Mining giant Rio Tinto has announced its intention to acquire Mitsubishi Corp’s 11.65% stake in Boyne Smelters (BSL), located in Gladstone, Australia. The acquisition will result in Rio Tinto holding a 73.5% interest in the aluminium smelter. This move follows a similar transaction completed in May in which Rio Tinto purchased Sumitomo Chemical’s 2.46% stake in BSL. The deal is slated to finalize in the second half of 2024. Meanwhile, Mitsubishi is strategically reshuffling its aluminium portfolio, eliminating its participation in aluminium smelters but continuing to invest in the aluminium trading and bauxite sectors. The financial impact of the sale on Mitsubishi’s earnings is expected to be minimal. As part of its broader strategy, Mitsubishi will focus on the metal’s growing use in lightweight automobiles. This reshuffling aligns with Mitsubishi’s 2021 investment wherein it purchased a 30% stake in the Aurukun bauxite project from Glencore.

Mining, Aluminium, Investment,Australia, Japan