Rio Tinto is a multinational mining and resources company with headquarters in both London and Melbourne. It is a dual-listed company which trades on the London Stock Exchange and the Australian Securities Exchange.
It was founded in 1873 when a group of investors purchased a large mining operation on the Rio Tinto river in Huelva in Spain. Rio Tinto translates to “red river” which is an indication of rich iron deposits as well as other minerals.
Since this purchase Rio Tinto has expanded through a series of mergers and takeovers to dominated world commodity markets. Its main commidities are aluminium, iron ore, copper, uranium, coal, and diamonds.
During the 1880’s the Rothschild Family took control of Rio Tinto. They still work in partnership with Rio Tinto management to run the operation.
The Alcan $38.1 billion Takeover
In 2007 Rio Tinto took over Alcan (Aluminium Canada) and has been burded with debt as a result.
BHP Billiton Takever Offer
Also in 2007 BHP Billiton made a hostile takeover offer for Rio Tinto which was blocked by the board of directors. Following this China’s Chinalco (Aluminum Corporation of China) and America’s Alcoa purchased a 12% stake in Rio Tinto which prevented any opportunity for BHP to make another hostile bid (they could not purchase enough shares to take a controlling stake).
Since this event Chinalco has made further investments into Rio Tinto, adding to its 9% stake purchased to block BHP Billiton. Amongst other investments, in March 2010 Chinalco made a $1.3 billion investment in Rio Tinto’s Simandou iron ore project. Rio Tinto has kept a controlling 50.35% ownership at Simandou.
- Rio Tinto plc
- Head office
- 2 Eastbourne Terrace
- W2 6LG
- T: +44 20 7781 2000
- F: +44 20 7781 1800
Computershare Investor Services PLC
For UK residents only:
Freephone: 0800 435021
Fax: 0870 703 6119
Rio Tinto Dividend Payments
Rio Tinto issues dividends twice a year. They operate a share dividend reinvestment plan. Historic dividend payments are published on their website:www.riotinto.com/shareholders/rio_tinto_plc
“Rio Tinto has a progressive dividend policy – in other words, we aim to increase the value of dividends that you receive, year-on-year.”