2026-01-08 21:58

Expected to involve all-share buyout of Glencore by Rio Tinto Deal would create world's biggest miner by market value, topping BHP Rio Tinto's Australian shares close 6.3% lower Miners have been racing to bulk up in copper LONDON/SYDNEY, Jan 8 (Reuters) - Rio Tinto (RIO.L) , opens new tab is in early talks to buy Glencore (GLEN.L) , opens new tab, the companies said, in what could create the world's largest mining company with a combined market value of nearly $207 billion. Global miners are racing to bulk up in metals including copper, set to benefit from the energy transition and artificial intelligence demand. That has sparked a wave of project expansions and takeover attempts, including the pending merger of Anglo American (AAL.L) , opens new tab and Teck Resources (TECKb.TO) , opens new tab to create a copper-focused industry heavyweight. Sign up here. Rio Tinto and Glencore revealed little on what a tie-up might look like, including which assets could be included, in what is the second round of talks in just over a year between the two after Glencore approached Rio Tinto in late 2024 for a deal that did not ultimately proceed. The companies said late on Thursday the expectation was it would involve an all-share buyout of "some or all" of Glencore by Rio Tinto. They did not disclose whether there would be a takeover premium or who would manage the combined company if the world's largest-ever mining deal was completed. "The structure of a possible merger between these two companies is unclear and would likely be complex, but we do believe there is a path to significant value creation for both," Jefferies analysts wrote. The companies said there was no certainty that the terms of any deal or offer would be agreed upon after the Financial Times first reported the revived talks. Under UK takeover rules, Rio Tinto has until February 5 to make a formal offer for Glencore or say it will not proceed. U.S.-listed shares of Glencore were up 6% after the talks were confirmed. But Rio Tinto's Australian-listed shares (RIO.AX) , opens new tab ended 6.3% lower, reflecting investor scepticism towards a deal and concerns that Rio Tinto will overpay. "The share market tells you what you want to know. Investors are not happy with this," said Hugh Dive, chief investment officer of Atlas Funds Management, a Rio Tinto shareholder. "I like the concept of going to copper, but the record is dreadful for the big majors making acquisitions or even mergers. We've seen a lot of these big mergers occur at the top of the market, and they end up being very dilutive over time," he said. Rio Tinto, the world's biggest iron ore miner, has a market capitalisation of about $142 billion. Glencore, one of the world's largest base metal producers, is valued at $65 billion as of its last close. COPPER VERSUS COAL Rio Tinto and Glencore are both shifting their focus towards copper, a commodity in high demand as the world adopts greener forms of energy and the take-up of power-hungry data centres for AI gains ground. Global copper demand is expected to rise 50% by 2040, but supplies are expected to fall short by more than 10 million metric tons annually without more recycling and mining, consultancy S&P Global said on Thursday. With copper in the spotlight, questions about a tie-up include the fate of Glencore's coal assets after Rio Tinto offloaded the last of its coal operations to the Swiss-based mining and commodities marketing firm in 2018. "Coal would have to be divested to garner the support of the Australian shareholder base," said John Ayoub, portfolio manager at Rio Tinto investor Wilson Asset Management. Tim Hillier, an analyst at fund manager Allan Gray, a Rio Tinto investor, said there is a risk that it could overpay. "It comes down to price, but if they have to pay a big premium there is a risk that a transaction could destroy some value for shareholders," he said. "Rio has a strong pipeline of internal high-growth projects. It’s not clear why they need to look externally for things to do," he added. China, the dominant buyer of industrial metals, would be likely to raise antitrust hurdles, said RBC analyst Kaan Peker. The market value of the combined company would top Australia's BHP Group (BHP.AX) , opens new tab at $161 billion. BHP shares closed 0.8% higher on Friday. CULTURAL QUESTIONS Rio Tinto and Glencore restarted deal talks at the end of 2025, according to a source with knowledge of the matter. Rio Tinto has undergone significant changes since the 2024 approach by Glencore. New Rio Tinto CEO Simon Trott was selected after the company's chairman expressed a preference for a leader more open to large-scale deals than his predecessor, Jakob Stausholm, who was in charge when the miner turned down Glencore's approach in late 2024. Under Trott, who took over in August, Rio Tinto is focused on becoming leaner with fewer non-core assets. Andy Forster, senior investment officer at Rio Tinto shareholder Argo Investments, said the deal made sense if the terms were right for both companies. "The biggest question mark would be the culture of the two companies as Glencore clearly has a trading background, is very opportunistic and results-focused, some of those aspects of their culture could actually be good for Rio," he said. "I hope Rio stays disciplined but it makes sense to look at deals where value can be extracted by both parties." https://www.reuters.com/business/glencore-rio-tinto-resume-talks-mining-mega-deal-ft-reports-2026-01-08/

