logo-loader
viewRio Tinto PLC

Rio Tinto has cancelled plans for the sale or flotation of its Canadian iron ore business: media reports

The Wall Street Journal said the Anglo-Australian miner - which owns a 59% stake in Iron Ore Co of Canada - was unable to settle on a suitable price

Iron ore pellets in furnace
The business is a joint venture between Rio Tinto, Japan’s Mitsubishi Corp., and the Labrador Iron Ore Royalty Income Corp.

Rio Tinto plc (LON:RIO) has cancelled plans for the sale or flotation of its Canadian iron ore business, following unsuccessful attempts to find buyers, according to media reports.

The Wall Street Journal said at the weekend that the Anglo-Australian miner - which owns a 59% stake in Iron Ore Co of Canada - was unable to settle on a suitable price with potential buyers as iron-ore prices have been volatile.

READ:Rio Tinto warns of costly delay to Mongolian copper project, while iron ore production falls 

Iron Ore Co. of Canada produces iron-ore concentrate and pellets from mining operations and processing facilities in Newfoundland and Labrador, and also runs port facilities in Quebec.

The business is a joint venture between Rio Tinto, Japan’s Mitsubishi Corp., which owns 26%, and the Labrador Iron Ore Royalty Income Corp., which owns 15%.

Rio Tinto recorded net earnings of $166 million from the business in 2018, down from $235 million a year earlier, although the operations had been suspended for two months during the year due to labour negotiations.

A number of global mining companies including Rio Tinto have been selling off a string of assets in recent years to cut their debt and focus on operations that are more profitable.

Contact the author at [email protected]

Quick facts: Rio Tinto PLC

Price: 4771.5 GBX

LSE:RIO
Market: LSE
Market Cap: £59.5 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

LexaGene hires two salespeople to tackle diagnostic and vet market with new...

LexaGene (CVE: LXG-OTCQB: LXXGF) CEO Dr Jack Regan joined Steve Darling from Proactive Vancouver with news the company has made two key sales hires as they look to begin to roll out their genetic analyzers for rapid pathogen detection called MiQLab. Regan says they are hiring in the...

16 minutes ago

2 min read