Worldwide Xstrata and Rio Tinto push to raise cash

摘要

Big miners are having a hard time as commodities prices have slumped in the face of the global economic downturn. Xstrata and Rio Tinto became the latest companies to seek to raise capital to pay of debts, which, in Rio Tinto's case, stand at some US 40 billion dollars. Rio has now confirmed that it is in talks with Chinalco, a state-owned Chinese aluminium producer and already Rio's largest share holder, to help alleviate the debt. This may result in the Chinese firm raising its stake in the miner and buying minority stakes in a variety of Rio's assets. With around US 9 billion dollars of its debt up for refinancing by the end of this year, and a further US 10 billion dollars in 2010, Rio is pushing hard to reduce its debt, slashing its workforce and capital expenditure and selling assets. It may yet need a rights issue to raise cash, an option that it has already said it is considering.