Rio Tinto agrees sale of Lochaber assets for $410m

Rio Tinto has agreed to sell its assets at Lochaber in Scotland to SIMEC for $410m (£330m).

The agreement comprises the sale of Rio’s 100% shareholding in Alcan Aluminium, which includes the operating smelter, the hydroelectric facilities at Kinlochleven and Lochaber and all associated land.

The price includes a payment on completion of £180m and an additional payment of £150m no later than 28 February 2017.

Rio Aluminium's chief executive Alf Barrios said: “This is a value-creating sale for Rio Tinto and represents another example of refining our portfolio to focus on our suite of tier one assets.

"At the same time, our priority has been to ensure a long-term sustainable future for Lochaber and economic benefit for the wider Fort William community. There was significant interest in the assets, but SIMEC is committed to continuing operations at the smelter and working with the community on further economic development."

The Scottish government’s cabinet secretary for Rural Economy and Connectivity, Fergus Ewing, said he was “delighted” at the news, as the sale of the smelter and hydro power station increases the odds of the site having a “viable, long-term future”.

"This is great news for the whole local community and especially for the workers at the smelter. Subject to all necessary agreed processes, the deal implemented will safeguard 150 jobs and has the potential to create hundreds more," he said.

At 1113 GMT, the shares were up 0.7% to 3,095.00p.