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Rio Tinto, Chinalco Form JV for Exploration in China

06/02/2011 - Chinalco and Rio Tinto have formalized a joint venture (JV) that will explore mainland China for world-class mineral deposits. The immediate priority for Chinalco Rio Tinto Exploration Co. Ltd. will be copper exploration.

Chinalco and Rio Tinto have formalized a joint venture (JV) that will explore mainland China for world-class mineral deposits. The JV, which is subject to Chinese regulatory approvals, will operate under the name Chinalco Rio Tinto Exploration Co. Ltd. (CRTX) and is expected to be headquartered in Beijing.
 
Chinalco will hold a 51% interest in the JV, Rio Tinto a 49% interest.
 
Chinalco President Xiong Weiping and Rio Tinto Chief Executive Tom Albanese executed the joint venture contract during a signing ceremony in Beijing. The immediate priority for CRTX will be copper exploration, with coal and potash among other commodities potentially considered at a later date.
 
Weiping said, "Access to natural resources is a critical component to many of the world's leading economies. Drawing on the respective strengths of both companies, this exploration JV could potentially create commodity supplies to benefit the global economy."
 
Albanese added, "The formalization of our exploration JV is an important milestone in the expanding relationship between Rio Tinto and China. Given that mainland China is highly prospective, the JV has the potential to create valuable opportunities for both partners."
 
Both companies view the JV as an excellent opportunity, as it aligns with initiatives from the Ministry of Land and Resources that potentially allow selected explorers access to prospective areas in various parts of China.
  
Chinalco will nominate three directors including the chairman plus the chief financial officer, deputy general manager and compliance supervisor. Rio Tinto will appoint two directors and the general manager, who will be responsible for day-to-day operations.
 
The announcement follows the December 2010 signing of a non-binding Memorandum of Understanding by Chinalco and Rio Tinto to establish an exploration JV in China.