Glencore interested in buying Rio’s aluminium assets in Iceland: Sources say

According to the Reuters report, Glecore is one of the companies that have shown interest in buying Rio Tinto’s aluminium assets in Iceland, Sweden, and the Netherlands for up to $350 million. Rio had started the assets sale process in late 2018 with the help of French investment bank Natixis after Norsk Hydro withdrew itself from buying them. According to Hydro, the reason was the delay in getting the European Commission’s approval.

As an aluminium smelter in Iceland, Rio Tinto has put on the block a 53 per cent stake in a Dutch anode facility and 50 per cent of the shares in a Swedish aluminium fluoride plant. Both anode and aluminium fluoride are used as raw materials in aluminium production.

Now, as the volatility caused by the US sanctions and supply reduction at Hydro’s massive Alunorte alumina plant in Brazil are resolved, and the aluminium market has stabilised, it could be easier for Rio Tinto to process its assets sales.

Commodity trader and miner Glencore, which is one the interested parties, does not directly own aluminium assets and has offtake agreements with other producers, including US Century Aluminium and Russia’s Rusal. Glencore, however, has not made any immediate comment.

Glencore reportedly buys aluminium from all around the world at a total of about 3 million tonnes or 10 per cent of supply outside the biggest producer China.

According to Reuters, German aluminium producer Trimet Aluminium was also named by the sources as one of the interest companies in buying Rio’s assets. But on Thursday, July 4, the company said that it was not interested in buying any aluminium plant.

One of the sources even noted that Liberty House showed an interest in the assets, but its balance sheet may be a constraint after its acquisition of seven European plants from ArcelorMittal for 740 million euros ($835 million).