Chinalco not consider adjusting plan for deal with Rio Tinto

May 5 MetalBiz--China's top aluminum producer Chinalco, parent of Chalco, hasn't considered adjusting the plan of its investment in Rio Tinto but waits for approval from Australian government, said the company vice general manger Lu Youqing.

The date for the final determination on Rio-Chinalco deal by Australian government hasn't been fixed yet.

Earlier in February, Chinalco signed an agreement with the world's leading iron ore supplier Rio Tinto, under which Chinalco would make a U.S.$7.2bln investment in convertible bonds with nominal interest of nine percent, and invest U.S.$12.3bln in Rio Tinto iron ore, copper and aluminum assets.

However, Australian government announced in mid-March that it would postpone the review term for the Rio-Chinalco deal to 90 days at most. Besides, media report said that shareholders of Rio Tinto were still in opposition of the deal on worries that the company's assets may be undervalued.

According to Lu, Chinalco is now communicating with Rio Tinto to address certain issues and there really exists some difficulties in making the deal successful, but it never mulled adjustment on its acquisition plan.

Some media reports earlier said that Chinalco might make compromise to allow other investors to participate in the aforesaid convertible bonds plan.