French Minister for Industrial Recovery Arnaud Montebourg has denied plans to nationalise a Rio Tinto aluminium plant. Source: AFP
THE French government has denied a report that its government is considering nationalising an aluminium plant owned by Rio Tinto.
Le Monde newspaper reported that the move is being studied by officials working for Industrial Recovery Minister Arnaud Montebourg, just 10 days after the government rejected a similar proposal for ArcelorMittal's Florange steel plant in eastern France.
But his ministry issued a terse statement saying it "denies the information appearing in Le Monde about Rio Tinto Alcan's Saint-Jean-de-Maurienne factory."
There was no immediate comment from Rio Tinto.
Mr Montebourg was vociferous in his support for nationalisation in the case of ArcelorMittal and was reported to have come close to resigning after failing to convince his colleagues in a debate that exposed fault-lines within the Socialist government.
The minister's officials are currently negotiating with Rio Tinto's Rio Tinto Alcan unit over the future of the plant at Saint-Jean-de-Maurienne in the French Alps.
Key to the negotiations is the company's demand for a reduction in the prices if pays for electricity bought from energy giant Electricite de France (EDF), in which the government has a controlling stake.
The plant's current electricity deal expires in the spring of 2014 and Rio Tinto has threatened to sell or close it if its demands are not met.
In October, it said several potential buyers had been in touch about a possible takeover.
Like Florange, the aluminium plant is seen as a symbol of France's declining industrial base.
It was originally owned by French group Pechiney, which was bought out by Canada's Alcan in 2003. Alcan itself was taken over by Rio Tinto four years later.
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