Share

Rio Tinto to sell stake in Cameroon

Yaounde - Rio Tinto plans to sell its shares in an aluminium smelter in Cameroon, ending several decades in partnership with the government because the project no longer fits the global mining group's strategy.

Rio, which makes more than 90% of its profit from iron ore, has been edging away from aluminium since its $38bn 2007 acquisition of Canadian giant Alcan soured during the financial crisis, leaving it with heavy write-downs. It has ruled out new investments in the metal.

Rio Tinto Alcan, the mining giant's aluminium business, said on Tuesday it would work with Cameroon's government to find a new investor in Alucam Group, as the 100 000 tonne-a-year facility is known.

"Rio Tinto Alcan is proud of its long participation in the Alucam Group over several decades. However, the Alucam Group's new business model no longer fits with our strategy," Rio Tinto said late on Monday.

Its contracts for technical and administrative assistance will not be affected, the company added.

Rio Tinto Alcan and the government both have a 46.67% stake in the project while the AFD, the French Development Agency, has a 5.6% stake and employees own 1.1%.

The smelter employs some 570 people at Edea, 65km from Cameroon’s economic capital Douala.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.2%
Rand - Pound
24.09
+0.1%
Rand - Euro
20.61
-0.1%
Rand - Aus dollar
12.37
+0.4%
Rand - Yen
0.13
+0.6%
Platinum
906.50
-1.8%
Palladium
1,010.52
+0.4%
Gold
2,155.30
-0.2%
Silver
24.97
-0.3%
Brent Crude
86.89
+1.8%
Top 40
66,018
-0.4%
All Share
72,192
-0.3%
Resource 10
53,225
-0.2%
Industrial 25
99,730
-0.7%
Financial 15
16,631
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders