RIO SHELVES SALE

Herald Sun - - BUSINESS DAILY -

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.

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