Chinalco Won’t Be ‘Happy’ to Change Rio Tinto Terms

May 8 (Bloomberg) -- Aluminum Corp. of China, seeking Australian regulatory approval for a $19.5 billion investment into Rio Tinto Group, said it wouldn’t be happy to amend terms of the agreement. “The transaction was negotiated with Rio Tinto as a package and any assertion that we would be happy with the removal of any aspect of that package is incorrect,” Chinalco, as the Beijing-based company is known, said today in an e-mailed statement, responding to a Reuters report. A Sydney-based Chinalco spokeswoman, who didn’t want to be named, declined to comment further. Chinalco may continue with the Rio investment plan even if Australian regulators exclude the Hamersley iron ore operations, worth more than $5.1 billion, from the deal, Reuters reported yesterday, citing unidentified people. Rio has agreed to sell $7.2 billion of convertible debt and stakes in projects worth $12.3 billion to state-controlled Chinalco, an investment that prompted an Australian senate inquiry into foreign investments. Rio shareholder Legal & General Group Plc called in February for an alternative proposal. Chinalco’s Hong Kong-listed unit rose 4.9 percent to HK$7.34 in Hong Kong as of 12:18 p.m. Rio Tinto stock gained 0.6 percent to A$71.48 in Sydney trading on the Australian stock exchange. London-based Rio yesterday said it hasn’t held talks with Chinalco to change the terms of the agreement.