Chinalco: Talking to Rio Tinto On Mongolia Copper, Gold Project

Aluminum Corp. of China, or Chinalco, seeks to develop more global strategic partnerships in the mining sector, and the company is currently in talks with Anglo-Australian miner Rio Tinto Ltd. (RTP) on the joint development of a copper and gold mine in Mongolia, Executive Director Liu Xiangmin said Tuesday.

"Chinese enterprises cooperating overseas in resources and energy are an integral part of mining globalization," he said.

With a $15.5 billion investment, Chinalco is already the single biggest shareholder in Rio Tinto with a stake of around 9%.

Rio Tinto has a stake in Canada's Ivanhoe Mines Ltd. (IVN.T), which owns the Oyu Tolgoi copper and gold mine in Mongolia.

Speaking at a mining conference, Liu said the exit of speculative capital and inflation expectations are expected to affect mining operations worldwide and this could lead to short-term price fluctuations.

However, the company, which currently has daily mining capacity of 100,000 tons, is seeking to raise this to 250,000 tons. He didn't specify the timeframe over which this expansion will be achieved.

Liu is also the Vice President of Aluminum Corp. of China Ltd. (ACH), or Chalco, the listed unit of Chinalco.

-By Denny Kurien, Dow Jones Newswires; +(65) 9272-8562; denny.kurien@dowjones.com

(Helen Sun in Singapore contributed to this story)

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