Glencore PLC (LSE:GLEN) and Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) have confirmed they are in talks to complete a $260 billion mega-merger that would create the world's largest miner.
Both groups released statements to the stock exchange earlier, confirming discussions that would see Rio take over Glencore in an all-share deal.
Any transaction would come against a backdrop of intensifying competition for copper assets.
Prices have surged to record highs, highlighting supply constraints that analysts believe will worsen over the next two decades.
The recent merger between Anglo American and Teck Resources has added pressure on major miners to scale up in response.
Glencore has increasingly positioned itself as a copper growth company, with plans to double output by the mid-2030s, while Rio has focused on streamlining under its new chief executive, Simon Trott.
One key uncertainty remains coal. Rio exited the sector years ago, while Glencore has been restructuring its coal assets, potentially making them easier to separate.