Chinalco Vice President: Unaware Of Any Talks With Anglo American
June 29 2009 - 3:10AM
Dow Jones News
Aluminum Corp. of China Vice President Lu Youqing told Dow Jones
Newswires on Monday that he isn't aware of any talks with Anglo
American PLC (AAUK) on the Chinese metals giant investing in
Anglo's iron-ore business in Brazil.
London's Sunday Telegraph reported Anglo was poised to open
talks with the Chinese company, known as Chinalco, and at least one
Middle Eastern investor about a partnership that could see hundreds
of millions of dollars injected into MMX, Anglo's Brazilian
iron-ore business.
Lu told Dow Jones Newswires last week that Chinalco wasn't
interested in iron-ore ventures for the time being, preferring to
focus on base metals projects.
On Monday, Lu also declined comment on a report in the Daily
Telegraph on Saturday that cited unnamed sources as saying Chinalco
had decided to take up its rights in Rio Tinto PLC's (RTP) US$15.2
billion rights issue.
"We can't comment on that right now, because that would affect
share prices," he said. "When the issue is completed, then we can
say something."
Chinalco holds an existing 9.3% stake in the Rio Tinto group,
making the Chinese firm Rio's largest shareholder.
Rio Tinto walked away from a planned US$19.5 billion alliance
with Chinalco earlier this month, turning instead to a giant equity
raising to ease its debt burden.
Investors who hold Rio Tinto stock in Australia and the U.K.
have until July 1 to subscribe to 21 shares for every 40 shares
they hold at a price of GBP14 a share in the U.K. and A$28.29 a
share in Australia.
-By Chuin-Wei Yap, Dow Jones Newswires; 8610 6588 5848;
chuin-wei.yap@dowjones.com