The global mining giant Rio Tinto Group is mulling sales of its aluminium operations in Australia and New Zealand, reported the Financial Times. The sale of assets includes Pacific Aluminium and a power station at Gladstone, for which the group is in talks with Sanjeev Gupta owned Gupta Family Group Alliance.
According to the report, Gupta is flying to Australia to discuss the deal and inspect the power station.
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Rio’s Pacific Aluminium smelters employ over 2,000 individuals, and registered a total net income of US$92 million in H1 FY 2017-18, a year-on-year jump from last year’s H1 net of US$29 million.
Apart from GFG, Century Aluminium of the United States has also been showing interest in the smelters. Glencore Plc, who happens to own a 47 per cent interest in Century, is also rumoured to have its eye on Pacific Aluminium.
Few days back, there were reports of Rio considering the sale of its Dunkerque aluminium smelter in France. The company is planning to sell its aluminium smelting operations that are “not powered by hydroelectricity” in order to stay sustainable and profitable over the long run, the reports said.
GFG Alliance is an international grouping of businesses with integrated business model encompassing mining, energy generation, metals and engineering. The addition of Rio’s Pacific Aluminium, if happens, would position the firm in the global industrial map further strengthening its renewable energy, metals, and power portfolio.
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