Mining giant Rio Tinto has reaffirmed its commitment to a dual-listed structure and urged shareholders to reject a proposal by activist hedge fund Palliser Capital to review its listings in London and Sydney, according to a report by Reuters.

The hedge fund, alongside more than 100 shareholders, is pushing for a shift to a single Australian listing, arguing that such a move would enhance Rio’s share price and unlock shareholder value. The campaign mirrors past activist efforts, including BHP’s unification in 2022, which followed similar investor demands.

Rio Tinto though has dismissed Palliser’s claims, stating that it has already conducted a comprehensive review of the structure and engaged with key stakeholders, including Palliser. The company maintains that a unification would be value-destructive and unnecessary for strategic flexibility.

“A dual-listed companies (DLC) structure unification is not required to provide the group with strategic flexibility,” Rio Tinto said in a statement on Wednesday.

With annual shareholder meetings scheduled for 3 April in London and 1 May in Perth, the hedge fund’s push sets the stage for a potential showdown. However, resistance from Australian shareholders, who argue that consolidation would erode value, could pose a challenge to Palliser’s ambitions.