Chinalco, Rio Tinto in talks to co-develop mine in Mongolia

Mar. 25, 2010 (China Knowledge) - Aluminum Corp of China, which is the country's largest nonferrous metal producer and is also known as Chinalco, is in talks with Australian mining company Rio Tinto Plc to jointly develop the Oyu Tolgoi copper-gold mine in Mongolia, Liu Xiangmin, managing director of Chalco, said yesterday.

Oyu Tolgoi is the world's largest undeveloped copper-gold project and is located in the South Gobi region of Mongolia. Rio Tinto holds a stake in Canada-based Ivanhoe Mines Ltd, the owner of the project.

Xiang Weiping, president of Chinalco, said earlier that the company is talks with several potential partners, including Rio Tinto, on possible involvement in the development of the project.

Early this week, Chinalco signed a memorandum of understanding with Rio Tinto to co-develop the Simandou iron ore project in Guinea, one of the most mineral-and metal-rich countries in Africa, China Knowledge reported.