Rio Tinto Sees Chinalco JV Possibility In Aluminum — Report

LONDON (Dow Jones)-Mining giant Rio Tinto PLC (RTP) sees the possibility of joint ventures with Alumnum Corp. of China (ACH), or Chinalco, particularly in aluminum, Chairman Paul Skinner told The Observer newspaper in an interview published Sunday.

"If we get into that mode, there won’t be a shareholder discount," Skinner said of Chinalco, which recently teamed up with the U.S.'s Alcoa Inc. (AA) to take a 9% stake in Rio.

He said he didn’t think Chinalco wanted to thwart a merger between Rio Tinto and BHP Billiton Ltd (BHP).

"What they have said suggests they would be very happy as a long-term investor in Rio," Skinner said. "As to any specific intent they may have of frustrating the bid, that is not something they have talked about with us."

Skinner said Chinalco hadn’t sought a seat on Rio Tinto’s board.

"At this stage, I’ll be quite honest, it’s very early — it is not something we would particularly welcome until it was clear how the relationship was developing," Skinner said.