RIO TINTO UPS INVESTMENTTuesday December 18,2007 Andrew JohnsonMining giant Rio Tinto has ploughed more than $1billion (£495million) into investments to combat the takeover threat from potential suitor BHP Billiton.
In a bid to bolster future growth, the company has embarked on a $991million investment in coal production in the Bowen Basin region of Queensland, Australia, and $300million in developing Eagle, a high-grade nickel and copper mine in the US.
Meanwhile, some experts are doubtful the merger will go ahead. Analyst Damien Hackett at Canaccord Adams said: “Our analysis does not make a compelling case for the merger.” The Takeover Panel is expected this week to hand down its decision on Rio’s request for it to set a deadline for a formal takeover move by BHP. Preston Chiaro, Rio Tinto’s energy chief, said the extension to Queensland’s Kestrel mine would increase its production to an average of 5.7million tonnes of coal a year until 2031. So far this year, Rio Tinto has spent $44billion on new projects, including its $38.1billion acquisition of Canada-based Alcan in October. BHP Billiton’s shares slid 67p to 1478p and Rio Tinto’s fell 164p to 5012p. |
 |
|
| Thursday 8th January 2009 |  |
Make us your HOME PAGE |  |
What is RSS? |
