Rio hopes for bigger spending on growth projects
Diversified miner Rio Tinto is hoping to increase its investment in growth projects to $3-billion a year by 2023 or 2024, with a focus on energy commodities, including iron-ore.
CEO Jakob Stausham told the company’s annual general meeting this month that the company was well placed to grow and meet the increased demand for materials required for the energy transition, and in the past year had made meaningful progress on creating a pipeline of options that would create value for shareholders.
“And we have demonstrated our willingness to grow via acquisitions. The Rincon lithium project, in Argentina, brings growth in a commodity essential to the energy transition, while at Oyu Tolgoi, our proposal to acquire full ownership of Turquoise Hill will simplify the ownership structure and provide additional exposure to copper,” said Stausham.
“We believe the terms of the proposal are compelling for Turquoise Hill shareholders, and Rio will remain disciplined in pursuing this opportunity.”
Rio, which already holds a 49% stake in Turquoise Hill, is offering minority shareholders C$34 in cash per Turquoise Hill share, representing a premium of 32% to Turquoise Hill’s last closing share price on the Toronto Stock Exchange.
Meanwhile, Rio earlier this year completed the $825-million acquisition of the Rincon lithium project, which is a large undeveloped lithium brine project located in the heart of the lithium triangle in the Salta province of Argentina.
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