Today, Monday December 13, 2010, financial news from across the globe speak to Rio Tinto and their recent acquisition of Alcan. The continued selling off of these Alcan assets has been a feature of the news reports for two years. Today these news items continue however they also discuss potential investments in the future of Rio Tinto's aluminum division (Alcan).
The Kitimat Smelter is listed as one of the two likely investments that will proceed.
Read the Reuters news report found HERE
and posted below.SYDNEY, Dec 13 (Reuters) - Global miner Rio Tinto may sell some aluminium smelters and refineries with limited growth potential, and is considering a major capital investment at its Alcan unit, Chief Financial Officer Guy Elliott told The Australian newspaper.
'We have to look critically at some of the assets - smaller, older assets that exist in the portfolio that maybe don't have much upside in terms of expandibility or extension of life,' The Australian quoted Elliott as saying in a report published on Monday.
He did not put a value on the assets for sale but said they were all generating cash.
'We'd like to sell them at good prices if we do sell them - that means we need the climate to improve a little bit.'
Rio Tinto has completed divestments in excess of $10 billion since the beginning of 2008, including sales of $3.6 billion of chiefly Alcan assets in 2010.
Elliott added Alcan's first substantial capital spending since being taken over by Rio Tinto for $38 billion in 2007 was 'on the horizon'.
The paper added that the two most likely options for capital projects are the $2 billion-plus expansion of the Kitimat smelter in British Columbia and the AP5X technology pilot plant planned for Quebec.