RIO SHELVES SALE
RIO Tinto has shelved plans to sell its Australian and New Zealand aluminium business, according to analysts briefed by the company.
And the miner has warned of a big hit to earnings from more expensive aluminium raw materials and coal.
Its plan to keep Pacific Aluminium and the warning on costs were delivered in presentations for investors in North America by aluminium head Alf Barrios.
“Raw materials and energy are lifting (the global) cost curve by 16 per cent from 2017,” Mr Barrios said in presentation slides.
“Costs are expected to stay elevated in 2019.”
Shares in the AngloAustralian mining giant gained 1.9 per cent yesterday to $78.03.