Published by Global Banking & Finance Review®
Posted on December 4, 2025
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleRio Tinto is collaborating with Chinalco to address shareholding constraints that limit share buybacks, exploring an asset-for-equity swap to reduce Chinalco's stake.
LONDON, Dec 4 (Reuters) - Rio Tinto CEO Simon Trott said on Thursday the miner is actively working with its main shareholder, Aluminium Corporation of China Limited (Chinalco), to resolve governance constraints that restrict the company's ability to conduct share buybacks.
"In terms of the Chinalco shareholding, we're actively working with Chinalco on solutions to address that constraint and what that might look like," Trott told shareholders at the company's annual investor day, adding that it will take time and "there's nothing concrete at this stage."
Reuters in October reported that Rio Tinto is exploring a potential asset-for-equity swap with Chinalco that would reduce the Chinese investor's 11% stake, potentially giving Rio greater flexibility to resume buybacks and pursue new strategic deals.
Chinalco's stake in the London arm of Rio Tinto is subject to a 14.99% ownership cap set by Australian authorities in 2008. Its stake in the overall company is around 11%.
(Reporting by Clara Denina, Melanie Burton; Editing by Joe Bavier)
Equity represents ownership in a company, typically in the form of shares. It signifies the value of an owner's interest in an asset after deducting liabilities.
Corporate governance refers to the systems, principles, and processes by which a company is directed and controlled. It encompasses the relationships among stakeholders and the goals for which the corporation is governed.
A share buyback occurs when a company purchases its own shares from the marketplace, reducing the number of outstanding shares. This can increase the value of remaining shares and improve financial ratios.
A stakeholder is any individual or group that has an interest in the success of a company. This includes shareholders, employees, customers, suppliers, and the community.
An asset-for-equity swap is a financial transaction where a company exchanges its assets for equity in another company. This can help improve liquidity and reduce debt.
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