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11 OCTOBER 2018 AL CIRCLE

Rio Tinto soon to restart sale process of its aluminium plant in Iceland: Sources say

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Rio Tinto, an Anglo-Australian multinational and one of the world's largest metals and mining corporations, is reportedly close to recommencing a sale process of its aluminium plant in Iceland, along with some aluminium assets. The aluminium plant in Iceland has been valued at around US$350 million, two sources familiar with the matter reported.

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The assets, on the other hand, include a 53 per cent stake in a Dutch anode facility and 50 per cent of the shares in a Swedish aluminium fluoride plant, which are ingredients in aluminium production, the sources added.

The two sources even intimidated that French investment bank Natixis is helping Rio with the sale. However, Rio Tinto declined to comment on the news and Natixis was not immediately available to make any statement.

Norwegian aluminium company Norsk Hydro, on the other hand, has withdrawn its previous plan to buy those assets in September, blaming a delay in getting European Commission approval for the deal. The industry sources are of the opinion that the European Commission has possibly not given the approval considering Hydro’s already major position in the aluminium industry.


Rio Tinto Chief Executive Jean-Sebastien Jacques, who took charge in July 2016, is gradually selling all but the company's best-performing units.

In January, Rio had agreed to sell an aluminium smelter in Dunkirk in France to Sanjeev Gupta's Liberty House, which also bought the miner's smelter in Lochaber, Scotland.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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