If the deal is successful, the combination would create the world’s largest mining company. - Andrej Ivanov/AFP

Two of the world’s largest miners are in talks over a £190bn mega-merger to radically reshape global commodity markets.

Glencore and Rio Tinto, both listed on the FTSE 100, confirmed on Thursday that they were holding discussions to create the world’s largest mining company after initial talks collapsed last year.

If a deal between the two London-listed groups is agreed, the new company would surpass industry leader BHP as the global mining leader and create a copper powerhouse with operations across the world.

“Rio Tinto and Glencore have been engaging in preliminary discussions about a possible combination of some or all of their businesses, which could include an all-share merger between Rio Tinto and Glencore,” they said.

A merger would value the combined group at about £130bn on an equity basis, or £190bn including debt and cash.

Rio, founded in 1873 by a group of British miners, is the larger of the two companies while Glencore is significantly smaller.

The talks are likely to involve Rio chairman Dominic Barton, its chief executive Simon Trott as well as Glencore chair Kalidas Madhavpeddi and Gary Nagle, the chief executive.

Any potential deal will likely need the support of Ivan Glasenberg, the former chief executive of Glencore who made billions when the Switzerland-headquartered company first listed in London in 2011.

He stepped down as boss 10 years later, but still holds a 10pc stake in Glencore.

Another significant shareholder in the company is Qatar, with a share of 8.5pc. The largest investor in Rio Tinto is China’s state-owned Chinalco.

Talks resumed after they broke down last year. The sticking point then was the future of Glencore’s thermal coal business as well as valuation.

Rio Tinto sold its remaining coal assets in 2018 and it was unclear whether the group wanted to return to the sector.

However, the recent merger of Anglo American and Canada’s Teck Resources in September has piled pressure on rivals like Rio to secure a bigger share of global copper resources.

It comes at a time when London-based Rio and Glencore have both been further positioning themselves to capitalise on an expected boom in the copper industry.

If successful, a deal to merge with Glencore would give Rio Tinto access to its rival’s 44pc share in the Collahuasi mine in Chile, which has one of the world’s biggest copper reserves.

Copper hit a new record high earlier this week, reaching $13,387 a tonne as investors and companies in the US stockpile the metal on worries about possible tariffs on imports, creating a squeeze on supply.

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