Rio Tinto in Chinese exploration joint venture

1st Jun 2011 11:53

Mining giant Rio Tinto is to establish a large-scale presence in commodity hungry China with the formation of a joint venture with state-owned aluminium producer Chinalco to explore for deposits in the country.The venture, to be known as Chinalco Rio Tinto Exploration (CTTX) will initially concentrate on copper, with coal, potash and other commodities to be potentially considered at a later date.The contract was signed by Chinalco president Xiong Weiping and Rio Tinto chief executive Tom Albanese at a ceremony in Beijing. Chinalco will hold 51% of the company and Rio Tinto the remaining 49%."The formalisation of our exploration JV is an important milestone in the expanding relationship between Rio Tinto and China," said Rio Tinto chief executive Tom Albanese. "Given that mainland China is highly prospective, the JV has the potential to create valuable opportunities for both partners."China imports large amounts of copper and other metals, but has been seeking to tap into its own resources to meet demand for the booming construction sector and other industries.---RG