Aluminium business dragged Rio Tinto profits down in 2012

The aluminium market deteriorated further in 2012, while the strong Australian and Canadian dollars did nothing to relieve cost pressures in the business, Rio Tinto chairman Jan du Plessis told the company's annual general meeting this morning.

Mr du Plessis said these factors, coupled with high energy and raw material costs, substantially reduced market valuations across the aluminium industry worldwide.

"Almost six years have passed since the announcement of the Alcan acquisition in early July 2007," he said.

"In hindsight, this transaction was not only badly timed at the top of the market, but major structural changes over the last year or two have put the global aluminium industry under tremendous pressure.

"In retrospect, we therefore have to acknowledge that the acquisition has had a significant negative impact on shareholder value and, as our owners, you have every right to expect that we do better.

"However, without in any way wishing to downplay the adverse impact of the Alcan acquisition, I also feel it is important that we retain a balanced perspective of the company's overall performance over the period of almost six years since the acquisition was first announced."

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