Aluminum price resilience plan to sell Europe's largest aluminum factory while hot
Because the metal aluminum prices rebound, the sale of second of the world's largest mineral company, Rio Tinto Group is Dunkirk's largest aluminium smelter measure in europe.
The report said, Rio has been in northern France and Dunkirk aluminum smelter potential buyers to communicate. It is reported that the annual production capacity of 270 thousand tons of aluminum smelter attracted private, Holdings Company and other financial investors interest.
In addition, Rio Tinto is also considering the sale of aluminum smelters in Iceland, and is upgrading its efforts to strip Australia and New Zealand's Pacific aluminum assets.
According to the Rio Tinto website, the ISAL aluminium smelter in Iceland has a capacity of 205 thousand tons. The Pacific Aluminum Inc has three smelters and a power station in Australia, and owns an aluminium plant in new zealand. In 2011, Rio Tinto originally planned to split the Pacific aluminum, which included more assets at that time for potential sales. Two years later, Rio abandoned the plan.
Since 2013, Rio Tinto has sold over $7 billion in assets. Rio Tinto chief executive Jean-Sebastien Jacques said in an interview last month that the rebound in metals and energy prices has opened the window on the sale of other assets.
In June, Rio accepted an offer of $2 billion 690 million for the Australian power coal mine. In February, Rio also accepted an offer to buy the remaining coke mine in Australia, worth about $1 billion 600 million. Last year, Rio Tinto also agreed to sell the Scotland aluminum business Lochaber to SIMEC.
According to reports, Rio Tinto talks to sell Dunkirk aluminum assets is still in its early stages. A Rio spokesman declined to comment.
Rio Tinto Alcan Alcan also plans to sell its business in Iceland, which has been confirmed by Rannveig Rist, the local director.
According to data compiled, in the past three years, the acquisition scale of the global aluminum enterprises has reached 30 billion 800 million U. S. dollars. In 2016, the aluminum price on the London Metal Exchange was up 30%. As the largest aluminium producer, China's supply containment measures aimed at overcapacity have begun to take effect, and aluminium prices are rebounding. This also enabled the company to have better valuation opportunities.
Sanford C. Bernstein financial analyst Paul Gait said, "Rio Tinto will re valuation in Strike while the iron is hot., aluminum prices rebound. The extra divestiture plan has proved that."