Rio Tinto plc (LON:RIO) has cancelled plans for the sale or flotation of its Canadian iron ore business, following unsuccessful attempts to find buyers, according to media reports.
The Wall Street Journal said at the weekend that the Anglo-Australian miner - which owns a 59% stake in Iron Ore Co of Canada - was unable to settle on a suitable price with potential buyers as iron-ore prices have been volatile.
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Iron Ore Co. of Canada produces iron-ore concentrate and pellets from mining operations and processing facilities in Newfoundland and Labrador, and also runs port facilities in Quebec.
The business is a joint venture between Rio Tinto, Japan’s Mitsubishi Corp., which owns 26%, and the Labrador Iron Ore Royalty Income Corp., which owns 15%.
Rio Tinto recorded net earnings of $166 million from the business in 2018, down from $235 million a year earlier, although the operations had been suspended for two months during the year due to labour negotiations.
A number of global mining companies including Rio Tinto have been selling off a string of assets in recent years to cut their debt and focus on operations that are more profitable.
Contact the author at jon.hopkins@proactiveinvestors.com