Glencore is set to launch a secondary listing on the Australian Securities Exchange (ASX), targeting admission in October 2026, in a move that represents another setback for London's struggling stock market as mining companies increasingly seek opportunities beyond the UK.

The Anglo-Swiss mining and trading giant, one of the largest constituents of the FTSE 100 with a market capitalisation of £64.4 billion, has long maintained that its shares are undervalued on the London exchange and that liquidity there is insufficient. The decision adds to a broader pattern of high-profile departures and dual-listing shifts from London across multiple sectors in recent years, including construction materials group CRH and plumbing products firm Ferguson, both of which moved their primary listings to the United States.

Chief Executive Gary Nagle said the listing would "broaden our investor base and enhance trading liquidity."

"Australia is home to one of the world's largest and fastest-growing pools of long-term investment capital," Nagle added. "The market also offers access to a highly sophisticated investor base with deep expertise in the global resources sector."

Glencore's shares climbed 3.5 per cent following the announcement, trading at 570.3p. The stock has risen 39.4 per cent since the start of the year, driven by bumper profits at the company's substantial trading division, which benefited from market volatility stemming from the Middle East conflict.

Strategic Importance of Australia

Glencore operates multiple mines across Australia, describing the country as "one of our most important operating jurisdictions." The company also holds significant exposure to Australia's coal mining industry.

Nagle travelled to Australia earlier this year to gauge shareholder support for a potential listing, following the collapse of merger discussions with Rio Tinto.

The ASX welcomed Glencore's intention, stating that the exchange is "globally recognised as the natural home for world-class resources companies."

London's Waning Appeal for Miners

Glencore's move to the ASX is not the first instance of a London-listed miner looking to Australian markets for greater liquidity, fuelling concerns that the UK's position as a capital market hub for the mining sector is deteriorating. London has historically served as a global centre for mining finance, with the sector forming a significant weight in the FTSE 100 index.

In 2022, the London Stock Exchange lost the primary listing of BHP when the Australian mining heavyweight shifted to its domestic market, retaining only a secondary listing in London.

Rio Tinto, which maintains its primary listing in the UK, faced an activist campaign last year urging a review of its presence on the London exchange. Shareholders ultimately voted down the proposal.

Russ Mould, investment director at AJ Bell, said: "The mining sector was one area where the UK market enjoyed healthy representation, but Glencore's announcement it will seek a secondary listing in Australia will raise fears this position could be further chipped away."

However, not all major miners are departing London. Anglo American, currently in the process of merging with Canadian miner Teck in a $53 billion (£39.3 billion) deal, has chosen to retain its primary listing in the UK while establishing a secondary listing in Toronto. The Financial Conduct Authority has also introduced reforms aimed at streamlining listing rules to make London more competitive, though it remains to be seen whether these changes will reverse the trend of companies seeking listings elsewhere.