Rio Tinto PLC's (RTP) $19.5 billion agreement with Aluminum Corp. of China won't produce any changes at Escondida, the world's largest copper mine, Chilean Mining Minister Santiago Gonzalez said Wednesday.

In the deal, Chinalco will acquire a 15% stake in the mine, which is located in the northern Chile and operated by majority owner BHP Billiton Ltd. (BHP), while Rio Tinto will reduce its stake to 15%. BHP controls 57.5% of Escondida.

Rio Tinto shareholders as well as regulators still have to approve the deal.

"There won't be any changes in mine administration, rather there's a new partner," Gonzalez told reporters after meeting with several Rio Tinto executives who briefed him on the details of the deal.

The minister added the Chilean government was very pleased that another Chinese firm is investing in the country's thriving mining industry, following the free-trade agreement both countries signed. State-owned mining company Corporacion Nacional del Cobre de Chile, or Codelco, is working with China's Minmetals to develop new business and exploration opportunities in Latin America and in Africa.

"Chinese companies are always looking to invest, especially in the copper industry, and we're very interested in attracting Chinese investments," Gonzalez said.

In addition, Rio Tinto has several exploration ventures with Codelco that won't see any changes as a result of the deal with Chinalco, the minister said.

A Japanese consortium made up of Mitsubishi Corp. (60%), Mitsubishi Materials (20%) and Nippon Mining & Metals Company (20%) holds in total a 10% stake in Escondida, while International Finance Corp., a division of the World Bank, has the remaining 2.5% interest.

With regard to the international copper market, Gonzalez said that despite recent increases in copper inventories, prices appear to have stabilized at around $1.40-$1.50 a pound.

"Obviously, the copper boom with prices over $3 dollars is over and we have to get used to a new reality," he said.

He added that as copper prices have fallen, so have production costs. According to the minister, the biggest hurdle mining companies now face is access to financing.

"Financial markets have yet to stabilize," he said.

Gonzalez is also Codelco's chairman of the board.

-By Carolina Pica, Dow Jones Newswires; 56-2-820-4244; carolina.pica@dowjones.com