Rio Reiterates Commitment to Chinalco Deal After Stock Drops

Rio Tinto Group, the world¡¯s third- largest mining company, is continuing with a proposed $19.5 billion investment from Aluminum Corp. of China amid concern the deal won¡¯t proceed.

Rio ¡°reiterates its commitment to delivering this strategic partnership and will otherwise carry on its business in its usual course,¡± the London-based company said today in a statement to the Australian stock exchange in response to a query about share price movements.

The plan to sell convertible bonds and stakes in projects to Chinalco, as state-owned Aluminum Corp. is known, has drawn criticism from investors including Legal & General Group Plc, the second-largest institutional shareholder, as well as Australian lawmakers. The deal needs approval from regulators and shareholders to proceed.

Rio was asked to explain a 10 percent decline in its Australian-listed shares yesterday. The decline was the biggest drop in four months as investors became concerned that Rio would sell shares at a discount should the deal with Chinalco fail.

Rio shares declined 2.2 percent in London yesterday.

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