<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>One of Australia's biggest companies is in talks to merge with another </span><a href="https://www.9news.com.au/mining" rel="" target="" title="mining giant"><span>mining giant</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/rio-tinto-glencore-merger-talks-rumours-mining-news-commodities/9c4233a6-7aae-46d2-8918-fa002b691fd5" rel="" target="" title="Rio Tinto and Glencore are considering an all-share merger"><span>Rio Tinto and Glencore are considering an all-share merger</span></a><span>, a move which would turn the two mining companies into a $300 billion behemoth.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Rio Tinto is a British-Australian company headquartered in both London and Melbourne and publicly listed in both companies.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/south-korea-phasing-out-of-thermal-coal-to-impact-australian-exporters/ddcba754-8501-4d8c-ba66-ec92595d3c29" rel="" target="" title="One of Australia's biggest customers ditches our biggest export"><strong><span>One of Australia's biggest customers ditches our biggest export</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Glencore is an Anglo-Swiss company.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Both have substantial mining operations in Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The two companies had been in talks last year, but those discussions ended without an agreement.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/rio-tinto-glencore-in-talks-to-merge-mining-company-market-takeover-news/fb8402bb-d483-486b-bb20-f88b42738e8b" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In a market statement this morning, Rio Tinto confirmed new talks were underway.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There can be no certainty that an offer will be made or as to the terms of any such offer, should one be made," the statement read.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Under the merger agreement, Rio Tinto would engage in a formal takeover of Glencore.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Rio Tinto has until February 5 to announce a "firm intention to make an offer for Glencore" or to announce it won't make a deal.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"A further announcement will be made in due course as appropriate," the statement read.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The merger would create the largest copper mining business in the world.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Rio Tinto's shares on the ASX dropped more than five per cent after the announcement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Glencore is </span><a href="https://www.9news.com.au/national/south-korea-phasing-out-of-thermal-coal-to-impact-australian-exporters/ddcba754-8501-4d8c-ba66-ec92595d3c29" rel="" target="" title="Australia's largest coal producer"><span>Australia's largest coal producer</span></a><span>, operating in NSW and Queensland.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It also has copper interests in north Queensland, zinc and lead mines in North Queensland and the Northern Territory, and nickel and cobalt in Western Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Rio Tinto's Australian operations span across every state but South Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/australia-and-us-rare-earths-deal-a-game-changer-says-minerals-company-boss/dc588a43-47f7-472e-865a-c5bc90f83384" rel="" target="" title="Australia can expect bonanza from rare earths deal"><strong><span>Australia can expect bonanza from rare earths deal</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Both companies also own </span><a href="https://www.9news.com.au/national/tomago-aluminium-staff-warned-over-future-of-aluminium-smelter/3aaefcae-c23d-4459-9ce8-908de7eabbf2?utm_source=facebook&amp;utm_medium=social&amp;utm_campaign=nine.com.au&amp;utm_content=feed&amp;utm_term=nine_digital" rel="" target="" title="embattled smelters"><span>embattled smelters</span></a><span> in Australia, with Glencore's </span><a href="https://www.9news.com.au/weather/qld/mount-isa" rel="" target="" title="Mount Isa"><span>Mount Isa</span></a><span> copper smelter receiving a bailout from the federal and Queensland governments last year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/tomago-aluminium-staff-warned-over-future-of-aluminium-smelter/3aaefcae-c23d-4459-9ce8-908de7eabbf2" rel="" target="" title="Rio Tinto's aluminium smelter in Tomago"><span>Rio Tinto's aluminium smelter in Tomago</span></a><span> was given a support package late last year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Tomago Aluminium was founded in 1983 and produces up to 590,000 tonnes of aluminium per year, making it the country's largest smelter.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Both Rio Tinto and Glencore have major operations elsewhere around the world.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The larger of the two businesses, Rio Tinto has a market capitalisation of $202 billion.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Glencore's market capitalisation is about $98 billion.</span></div></div><div class="block-content"><div 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