Mar. 11th, 2010
Rio Tinto, the world's third-largest miner, said it has restarted the process of selling its talc business and has received interest from a range of parties, including private equity groups.
"We are continuing to explore opportunities to sell the talc business," Harry Kenyon-Slaney, chief executive of the diamond and minerals division of Rio Tinto, said.
"We are not in any crushing hurry to get it done within the next few months. We believe that it has a value and we want to take that value."
Rio Tinto put its talc and borates businesses up for sale in late 2008 but pulled the divestment due to the global economic crisis. While the talc business is now up for sale again the company said it will hold on to its borates operation.
Rio Tinto Minerals, which includes the talc and borates business, posted a profit of $78 million in 2009.
Talc is used in animal feed, ceramic tiles, chewing gum and many everyday products including body powder.
Revenue at the company's diamonds and minerals business fell 31 percent to $2.6 billion in 2009 as it cut production of diamonds, titanium dioxide and borates in response to the drop in demand.
Kenyon-Slaney said the business was disproportionally affected by a reliance on consumers in the United States and Europe, but was cautiously optimistic about the outlook for the diamonds and minerals operation.
"I would expect these businesses to improve their performance during 2010. We are seeing a return to much fuller levels of production and we're seeing improved pricing in the diamonds side and in borates and titanium dioxide."
"The recovery is fragile, it's volatile, but certainly it's an improved underlying picture."
Rio Tinto, the world's third-largest miner, said it has restarted the process of selling its talc business and has received interest from a range of parties, including private equity groups.
"We are continuing to explore opportunities to sell the talc business," Harry Kenyon-Slaney, chief executive of the diamond and minerals division of Rio Tinto, said.
"We are not in any crushing hurry to get it done within the next few months. We believe that it has a value and we want to take that value."
Rio Tinto put its talc and borates businesses up for sale in late 2008 but pulled the divestment due to the global economic crisis. While the talc business is now up for sale again the company said it will hold on to its borates operation.
Rio Tinto Minerals, which includes the talc and borates business, posted a profit of $78 million in 2009.
Talc is used in animal feed, ceramic tiles, chewing gum and many everyday products including body powder.
Revenue at the company's diamonds and minerals business fell 31 percent to $2.6 billion in 2009 as it cut production of diamonds, titanium dioxide and borates in response to the drop in demand.
Kenyon-Slaney said the business was disproportionally affected by a reliance on consumers in the United States and Europe, but was cautiously optimistic about the outlook for the diamonds and minerals operation.
"I would expect these businesses to improve their performance during 2010. We are seeing a return to much fuller levels of production and we're seeing improved pricing in the diamonds side and in borates and titanium dioxide."
"The recovery is fragile, it's volatile, but certainly it's an improved underlying picture."
