Rio Tinto sells stake in Chinese aluminium smelting project

IO Tinto has sold its stake in an aluminium smelting joint venture in China as it moves to reduce its $A56.1 billion debt. Rio Tinto spokesman Jim Singer said Qingtongxia Aluminium Company had bought the mining giant's 50 per cent stake in the venture but could not comment on the sale price. "Rio Tinto confirms that it has entered into an agreement to sell a 50 per cent interest in an aluminium smelting joint venture in the Ningxia province of China to one of its partners in that joint venture, Qingtongxia Aluminium Company," Mr Singer said. "Completion of the transaction is expected in the first quarter of 2009 pending clearance of certain Chinese government approvals." Rio Tinto paid about $US150 million ($A216.5 million) for its 50 per cent stake in the joint venture in 2004. Its debt stems from its $US38 billion ($A54.84 billion) acquisition of US aluminium producer Alcan last year. ---news.com.au