Hugh Matheson, whose capital derives from his…
1873 CE
Hugh Matheson, whose capital derives from his share of profits from Jardine, Matheson & Co., a family business involved in the opium trade, buys the Spanish government's money-losing Rio Tinto copper mines, which once supplied the Roman Empire, at a price that will later be determined to be well below actual value, in 1873.
The purchasers of the mine are led by Hugh Matheson's Matheson and Company, which ultimately forms a syndicate consisting of Deutsche Bank (56% ownership), Matheson (24%), and railway firm Clark, Punchard and Company (20%).
At an auction held by the Spanish government for sale of the mine on February 14, 1873, the group wins with a bid GB£3,680,000 (ESP 92,800,000).
The bid also specifies that Spain permanently relinquish any right to claim royalties on the mine's production.
Following purchase of the mine, the syndicate launches the Rio Tinto Company, registering it on March 29, 1873.
The new owners restructure the Rio Tinto company and turn it into a profitable business.
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The company's name comes from the Rio Tinto river in southwestern Spain, which has flowed red since antiquity due to acid rock drainage. (Photo by Carol Stoker NASA)
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