According to three investors who met with leaders from both companies this week, Glencore CEO Gary Nagle hopes that surging coal prices will enhance the prospects of a merger deal with Rio Tinto, following the breakdown of negotiations in February due to disagreements over valuation.

Glencore believes that the increase in coal prices, combined with weakness in Rio Tinto’s flagship iron ore division, could alter the relative valuations of the two companies and facilitate a smoother transaction.

Representatives from Glencore and Rio Tinto declined to comment when approached by Reuters.