Rio Tinto is a world leader in finding, mining and processing the earths mineral resources. The Groups worldwide operations supply essential minerals and metals that help to meet global needs and contribute to improvements in living standards. Rio Tinto encourages strong local identities and has a devolved management philosophy, entrusting responsibility with accountability to the workplace. Major products include aluminium, copper, diamonds, energy products (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc and zircon), and iron ore. The Groups activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa. Rio Tinto comprises wholly owned subsidiaries (such as Borax, Comalco, Hamersley, Rio Tinto Coal Australia, Kennecott and Rio Tinto Iron & Titanium), partly owned subsidiaries (Coal & Allied and Palabora) and non-managed, (Escondida) and joint ventures (Grasberg) in which public shareholders, other companies or governments are partners.

            Red = 25 day moving average.           Green = 200 day moving average.

SALES PER ACTIVITY (Data as of 31/12/2005)

Iron:        29%
Coal:       19%
Copper     18%
Aluminum: 14.5%
Minerals:  12.5%
:              6%
Misc:        1%

i have a funny feeling that it will even be below this level, but merely in reaction to NY which i also suspect will be down ..... if that is the case, i shall be tempted to dabble again

Looks like it closed at slightly above our 430 close in New York, still got to deal with Asx, have to admit selling out for 120 points today! Damn day traders!

Meanwhile, Rio Tinto, which saw its share price savaged after BHP withdrew its offer, has had its rating raised by ING from hold to buy in the wake of the share price collapse.

ING now has a price target of 2000p, down from 2200p previously, and remains concerned about Rios $39bn debt pile, which the miner is not reducing as fast as it hoped, due to difficulties securing what it considers fair value for the assets it is seeking to offload.

ING points out that Rio needs to refinance by next October around $9bn of money borrowed to acquire Alcan.
Re-loaded today at 15 for bed and breakfast trade

bed and breakfast? ...... cuddly blonde + eggs and bacon??

I wish...flog it in the open though !

the blonde?

Rio, lol!

Down again....what a market !.

ABN profit downgrade of 36% and 39billion debt, seems to be doing an RBS wonder if Fred Godwin is on the board !

Rio Tinto response to press speculation





TIDMRIO

RNS Number : 6004M
Rio Tinto PLC
01 February 2009

Rio Tinto response to press speculation

2 February 2009

Rio Tinto notes the recent press speculation regarding discussions with
Chinalco, an existing shareholder.

As previously announced, the Boards of Rio Tinto are continuing to consider a
range of options. In this regard, Rio Tinto confirms that it has held
discussions with Chinalco regarding Chinalco acquiring minority interests in
various operating businesses of the Rio Tinto group and also investing in
convertible instruments.

There can be no certainty that a transaction will ultimately take place and any
possible transaction would be conditional upon approval by the shareholders of
Rio Tinto and all necessary government and regulatory authorities.

A further announcement will be made as and when appropriate.

About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK,
combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto
Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major
products are aluminium, copper, diamonds, energy (coal and uranium), gold,
industrial minerals (borax, titanium dioxide, salt, talc) and iron ore.
Activities span the world but are strongly represented in Australia and North
America with significant businesses in South America, Asia, Europe and southern
Africa.

For further information, please contact:

+-----------------------------------------------+------------------------------------------+
| Media Relations, London | Media Relations, Australia |
| Christina Mills | Ian Head |
| Office: +44 (0) 20 7781 1154 | Office: +61 (0) 3 9283 3620 |
| Mobile: +44 (0) 7825 275 605 | Mobile: +61 (0) 408 360 101 |
| | |
| Nick Cobban | Amanda Buckley |
| Office: +44 (0) 20 7781 1138 | Office: +61 (0) 3 9283 3627 |
| Mobile: +44 (0) 7920 041 003 | Mobile: +61 (0) 419 801 349 |
| | |
| Media Relations, US and South America | Media Relations, Canada |
| Tony Shaffer | Stefano Bertolli |
| Office: +1 202 393 0266 | Office:: +1 (0) 514 848 8151 |
| Mobile: +1 202 256 3667 | Mobile: +1 (0) 514 915 1800 |
+-----------------------------------------------+------------------------------------------+
| | |
+-----------------------------------------------+------------------------------------------+
| Investor Relations, London | Investor Relations, Australia |
| Nigel Jones | Dave Skinner |
| Office: +44 (0) 20 7753 2401 | Office: +61 (0) 3 9283 3628 |
| Mobile: +44 (0) 7917 227 365 | Mobile: +61 (0) 408 335 309 |
| | |
| David Ovington | Simon Ellinor |
| Office: +44 (0) 20 7753 2326 | Office: +61 (0) 7 3867 1607 |
| Mobile: +44 (0) 7920 010 978 | Mobile: +61 (0) 439 102 811 |
| Investor Relations, North America | |
| Jason Combes | |
| Office: +1 (0) 801 685 4535 | |
| Mobile: +1 (0) 801 558 2645 | |
| | |
+-----------------------------------------------+------------------------------------------+
| Email: questions@riotinto.com | |
+-----------------------------------------------+------------------------------------------+
| Websites: www.riotinto.com |
+-----------------------------------------------+------------------------------------------+

This information is provided by RNS
The company news service from the London Stock Exchange
END

Rio Tinto notes press speculation

4 June 2009
"Rio Tinto notes press speculation. Rio Tinto is pursuing a range of options, some of
which are at an advanced stage, for maximising shareholder value and improving the
Group's capital structure.
A further announcement will be made in due course."
- - - - - - - - - - - - - - - - - - - - - - - - - -
"Rio Tinto dominated late trading as its deal with Chinese giant Chinalco looked all but dead in the water as the mining giant confirmed it is considering its options.

