Sydney. Can you shed some light on the reasons behind this push?
**Guest:** Absolutely. Several factors are driving this movement. Firstly, Palliser Capital, a major Rio Tinto shareholder, argues the current dual listing structure is outdated and that a unified listing in Sydney would streamline operations and attract more Australian investors. They point to BHP’s successful move to a primary Sydney listing in 2022 as a comparable model [1].
Secondly, Rio Tinto’s ambitious growth plans, particularly in copper production, are likely seen as better aligned with Australia’s mining-centric economy.
**Host:** What’s the potential fallout for the London Stock Exchange if Rio Tinto decides to make the switch?
**Guest:** Losing a major player like Rio Tinto would certainly be a blow to the London Stock Exchange. It reinforces the trend of resource companies moving their primary listings closer to the markets where their core operations are located.
**Host:** Rio Tinto has, however, stated they would not end the dual listing completely.
**Guest:** That’s right. Under Palliser’s proposal, Rio Tinto shares would still trade in London as a secondary listing. This allows them to maintain some presence in the London market while benefiting from a primary listing in Sydney.
**Host:** So, it’s a balancing act between tradition and strategic positioning for Rio Tinto.
**Guest:** Exactly. It will be interesting to see how this unfolds and whether other dual-listed companies will follow suit in the future.
**Host:** Thank you, [Guest Name], for your insight on this developing situation.
**
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