Two giant resources companies are poised to join forces and combine their resources in exploring the mineral riches of China in a joint agreement announced on Friday.

Giant mining firm Rio Tinto Ltd revealed in a statement issued in Beijing that it is set to collaborate with leading aluminium producer Aluminium Corporation of China (Chinalco) in a joint venture that would explore mineral deposits in mainland China.

Rio Tinto said that it has already sealed a non-binding memorandum of agreement for the joint venture project that would take on between three to five large-area exploration assets that both entities have identified for their initial undertakings.

The partnership is set to be controlled by the state-owned Chinalco on the strength of its 51 percent stake in the joint venture company, automatically giving the Chinese firm the chairmanship of the entity.

On the other hand, Rio Tinto said that it would maintain its 49 percent holdings in the partnership and would be given the chief executive position for the company's operations, which is eyeing the early part of 2011 as its target period of commencement.

The agreement was announcement following the improvement of the relationship between China and Rio Tinto which soured last year when the mining firm's shareholders rejected the $20 billion investment offer of Chinalco in 2009.

The decision was apparently made in retaliation to Beijing's move of detaining Rio Tinto executive Stern Hu, who they accused of spying.

Hu was eventually sentenced to prison terms this year and Rio Tinto afterwards embarked on an engagement campaign to restore its business ties with the world's second biggest economy, which was highlighted by company chief executive Tom Albanese's frequent stops to China this year.