A rights issue to raise up to $15bn could be announced as soon as tomorrow according to reports in Australia. Rio shares slumped by 7% on the news and dragged other miners down with it.

The Australian newspaper also reported that Rio Tinto will, instead, look to form a joint venture with rival BHP Billiton, which last year abandoned a bid for Rio Tinto, with the two mining titans combining their iron ore interests."

a modest punt in RIO could reap profit even if a rights issue is on the cards ..... any such issue will for sure be priced attractively, and if no rights issue but say a JV with BHP, then again, it can't be bad

Business Financial Newswire
Aluminum Corporation of China (Chinalco) is disappointed at Rio Tinto's decision to terminate the co-operation agreement signed in February.

Chinalco president Mr Xiong said: "In recent weeks Chinalco has worked hard to respond constructively and engage with Rio Tinto to make appropriate amendments to the transaction terms announced in February to better reflect the changed market background and feedback from shareholders and regulators.

"As a result, we are very disappointed with this outcome.

"We continue to believe our proposal presented an outstanding value-creating opportunity for all Rio Tinto shareholders and would have provided a strong platform for a long term strategic partnership between the two companies.

"Chinalco will continue to explore opportunities to advance its strategic objectives and in the meantime will monitor developments at Rio Tinto as the company's current largest single shareholder.

"We note the announcement of the joint venture in the Pilbara between Rio Tinto and BHP Billiton and will continue to monitor developments in relation to this project."

"Rio Tinto shares soared as it scrapped its controversial $19.5bn refinancing deal with Chinese firm Chinalco and instead launched a $15.2bn rights issue and a merger of its West Australia iron ore assets with those of bitter rival BHP Billiton.

Institutional investors angry at the Chinalco agreement welcomed the decision, though it raises questions on the future of chief executive Tom Albanese, who was a strong backer of the Chinalco plan.

Terms of the rights are 21 New Rio Tinto plc Shares for every 40 existing shares at 1,400 pence per share, a 48% discount, and 21 New Rio Tinto Limited Shares offered for every 40 existing shares at A$28.29 each.

As part of the iron ore deal, BHP Billiton will also pay Rio $5.8bn to equalise the value of the assets being placed intothe venture. It will now run on a 50:50 basis.

Rio Tinto will also pay Chinalco an agreed break fee of $195m because of the termination of the agreement.

The group also announced its results for the three months to March with pre-tax profit slumping to $2,433m from $4,169m before on gross sales that fell to $9,538m from $13,236m."

UPDATE:Steelmakers Say Rio-BHP Iron Ore JV Should Be Blocked





(Adds background)

LONDON -(Dow Jones)- Steelmakers Friday called on relevant competition authorities to "seriously examine" BHP Billiton Ltd. (BHP) and Rio Tinto PLC's (RTP) proposed iron ore joint venture, saying it should be blocked even in its revised form.

"We are again calling on competition authorities to seriously examine the obvious implications for future pricing regimes and the competitive environment for iron ore," Ian Christmas, director general of the World Steel Association said on behalf of steel producers worldwide. The association's members represent around 85% of the world's annual steel production.

"At present we cannot see how this JV could be in the public interest and thus it should not be allowed to proceed," he said.

BHP and Rio Tinto Friday announced plans to create a 50-50 joint venture that would generate $10 billion in synergies by operating the pair's adajacent mines in the Pilbara region of Western Australia as a single operation, streamlining rail haulage, and optimizing future growth.

The joint venture is structured differently from last year's proposed merger of Rio Tinto and BHP's entire businesses. Whereas the merger would have led to the creation of a single iron ore business, under the terms of the joint venture agreement, Rio and BHP will keep their marketing divisions independent and separate from each other and the joint venture, thereby limiting the possiblity for price collusion.

Steelmakers, who rely on iron ore to make steel, are concerned that the joint venture would conentrate too much iron ore production within the hands of a single entity. Rio Tinto and BHP together accounted for 33% of the world's 2007 sea-borne iron ore trade, according to the latest figures from the association. The top three producers, including Brazil's Vale SA (VALE), account for 69.2% of the world's seaborne iron ore trade.

BHP Chief Executive Marius Kloppers said he expected the 50/50 joint venture to be notifiable to the European Union but added that the deal should present less anti-trust issues than last year's proposed merge.

"Firstly, the scope is very different. It excludes mines such as Samarco or (the Rio project) Simandou. It is also truncated in completeness of business scope," Kloppers said during an analyst call.

Under the terms of the agreement, Rio and BHP will set up a separate marketing body that will share no pricing knowledge with its owners.

Company Web site: http://www.worldsteel.org

Down 20% this morning. Presumably something to do with the rights issue?

Bought some at 2270 though possibly better to have waited for 20, or 10, or 5 we shall see...

does anyone think that the RIO will have trouble raising the money through the 21-40 offer?

I got the impression that shareholders were very pleased that the Chinalco deal was scrapped, so presumably they realised that the other option now was to go cap in hand to shareholders. I imagine the institutional investors will be happy to scoop up the rights which are not taken up by the private lot.

Possibly a bit premature, Falco. Currently 2172p & still nudging down.