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No changes to Rio Tinto deal: new 皇冠体育applco chief

(Agencies)
Updated: 2009-02-27 20:04

The new president of 皇冠体育applco said 皇冠体育app's State-owned metals company was sticking to the terms of a $19.5 billion investment in Anglo-Australian miner Rio Tinto, despite an outcry from key institutional investors.

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"We believe Rio is capable of making, and will make, a reasonable explanation to its investors and will play an active role in doing so," Xiong Weiping said on Friday at his first news conference after taking the helm of the company eight days ago.

"The Australian government will also review the deal under the relevant laws. We haven't received any requests to renegotiate any details."

Sources have said Rio Tinto faces an uphill battle to persuade shareholders to back a tie-up with 皇冠体育applco that would help it pay down its huge debt.

皇冠体育applco, 皇冠体育app's top aluminium maker, agreed this month to pay $12.3 billion for stakes in Rio's key iron ore, copper and aluminium assets and $7.2 billion for convertible notes that could potentially double its equity stake in Rio to 18 percent.

There is speculation Australia might block the deal, fearing Beijing would have too much influence over a major export earner.

Xiong, who plans to fly to Australia on Saturday, said 皇冠体育applco would fund its latest Rio deal with loans from commercial and state banks.

He said 皇冠体育applco planned to finalise its funding for the investment by end of March.

Xiong promised to stick to his predecessor's strategy for 皇冠体育applco to turn the firm into an internationally competitive group.

His predecessor Xiao Yaqing will be promoted to be a deputy secretary general of 皇冠体育app's Cabinet with responsibility for coordinating departments working on industrial policy, according to local media reports.

皇冠体育applco's other main interest is its controlling stake in aluminium company Chalco which, along with the rest of the global aluminium sector, is struggling against oversupply, low prices and weak demand.