Rio Tinto has offered to buy out minority shareholders including Turquoise Hill for their giant copper mining operation within Mongolia.
The deal is expected to be valued at $2.7 billion in an attempt to expand access to raw materials that are expected to be in high demand as the world shifts towards cleaner energy. Copper is widely used in the manufacturing of electric vehicles as well as wind turbines.
The world is also considering other means of obtaining materials such as copper as the Russian invasion of Ukraine has significantly impacted the supply chain as Russia is one of the leading producers of the metal as the global price has skyrocketed since the conflict began.
Turquoise Hill currently owns the Oyu Tolgoi within Mongolia's Gobi Desert and has the potential to become the fourth-largest gold and copper mine in the world by 2030 in which Rio’s takeover of the mine would give the company a much more diverse copper portfolio.
Source: Financial Times