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12/06/2012 18:08:00

Rio Tinto Alcan CEO: Focus on Alumina, Bauxite

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NEW YORK--Rio Tinto Alcan, one of five operating groups operated by Rio Tinto PLC (RIO, RIO.LN), is focusing its investment and development on bauxite and alumina, Jacynthe Cote, chief executive of Rio Tinto Alcan, said Tuesday at the American Metal Market Aluminum Summit.

"Remember that it all starts with bauxite and electricity," Ms. Cote said of aluminum production. She added that Rio Tinto Alcan is investing the most, among primary aluminum producers, into both bauxite and alumina production and assets. While some of Rio Tinto Alcan's customers may be better at making aluminum, these customers appreciate the company's efforts into expanding raw material supply, she said.

The mining and production company is repositioning itself to focus more on bauxite and alumina to help cut its production costs for aluminum.

"We think that will offer some upside going forward," Ms. Cote said.

The company is also focusing on using more hydroelectric and nuclear power to cut electricity costs.

The shifts will give Rio Tinto Alcan "the lowest carbon footprint in the industry," she said.

Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com

(END) Dow Jones Newswires

June 12, 2012 12:08 ET (16:08 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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