Australian Prime Minister Kevin Rudd said Friday that Rio Tinto Ltd.'s (RTP) decision to end its US$19.5 billion alliance with Aluminum Corp. of China, or Chinalco, in favor of a rights issue and iron ore joint venture with BHP Billiton Ltd. (BHP.AU) is a "commercial matter".

Any proposal between Rio and BHP will be "very likely" to require further consideration by the Foreign Investment Review Board, Rudd told reporters.

"The government will take the same national interest approach when a future proposal is put before it, whether it involves BHP or any other applicant," he said.

Chinalco "has a range of other interests" in Australia beyond the Rio deal, Rudd said. The prime minister added that he and other ministers are meeting with Chinalco's president in Canberra later Friday.

Rudd reiterated that his government "welcomes" Chinese investment in Australia.

-By Rachel Pannett, Dow Jones Newswires; 61-2-6208-0901; rachel.pannett@dowjones.com