Rio Tinto CEO Discusses Governance Challenges with Chinese Shareholder

London, December 4, 2025 – Rio Tinto CEO Simon Trott confirmed that the mining giant is actively working with its main shareholder, Aluminium Corporation of China Limited (Chinalco), to address governance constraints that currently restrict the company’s ability to conduct share buybacks.

Speaking at Rio Tinto’s annual investor day, Trott stated, “In terms of the Chinalco shareholding, we’re actively working with Chinalco on solutions to address that constraint and what that might look like.” He added that the process would take time and that “there’s nothing concrete at this stage.”

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Background: Chinalco’s Stake and Ownership Cap

Chinalco, Rio Tinto’s major Chinese investor, holds an 11% stake in the company. Its shareholding in the London-listed arm of Rio Tinto is subject to a 14.99% ownership cap, imposed by Australian authorities in 2008 to safeguard governance and operational flexibility.

Earlier reports from October 2025 indicated that Rio Tinto was exploring a potential asset-for-equity swap with Chinalco. This transaction could reduce Chinalco’s stake, providing Rio Tinto with greater flexibility to resume share buybacks and pursue new strategic deals.

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Strategic Implications for Rio Tinto

Addressing shareholding constraints is key for Rio Tinto as it seeks to:

• Resume share buybacks, which had been limited due to governance restrictions
• Enhance shareholder returns by utilizing capital more efficiently
• Pursue strategic acquisitions or divestments without external limitations

Trott emphasized that resolving the Chinalco stake issue is part of the company’s broader strategy to simplify its structure and focus on core profitable assets.

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Investor Perspective

Investors have been closely watching Rio Tinto’s interactions with Chinalco, as the outcome could unlock substantial capital for the mining company. Analysts suggest that any reduction in Chinalco’s stake or a structured agreement could lead to:

• Increased operational flexibility
• Potential boost in share price from resumed buybacks
• Improved capacity for strategic deals, including acquisitions or divestments

Shares of Rio Tinto have been sensitive to news regarding its major shareholders, and clarity on the Chinalco stake is expected to positively influence investor sentiment.

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Conclusion

Rio Tinto’s engagement with Chinalco highlights the challenges that large mining companies face with strategic shareholders, especially when governance restrictions limit capital allocation options. By exploring potential solutions, including asset-for-equity swaps, Rio Tinto aims to enhance shareholder value, resume buybacks, and maintain the flexibility needed for strategic growth initiatives.