By Jesse Riseborough and Madelene Pearson
April 20 (Bloomberg) -- Rio Tinto Group, the mining company that agreed to a $19.5 billion investment from Aluminum Corp. of China, said Australia has a large stake in the outcome of the proposed deal.
“There is currently an opportunity for Australia to position itself for a mutually rewarding relationship that could define the next few decades,” Chief Executive Officer Tom Albanese said in speech notes prepared for today’s annual shareholder meeting in Sydney.
State-owned Chinalco, as the Beijing-based company is known, plans to buy $7.2 billion of convertible debt and $12.3 billion worth of stakes in projects owned by Rio, the world’s third- largest mining company. The deal faces scrutiny from Australian politicians because the bailout plan would hand partial ownership of some mines and plants to a state-owned Chinese firm. Shareholders are calling for an alternate proposal.
“By facilitating a deeper engagement with China, including by allowing substantial inflows of capital, we could forge stronger and more enduring export markets,” Albanese said in the speech notes. “The Australia-China relationship is critical for both countries and Rio Tinto supports efforts that will bring the two countries closer together.”
To contact the reporter on this story: Jesse Riseborough in Sydney at jriseborough@bloomberg.net; Madelene Pearson in Melbourne on mpearson1@bloomberg.net.
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