Rio looks for Chinese joint ventures

Rio Tinto is reported to be exploring joint venture opportunities with companies that are backed by the Chinese Government.

Speaking to the Observer newspaper, Rio’s chief executive, Tom Albanese, has outlined plans to work with Chinese state-backed companies, to develop new iron ore projects.

He is particularly interested in links with enterprises that could provide the infrastructure needed to exploit deposits in remote areas of the country.

Drawing closer to China’s state-owned businesses could also give Rio access to new resources.

Earlier this year, Chinalco, the Chinese aluminium group, acquired a 9/% stake in Rio.

The move has been seen as creating an obstacle to BHP Billiton’s plans to acquire Rio in its $80 billion hostile takeover bid.

Chinese authorities have already expressed concern that a combined BHP / Rio operation would control one-third of the world’s traded iron ore supplies.

Meanwhile, BHP is considering the list of objections to the proposed takeover raised by the European Commission.

The group will be tabling its reply to the Commission in the next two weeks.