Chinalco: Rio To Act In Holders' Interest In Iron Ore Price Talks

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

27 Feb 2009

Aluminum Corp. of China President Xiong Weiping said Friday Rio Tinto PLC will act in the interest of its shareholders in iron-ore price talks. The Chinese company, better known as Chinalco, earlier this month signed a US$19.5 billion investment deal with Rio Tinto, raising concerns China may be trying to influence the iron-ore price negotiations between Chinese steelmakers and global iron-ore producers.
Xiong didn't specify whether he was referring to upcoming price talks between Chinese steelmakers and iron-ore companies.
The deal gives Chinalco minority stakes in a range of assets and convertible bonds  that could ultimately give it an 18% stake in the miner.
During his first press briefing as Chinalco's president, Xiong said financing of the investment will put pressure on his company's operations, but Chinalco remains confident in Rio's business prospects.
Xiong added he expects Chinalco to reach financing agreements with lenders by March 30.

Source: Dow Jones Newswires