Following the termination of a planned alliance between Aluminum Corp. of China (ACH) and Rio Tinto Ltd. (RTP), Rio Tinto isn't likely to sell its stake in Chilean copper mine Escondida, an executive for the mine's operator said Monday.

Copper market analysts were speculating that the failure of Chinalco-Rio Tinto deal could lead to Rio Tinto selling part of its Escondida stake, possibly the mine's operator and controlling shareholder, BHP Billiton Ltd. (BHP).

"I don't think Rio Tinto is interested in selling its stake," said Diego Hernandez, the president of BHP's Base Metals Division.

Speaking to reporters following the release of the sustainability reports for BHP's operations in Chile, Hernandez added that the iron ore joint venture Rio Tinto announced with BHP and Rio's plans to launch a $15.2 billion rights issue would likely "allow it to solve its problems."

With regard to international copper prices, Hernandez said they are currently moving above expectations, but there are still concerns whether they'll hold at current levels during the third quarter, which is usually a slower quarter in the northern hemisphere.

After falling to around $1.40 a pound late last year from record highs of $4/lb in the middle of 2008, copper prices this year have rebounded to around $2/lb.

"A price of $2 (a pound) is a price that allows the industry enough of a margin to begin to think about reinvesting (in projects)," Hernandez said.

BHP and other miners put capital expenditures on hold late last year when copper prices slumped.

The executive said BHP could begin to reconsider its stalled expansion plans early next year if copper prices hold steady or extend their gains.

In addition to Escondida, BHP owns the Cerro Colorado and Spence copper mines in Chile.

BHP holds a 57.5% stake in Escondida, while Rio Tinto PLC (RTP) currently holds a 30% stake. A Japanese consortium made up of Mitsubishi Corp. (8058.TO), Mitsubishi Materials Corp. (5711.TO) and Nippon Mining & Metals Co. (JJD-MMM) hold a total 10% stake in Escondida, while International Finance Corp. (IFC.KW), the private sector unit of the World Bank, has the remaining 2.5% interest.

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