2026-01-08 20:51

Jan 8 (Reuters) - The Trump administration and U.S. Congress are launching a plan this week to overturn former President Joe Biden's mining ban in northern Minnesota and prevent future administrations from taking similar steps, according to officials and documents reviewed by Reuters. The move has been in development for much of the past year and involves a complex series of legislative steps that will benefit Antofagasta's (ANTO.L) , opens new tab Twin Metals copper, cobalt and nickel project, one of North America's largest untapped reserves of those critical minerals. Sign up here. Details of the plan have not previously been reported. It marks a refocus of sorts by Trump on U.S. domestic mining projects, even as his administration continues to angle for access to minerals in Greenland, Ukraine and elsewhere. The Minnesota plan is almost certain to further escalate tension over where and how to procure minerals crucial for the electrified economy and national defense. Copper, nickel and cobalt are used to build electric vehicles, AI data centers, wind turbines, weaponry and myriad other devices. CONGRESSIONAL RECORD OMISSION Biden in 2023 blocked mining on 225,504 acres in the Superior National Forest for 20 years, citing environmental concerns and a belief that the region's economy would benefit more from recreational activity than mining. The mining ban was filed in the Federal Register, which tracks actions by the executive branch, but not the Congressional Record, which tracks legislative moves and serves as an official notice to Congress. Under a 1976 law known as the Federal Lands Policy and Management Act, a president is required to notify Congress of public land orders that affect more than 5,000 acres. Because Biden did not file the notice in the Congressional Record, Trump's Interior Department is doing so now with the expectation that it will be rejected by Congress. The U.S. House of Representatives was informed earlier this week , opens new tab by the Interior Department. The notice was then sent to Vice President JD Vance, who is head of the U.S. Senate, and is under review by the U.S. Senate parliamentarian. If approved by the parliamentarian, which is expected by Friday, Congress would have 60 days to approve or reject the plan with a simple majority. That vote would not be subject to a filibuster. Minnesota Congressman Pete Stauber, a Republican who represents northern Minnesota, plans by Friday to introduce legislation aiming to reject the mining ban. If Congress and Trump approve, which is expected in the Republican-controlled body, a future president could not replicate Biden's ban because of a provision in the 1996 Congressional Review Act. Save the Boundary Waters, a conservation group, said Stauber was using an unprecedented approach to try to force the mine's approval. "And for what? To benefit a Chilean mining company that sends its minerals to China, will destroy America's most visited wilderness area and leave the mess up to the American and Minnesotan taxpayers," said Ingrid Lyons, the group's executive director. MINING LEASES COULD BE REISSUED The complex legislative plan came together after efforts failed to include the measure in Trump's "One Big Beautiful Bill," signed into law last July, congressional staffers said. "We have industries here in our country that need these critical minerals. We must never rely on foreign adversaries like China for supply," Stauber, who is also chair of the U.S. House Subcommittee on Energy and Mineral Resources, told Reuters. The White House was not immediately available to comment. If the mining ban is lifted, the Trump administration would then be free to reissue mining leases for Chile-based Antofagasta, which has been trying to develop the mine for decades on land controlled by the federal government. The mine would still need to undergo an environmental review and obtain permits. Stauber said he has been told by the Trump administration that it is working on reissuing the leases, but he did not have additional details. Antofagasta's Twin Metals unit said it expects to get the leases back in the near future and that it is "very appreciative of Congress for their efforts to overturn an unnecessary and detrimental action that locked out a significant domestic source of critical minerals." The leases themselves have been a political hot potato since first issued in 1966. Former President Barack Obama took steps to block their re-issuance, before Trump renewed them in his first term, only to have Biden cancel them. No mining has taken place at the site. TENSIONS BETWEEN MINING, OUTDOOR RECREATION The underground Twin Metals mine would, if built, be a major U.S. source of copper, cobalt and nickel. The only existing U.S. nickel mine is set to close later this decade. The region is visited each year by more than 150,000 outdoor enthusiasts, many of whom have long feared that any mine disaster could pollute rivers and quickly spread through the 1.1 million acres of the Boundary Waters Canoe Area Wilderness and into the Great Lakes. Antofagasta has long said it would use the most advanced equipment to protect the environment. https://www.reuters.com/world/us/trump-congress-move-undo-biden-era-ban-mining-northern-minnesota-2026-01-08/

