Rio chief tells Chinalco to double stake

ABC quoted senior company executive said that Rio Tinto's long term future is better served if China's Chinalco can double its stake in the Anglo Australian mining giant to 18%. Mr Guy Elliot CFO of Rio Tinto said that "As a value proposition, this is absolutely favorable." Mr Elliot sad that a deal with Chinalco would give Rio Tinto better understanding of the huge Chinese market and even access to exploration rights in the country. State owned Chinalco wants to invest USD 19.5 billion in Rio Tinto but Australia's Foreign Investment Review Board wants to review the deal amid growing concerns over foreign ownership in its key mining sector. The Federal Government last week extended its review of the proposed tie-up by 90 days to allow further scrutiny. Federal politicians have voiced concerns about the Chinalco deal, which would mark China's largest ever foreign investment. At a time of global economic slowdown, the transaction is seen as giving debt laden Rio Tinto a much needed capital boost as the mining giant struggles to repay its massive USD 54 billion debt. (Sourced from ABC.Net)