Allens advises Rio Tinto on landmark exploration joint venture in China

Allens Arthur Robinson （Allens） has advised leading international mining group and long standing client Rio Tinto on its non-binding Memorandum of Understanding （MoU） with Aluminum Corporation of China （Chinalco） to establish a landmark exploration joint venture in China.

The new Rio-Chinalco joint venture, announced on Friday and expected to come into operation in the first half of 2011, will allow the two companies to explore mainland China for quality mineral deposits.

Under the proposed arrangements, Chinalco will hold a 51 per cent interest in the joint venture, with Rio Tinto holding the remaining 49 per cent stake.

Partner Scott Langford, who is leading the Allens team advising on the matter, said that Rio is recognised as having world-leading exploration skills and experience.

'Combining Rio Tinto's expertise with Chinalco's deep understanding of the Chinese exploration environment makes a lot of sense,' Mr Langford said.

The MoU announcement follows on from this year's joint venture agreement between Rio Tinto and Chinalco on the Simandou project.

'It's really pleasing to be involved in arrangements that further progress Rio Tinto's relationship with Chinalco and China generally,' Mr Langford said.