Rio announces Chinalco exploration tie-up, extends Sinosteel JV
Global miner Rio Tinto will explore mainland China for mineral deposits in a joint venture (JV) with State-owned Chinalco, CEO Tom Albanese announced on Friday.
The two companies signed a memorandum of understanding on Friday and the JV was expected to come into operation in the first half of next year.
The JV, in which Chinalco will hold a 51% interest and Rio the balance, will initially focus on three to five exploration projects, with the potential for additional regions to be added at a later date.
Rio approves $1.25 billion expansion
Rio Tinto Ltd has approved another stage of its planned iron ore expansion, signing off on an additional $US1.2 billion ($1.25 billion) in spending on mine expansions.
The company said the funds would be used to lift production at the Brockman 4 and Western Turner Syncline mines in Pilbara, Western Australia.
Rio Tinto buy-back hopes fade as miner triples investment in new sites to $11bn
Guy Elliott, Rio’s chief financial officer, told The Daily Telegraph that it was his priority to invest in the company’s expansion plans and ensure a return to a single-A credit rating from all rating agencies before any cash return to shareholders would be considered. Mr Elliott noted that investment in iron ore accounted for 40pc of the company’s investment plans. Iron ore is one of the main ingredients used in the production of steel.