Chinalco firm on its Rio investment plan

Chinalco will not change its $19.5 billion investment plan in Rio Tinto (RIO.L)(RIO.AX), even if a rival bid emerges, the China Securities Journal reported on Tuesday.

"We are not going to (alter our) bid. We think what we offered is most reasonable," Xiao Yaqing, Chinalco's president, was quoted as saying.

Rio Tinto is facing an uphill battle to persuade wary shareholders, who are questioning whether the company is getting a good enough offer, to back the deal with state-owned Chinalco.

Chinalco, China's top aluminium maker, agreed last week to pay $12.3 billion for stakes in Rio's key iron ore, copper and aluminium assets and $7.2 billion for convertible notes that could potentially double its equity stake in Rio to 18 percent.

Xiao said it would only take one upswing in the commodity market in the next seven years to pay off the loans that the company would receive as part of its investment in Rio.

Chinalco is the parent of Hong Kong-listed Aluminium Corp of China (Chalco) (2600.HK).

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