Rio Tinto axes $15 billion alumina plant in Saudi Arabia

RIO Tinto has been forced to jettison a $US10.5 billion ($15 billion) aluminium project in Saudi Arabia, as the global economic crisis continues to bite into metals demand. As it prepares to slice 14,000 jobs globally and pull back billions on spending, Rio yesterday said it would not help fund the massive Ma'aden bauxite mine, alumina refinery and aluminium smelter, in which it had a 49 per cent stake. The move is the latest from Rio, which is trying to bolster its balance sheet and pay down some of the $US38.9 billion worth of debt left after the 2007 acquisition of Alcan. In more bad news for the miner, ratings agency Moody's yesterday downgraded $US5 billion worth of debt and it was also revealed the Guinean government had given the northern part of Rio's Simandou iron ore concession to Israeli diamond billionaire Beny Steinmetz. Source: The Australian