2026-01-08 20:33

Drone strikes cause widespread outages for residents and industry Zelenskiy says attacks meant to 'break' Ukraine President, U.S. embassy warn of possible new Russian strike Ukraine facing cold snap as Russia steps up strikes KYIV, Jan 8 (Reuters) - Ukrainian officials raced to restore power on Thursday after Russian drone attacks plunged two southeastern regions into near-total blackout overnight, strikes that President Volodymyr Zelenskiy said were aimed at "breaking" his country. Zelenskiy said Russia was intent on using wintry weather as a weapon rather than allowing U.S.-led diplomacy to work towards a resolution of nearly four years of conflict. Sign up here. A Russian missile attack on Thursday targeted apartment buildings in Kryvyi Rih, Zelenskiy's home town in Dnipropetrovsk region, killing one person and injuring 24, including six children, the head of the local military administration, Oleksandr Vilkul, said. In a rare instance of simultaneous warnings, the Ukrainian president and the U.S. Embassy in Kyiv said a new mass Russian strike was possible. Moscow has intensified its attacks on Ukraine's energy system as Ukrainian forces fend off Russian advances on the battlefield and Kyiv faces U.S. pressure to quickly secure a peace deal. POWER RESTORED TO NEARLY 700,000 HOUSEHOLDS Private energy provider DTEK said power had been restored to nearly 700,000 households by Thursday evening after the overnight attack. But it said 194,000 households remained without electricity, including in Kryvyi Rih. The head of the city's military administration, Oleksandr Vilkul, said Kryvyi Rih had been subjected to one of the heaviest combined attacks of drones and missiles since Moscow sent troops into Ukraine in February 2022. Twenty-nine apartment buildings were damaged and more than 70,000 remained without power. The water supply was operating, though with reduced pressure. Deputy Prime Minister Oleksiy Kuleba had earlier said more than 1.7 million households in Ukraine faced water supply problems. In Dnipro, the region's main town, Mayor Borys Filatov said water supply was back to normal and power and heating would soon be fully restored. In Zaporizhzhia region, the Energy Ministry said power had been restored after a blackout forced infrastructure to rely on reserves. "This is Russia's war specifically against our people, against life in Ukraine - an attempt to break Ukraine," Zelenskiy wrote on X after a European tour aimed at rallying support for Kyiv. Zelenskiy, speaking separately in his nightly video address, said, "There is information there could be a new, massive Russian strike this evening" and warned residents to heed alerts. The U.S. Embassy said it had also received information "concerning a potentially significant air attack that may occur at any time over the next several days". In Dnipro, generators hummed outside storefronts downtown, where residents told Reuters they were used to disruptions. "This is not the first blackout, and I suspect that it will not be the last, so we are working - we are prepared," said a barista who introduced herself as Iryna. In his address, Zelenskiy said Russia was "placing greater emphasis on winter than on diplomacy, on ballistics against our energy sector rather than on working with America and reaching agreements with President Trump. "This needs to change, and it needs to change through pressure on Russia and support for Ukraine." In Kryvyi Rih, key steel maker ArcelorMittal said it had temporarily suspended some production and Zaporizhstal, another major producer, also reported a suspension. Odesa Regional Governor Oleh Kiper said Russian drones had hit port facilities around the city and damaged an empty oil storage tank. https://www.reuters.com/business/energy/ukraine-says-repairs-services-ongoing-after-russian-strikes-dnipropetrovsk-2026-01-08/

