Rio Tinto Alcan has sold its 50% equity share of the Alcan Ningxia aluminium joint venture in China to Qingtongxia Aluminium Group (QTX) for gross cash consideration of $125 million. In addition, Rio Tinto Alcan received $13 million for the cancellation of an option right to expand at the Qingtongxia smelter complex. Alcan Ningxia joint venture owns a 160,000 t/y potline in Qingtongxia.

“Despite the challenges of the current market, we have completed a transaction that creates clear value both for Rio Tinto Alcan and QTX. We have sold our stake in Alcan Ninxgia, after being approached by our partner QTX in late 2007, to further our business model of investing in low cost, large scale, and long-term assets,” said Dick Evans, Chief Executive, Rio Tinto Alcan.

Rio Tinto Alcan says its sale of its stake in Alcan Ningxia is in line with its global divestment strategy and the group “commitment to preserving value for shareholders by conserving cashflow and reducing levels of debt in response to global economic conditions.”