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Bluff smelter sale still likely - analyst
Edited by : AL CIRCLE
1 min read
An analyst says resources giant Rio Tinto is unlikely to change plans to sell the aluminium smelter near Bluff but it could be more attractive to potential buyers after a massive asset writedown by its parent company.
Rio Tinto announced last week it was writing down the value of its coal business in Mozambique and its aluminium businesses to the tune of $US14 billion.
The company also appointed Sam Walsh, the head of its Iron Ore and Australia divisions, as the company's new chief executive.
Despite the writedowns, investors approved of the appointment of a new boss, believing he will have a more disciplined approach after two failed acquisitions.
The Bluff smelter is part of the aluminium business for sale after Rio Tinto acquired Alcan at the top of the market in 2007 for $US38 million.
Fat Prophets resource analyst David Lennox says Rio Tinto has now written off about $30 billion of the total acquisition, which could mean a lower price tag.
Mr Lennox expects the Bluff smelter sale will continue.
Rio Tinto announced last week it was writing down the value of its coal business in Mozambique and its aluminium businesses to the tune of $US14 billion.
The company also appointed Sam Walsh, the head of its Iron Ore and Australia divisions, as the company's new chief executive.
Despite the writedowns, investors approved of the appointment of a new boss, believing he will have a more disciplined approach after two failed acquisitions.
The Bluff smelter is part of the aluminium business for sale after Rio Tinto acquired Alcan at the top of the market in 2007 for $US38 million.
Fat Prophets resource analyst David Lennox says Rio Tinto has now written off about $30 billion of the total acquisition, which could mean a lower price tag.
Mr Lennox expects the Bluff smelter sale will continue.
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