While opening some business opportunities in India, mining giant Rio Tinto (ASX: RIO) is also closing some doors. The company announced on Wednesday that it would shutter its Lynemouth aluminium smelter in Northumberland in England by the end of March.

The decision followed an extensive consultation and thorough strategic reviews. That means, 323 of the 515 employees of the Lynemouth facility will be declared redundant in May, but some will remain on the job as the plant will continue with some operational activities for the remaining months of 2012.

About 60 employees will stay on the site after the operations have shut down to work on decommissioning, remediation and regional economic development.

Rio's Alcan shop unloading facility at the Port of Blyth will remain operational for another 18 months to store and transport raw materials for the Lochaber Smelter in the Scottish Highlands.

With the decision, Rio said it is considering the sale of the Lynemouth Power Station.

"We will now focus on safely decommissioning the plant, working with our employees to mitigate the impact of redundancy on them and their families, and partnering with all interested stakeholders on the future regional economic development of the Lynemouth site," said Rio Tinto Alcan Chief Executive Jacynthe Cote in a statement.

What happened to the Lymemouth facility was preceded by a multiple-billion dollar write down of its aluminium assets in February. On the same month, another Australian mining giant, BHP Billiton (ASX: BHP) warned that the aluminium sector is facing structural, not cyclical changes due to cheaper expansion of the sector in China.

In February, another Australian company, Alcoa announced it is conducting a review of its aluminium smelter plant in Point Henry due to the high Australian dollar and weak price of the commodity. At risk of being shed are 600 jobs in Geelong. Rio is also reviewing the financial viability of it Bell Bay smelter in Tasmania.

On Tuesday, Rio also announced that it has invested $2 billion in an iron ore project in Orissa, India.

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