Rio-Chinalco Deal Won't Alter Escondida Participant Agreement
February 12 2009 - 6:48AM
Dow Jones News
Rio Tinto PLC's (RTP) $19.5 billion agreement with Aluminum
Corp. of China would see the Chinese company take a 15% stake in
the Escondida copper mine but won't alter the participant agreement
with BHP Billiton Ltd. (BHP), a Rio Tinto spokeswoman said.
BHP Billiton owns 57.5% of the mine and has pre-emptive rights
to buy Rio Tinto's stake. Rio controls 30% of Escondida but is
selling half of that to Chinalco under terms of a broad deal
announced Thursday.
"We have structured it to ensure it fully respects all our
obligations under the participant agreement," a Rio Tinto
spokeswoman said Thursday.
Company Web site: www.riotinto.com
-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347;
jeffrey.sparshott@dowjones.com