Alcan sale at ‘advanced’ stage

Rio Tinto, which is also looking to sell its Energy America and Mineral businesses, declined to comment further on the sale.

However, in a statement the company announced that it intends to pursue the refinancing of the Alcan facilities in the “term market” and will take advantage of credit market conditions “as and when” they improve.

Rio Tinto also revealed that it would reduce costs by cutting its global head count by 14,000, including 8,500 contractor and 5,500 employee roles.

The company will also consolidate offices around the group, including the London head office.

Tom Albanese, Rio Tinto chief executive said that the company will expand further “the scope of assets we are targeting for divestment”.

“By taking these tough decisions now we will be well positioned when the recovery comes,” he added.

Rio Tinto also revealed that the group’s net debt has been reduced by $3.2bn to $38.9bn (£26.25bn) in the period from 30 June to 31 October 2008.

The statement closely follows the announcement last month (25 November) that BHP Billiton had withdrawn its AUD68bn (£28.9bn) offer for Rio Tinto, stating that it would not be in the interests of shareholders.

The Australian-headquartered company blamed the economic downturn and plunging commodity prices for its decision.

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