China's Need For Raw Materials Rears Its Head Again (ACH, RTP)
In a move to increase the supply for China's ever growing insatiable need for raw materials, Chinese aluminum maker Chinalco (NYSE: ACH) has entered into a joint venture with Australian miner Rio Tinto (NYSE: RTP) to operate an iron ore project in Guinea, in West Africa writes the AP.
Terms of the agreement are that Chinalco will provide $1.3 billion to help fund the mine's operations over the next few years. The mine should operational in 5 years both companies said.
This marks the continuing strength of the relationship between Rio Tinto and China, even after 4 Rio employees were arrested for bribery charges and Rio Tinto spurned China by walking away from a $19.5 billion investment and instead went with a rights issue and a joint venture with BHP Billiton (NYSE: BHP) for its iron ore operations. "Developing our relationship and business links with China is a key priority for Rio Tinto," Rio Tinto Chairman Jan du Plessis said in a statement issued after the signing ceremony.
