July 24, 2008

BHPB bid for Rio – Rio invites Chinese partners

It is reported that Rio Tinto would like to work with Chinese state firms to develop mining projects around the world.

Mr Tom Albanese CEO of Rio Tinto while speaking to reporters in Beijing said that Rio Tinto is without peer in discovering world class mineral deposits but these were expensive to exploit and required significant infrastructure investment.

Mr Albanese told that "There are opportunities for cooperation on a joint venture basis, or something equivalent to that and I think that Chinese state owned enterprises could be very much part of that picture.”

He told that Chinese state owned enterprises could be useful in providing capital, engineering and technology for projects in Asia, Africa and South America.

He added that "I would not say that we have any active engagement under way in that area. But this is something I have a personal interest in pursuing.”

Chinese state owned aluminum group Chinalco complicated BHPB’s bid for Rio last month by teaming up with Alcoa Inc to buy 9% of Rio for USD 14 billion.

Rio Tinto already has a joint venture with Baosteel Group Corp in Western Australia State and is a partner with Sinosteel Corp in the Channar project also in North Western Australia.