UPDATE: Rio Tinto CFO Says Co May Limit Further Asset Sales
February 12 2009 - 5:54AM
Dow Jones News
Rio Tinto PLC's (RTP) chief financial officer said Thursday the
company's $19.5 billion deal with Aluminum Corp. of China Ltd.
(ACH) allows it to hold off on the sales of assets not already on a
short-list for disposal.
"I think the Chinalco transaction gives us the flexibility to be
much more demanding and not to sell other businesses," Guy Elliott
told analysts during a presentation.
Rio Tinto Thursday announced a $19.5 billion deal with Chinalco
that will give the Chinese group minority stakes in a suite of
assets and convertible bonds that could ultimately deliver an 18%
stake in the miner.
The deal, if approved by shareholders and regulators, would ease
Rio's $38.7 billion debt burden.
Rio had been hoping to sell off non-core assets to meet its debt
obligations.
Seven businesses, including U.S. coal, aluminum packaging and
industrial minerals, have been on the market since 2007 and remain
for sale.
The Anglo-Australian miner said in December it would expand that
list as it scrambled to pay off $10 billion of its debt this year.
And earlier this year it announced the disposal of a potash project
in Argentina and iron ore operations in Brazil for a total of $1.6
billion.
"We had very active discussions with all the major players in
the sector. We've been two months into that expanded list and I
think we have a good flavor for the interest," Chief Executive Tom
Albanese said.
Company Web site: www.riotinto.com
-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347;
jeffrey.sparshott@dowjones.com