2026-01-08 20:22

Weekly jobless claims increase 8,000 to 208,000 Continuing claims jump by 56,000 to 1.914 million Third-quarter worker productivity rises at fastest pace in two years WASHINGTON, Jan 8 (Reuters) - The number of Americans filing new applications for unemployment benefits rose moderately last week amid a relatively low number of layoffs, though demand for labor remained sluggish, with businesses squeezing more output from their existing workforce. Worker productivity grew at its fastest pace in two years in the third quarter, other data from the Labor Department showed on Thursday, suggesting the much anticipated artificial intelligence-driven boom was underway. The productivity surge, which depressed unit labor costs, underscored what economists have termed a jobless economic expansion. It followed on the heels of robust economic growth in the third quarter. Sign up here. "Firms are successfully doing more with less labor," said Matthew Martin, senior U.S. economist at Oxford Economics. "Productivity will be key to determining the economy's speed limit and inflationary dynamics. If productivity growth continues to accelerate ... economic growth can pick up without causing unwanted inflation." Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 208,000 for the week ended January 3. Economists polled by Reuters had forecast 210,000 claims for the latest week. Claims have been choppy in recent weeks amid challenges adjusting the data for seasonal fluctuations around the year-end holiday season. Through the volatility they have remained at levels consistent with low layoffs. Employers have been reluctant to boost headcounts amid tariff-related uncertainty and integration of AI in some job roles, but they have not engaged in mass firings of workers, keeping the labor market in a state of paralysis. While a separate report from global outplacement firm Challenger, Gray & Christmas showed layoffs announced by U.S.-based employers jumped 58% to a five-year high of 1.206 million in 2025, cost-cutting by the federal government and technology companies accounted for the bulk of the planned reductions. Job cuts in the technology sector were attributed to AI and overhiring in prior years. Planned hiring by businesses fell 34% to 507,647 positions last year, the lowest level since 2010. Lackluster hiring means more unemployed people are experiencing long bouts of joblessness. The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, increased 56,000 to a seasonally adjusted 1.914 million during the week ended December 27, the claims report showed. The government reported on Wednesday that there were 0.91 job openings for every unemployed person in November, the lowest level since March 2021. The figure stood at 0.97 in October. The claims data have no bearing on December's employment report, which is due to be released on Friday, as they fall outside the survey period. A Reuters survey of economists forecasts that nonfarm payrolls likely increased by 60,000 jobs last month after a gain of 64,000 in November. But financial markets' focus is likely to be on the unemployment rate, which is estimated to have slipped to 4.5% after accelerating to more than a four-year high of 4.6% in November. The November unemployment rate was partially distorted by the 43-day federal government shutdown, which also prevented the collection of household data for October. The unemployment rate for October was not published for the first time since the government started tracking the series in 1948. Stocks on Wall Street were mixed. The dollar advanced versus a basket of currencies. U.S. Treasury yields rose. COMPANIES DOING MORE WITH FEWER WORKERS In a separate report, the Labor Department's Bureau of Labor Statistics said nonfarm productivity, which measures hourly output per worker, accelerated at a 4.9% annualized rate in the third quarter. That pace was the quickest since the third quarter of 2023 and followed an upwardly revised 4.1% growth rate in the second quarter. Economists had forecast productivity would grow at a 3.0% rate after a previously reported 3.3% pace of expansion in the April-June period. Productivity grew at a 1.9% rate from a year ago. The jump in productivity explains the gap between strong gross domestic product growth and a lackluster labor market. The economy grew at a robust 4.3% rate in the third quarter. In contrast, private job gains averaged 55,000 per month in the three months through October. Though the Federal Reserve was not expected to cut interest rates again this month, economists said strong productivity, which resulted in unit labor costs decreasing at a 1.9% rate in the third quarter, gave the U.S. central bank room for monetary policy easing this year. Unit labor costs, the price of labor per single unit of output, declined at a 2.9% pace in the April-June quarter. Labor costs increased at a 1.2% rate from a year ago. "Given that labor is the key input for super core services inflation, this is good news for the inflation outlook, even if some of the survey-based prices paid indicators remain a little elevated," said Paul Ashworth, chief North America economist at Capital Economics. A separate report from the Commerce Department's Bureau of Economic Analysis and Census Bureau showed the trade deficit narrowed 39.0% to $29.4 billion in October, the lowest level since June 2009, as goods imports tumbled due to President Donald Trump's sweeping tariff increases. Should that trend be sustained, trade could again add to gross domestic product in the fourth quarter. The decline in goods imports also suggested softening domestic demand, with consumer goods imports at the lowest level since June 2020, though much of the drop was in pharmaceutical preparations. While exports, including goods, were the highest on record, that jump mostly reflected exports of non-monetary gold and other precious metals. The goods trade deficit compressed 24.5% to $59.1 billion, the lowest level since March 2016. Trade contributed to GDP growth in the second and third quarters of 2025. The Atlanta Fed boosted its fourth-quarter GDP growth estimate to a rate of 5.4% from 2.7%. "The 2026 outlook for the economy is looking better than ever for now," said Christopher Rupkey, chief economist at FWDBONDS. "The only thing missing is that American workers seem to be left by the wayside, with companies continuing to keep costs down by limiting the hiring of additional workers." https://www.reuters.com/business/world-at-work/us-weekly-jobless-claims-increase-marginally-2026-01-08/

