The Anglo-Australian firm also confirmed there were no ongoing talks with Glencore about such a bid, which would have created the world's largest mining firm, worth an estimated US$160 billion.
"In July 2014, Glencore contacted Rio Tinto regarding a potential merger of Rio Tinto and Glencore," Rio said in a statement Tuesday.
"The Rio Tinto board, after consultation with its financial and legal advisers, concluded unanimously that a combination was not in the best interests of Rio Tinto's shareholders.
"The board's rejection was communicated to Glencore in early August and there has been no further contact between the companies on this matter."
Glencore said its suggestion had taken the form of "an informal enquiry by telephone call to Rio Tinto, seeking to gauge whether there might be any interest at Rio Tinto in investigating some form of merger between the two companies".
"Glencore confirms that it is no longer actively considering any possible merger transaction with, or offer for the shares of, Rio Tinto," the company said in a statement.
The denial came after a Bloomberg report Monday that Glencore had approached Rio shareholder Chinalco, China's largest alumina producer, about whether it would be interested in a possible deal.
Rio Tinto is the world's second largest miner and has a market capitalization of Aus$107.7 billion (US$94.4 billon), while Swiss commodities trader Glencore became the world's fourth-biggest commodities company after merging with resources giant Xstrata in May 2013.
Analysts have said a Glencore takeover of Rio would give it presence in the iron ore market, one commodity that it does not have sizeable operations in.
Rio Tinto shares jumped on the revelation, ending 0.78 percent up in London trade at 3,020.5 pence after soaring 5.71 percent earlier.
Rio chairman Jan du Plessis said his firm had made "significant progress in refocusing and strengthening its business" under chief executive Sam Walsh and chief financial officer Chris Lynch.
"The board believes that the continued successful execution of Rio Tinto's strategy will allow Rio Tinto to increase free cash flow significantly in the near term and materially increase returns to shareholders," he said.
Glencore reported a net profit of US$1.72 billion during the first half of 2014, while Rio — supported by surging iron ore shipments — recorded a net profit of US$4.4 billion in the six months to June 30th.
MINING
Glencore bid to merge rejected by Rio Tinto
UPDATED — Resources giant Rio Tinto has revealed it rejected a potential merger with Glencore in July, following a report the Swiss mining rival was in talks with major shareholder Chinalco.
MINING
Spain’s vast supplies of untapped rare minerals pit environmentalists against high-tech
Spain's untapped rare earths (the second biggest supply in Europe) are stoking tensions between mining companies and environmentalists over fears of the devastating impact of extracting minerals considered essential for a high-tech and low-carbon economy.
The group of 17 minerals are — despite their name — widely distributed across the globe, but exist in such thin concentrations that extracting even small quantities requires the processing of enormous quantities of ore.
Still, they are key ingredients in a range of high-tech and cutting-edge products, from wind turbines and electric vehicles to smart phones, medical devices and missile-guidance systems.
With China having a stranglehold on global supply and demand surging to meet the transition to a low-carbon economy, the political pressure – and financial incentive – to put strategic interests ahead of the environment is growing.
“Spain has the largest amount of rare earths in Europe after Finland. There is real potential,” said Vicente Gutiérrez Peinador, president of the National Confederation of Mining and Metallurgy Companies (Confedem).
Ninety-eight percent of the rare earths used in the EU are imported from China, prompting Brussels to recently urge member states to develop their own extraction capacities.
Spain’s reserves are estimated at 70,000 tonnes, according to the Geological and Mining Institute of Spain.
“On a global level this is not much, but on a European scale it is significant,” said Roberto Martínez, head of mineral resources at the institute.
‘Opportunity for Spain’
And it is enough to arouse the interest of investors as demand for the minerals continues to surge.
“It is an opportunity for Spain,” said Confedem’s Peinador, but also “for Europe”.
“Two sites in particular are considered interesting: one in Monte Galineiro, in Galicia,” and the other in the province of Ciudad Real, in the Castilla y Leon region, said Martinez.
Only the 240-hectare (590-acre) Matamulas site in Ciudad Real has so far been the subject of an application to mine.
The site is rich in monazite — an ore containing rare earth minerals including thorium, lanthanum and cerium.
However, the project has been blocked: the region refused the mining permit filed by Madrid-based Quantum Mineria in 2019 due to concerns about its environmental impact.
“This deposit is located in an area of great environmental value”, between two protected areas, said Elena Solis, coordinator for mining issues of the NGO Ecologists in Action.
It would involve “moving an astronomical amount of earth, which would put the whole area at risk”, said Solis, who also pointed to the “enormous amount of water” needed for this operation and the risk of pollution by toxic or even radioactive dust.
Holes filled in
These arguments were rejected by the company, which lodged a legal appeal.
The refusal of the permit “is incomprehensible” because “we are in a territory considered suitable for mining” by the administration, said Enrique Burkhalter, project director of Quantum Mineria, who denounced “unfounded fears” around the proposal.
According to the company, the extraction would take place on the surface, using a technique that limits the risk of toxic dust: the earth would be transported by truck to a factory, then sieved and finally returned to the site, once the minerals have been removed.
“It is not an open pit… The holes would be quickly filled in so that the crops could be cultivated again,” said Burkhalter.
These arguments are in turn rejected by Ecologists in Action, which believes that the land concerned will be permanently affected.
What will the courts say?
Beyond their differences, industrialists and environmentalists agree on the importance of the court’s decision, which could make or break the extraction projects.
The ruling, expected in several months’ time, will be “important” but “will not put an end to the debate”, said Martinez, who pointed to a paradox inherent in mining: “On paper, everyone wants to reduce external dependence, but as soon as we talk about concrete projects, it’s a different matter.”
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