Rio dismisses Alcoa takeover rumours

Rio Tinto Ltd chief executive Tom Albanese has dismissed speculation the mining giant could be planning a takeover bid for aluminium giant Alcoa.

Observers say such a move would be a surprise, given Rio Tinto has strived to reduce debt associated with its takeover of Alcan in 2007 for $US38.1 billion.

Net debt now stands at $US4.3 billion, down from $US18.9 billion previously.

"I've seen some I call it 'trader chatter' over the past day or two," Mr Albanese told reporters at the company's annual general meeting in Perth on Thursday.

"It sort of disappeared as quickly as it emerged and I thought that spoke for itself."