UK- based mining group Rio Tinto Alcan has announced that it will close its Lynemouth aluminium smelter located in Northumberland, England , which was opened in 1972. The company will proceed with the closure after consulting with its employees and representatives from the union during a 90-day period.
The company is also likely to sell the power station located at the site and is in discussion in this regard. While the Lynemouth smelter employs 515 people, the power station employs 111 people. All the employees at the smelter and the power station will receive support in terms of re-training and assistance in job hunting.
According to Jacynthe Cote who is the Chief Executive of Rio Tinto Alcan, the company took the decision after careful review of its strategy and its options of continuing to run the smelter and the power station. The company concluded that running the smelter would involve high costs since energy costs are on the rise and have tighter legislations. However, he also hopes that the company will be able to retain the power station. He has also assured that the company will continue to provide its support to its customers. Rio Tinto is primarily involved in mining and processing of mineral resources and deals with metals like gold, metallurgical coal, diamonds, salt, titanium oxide, uranium, borax, iron ore and thermal coal. The company has a strong business in North America and Australia and also has a major presence in South America, Africa, Asia and Europe.
Source: http://www.riotinto.com