Rio Tinto Group (ASX:RIO) is planning to broaden its marketing arm to trade more third-party metal as well as derivatives, part of an effort by its new boss to make the business more nimble, according to a Thursday report by Bloomberg, citing people familiar with the strategy.
The report said Rio wants a meaningful shift in the division currently led by Chief Commercial Officer Bold Baatar, with the change aimed at extracting more value from existing assets rather than establishing a separate trading arm.
Key areas under consideration include the alumina market and North American copper, where Rio holds spare smelting capacity at its Kennecott operations that could support trading in copper cathode and related products such as sulfuric acid, the report added.
The company is also open to using financial derivatives to hedge its existing positions and exposures, per the report.
Rio Tinto did not immediately respond to' request for comment.
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