Topic: How To Invest

Q: Dear Pat: Could you please give us your opinion of Rio Tinto, and is the dividend safe? Thank you.

Article Excerpt

A: Rio Tinto plc (ADR), $49.11, symbol RIO on New York (ADRs outstanding: 1.4 billion; Market cap: $65.6 billion, www.riotinto.com), is a major international mining group, based in the U.K. The company locates, develops, mines, and processes a diverse range of mineral resources. Its major products include aluminum, copper and diamonds. Rio Tinto also produces salt, energy assets, such as coal and uranium, and industrial minerals such as borax and titanium dioxide. The company operates worldwide, with much of its focus on Australia and North America. Its other operations are located in South America, Asia, Europe and South Africa. Rio Tinto has decided to sell off some of its assets, including its thermal coal facilities. Australia-based Yancoal has offered $2.69 billion for that business. The sale seems to be timely: thermal coal markets have suffered with the growing number of power plants that are switching to clean-energy alternatives. The company plans to use the proceeds from the thermal coal sale for a $2.5…