Orbite Technologies Inc EORBF

RE: RE: RE: RIO TINTO

[boredhousewife]

at 20:41 on October 16, 2011, EDT.

Rio Tinto says it will sell 13 aluminum units including refineries and smelters

The Associated Press

In this undated file photo supplied by Rio Tinto, iron ore is mined in the Pibara region of western Australia. THE CANADIAN PRESS/AP, Rio Tinto"

MELBOURNE, Australia - Rio Tinto announced Monday it will sell 13 of its aluminum assets, including refineries, smelters, power stations and a mine, as the world's second biggest miner seeks to streamline its Alcan business.

Shares in Anglo-Australian company gained almost 3 per cent in early trade in Australia on Monday to a one-month high of 70.16 Australian dollars ($72.44) after the company said in a statement it was streamlining its aluminum group following a strategic review.

Rio Tinto bought the Canadian aluminum company Alcan Inc. for $38 billion in 2007.

The company said the move would allow Rio Tinto Alcan to grow the value of its tier one assets and improve the product group's financial performance.

"The assets identified for divestment are sound businesses that are well-managed with productive work forces," Rio Tinto chief executive Tom Albanese said in a statement. "But they are no longer aligned with our strategy and we believe they have a bright future under new ownership."

"The strength of our balance sheet means that we can choose the most opportune method and timing to divest these assets, which may not occur until the economic climate improves," he added.

Rio Tinto's interests in six Australian and New Zealand assets will transfer into a new business unit, to be called Pacific Aluminium, which will report separately from the Rio Tinto Alcan product group before they are sold.

The Australian assets are the Gove bauxite mine and alumina refinery, Boyne smelters with the associated Gladstone power station, as well as the Tomago and Bell Bay smelters.

The New Zealand assets are New Zealand Aluminium Smelters.

A second group of seven noncore assets will continue to be managed by Rio Tinto Alcan while it further investigates divestment options.

These assets include three alumina plants and the Gardanne refinery in France and Germany, the U.S. Sebree smelter and Britain's Lynemouth smelter and associated power station.