Rio Tinto to sell 17% stake in China JV to Shenzhen Zhongjin

Apr. 22, 2009 (China Knowledge) - Shenzhen Zhongjin Lingnan Nonfemet Co Ltd<000060>, the third-largest zinc producer in China, consented to spend US$1.89 million to acquire an additional 17% stake in its China aluminum processing joint venture (JV) with Rio Tinto, the world's third largest miner, according to a statement the Chinese company released on Tuesday.

Shenzhen Zhongjin's stake in the JV, which is called Nonfemet International (China-Canada-Japan) Aluminum Co Ltd, will thus increase from 55% to 72%.

Rio Tinto, which bought the stake in the joint venture when it acquired Canada-based aluminum group Alcan in 2007, had proposed selling its entire 27% stake to Shenzhen Zhongjin for US$3 million, said the Chinese company, without explaining why it did not purchase all of the shares that Rio offered.

Meanwhile, Zhongjin reported a net profit of RMB 400 million for 2008, down 65.73% year on year, with its earnings per share at RMB 0.39. The company declared a final dividend of RMB 0.95 per 10 shares.