The news of Glencore and Rio’s discussions “has turned up the temperature on an already simmering M&A environment,” RBC Capital Markets analyst says.

Rio Tinto is the world’s second-biggest miner, with a market value of about $103bn at the close of trading in London on Thursday, while Glencore was valued at about $55bn.

Combining the two businesses would potentially create a behemoth to leapfrog longstanding mining industry leader BHP Group.

Rio Tinto is the world’s second most valuable mining company and shares with its Melbourne-based neighbour BHP the distinction of being valued at more than $100 billion, but only just.

Two of the world's biggest diggers held talks about creating the world's biggest miner, according to media reports.

As it happened, Jakob Stausholm, the boss of rival mining company Rio Tinto, was also speaking at the event. Around the same time, Glencore and Rio held tentative talks about combining part or all of their business to create a $160bn mining behemoth.

Glencore approached Rio Tinto late last year about combining the two big copper producers but the discussions are no longer active, a person familiar with the matter said. The talks between Rio, the world's No.

A tie-up would have created a nearly £130billion behemoth that would have toppled BHP from its top spot as the world's biggest miner.

Rio Tinto and Glencore held talks last year about combining part or all of their businesses, in an indication of how the push by mining companies to secure metals needed for the energy transition has focused executives on large-scale deals.