Chinalco to reach Rio deal this week

State-owned Chinese aluminium giant Chinalco is expected to reach a multi-billion dollar deal to buy assets from mining group Rio Tinto this week, a Chinese newspaper reported on Monday. The Economic Observer quoted unnamed sources as saying that barring unforeseen events, a deal was expected to be reached before this Thursday, when Rio is due to announce is second-half earnings. In addition to buying assets from Rio, Chinalco would invest in convertible bonds issued by Rio, the newspaper said without giving any details. It said China's sovereign wealth fund, China Investment Corp (CIC), wished to take part in the deal, but its participation was not a priority. Both Rio and Chinalco have denied that CIC will participate, the newspaper said. Rio said last week that it had held talks with Chinalco, its biggest shareholder, to sell some assets reportedly worth up to $US8 billion ($12 billion) to cut debt, but added that a deal was not definite. Chinalco, parent of listed aluminium producer Chalco, was in talks with China Development Bank to secure financing for a deal with Rio, sources with direct knowledge of the situation told Reuters last week. Source: Reuters