I wouldn't say Rio's record is poor.The fact is that Rio has a...

I wouldn't say Rio's record is poor.

The fact is that Rio has a change of MD in the top job due to changes of the commodities industry.

The acquisition of Riversdale Coal was the biggest mistake under the old CEO.

Now Sam Walsh's job is to cut off non-core assets and increase cash reserves for Rio and cut down debt in a timely manner.

This isn't just Rio, its BHP, FMG, Glencore Xstrata, Vale etc.

I think the price they got for Northparkes is a very good one under these conditions and the Eagle mine in Michigan too.

If Rio was to sell Northparkes earlier at the peak of the commodities they would have got $1b plus.

Its not up to Rio, who already has a strong team of economists, to take risks "hopeing for a commodity prices to boom again".

The risk they will be taking is "time" and if commodity prices goes for another dive. No one here or anywhere will be brave enough to guarantee that prices won't dive.

Also another consideration is costs for their Mongolian operations with Turquoise Hill is rising and the political drama they got with the Govt there isn't helping.

I can see from a strategic point of view is that Rio will NOT takeover the remaining Turquoise shares it does not own anytime soon, as the political risks lies.

So they're option to fund the operations there is through lending money to Turquoise with security over the assets and without paying a premium. This way is to minimize Rio's risk exposure in Mongolia.

Again with costs rising there, the objective for them is to dispose non-core assets for cash in a timely manner to meet contingencies in Mongolia and thats where IVA and the gold project in Kazahtstan come in.