国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Economy

Markets

Industries

Insights

Reports

Events

Rio Tinto may sell more assets if Chinalco deal fails

(Agencies)
Updated: 2009-03-26 11:48

Mining giant Rio Tinto said on Thursday it could sell more assets and reschedule debt should a proposed $19.5 billion tie-up with Chinese State-owned company Chinalco fail to materialize.

Related readings:  Chinalco deal gets initial nod  Australia competition body won't block Rio-Chinalco  Rio Tinto: China to lead recovery in metals demand   Decision on Chinalco and Rio's deal to be delayed for 90 days

Rio expects a recovery in metal prices in the second half as China's stimulus package boosts infrastructure spending in the world's most populous nation, Chief Financial Officer Guy Elliott also told a mining conference in Singapore.

"First of all, we think it (the Chinalco deal) will go through but we have plans in the eventuality if other various governments or shareholders prevent the deal," Elliott said.

Alternatives could include bond issues, more asset sales, a rights issue, a rescheduling of debt or combination of them, he said.

Under a proposed deal, China's top aluminum company will pay $12.3 billion for stakes in Rio's iron ore, copper and aluminum assets and $7.2 billion for convertible bonds that would double its equity stake in Rio to 18 percent.

Australia's competition watchdog cleared Rio's tie-up with Chinalco this week, rejecting at least one key argument against a deal, which still needs the treasurer's approval.

Elliott said the Chinalco deal could provide the firm with greater access to the China market and possible funding from the Chinese government on projects on the mainland.

He said the Rio board decided in favor of a deal with Chinalco over a rights issue because there was a lot of uncertainty about the outlook for the industry at that time.

Rio, which has already sold several billion dollars worth of assets, separately said it will shut a pig iron plant in Australia for 12 months, due to a weak outlook.

Elliott said that despite contradictory signals from the world economy, he was hopeful metal prices will recover in the second half of the year as China's increased infrastructure investment offset falling demand in the West.

"There is a case, you can believe, for a recovery in the second half," he said. "We are not far away from the bottom."