The world urgently requires new mines to meet the rising demand for key energy-transition metals, particularly copper, according to Dominic Barton, chairman of Rio Tinto Group. He highlighted that mergers and acquisitions (M&A) alone will not suffice to close the impending supply gap.
“We can’t rely solely on inorganic growth through deals to solve this challenge,” Barton stated in a Bloomberg TV interview. “The problem is vast and involves at least five critical commodities.”
While there has been a recent uptick in global mining M&A activity driven by robust cash flows and the need for green energy metals, Barton noted that acquisitions alone will not be enough to fulfill future demands.
For example, BHP Group has actively engaged in the market, including a significant $49 billion bid for Anglo American and acquiring a stake in Filo. In contrast, Rio Tinto has taken a more cautious stance on deal-making, choosing to invest hundreds of millions into exploration, particularly in copper and lithium. However, Barton affirmed that the company is still open to potential acquisition opportunities.
“The reality is, we need to build and discover more mines,” Barton emphasized. “Copper will be especially critical over the next 30 years, and we must increase both discovery and production to keep pace with demand.”
