Rio says UK smelter on course to close in Sept

LONDON, June 17 (Reuters) - Rio Tinto (RIO.L: Quote, Profile, Research) (RIO.AX: Quote, Profile, Research) said it was too early to say whether a proposed new biomass power plant could secure the future of its primary aluminium smelter in Britain, which is expected to close in September.

"A feasibility study is taking place....no decision has been made and it would take quite a few years before it would go ahead," said a Rio Tinto spokesman, referring to the proposed power plant, which would comprise huge woodburning furnaces..

"It doesn't solve the immediate problem," he added.

The 135,000 tonnes per year (tpy) Anglesey smelter in Wales is set to close in September when its current power contract expires, unless it is able to secure an extension of its power terms or an alternative supply at favourable rates.

The Wylfa nuclear power station in Wales, which provides its electricity is set to close around the end of 2010.

"We have notified staff that smelting is likely to end in September," the spokesman said.

He said the Anglesey plant employed about 550 workers.

The company was looking into the possibility of a stand-alone casting and re-melting facility at the site, although such an operation would require a much smaller workforce.

Were the new power plant to go ahead in years it would be premature to speculate whether the smelter would re-open, the spokesman said.