London, January 15, 2026, 07:07 GMT — Premarket
- Rio Tinto and BHP to explore Pilbara iron ore collaboration targeting up to 200 million tonnes
- Big shareholder in Australia questions value case for any Glencore deal as copper prices stay elevated
- Rio Tinto shares last closed at 6,355p, up 2.27%, near a year high
Rio Tinto plc shares were set for a lively London open on Thursday after the miner and rival BHP said they will work together on a Pilbara iron ore collaboration aimed at unlocking up to 200 million tonnes of supply. The plan links neighbouring Yandicoogina and Yandi operations and would see some BHP ore processed through Rio’s facilities. 1
The move matters because iron ore still anchors profits for both companies, and the Pilbara remains the backbone of Rio’s cash generation. Anything that adds tonnes or trims costs there tends to move expectations quickly, even if the delivery is years away.
It also lands in the middle of a separate argument that has investors split by postcode: whether Rio should pursue Glencore at all. Mark Freeman, managing director of Australian Foundation Investment Company, said Rio had “a lot of questions” to answer on how it would create value, adding that “there are a lot of scars” from past top-of-cycle deals. He questioned chasing Glencore’s copper pipeline with prices near record highs. 2
In London, the Glencore angle keeps a hard edge to the story. Under UK takeover rules, Rio has until Feb. 5 to formalise a bid or step back. 3
Rio and BHP said they signed two non-binding memoranda of understanding — early agreements that are not final contracts — to study development of Rio’s Wunbye deposit and a flow of BHP’s Yandi Lower Channel ore into Rio’s existing wet plants. Rio iron ore chief executive Matthew Holcz said the pair can “unlock additional production with minimal capital requirements”, while BHP WA Iron Ore asset president Tim Day called it “productivity in action”. First ore is anticipated early next decade, subject to investment decisions, approvals and engagement with Traditional Owners. 4
Rio shares closed on Wednesday at 6,355 pence, up 141 pence on the day, with the stock just below a year high of 6,359 pence. The latest rise left the miner near the top of its recent range going into Thursday’s session. 5
Traders will watch whether the Pilbara work stays boxed in as a practical efficiency exercise or hints at something broader between the two rivals. The market is also alert to any sign the operational story gets drowned out by the merger debate.
But the Pilbara plan is still a study, not a build, and the timetable runs into the next decade. If commodity prices turn or the Glencore discussions drag, the stock could give back gains as deal optimism and risk premiums swing around.
The next hard catalyst is Rio’s fourth-quarter operations review on Jan. 21, followed by annual results on Feb. 19. The market’s other fixed date is Feb. 5. 6
