08:51 AM EDT, 10/22/2025 (MT Newswires) -- Rio Tinto (RIO) is exploring an asset-for-equity swap with Aluminium Corporation of China, also known as Chinalco, that would reduce the Chinese company's 11% stake in Rio and allow Rio to resume buybacks, and pursue mergers and acquisitions, Reuters said Wednesday, citing three people familiar with the matter.

Chinese state-owned Chinalco could be interested in Rio's assets in the Simandou iron ore project in Guinea and the Oyu Tolgoi copper mine in Mongolia, the sources said, adding that Rio's titanium business could also be a target of the possible asset swap, according to the report.

Rio currently is being pressed by activist investors to scrap its dual listing structure, claiming it creates governance conflicts between UK and Australian shareholders and complicates mergers in states that have restrictions on strategic holdings by Chinese firms, the report said.

Rio declined to comment, while Chinalco did not immediately respond to MT Newswires' request for comment.

Rio Tinto shares were nearly 2% higher in recent premarket activity.

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