SYDNEY, Dec 13 (Reuters) - Global miner Rio Tinto may sell some aluminium smelters and refineries with limited growth potential, and is considering a major capital investment at its Alcan unit, Chief Financial Officer Guy Elliott told The Australian newspaper.
'We have to look critically at some of the assets -- smaller, older assets that exist in the portfolio that maybe don't have much upside in terms of expandibility or extension of life,' The Australian quoted Elliott as saying in a report published on Monday.
He did not put a value on the assets for sale but said they were all generating cash.
'We'd like to sell them at good prices if we do sell them -- that means we need the climate to improve a little bit.'
Rio Tinto has completed divestments in excess of $10 billion since the beginning of 2008, including sales of $3.6 billion of chiefly Alcan assets in 2010.
Elliott added Alcan's first substantial capital spending since being taken over by Rio Tinto for $38 billion in 2007 was 'on the horizon'.
The paper added that the two most likely options for capital projects are the $2 billion-plus expansion of the Kitimat smelter in British Columbia and the AP5X technology pilot plant planned for Quebec.
(Reporting by Balazs Koranyi; Editing by Ed Davies) Keywords: RIO ALCAN/ (balazs.koranyi@thomsonreuters.com)(+61 2 9373 1826)(Reuters Messaging: balazs.koranyi.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'We have to look critically at some of the assets -- smaller, older assets that exist in the portfolio that maybe don't have much upside in terms of expandibility or extension of life,' The Australian quoted Elliott as saying in a report published on Monday.
He did not put a value on the assets for sale but said they were all generating cash.
'We'd like to sell them at good prices if we do sell them -- that means we need the climate to improve a little bit.'
Rio Tinto has completed divestments in excess of $10 billion since the beginning of 2008, including sales of $3.6 billion of chiefly Alcan assets in 2010.
Elliott added Alcan's first substantial capital spending since being taken over by Rio Tinto for $38 billion in 2007 was 'on the horizon'.
The paper added that the two most likely options for capital projects are the $2 billion-plus expansion of the Kitimat smelter in British Columbia and the AP5X technology pilot plant planned for Quebec.
(Reporting by Balazs Koranyi; Editing by Ed Davies) Keywords: RIO ALCAN/ (balazs.koranyi@thomsonreuters.com)(+61 2 9373 1826)(Reuters Messaging: balazs.koranyi.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.