Cameroon: Rio Tinto to sell aluminium stake

RIO TINTO plans to sell its shares in an aluminium smelter in Cameroon, ending several decades in partnership with the government because the project no longer fits the global mining group’s strategy. Rio Tinto, which makes more than 90 percent of its profit from iron ore, has been edging away from aluminium since its $38 billion (R420bn) acquisition of Canadian giant Alcan in 2007 soured during the financial crisis, leaving it with heavy writedowns. It has ruled out new investments in the metal. Rio Tinto Alcan, the mining giant’s aluminium business, said yesterday that it would work with Cameroon’s government to find a new investor in Alucam Group, as the 100 000 ton-a-year facility is known. Rio Tinto said late on Monday that its contracts for technical and administrative assistance would not be affected. Rio Tinto Alcan and the government both have a 46.67 percent stake in the project, while the French Development Agency has a 5.6 percent stake and employees own 1.1 percent. – Reuters