Rio Tinto China deal back in focus

RIO Tinto and its proposed $US19.5 billion ($A26.9 billion) investment deal with Chinalco return to the spotlight this week as its board faces investors at annual meetings in London and Sydney and the company releases its first-quarter production figures. The Rio Tinto board will face retail investors for the first time since announcing the Chinalco deal in February at the annual meeting of its British arm in London tomorrow night. It will be the last London annual meeting for Rio chairman Paul Skinner, who will retire after the Australian arm's annual meeting in Sydney on Monday in favour of Jan du Plessis. A British proxy advisory firm, PIRC, has reportedly recommended investors reject the miner's remuneration report because of its decision to award an "excessive" bonus to departing aluminium division head Dick Evans, despite a dismal earnings performance from the business. Institutional investors in London have voiced concern at the Chinalco deal, particularly on the grounds that Rio did not first offer existing investors an opportunity to reduce its debt through a discounted rights issue. Source: Business Day