Force Majeure! Winners and Losers from Rio Tinto Disruption by Aussie Floods

Australia’s (NYSE:EWA) 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 (NASDAQ:CENX), Alumina Limited (NYSE:AWC), Kaiser Aluminum Corp. (NASDAQ:KALU), Noranda Aluminum Holding Corporation (NYSE:NOR), and Aluminum Corp. of China (NYSE:ACH).

Coal: Alpha Natural Resources (NYSE:ANR), Massey Energy Company (NYSE:MEE), CONSOL Energy (NYSE:CNX), and Walter Energy (NYSE:WLT).

If you’re looking for ETFs, you may be interested in Market Vectors-Coal ETF (NYSE:KOL) or the lightly traded PowerShares Global Coal Portfolio (NASDAQ:PKOL).

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