Rio Tinto confirms rights issue as it plans 1bn aluminium plant

Mining giant Rio Tinto, which last week confirmed it was considering a rights issue, as revealed by Financial Mail in December, is considering spending more than 1billion setting up an aluminium plant in Colombia. The boss of Rio's aluminium arm, Richard Evans, is believed to have held talks with Colombia's president Alvaro Uribe and trade minister Luis Guillermo Plata at last week's World Economic Forum meeting in Davos, Switzerland. Evans said a Rio Tinto delegation was in Colombia exploring investment opportunities. The move further highlights the need for the heavily indebted Rio to raise new cash. The company is believed to be working with banks including Deutsche Bank, NM Rothschild and Credit Suisse to gauge shareholder support for a ?6billion fundraising. One leading shareholder said: 'There is market recognition that Rio has to do something and it is clearly a reality that selling assets is not as easy as it once was. The company must bring some clarity to its intentions.' --dailymail.co.uk