Chinalco says has no plans to raise Rio Tinto stake

0 Comments | AFP, February, 2008

SYDNEY (AFP) — China's state-owned Chinalco said Monday it had no plans to increase its stake in miner Rio Tinto after acquiring 12 percent of the London-listed arm of the company in a joint share raid with Alcoa Inc.

Chinalco president Xiao Yaqing told reporters in Sydney that the joint investment of 14 billion US dollars banked on the long-term prospects of the mining industry thanks to strong demand from emerging economies such as China.

He said another reason was "strong confidence in the fundamental value of Rio Tinto and the management's ability to realize that value for shareholders."

"We don't have any future plans to increase that stake," Xiao said. "This is a strategic financial investment."

Xiao said Chinalco does not intend to make a bid...