MercoPress. South Atlantic News Agency

Rio Tinto Alcan planning a 2.5 billion USD aluminium smelter in Paraguay

Sandeep Biswas from Rio Tinto Alcan made the announcement in Asunción

Rio Tinto Alcan, a unit of global mining giant Rio Tinto said on Monday it could invest up to 2.5 billion US dollars in a potential aluminium smelter in Paraguay. Rio Tinto Alcan said it had begun negotiations on a possible power purchase agreement for the potential smelter.

“Our projections indicate the total investment ... to be approximately 2.5 billion,” Sandeep Biswas, the head of Rio Tinto Alcan's new business division, told reporters in Asuncion.

The company signed a letter of intent with Paraguay's state-run National Electrical Administration (ANDE) to begin negotiations on an energy purchasing agreement in the future.

“Under the terms of this agreement, Rio Tinto Alcan will be working with ANDE to develop an energy and development agreement that balances a competitive electricity price for a state-of-the-art aluminium smelter and its contribution to Paraguay's social and industrial development priorities”, said an official release from the corporation.

“Safety, environment, and ethical business practices are key commitments at Rio Tinto Alcan. Our operations would seek to contribute to long-term employment and industrial development in Paraguay,” added Sandeep Biswas.

Rio Tinto Alcan is the global leader in the aluminium industry. Its operations in Latin America include shares in both the Porto Trombetas bauxite mine and Alumar refinery in Brazil. Rio Tinto's regional experience includes a 30% share of Escondida, the world's largest copper mine, in Chile and development of the wholly-owned La Granja copper project in Peru.

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.