Monday 19th Feb, 2018

Rio mulling Pacific Aluminium float

Alcoa produces light metals, including alumina and aluminium.

Rio Tinto is reportedly looking into the potential of a full or partial listing of its Pacific Aluminium division on the Australian Stock Exchange.

According to a column in AFR’s StreetTalk, the mining giant has begun deliberations into an initial public offering for the business.

Rio reportedly had Deutsche Bank ready to assist with a divestment of the division last year, but took a step back from the process as the aluminium price lifted.

The division’s assets include smelters in Australia and New Zealand.

According to the report, valuations for Pacific Aluminium range from US$1.9 billion, and US$3.9 billion, with an objective assessment of the division’s value hard to ascertain due to the continued volatility of the commodity’s price.

Rio segmented its Pacific Aluminium assets from the rest of its aluminium operations, with eyes on divesting it, seven years ago.