MINING giant Rio Tinto has been put on notice by the Australian Workers Union that any possible sale of its aluminium assets must not result in the closure of Bell Bay Aluminium. Speculation has been mounting that the company is looking to sell its Pacific Aluminium assets, which include Bell Bay Aluminium as well as sites in New South Wales and Queensland. Fairfax has reported that Rio has appointed investment bank Credit Suisse to find a buyer for Pacific Aluminium. In 2011 Rio carved Pacific Aluminium out of its broader aluminium business with the aim of selling or floating the assets, but abandoned the sale two years later. It then closed the Gove alumina refinery in the Northern Territory after the failed sale, resulting in more than 1000 job losses. Australian Workers Union national secretary Scott McDine has written to Rio Tinto chief executive Sam Walsh asking for an assurance that it won't happen again. "I note that after an attempted sale failed, Rio responded by abruptly moving to shut down the Gove alumina refinery, resulting in catastrophic job losses for the AWU," the letter said. "I ask you to provide an assurance to all workers at Boyne, Yarwun, Bell Bay and Tomago that their workplaces will not go the way of Gove should Rio's new attempt at a sale prove unsuccessful." The aluminium price rose 6 per cent in 2014, and last year aluminium surpassed copper as the second-biggest contributor to Rio's underlying earnings behind iron ore. Fairfax reported that Rio chairman Jan du Plessis said the company "would not be spinning off the aluminium division" as it sought to do in 2012 and 2013. Rio Tinto and Bell Bay Aluminium declined to comment, saying it was all speculation.
MINING giant Rio Tinto has been put on notice by the Australian Workers Union that any possible sale of its aluminium assets must not result in the closure of Bell Bay Aluminium.
Speculation has been mounting that the company is looking to sell its Pacific Aluminium assets, which include Bell Bay Aluminium as well as sites in New South Wales and Queensland.
Fairfax has reported that Rio has appointed investment bank Credit Suisse to find a buyer for Pacific Aluminium.
In 2011 Rio carved Pacific Aluminium out of its broader aluminium business with the aim of selling or floating the assets, but abandoned the sale two years later.
It then closed the Gove alumina refinery in the Northern Territory after the failed sale, resulting in more than 1000 job losses.
Australian Workers Union national secretary Scott McDine has written to Rio Tinto chief executive Sam Walsh asking for an assurance that it won't happen again.
"I note that after an attempted sale failed, Rio responded by abruptly moving to shut down the Gove alumina refinery, resulting in catastrophic job losses for the AWU," the letter said.
"I ask you to provide an assurance to all workers at Boyne, Yarwun, Bell Bay and Tomago that their workplaces will not go the way of Gove should Rio's new attempt at a sale prove unsuccessful."
The aluminium price rose 6 per cent in 2014, and last year aluminium surpassed copper as the second-biggest contributor to Rio's underlying earnings behind iron ore.
Fairfax reported that Rio chairman Jan du Plessis said the company "would not be spinning off the aluminium division" as it sought to do in 2012 and 2013.
Rio Tinto and Bell Bay Aluminium declined to comment, saying it was all speculation.