2026-01-08 20:20

Companies competing to export up to 50 million bbl of oil Marketing of Venezuela's PDVSA own output also part of talks with US government Trading companies' capacity to secure tankers and trade cargoes exceeds that of others operating in Venezuela NEW YORK/HOUSTON/LONDON, Jan 8 (Reuters) - Oil major Chevron Corp (CVX.N) , opens new tab, global trading houses Vitol and Trafigura, and other firms are competing for U.S. government deals to export crude oil from Venezuela, according to sources familiar with the matter. The competition reflects a desire by many in the oil industry to access the South American country's crude stocks and production, with U.S. officials seeking to control Venezuelan oil sales indefinitely. Sign up here. U.S. President Donald Trump has demanded that Venezuela give the United States full access to its oil sector just days after the U.S. captured the South American country's President Nicolas Maduro on Saturday. U.S. officials have said Washington will control the country's oil sales and revenues indefinitely. Both Vitol and Trafigura were set to join Chevron and other major oil companies in meetings at the White House on Friday over the roles they may have in Venezuela's oil industry, Reuters reported on Thursday. Ahead of the meetings, the companies have been lobbying the U.S. government hard to secure a share of what are expected to be lucrative oil export agreements from Venezuela. The companies are contesting initial deals to market the up to 50 million barrels of oil that state-run oil company PDVSA (PDVSA.UL) has accumulated in inventories amid a severe oil embargo that has involved four tanker seizures, two of the sources said. This week, PDVSA said negotiations were progressing, but provided no details. Its main joint venture partner, Chevron, is well placed to negotiate an expansion of its license to operate in Venezuela as the only major oil company still in the country. Chevron could also trade at least a portion of PDVSA's own production, three sources said. However, for the first time in years, the U.S. oil major must compete with other foreign companies. PDVSA wants to make sure that joint venture partners and former customers are part of the deal so it can complete debt repayment, expand output and secure fair prices for crude grades bound for specific destinations, two of the sources said. On Wednesday, the U.S. Department of Energy said it was engaging with commodity marketers and banks to execute and provide financial support for Venezuelan crude and fuel sales. It did not specify which companies. Details about the competition for these contracts had not previously been reported. The sources requested anonymity to discuss confidential information. Vitol and Trafigura declined to comment. Chevron, PDVSA, and the White House did not immediately reply to requests for comment. TRADING HOUSES ENTER THE FRAY Geneva-headquartered Vitol has already received a preliminary license from the U.S. government to begin negotiations for the import and export of oil from Venezuela for 18 months, four sources told Reuters on Thursday. Vitol and Trafigura had traded Venezuelan oil prior to U.S. sanctions in 2019 and marketed cargoes initially received by some of PDVSA's partners in recent years. Their capacity to have tanker fleets in Venezuela quickly and trade barrels exceeds that of others currently operating in Venezuela. "U.S. majors are central to production, but large international trading houses bring global reach and optionality the majors lack. It therefore makes clear sense for these traders to engage proactively with the U.S. government