Chinalco confident on Rio Tinto deal approval

Chinese aluminium giant has not seen "any sign" that its potential $19.5bn (?3.6bn) investment in Rio Tinto will be rejected ?and the company has no other plans for the money raised to finance the deal.

Xiong Weiping, chairman of state-owned business, revealed the news during a conference call on an investor roadshow for Chalco, the group's listed arm.

Chinalco said last week that it had secured financing for the "strategic partnership" with Rio Tinto from four Chinese banks. The financing was arranged by a syndicate led by China Development Bank that also included Export-Import Bank of China, Agricultural Bank of China and Bank of China.

Chinalco is waiting for approval from the Foreign Investment Review Board, which has until June to make a recommendation to Australian finance minister Wayne Swan, who will give final approval. The deal will then be put to shareholders.

On Tuesday, Mr Swan approved another investment by a Chinese state-owned group in the Australian resources sector. The application by Hunan Valin Iron and Steel group to take a 17.55pc shareholding in Fortescue Metals was waved through, with the proviso that any person nominated to Fortescue's board would abide by Australian rules regarding conflicts of interest relating to price setting to ensure "the appropriate separation of Fortescue's commercial operations and customer interests".

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