Here are couple versions of articles which are in alignment on the ~$US 8 billion in 13 assets being sold = 6 Australian-NZeland thru new Pacific group & 7 in Europe thru Rio Tinto Alcan group.
[color=#0000cc size=3]Going to have lot implications on Power, Anode Petcoke use & Aluminum sector consolidation – depending on how/whom assets are sold (or if not closed).
The sales would leave remaining Rio Tinto Aluminum business mainly focused on its more profitable Canadian operations. Goals are to double the Aluminum group earnings to 40% by 2015 (still long way from Iron Ore business sector)
Rio bought Alcan in an ill-timed deal back in 2007 at top of market for $US 38 billion – then due debt load it had to slash cost & sell business sectors as market turned amid global financial crisis. Rising Chinese production and over-capacity in Aluminum has undermined Aluminum prices to tumble over 15% in 2Half 2011 & another 8% drop 2012 is predicted.
The versions have some differences on “why” of sales : debt reduction vs good housekeeping vs chasing better cash options (Iron/Steel Sector &/ Mongolian Gold investment).
Regards