Rio to reap $34bn from sell-off

RIO Tinto could reap as much as $34 billion from the sale of its non-core assets after it swallows aluminium producer Alcan, new research shows.

The world's third largest mining company flagged the asset sale following its $US38 billion ($A43.26 billion) takeover bid for Alcan.

The deal will position Rio Tinto as the world's largest aluminium producer and allow it to further take advantage of the China/India growth story.

Research from Goldman Sachs JBWere (GSJBW) suggests Rio Tinto would focus on the core commodities that would benefit from Chinese and Indian economic growth - iron ore, copper and aluminium - and sell off the rest.

"Reflecting on the strategic framework put forward by Rio to explain the Alcan deal, we believe Rio is effectively repositioning its asset base to leverage off growth in China and then India, and potentially dispose of other assets," GSJBW said.

"To this end, the Alcan deal is not just about acquiring Alcan but selling assets that are not as leveraged to the China/India growth story."

GSJBW said the potential sale of Rio's uranium, thermal coal, industrial minerals, gold and diamonds divisions and non-strategic assets in iron ore, copper and aluminum could net $US30 billion ($A34.15 billion).

The brokerage estimates Rio Tinto could receive $US8 billion ($A9.11 billion) for Pacific Coal, $US4 billion ($A4.55 billion) for Coal & Allied and $US5 billion ($A5.69 billion) for its uranium division, which includes its majority stake in Energy Resources of Australia Ltd.

GSJBW said although the scenario was extreme, it did highlight Rio Tinto's move to reposition its asset base.

"We think the scenario highlights that Rio is moving to reposition its asset base up the asset quality curve and in assets that are leveraged to China and India," the brokerage said.

There is expected to be fierce jostling for any of the disposed assets, with gold and base metal miner Oxiana Ltd registering early interest.

"We would expect to be at the table at the appropriate time," Oxiana managing director Owen Hegarty told journalists this week.