Bank of China Ltd. (3988.HK) may finance a potential investment by Aluminum Corp. of China in Rio Tinto PLC (RTP), though no decision has been made yet, an official at the bank who is familiar with the matter said Tuesday.

"We've been involved in the negotiations," said the official, who declined to be named.

Asked if Bank of China will finance the deal, the official told Dow Jones Newswires: "It depends on how the situation develops. We haven't yet made a final decision." The official declined to elaborate.

Wang Zhaowen, a spokesman for the state-controlled Chinese lender, said he is unaware of the matter.

Aluminum Corp. of China Deputy General Manager Lu Youqing said Tuesday the company is in "intense" talks with Rio Tinto about a potential deal and a seat on Rio's board.

Lu said both sides are discussing the size of the deal and the financing involved, but declined to disclose details, or confirm whether Aluminum Corp., known as Chinalco, is seeking a 15%-20% stake in Rio Tinto.

Chinalco, China's biggest aluminum producer by output, became Rio Tinto's biggest shareholder last year after it teamed up with Alcoa Inc. (AA) to pay US$14.1 billion for a 9% stake in the Rio Tinto group, which translates into a 12% stake in the listed company.

-Victoria Ruan contributed to this story, Dow Jones Newswires; 8610 6588-5848; victoria.ruan@dowjones.com