HomeBase MetalsRio Tinto sells share of Chinese aluminium venture

Rio Tinto sells share of Chinese aluminium venture

Aerial view of
Qingtongxia smelter
in China
London, England — MININGREVIEW.COM — 27 January 2009 – Rio Tinto Alcan – the leading British-based international mining group engaged in finding, mining, and processing mineral resources – has completed the sale of its 50% equity share of the Alcan Ningxia aluminium joint venture in China to Qingtongxia Aluminium Group Company Limited (QTX) for a gross cash consideration of US$125 million (R1.3 billion).

A statement released here revealed that in addition, Rio Tinto Alcan had received US$13 million (R130 million) for the cancellation of an option right to expand at the Qingtongxia smelter complex. The Alcan Ningxia joint venture owns a 160 000 tpa potline in Qingtongxia.

“Despite the challenges of the current market, we have completed a transaction that creates clear value both for Rio Tinto Alcan and QTX,” the statement continued. “We have sold our stake in Alcan Ninxgia, after being approached by our partner QTX in late 2007, to further our business model of investing in low cost, large scale, and long-term assets,” said Rio Tinto Alcan chief executive Dick Evans.

Rio Tinto Alcan’s sale of its stake in Alcan Ningxia is in line with Rio Tinto’s global divestment strategy and its commitment to preserving value for shareholders by conserving cash flow and reducing levels of debt in response to global economic conditions.