The world number three miner sold off noncore operations from the aluminum business it bought in 2007 for about $44 billion, since it announced in October it was selling 13 assets.

In March this year, the company also announced it was closing its Lynemouth aluminum smelter in Northumberland, England as part of its aluminum restructure plan.

The Rio Tinto unit had low, single-digit operating margins last year, General Cable said in a release, adding that the business would contribute between $650 and $700 million in annual sales, based on current metal prices.

Alcan Cable currently employs 1,000 people with factories and distribution facilities in the U.S., Canada, Mexico and China.

The transaction is expected to close later this year after the sale obtains the necessary regulatory clearances.

The Sydney Morning Herald reports that union members in Australia and Canada are upset with the lockout of 800 workers from Rio Tinto's smelter in Quebec, Canada, and are accusing the miner of betraying Olympic values because of that.

Led by Canada's United Steelworkers' union (CFMEU), the campaign wants to see Rio off the Olympic podium before July’s games.

“If there was a gold medal for abuse of human rights, work rights and the environment, it would go to Rio Tinto,” said in CFMEU spokesman Tony Maher in a statement. “We are a mining country with a booming resources economy. Rio Tinto is a major player in Australia and we all have an interest in holding Rio Tinto to account for its corporate behaviour.”

John Battams, Queensland Council of Unions president, told the Sydney Morning Herald Canadian employees only asked for a fair go and a decent future for their families: 

"We are particularly trying to highlight Rio’s attempt to deceive the world into believing that somehow they have similar values as the Olympic movement,’’ he told reporters at the Brisbane protest.

"They are not a good corporate citizen. They need to be outed as a very bad employer, not just in Alma, Canada, but in their mining operations around the world as well.

 

Rio Tinto Alcan locked unionized workers out at the 438,000 tonne smelter, in Saguenay-Lac-Saint-Jean, Quebec, on Jan. 1, after contract talks between the company and unionized employees broke down.

Last April, the Anglo-Australian miner said that no talks were scheduled and that it continues to operate the plant with non-unionized workers at about one-third of capacity.

(Image by Ints Vikmanis / Shutterstock.com)

To be headquartered in Perth, Western Australia, the new group will be led by Glenn Kellow, the current president of BHP stainless steel materials division, said the company in a statement.

The new arm would contain all of BHP’s current nickel and aluminum assets, including Nickel West and the Worsley Alumina Refinery in Australia, as well as assets in Colombia, Mozambique, South Africa, and other international locations.

BHP's aluminum, nickel, and corporate development CEO Alberto Calderon said while the assets were currently struggling the company saw future opportunities for them.

"Despite the current challenges, BHP Billiton is committed to aluminum and nickel as commodities that may benefit from later phases of economic development in the emerging economies," he said.

Calderon said individually the aluminum and nickel assets were small compared to BHP's overall business and combining them into a single unit would simplify the company structure and provide the "appropriate scale."

The company rejected rumours by saying the announced move represents long-term faith in the industries.

Production totaled 364,100 tons in the first quarter of this year, up 2.7% compared to the same period of 2011.

CBA, part of Brazilian conglomerate Votorantim, increased production 16.3% to 38,600 tons in March and 13.4% to 113,300t in the first three months.

Rio Tinto's (NYSE:RIO) aluminum output fell by 9%, mainly as a result of its decision to lock out employees at a smelter in Quebec, Canada.

BHP Billiton's (NYSE: BHP) production was down 2.7% to 14,300 tonnes in March and 4.9% to 41,000t in the first three months.

Alcoa's (NYSE:AA) output declined 0.7% to 29,100 tonnes in March and 2.8% to 83,800t in January-March.

Albras reported a decrease of 0.5% to 39,000 tonnes in March and increase 1.0% to 114,600t in January-March.

Novelis' (NYSE: NVL) output fell 2.4% to 4,000 tonnes in March and 5% to 11,400t in January-March.

RAPSI, the Russian Legal Information Agency, reported that Vekselberg and his partners initiated a commercial litigation in a London court against Rusal, the EN+ company, Glencore which owns an 8.75% stake in Rusal, and Rusal's owner Oleg Deripaska.

Vekselberg is the former chairman of Rusal, and Sual Partners own 15.8% of Rusal. According to Forbes magazine, Vekselberg and Deripaska are among the 15 richest people in Russia.

Details on the lawsuit are spare, but RAPSI cites a source close to Rusal's shareholders saying "…"the lawsuit is connected with the dispute between Rusal's shareholders, which arose following an illegal approval of long-term aluminum and alum earth contracts between Rusal and Glencore amounting to over $47 billion."

