Melbourne, 18 June (Bloomberg) ' Mining company, the Rio Tinto Group, agreed to pay Kaiser Aluminum ...
Melbourne, 18 June (Bloomberg) ' Mining company, the Rio Tinto Group, agreed to pay Kaiser Aluminum $189m in cash and debt to raise its stake in an Australian alumina refinery as demand for the metal increases. The purchase, by Rio subsidiary Comalco, raises the company's stake in the plant in Gladstone, Queensland, by 8.3% to 38.6%, Rio said in a release to the Australian StockExchange.
Anglo-Australian miner Rio is increasing control over the plant at a time of rising demand for alumina, the key ingredient in aluminium used to make products from beverage cans to cars.
'Queensland Alumina, one of the largest and lowest cost alumina refineries in the world, is regarded by Comalco as a core asset,' Comalco chief executive Sam Walsh said in the statement.
The company agreed to pay $159m for the stake and to assume $30m of debt guaranteed by Kaiser, which will own 20% of the plant when the purchase is completed in the third quarter of this year, the group said.
Alcan, the world's second biggest aluminium maker, owns 21.4%, while fourth largets Pechiney owns 20%.
Rio last year bought the shares in Comalco it didn't already own to boost its control over the company's aluminium plants.
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