Mining major, Rio Tinto (RTP:NYSE), is in some dire straits… It’s needs cash and needs it now, or it may have trouble paying a $8.9 billion bill come October 2009.

Last year, RTP bought Canadian aluminum company Alcan for $38.9 billion. The company had expected to be able to sell some assets to raise money, but in this environment, it’s not happening quickly enough. So RTP may have to resort to other measures, like cutting capex by $1 billion, and slashing its workforce by 14,000, or 13%.

Not a good situation, so RTP is considering issuing about $4 billion-worth of new stock. Some analysts thing the company should aim higher, to about $6 or $10 billion…

But what does that mean for the value of the company for current shareholders?

Technically, the more shares issued, the lower the value of each share. For current shareholders that’s like taking out a home-equity loan, and some probably aren’t happy about it.

On the other hand, if it can keep RTP from defaulting on a loan, or keep its debt to equity ratios in check, then it might be a necessary evil, particularly if the stock is a long-term position in a buy-and-hold portfolio.

Traders may want to short the heck out of it, and indeed on this news, shares in Australia fell more than 1.5%.

This bad news might smell like an opportunity for some competitors (read BHP Billiton), and I’ve got an article coming out to Taipan Insider readers explaining one possible scenario. Stay tuned…

Right now, copper spot prices are an anemic $1.65 per pound. That’s an amazing drop from above $4 back in June.

And yet, one Chilean copper mine is actually expanding.

The mine is called Dona Ines de Collahuasi. It’s Chile’s third largest copper mine and is located in an historical copper mining area. Back in 1880, a large, high-grade copper and silver vein was found. It’s one of the world’s largest copper resources.

Right now, the mine produces roughly 440,000 tons of copper a year.

But the mine has just approved a $64 million project that will increase annual output by 30,000 tons. And that’s just the first expansion.

At the end of the first quarter of 2009, a $750 million expansion plan will boost production to 650,000 tons a year. After that expansion is complete, the mine intends to increase production to a full one million tons of copper a year by 2014.

That’s an astounding move.

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Surprising news out of Argentina today: Ternium (TX:NYSE), a steel maker with operations in Argentina and Mexico, reported a 15% rise in net income (year on year).

But here’s the thing. That 15% rise is overshadowed by the fact that its net income of $247 million is only half that from the previous quarter. The main reason for this drop? Lower net foreign exchange results.

This wierd fluctuation is seen in the company’s EBITA. This figure grew 101% year over year in the third quarter, but is down 11% from the second quarter.

Next quarter, the company expects further contraction in income, which doesn’t bode well.

These kinds of earnings reports are going to become more prevalent, I think… So long as major currencies continue to seesaw back and forth.

You see, most international exporting companies have to hedge themselves against their own currencies. But with the global mayhem shoving some denominations higher and knee-capping others, it’s obvious that some companies are going to be left holding the short end of the stick.

Argentina’s in that bracket.

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Two countries, three trains, two trams, and two buses later and I’ve arrived at my final destination on this tour: Budapest.

From the tiny town of Tatranska Lomnica, I made my way to Bratislava, the capital of Slovakia. It’s not the best place for photos, though there are several palaces that are camera worthy, and the main square, which is surrounded by embassies, is a nice place to start your shopping.

Bratislava is fairly cosmopolitan, though. There are plenty of international businesses, like Ernst and Young (Private). It’s also home to the stock exchange, the BSSE.

And, like Krakow, there’s a lot of construction going on. As I told you last time, growth has not been checked so you’ve got unusual buildings thrown up side by side with historical sites. Take a look at the panoramic photo of the city.

Lots of concrete…

And cranes.

The city has quite a ways to go, though, but it’s getting a lot of influence from its surrounding countries. Bratislava is a mere three hours from Vienna, and is right on the border with the Czech Republic, too. It’s also 200 kilometers (124 miles) from Budapest, which is by far the largest city on my trip.

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