Tinto to sell aluminium assets in $1 bn deal: FT

Rio Tinto has been steadily recovering from a disastrous $38-billion acquisition of Alcan in 2007

Global miner Rio Tinto plans to sell some of its aluminium assets in a potential $1-billion (£0.64-billion) deal, Financial Times reported, reviving a sale plan for its Pacific Aluminium unit two years after it was cancelled. The newspaper , citing "people aware of Rio's plans", said on Sunday that Rio had hired Credit Suisse to find a buyer for Pacific Aluminium, known as PacAl, which comprises a group of smelters in Australia and New Zealand.

Rio Tinto could not be reached for comment.

The company first said it could hive off PacAl in 2011. In 2013, it said it was considering selling it, before scrapping efforts, blaming poor market conditions. Since then the aluminium market has recovered somewhat. The aluminium price rose six per cent in 2014 and surpassed copper as the second biggest contributor to Rio's underlying earnings.

In aluminium, it has been steadily recovering from a disastrous $38-billion acquisition of Alcan in 2007 that brought it close to bankruptcy and helped lead to the dismissal of its previous chief executive, Tom Albanese.