Rio Tinto Chairman Calls for New Mines to Meet Energy Transition Demand
The world urgently needs new mines to meet the growing demand for essential energy-transition metals like copper, according to Rio Tinto Group chairman Dominic Barton. He stressed that mergers and acquisitions (M&A) alone won’t close the looming supply gap.
“We can’t rely solely on inorganic growth through deals to solve this issue,” Barton said in a Bloomberg TV interview. “The challenge is vast, spanning at least five critical commodities.”
While global mining M&A activity has surged recently, driven by strong cash flows and the demand for green energy metals, Barton noted that acquisitions alone won’t be enough to meet future needs.
For example, BHP Group has been aggressive in the market, most notably attempting a $49-billion bid for Anglo American and acquiring a stake in Filo.
In contrast, Rio Tinto has taken a more cautious approach to dealmaking, opting to invest hundreds of millions into exploration, particularly in copper and lithium. However, Barton did confirm that the company remains open to potential acquisition opportunities.
“The reality is, we need to build and discover more mines,” Barton emphasized. “Copper, in particular, will be critical over the next 30 years, and we must ramp up both discovery and production to keep pace with demand.”
