Chinalco denies rumors about cooperating with Rio Tinto

Lv Youqing, vice-general manager of Aluminum Corporation of China (Chinalco) denied rumors today the company was cooperating with Rio Tinto as reports Monday said Chinalco was in negotiations with Rio Tinto on a bauxite and alumina deal.

He added that Chinalco is willing to cooperate with Rio Tinto as one of the latter's shareholders, but no further information on this issue was disclosed.

It was reported Monday that Guy Elliott, Rio Tinto's CFO said preliminary negotiations on a cooperation between Rio Tinto and Chinalco on bauxite and alumina was underway, but there was still a long way to go.

This is the second time Rio Tinto showed willingness to cooperate with Chinalco recently. Thomas Albanese, Rio Tinto's CEO indicated last week his hope to cooperate with Chinalco and to improve the relationship between Rio Tinto and China. Meanwhile, Chinalco gave a prudent response as there may be possibilities.

The two companies have been in negotiations about possible cooperation in recent years, since their mines in Queensland State in Australia are near each other, so Chinalco can benefit from Rio Tinto's railway and ports.

A metal analyst who declined to be named believed that if the two companies cooperate on aluminum they will have bright prospects, but it is not a good time for Chinalco to talk about cooperation yet. The analyst added that Chinalco's attitude toward the cooperation will be more prudent due to Rio Tinto's breach of promise in their previous negotiation.

Rio Tinto walked away from a 19.5 billion yuan merger deal with Chinalco in June.
 

Explore the World, Understand China!
Please log on www.gloaltimes.cn