BHP and Chinalco in Rio face-off
Tue, 17 Jun 2008 09:31China's state-owned aluminum giant Chinalco is keen to buy a range of global resource assets, and may consider raising its stake in global miner Rio. According to an Australian Newspaper this morning, Chinalco's President and Chairman said that if conditions became favourable they will consider the possibility of raising their stake in Rio. This latest news may give Rio Tinto more reason not to consider a takeover bid from rival BHP. Rio said this morning that BHP's $180 billion takeover bid was too low. Chinese mining giant Chinalco has said it backs Rio's independent stance.
Meanwhile, Rio has approved a US$30 million feasibility study as it looks to develop a new bauxite operation near its bauxite mine and port in Queensland, Australia. If the project goes ahead Rio will be able to nearly double the mine's production. Rio's chief executive of Bauxite and Aluminium, Steve Hodgson, says the aluminium market remains strong and the project intends to take advantage. Rio has maintained that it can make the most of the commodity boom without BHP, which is trying to get approval from regulators to launch a bid for the company.
