Rio Tinto, Chinalco to partner in China exploration
Global miner Rio Tinto (ASX: RIO) said today it has signed a non-binding memorandum of understanding with Chinalco to establish a landmark exploration joint venture in China.
The joint venture will explore mainland China for world-class mineral deposits and is expected to come into operation in the first half of next year, Rio Tinto said in a statement on Friday. It is intended that between three and five large area exploration projects will be selected for initial focus by the JV, with the potential for additional regions to be added at a later date.
Chinalco will hold a 51 per cent interest in the JV and Rio Tinto will hold a 49 per cent interest.
According to Rio Tinto chief executive Tom Albanese, "This exploration JV is the latest chapter in the rich history of partnerships between Rio Tinto and China. The combination of skills provided by Rio Tinto and Chinalco offers great potential to unlock value for mutual benefit."
Chinalco president Xiong Weiping said "Against the backdrop of the globalisation of resources supporting the globalisation of the world economy, for both sides to build on our respective strengths and establish an exploration JV is a win-win measure that will deepen our cooperation and meet the challenges of the market".
Rio Tinto will appoint the chief executive of the exploration joint venture with the chairman of the five-member Board nominated by Chinalco.
Shares in Rio Tinto lifted $1.48, or 1.73 per cent, at $86.48 in late afternoon trade.