Rio Tinto denies rights issue newspaper report

LONDON (Reuters) -Mining group Rio Tinto (RIO.AX) has described as speculation a British Sunday newspaper report claiming it is talking to banking advisers about a potential $9 billion rights issue in the first half of next year. The mining giant was drawing up contingency plans to raise capital to allow it to take part in future industry consolidation, the Mail on Sunday newspaper said, citing an unidentified senior banker familiar with the situation. A spokesman for the group reiterated comments made last week by Chief Executive Tom Albanese during the group's announcement about 14,000 job cuts and reductions in capital spending to reduce its heavy debt load. "This is a speculative story," the spokesman said. "Our CEO said then that we have no need for a rights issue at the present time."