Rio Reviewing Alumina Refinery As Market Conditions Worsen

Rio Tinto Group, the world’s second-biggest mining company, dropped a plan to convert its loss-making Gove alumina refinery to a cheaper fuel source because prices and exchange rates have worsened.

“Despite considerable efforts to improve the refinery’s performance, continuing low alumina prices, a high exchange rate and substantial after-tax losses for the refinery are key factors under consideration,” the London-based company said in an e-mailed statement. “Plans to convert the alumina refinery to gas will no longer proceed, and Rio Tinto is now considering future options around the alumina refinery.”