Rio Tinto (RIO.US) Chairman warns: Global copper shortage is imminent, new mine development is inevitable

Intelligence Finance PP learned that Rio Tinto (RIO.US) Chairman Dominic Barton said that more mines need to be developed to meet the growing demand for key energy transition metals such as copper, as mergers and acquisitions cannot fill the imminent supply gap.

Barton said: "As an industry, we will not get out of this challenge by inorganic expansion. It's a huge challenge involving at least five different commodity sectors."

Global mining merger and acquisition activity has increased in recent months as mining companies are encouraged by healthy cash flows and the prospect of key green energy metals to rapidly increase additional production. BHP Group (BHP.US), the world's largest mining company, is one of the most active bidders, launching a takeover bid for Filo Corp. after its $49bn bid for Anglo American (NGLOY.US) was rejected.

However, Rio Tinto has remained silent in the M&A deal field, instead pouring billions of dollars into exploration, focusing on copper and lithium. However, Barton said the company is "looking for opportunities".

He said: "We can only build more mines. We will need to discover and mine more copper in the next 30 years."