Rio bids $2.7 billion to tighten control of copper flagship

Rio bids $2.7 billion to tighten control of copper flagship

Bloomberg: Rio Tinto Group has offered to buy out Turquoise Hill Resources Ltd. for $2.7 billion in attempt to gain more control of a giant copper mine it’s developing in Mongolia.

The No. 2 mining company is looking to increase its exposure to so-called future facing commodities, the natural resources such as copper and nickel that are key for the green energy transition. A deal could also ease many of the problems at the flagship Oyu Tolgoi growth project, where Rio has faced spiraling costs and long running disputes with both the Mongolian government and Turquoise Hill.

Earlier this year Rio struck a deal with the government to start work on a long-delayed $6.9 billion underground expansion of Oyu Tolgoi after agreeing to write off $2.4 billion owed by the state. Rio owns 51% of Turquoise Hill, which in turn holds a two-thirds share in Oyu Tolgoi.