Rio Tinto, the Australian mining group, said yesterday that it was eager to use its increasingly close relationship with Chinalco, the Chinese state-owned aluminum producer, to cooperate around the world and even expand Rio Tinto's business in China
in February this year, Chinalco unexpectedly bought 9% of Rio Tinto's shares, becoming Rio Tinto's largest shareholder. The latter announced its semi annual basic profit yesterday. BASF showed a variety of products at the design forum
Wayne Swan, the Australian finance minister, said yesterday that Chinalco, China's largest aluminum producer, would be allowed to acquire no more than 14.99% of Rio Tinto's London listed shares - equivalent to 11% of the mining company's total share capital listed in Australia and London
Chinalco said yesterday that it was happy that there was now an option to increase its holdings. Paul Skinner, chairman of Rio Tinto, said that Chinalco had not yet clearly stated its long-term plan to hold Rio Tinto's equity
some analysts believe that Chinalco's purchase of Rio Tinto shares is to block the hostile takeover of Rio Tinto by rival BHP Billiton. Other analysts believe that if BHP Billiton succeeds in acquiring Rio Tinto, but has to sell assets according to the agreement, Chinalco can become a convenient platform
Skinner said: "our relationship with Chinalco is still at the foot of the mountain, but we expect... Opportunities for cooperation." This may include the joint construction of port and railway facilities in Queensland, Australia, for the use of the two companies in adjacent bauxite projects
Tom Albanese, CEO of Rio Tinto, said that for Rio Tinto, there is another advantage that the new relationship with Chinalco may be statistically analyzed in groups, even if Rio Tinto further dabbles in China's minerals
but he said that the exploration of these resources requires a lot of exploration engineering. "I have discussed with the Chinese government. We are willing to explore more resources, but we first need to obtain more use guarantees." At present, only 0.5% of Rio Tinto's exploration budget is spent on ChinaSkinner said that if the Chinese government decided to encourage foreign companies to explore in the western region, Rio Tinto would have a better opportunity to take the lead in exploration by virtue of its relationship with Chinalco. "This should be a win-win situation, but it may take time. In the mining industry, we must be patient."