Rio Tinto Alcan Expansion Projects Under Review For Possible Delay

MONTREAL (CP) -- The London-based mining giant says it is reviewing all capital projects. Among its largest in Canada are the modernization of the Kitimat smelter in British Columbia and construction of a couple of smelters in Quebec's Saguenay region.

A company spokeswoman wouldn't discuss the impact on specific projects or the timing of such a review, saying the company is looking at capital expenditures across the board right now.

The metals and mining giant also disclosed during the release of its third-quarter results that it may delay the planned sale of assets such as the Alcan packaging and engineering products unit.

Rio Tinto had planned to sell $10 billion of assets this year, $15 billion in total, to pay down debt incurred from the $38.1 billion takeover of Alcan.

"We've reviewed the timetable and we're recognizing the liquidity challenges buyers are facing," CFO Guy Elliott told analysts during a conference call.

Rio is fighting a hostile bid from BHP Billiton valued at $86 billion.

(c) The Canadian Press

Editor's note: also today.

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