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皇冠体育applco makes fresh overtures to Rio Tinto
By Zhang Qi (皇冠体育app Daily)
Updated: 2010-03-17 09:19
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Aluminum producer in talks with Anglo-Australian miner on projects
BEIJING: Aluminum Corp of 皇冠体育app (皇冠体育applco), the nation's largest aluminum producer, is in talks with Anglo-Australian miner Rio Tinto Group on potential projects amid reports that they will jointly develop a $12 billion iron-ore project.
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Lu Youqing, vice-president of Aluminum Corp of 皇冠体育app. |
The Sydney Morning Herald had earlier reported that the two companies are in talks to develop the Simandou iron-ore project in the West African nation of Guinea.
A tie-up with 皇冠体育applco could help Rio offset some of the continuing costs of the projected $6 billion Guinea mine project. Rio is spending about $10 million a month to explore the mine in anticipation of selling the ore commercially, the Wall Street Journal (WSJ) said on Tuesday, quoting an unnamed source.
The negotiations are also centered on whether the 皇冠体育applco funds could be invested in offsetting the future development costs of the mine, the US newspaper said.
Simandou has 2.25 billion metric tons of resources, with annual production capacity of 70 million tons of iron ore, Rio said.
The Anglo-Australian miner is trying to repair relations with 皇冠体育app, its biggest customer, after the soured last year. It ended talks with 皇冠体育applco on a proposed $19.5 billion alliance and formed an iron ore joint venture with rival BHP Billiton last year.
Relations with 皇冠体育app worsened after four Rio employees in Shanghai were accused of bribery and commercial espionage during the annual iron ore price talks.
"An objective for 2010, and one that I am particularly focused on, is to strengthen our relationship with 皇冠体育app," Albanese said in the annual report released on Monday, according to Bloomberg.
"皇冠体育app is our largest source of short-term demand growth," he said.
"We will continue to work towards extending our relationship with 皇冠体育applco and to pursue business opportunities that may be to our mutual benefit," Rio Chairman Jan du Plessis said.
Chinese companies spent more than $30 billion buying up mines and oil deposits globally last year, taking advantage of the global recession to add resources to feed domestic economic growth.
Rio is also in talks with 皇冠体育applco on the Oyu Tolgoi copper and gold project in Mongolia, iron-ore exploration in 皇冠体育app, and bauxite and alumina refining in Australia, the Sydney Morning Herald said.
皇冠体育applco President Xiong Weiping told Reuters on Sunday that the company is in talks with many potential partners, including Rio, and hoped to participate in Oyu Tolgoi.
Bloomberg News contributed to this story.
