LONDON, Feb. 12 (Xinhua) -- China's mining giant Aluminium
Corporation of China (Chinalco) announced here on Thursday it will inject 19.5
billion U.S. dollars in cash into Rio Tinto.
The cash injection is regarded as "firepower" for Rio
Tinto, against the global economic downturn, Tom Albanese, chief executive of
Rio Tinto, said.
Xiao Yaqing (L), general manager of
Aluminum Corp. of China (Chinalco), shakes hands with Rio Tinto Group
chairman Paul Skinner at the signing ceremony in London, Britain, Feb. 12,
2009. Chinalco announced Thursday it would invest 19.5 billion U.S.
dollars in mining giant Rio Tinto Group, bailing out the latter while
securing for the state-owned Chinese company access to more resources.
(Xinhua/Ma Jianguo) Photo Gallery>>>
Xiao Yaqing, president of Chinalco, said following
the signing of an agreement on investment that the investment is a show of
confidence in both China and the world, adding that "the strategic partnership
with Rio Tinto will prove to be valuable and successful."
As the leading Chinese diversified resources company,
Chinalco's investment puts more emphasis on potential future values than on
short-term returns, Xiao said.
The transaction will forge a pioneering strategic
partnership through the creation of joint ventures in aluminium, copper, and
iron ore as well as the issue of convertible bonds to Chinalco, which would, if
converted, allow Chinalco to increase its existing shareholding in Rio Tinto to
about 18 percent.
The transaction is still to be approved by
shareholders of Rio Tinto, governments and other regulators.
Albanese said the transaction will position Rio Tinto
to lead the resources industry into the next decade and beyond by ensuring the
continuity of its strategy.
The new partnership with the Chinese company "will
benefit from Chinalco's strong relationships within China, which Rio Tinto
believes will continue to be the main driver of growth in commodity markets over
the longer term," Albanese said.
He said the Chinalco relationship will also help Rio
Tinto to seek project funding from Chinese financial institutions.
BEIJING, Feb. 3 (Xinhua) -- The China Aluminum
Corporation, or Chinalco, Tuesday denied reports that it has reached a deal to
increase its stake in mining giant Rio Tinto Group.
The two companies had been in talks about Chinalco
purchasing assets of the Rio Tinto Group, but no deal had been made, said
Chinalco vice president Lu Youqing. Full story
BEIJING, Feb. 3 -- Rio Tinto Group, the world's
third-largest mining company, is in talks to raise cash from Aluminum Corp of
China, tapping its largest shareholder to reduce 38.9 billion U.S. dollars of
debt.
Aluminum Corp, known as Chinalco, may buy convertible
debt in Rio Tinto and or minority stakes in some of its units, the London-based
company said on Monday in a statement. The sales may raise as much as 15 billion
dollars, UK's Sunday Telegraph reported on Sunday. Rio's shares closed 5.5
percent higher in Sydney. Full story
BEIJING, Jan. 23 (Xinhua) -- Aluminum Corp. of China
Ltd. (Chalco), the country's largest producer of the metal, said Friday its 2008
unaudited net profit may fall more than 50 percent from a year earlier.
The profit slump reflected large increases in raw
materials costs in the first three quarters and plant closures caused by a power
supply shortage last winter and summer according to a statement submitted to the
Shanghai Stock Exchange. Full story