to discuss next steps," Jean-Francois Lambert of consultancy Lambert Commodities said. US INDEFINITE CONTROL OF OIL SALES The Trump administration set its sights on Venezuela's oil industry soon after U.S. forces captured Maduro on January 3. Washington has said it wants to control Venezuela's oil sales and revenue indefinitely. Trump has said he wants U.S. companies to invest in Venezuela and rebuild its oil industry to produce more oil and bring global energy costs down. Some oil executives have begun arranging trips to Caracas to do initial assessments. Analysts and industry executives have expressed skepticism, noting Venezuela's degraded infrastructure, poor quality crude, and political uncertainty. U.S. oil majors have said they want "serious guarantees" before they make investments in Venezuela. Years of under-investment and sanctions have led Venezuela's output to fall to around 1 million barrels per day, or just 1% of global supply, from 3.5 million bpd in the 1970s when it accounted for 7% of global oil. Since 2019, the only companies authorized by the U.S. to receive oil from Venezuela are Chevron, India's Reliance (RELI.NS) , opens new tab, Italy's Eni (ENI.MI) , opens new tab, Spain's Repsol (REP.MC) , opens new tab and France's Maurel & Prom (MAUP.PA) , opens new tab. In recent years, China has taken the lion's share of Venezuela's oil exports through little known intermediaries. Since last month when the U.S. began a naval blockade of Venezuelan waters, China has been unable to import Venezuelan oil. https://www.reuters.com/business/energy/chevron-competes-with-rivals-venezuelan-oil-sales-sources-say-2026-01-08/

2026-01-08 19:31

Embassies arranging visits for oil company representatives Executives, experts to assess Venezuelan infrastructure, negotiate oil supplies Assessing condition of power infrastructure seen as priority HOUSTON, Jan 8 (Reuters) - Foreign embassies in Venezuela are beginning to arrange visits for next week that will include representatives for American and European oil companies, two sources told Reuters, following the U.S. announcement of a $2 billion oil deal and the supply of U.S. goods to the South American country. The business meetings, some being planned with state oil company PDVSA, will be held to advance Venezuelan oil supply negotiations and conduct initial assessments of infrastructure in Venezuela, the sources said. Sign up here. An assessment of power plants' ability to supply to critical infrastructure, including PDVSA's, and of the country's deteriorated massive hydroelectric system, is seen as a priority. Specific negotiations that are part of President Donald Trump's 50 million barrel Venezuelan oil supply deal also are on the table, the sources said. The fast-moving plans for the Caracas meetings are emerging less than a week after U.S. forces captured and removed President Nicolas Maduro from power following earlier efforts in December to harden a blockade on the OPEC country. American oil companies are expected to meet at the White House on Friday. Energy Secretary Chris Wright told a Miami conference on Wednesday that the U.S. planned to control Venezuela's oil sales and revenue indefinitely to stabilize the South American country's economy and rebuild its oil sector. "As President Trump said, we are making preparations to allow for a reopening should the President make that decision,” a U.S. State Department spokesperson said. Venezuela's information ministry did not immediately reply to a request for comment. https://www.reuters.com/business/energy/embassies-venezuela-plan-visits-american-european-oil-firms-sources-say-2026-01-08/