RT reports that Sual Partners "started legal proceedings in London claiming the deal between Rusal and its minority shareholder and commodities producer Glencore was agreed in violation of Sual’s right of veto." The veto refers to an agreement that Glencore would distribute 30% of Rusal's exports in 2012, despite being vetoed by Sual Partners. Sual is seeking to halt the contract and claim damages.

The issue appears to be connected with Vekselberg stepping down from the chairmanship of Rusal in March.

The curtailments will reduce Alcoa’s refining capacity in the Atlantic region by about 4 percent and are already underway. The Atlantic region represents about 50 percent of Alcoa’s total global refining capacity of 18 million metric tons per year.

“Alcoa is taking these steps to avoid aggravating alumina oversupply in the Atlantic region and to enhance the efficiency of our refining system,” said Chris Ayers, president of Alcoa’s Global Primary Products. “We will continue to monitor market conditions and will take further action if warranted.”

In January of this year, Alcoa announced the closure or curtailment of 531,000 metric tons of smelting capacity. Of that, 291,000 represented the permanent closure of capacity in Tennessee and Texas that had been idled since 2009. Another 240,000 metric tons, or 5 percent of Alcoa’s smelting capacity, represented curtailments to be taken in Portovesme, Italy and La Coruña and Aviles, Spain.

Alcoa has reached agreement with government authorities and unions in both Italy and Spain on the curtailments. The 90,000 metric ton curtailment in the Spanish smelters has started and is scheduled to be complete by the first half of this year. The smelter in Portovesme, Italy, with a capacity of 150,000 metric tons, will finalize curtailment by the end of the year.

About Alcoa

Alcoa is the world’s leading producer of primary and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for 10 consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 61,000 people in 31 countries across the world. More information can be found at www.alcoa.com.

Forward-Looking Statements

Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown risks and uncertainties that may cause actual results, performance, or achievements of Alcoa to be different from those expressed or implied in the forward-looking statements. These statements may be identified by the use of predictive, future-tense, or forward-looking terminology, such as “expects,” “intends,” “is scheduled to,” “plans,” “should,” “will,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions, or projections about the future other than statements of historical fact are forward-looking statements, including, without limitation, forecasts concerning aluminum industry conditions, anticipated schedules for completion of curtailments, and statements about Alcoa’s strategies, objectives, goals, targets, outlook, and business and financial prospects. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: (a) material changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices for primary aluminum, alumina, and other products; (b) changes in economic conditions generally, in the global financial markets, or in the markets served by Alcoa, including aerospace, automotive, commercial transportation, building and construction, packaging, consumer electronics, and industrial; (c) Alcoa’s inability to complete its smelting and refining capacity curtailments as planned and by scheduled completion dates, whether due to changed circumstances, governmental or regulatory requirements, labor issues, or other reasons; (d) political, economic, and regulatory risks in the countries in which Alcoa operates; and (e) the other risk factors summarized in Alcoa's Form 10-K for the year ended December 31, 2011 and other reports filed with the Securities and Exchange Commission. Alcoa disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.

“Alcoa is taking these steps to avoid aggravating alumina oversupply in the Atlantic region and to enhance the efficiency of our refining system,” said Chris Ayers, president of Alcoa’s Global Primary Products. “We will continue to monitor market conditions and will take further action if warranted.”

These are not the first cuts. At the start of the year, Alcoa announced the closure or curtailment of 531,000 metric tons of smelting capacity. It permanently closed Tennessee and Texas facilities, representing 291,000 tonnes, that had been idled since 2009. Another 240,000 metric tons, or 5% of Alcoa’s smelting capacity, represented curtailments to be taken in Portovesme, Italy and La Coruna and Aviles, Spain.

The company said that the curtailments will reduce Alcoa’s refining capacity in the Atlantic region by about four percent and are already underway. The Atlantic region represents about 50 percent of Alcoa’s total global refining capacity of 18 million metric tons per year.

The top two producers of aluminum are Rio Tinto Alcan and Rusal.

According to a Dow Jones Newswire report last fall, Chinalco Yunnan has agreements with Rio to farm-in to the projects:

The company's subsidiary can earn a 40 per cent stake in the Candelabro project with drill work and an investment of $US8 million ($7.5m), including a minimum spend of $US250,000 in the first year, after which Rio will have 90 days to either resume management of the project, or grant the company a further three years to invest $US15m to take its interest to 60 per cent. If Rio maintains its 60 per cent controlling stake, then a joint venture company will be formed between the companies, it said.

Last year, Rio Tinto and state-owned aluminum producer Chinalco formed an exploration joint venture in China to explore for copper and other metals. The two companies are also developing the Simandou iron ore project in Guinea.