Australia’s floods have been relentless. Now, mining giant Rio Tinto (NYSE:RIO) has been forced to declare force majeure at aluminum producer Boyne Smelters Ltd. Distribution lines have been shut down and deliveries have ceased. The company has not yet estimated the damage.
Another Aussie mining leader which is at risk of a similar disruption is BHP Billiton (NYSE:BHP). We consider shares high risk.
Companies that benefit from Rio Tinto’s stoppage:
Aluminum: Alcoa (NYSE:AA), Century Aluminum Company (CENX), Alumina Limited (AWC), Kaiser Aluminum Corp. (NASDAQ:KALU), Noranda Aluminum Holding Corporation (NOR), and Aluminum Corp. of China (NYSE:ACH).