Rio Tinto agrees $500m sale price for French smelter

Rio Tinto has received a binding offer to sell its Dunkerque aluminium smelter in northern France for $500m from Tata Steel owner Liberty House.

Rio said it would, as guided by French law, conduct a consultation process with employees, relevant European works councils and other stakeholders in relation to the bid.

If all goes well, the FTSE 100 group expects to complete the sale of Dunkerque Aluminium in the second quarter of the year.

Liberty House, which acquired Rio's Scottish smelter in December 2016, plans to modernise the Dunkerque site.

"The binding offer for the sale of Aluminium Dunkerque represents the best option for the future development of the site while also delivering value for Rio Tinto as we continue to streamline our portfolio," said Rio Tinto's aluminium chief Alf Barrios.

"Liberty House has a track record of investing in similar assets, which should secure a long-term sustainable future for Aluminium Dunkerque and continued economic benefit for the wider community".