Own Rio Tinto shares? Here's why the CEO just met with China Mineral Resources

Shareholders continue the selling pressure on Rio Tinto stock.

| More on:
Three satisfied miners with their arms crossed looking at the camera proudly

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Rio Tinto shares are down today on no news
  • Reports say its CEO and CCO have met with the China Mineral Resources Group
  • Following recent changes to China's import/export legislation, the newly-formed China Mineral Resources Group is overseeing the supply of mineral resources into the country

The share price of diversified mining giant Rio Tinto Limited (ASX: RIO) is down 1.25% to $90.62 today.

Investors have pushed the ASX mining share lower on Tuesday on no news.

Noteworthy, however, is that the company recently held a meeting with senior executives of the state-owned China Mineral Resources Group.

In the broader market, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is flat today.

Rio Tinto a 'trusted partner' to China

Following recent changes to import/export legislation from policymakers in China, the newly-formed China Mineral Resources Group is now overseeing the supply of mineral resources into the country.

Naturally, this involves purchasing too, especially given the country's previous vocal frustration at volatility and surging prices in iron ore markets.

Now as the new administration is put into place, Rio's CEO, Jakob Stausholm, has met with the group, The Australian reports.

Stausholm was joined by Rio Tinto chief commercial officer, Alf Barrios, in a video meeting with the management of the China Mineral Resources Group.

For Barrios, the opportunity extends a lengthy relationship selling into China and the development is a "win-win" for those involved.

Rio's website in China says:

… given the importance of the supply chain in supporting China's economic growth, Rio Tinto will continue to strive to be a trusted partner in China.

What else is happening for Rio Tinto?

Meanwhile, further positive news for Rio Tinto came earlier this week after it came to an agreement to acquire the remaining 49% interest in Canadian-listed Turquoise Hill Resources for $4.8 billion.

The decision comes after a drawn-out process where several offers were previously rejected.

Rio Tinto share price review

In the past 12 months, the Rio Tinto share price has extended its slide into the red. It's down more than 18% in that time.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »