Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Australia's Rio Tinto to buy Mitsubishi's nearly 12% stake in Boyne Smelters

Published 06/10/2024, 06:54 PM
Updated 06/10/2024, 11:40 PM
© Reuters. Rio Tinto logo is seen displayed in this illustration taken April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
RIO
-

(Reuters) -Mining giant Rio Tinto (NYSE:RIO) said on Tuesday it will buy Mitsubishi Corp's 11.65% stake in Boyne Smelters (BSL) for an undisclosed sum.

Boyne, which owns and operates the Boyne Island aluminium smelter in Gladstone, Australia, is a joint venture between Rio Tinto, YKK Aluminium and others.

In late May, Rio signed a deal to buy Sumitomo Chemical's 2.46% interest in the venture.

The purchase from Sumitomo Chemical and the completion of the deal with Mitsubishi will see Rio's interest in Boyne increase to 73.5%, the Australian miner said.

"Rio Tinto looks forward to continuing to work with its remaining BSL joint venture partners and other stakeholders on securing a competitive low-carbon future for its Gladstone operations," Rio Tinto said.

The acquisition is set to be finalised in the second half of 2024.

For Mitsubishi, the sale is part of a reshuffle of its aluminium portfolio, and the financial impact - to be booked in the July-September quarter - on its annual earnings forecast will be limited, a company spokesperson said.

© Reuters. Rio Tinto logo is seen displayed in this illustration taken April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The Japanese trading house will no longer hold stakes in any aluminium smelter but will remain active in the aluminium business, including trading and investment in bauxite assets, the spokesperson said. The metal's growth potential is in light-weight automobiles to achieve greater efficiency, they said.

In 2021, Mitsubishi agreed to buy 30% of the Aurukun bauxite project in Australia from Glencore (OTC:GLNCY).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.