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Chinalco not selling stake in Rio Tinto

Rio Tinto “’ Chinalco
not selling
Beijing, China — MININGREVIEW.COM — 13 January 2010 – Aluminum Corporation of China (Chinalco) has denied that it is involved in discussions with a view to selling its stake in mining giant Rio Tinto “’ the leading international mining group headquartered in the United Kingdom.

Chinalco said the Rio stake was a strategic investment as part of its diversification and internationalisation plans, and that any decision to sell it would not be made lightly, the Chinese-language Beijing Times reported here.

Reuters reports that there has been market talk that China Investment Corporation “’ the country’s $300 billion (R2 250 billion) sovereign wealth fund “’ may bid for state-owned Chinalco’s roughly 9% stake in Rio.

The report adds that Rio Tinto’s relations with Chinalco soured in July 2009 when it snubbed an offer that would have seen the Chinese group invest another US$19.5 billion (R146 billion) for a bigger equity partnership. Rio later opted to form an iron ore joint venture with rival BHP Billiton Limited.