Rio Tinto Alcan

Rio Tinto Alcan

Background

The Rio Tinto Group combines Rio Tinto plc, which is listed on the London Stock Exchange and headquartered in London, and Rio Tinto Limited, which is listed on the Australian Securities Exchange and has executive offices in Melbourne. Its businesses include open pit and underground mines, mills, refineries and smelters as well as a number of research and service facilities.

In February 2008, Shining Prospect Pte, owned by Chinalco (Aluminum Corporation of China) with funding from Alcoa Inc acquired 12 per cent of the issued share capital of RioTinto plc. Through the DLC voting arrangements it became a substantial shareholder in the Rio Tinto Group, holding 9.3 per cent of its voting power The company completed the divestments of Greens Creek mine in Alaska for $750 million, Rio Tinto's interest in the Cortez operation in Nevada for $1,695 million, the Kintyre uranium project in Western Australia for $495 million, and the Potasio Rio Colorado project in Argentina and Regina exploration assets in Canada for $850 million.

Plant locations and capacity details

Rio Tinto Alcan is one of the world's largest producers of bauxite, alumina and aluminium, with an annual production capacity of 35 million tonnes of bauxite, 9 million tonnes of alumina and 4.1 million tonnes of aluminium. It operates mainly in Canada and Australia, with increasing interest in Europe, New Zealand, Africa, South America and the US.

In February 2009, the company announced to implement production curtailments to align market production with customer demand, bringing the total production down to 450,000 tonnes or approximately 11 per cent of its total annualised aluminium capacity.

Business mix

Rio Tinto Alcan is present in aluminium production, mining bauxite, refining alumina, and manufacturing aluminium sheet, foil, wire and extrusions. The company also generates hydroelectric power and makes specialty chemicals and packaging products. The company produces about 35 million tonnes of bauxite, 9 million tonnes of alumina and 4 million tonnes of aluminium products annually.

Market position

Rio Tinto Alcan became the world's largest aluminium company when Rio Tinto PLC's Canadian subsidiary, Rio Tinto Canada Holding Inc completed a friendly acquisition of Canadian company Alcan Inc on November 15, 2007. At the time of acquisition, Alcan Inc had been the world's third largest aluminium producer.