Rio Tinto chairman defends Chinalco deal at Sydney meeting

Rio Tinto Ltd. Chairman Paul Skinner said Monday that Aluminum Corp. of China, or Chinalco, had offered the miner asset prices at the "top level at bottom market conditions."

"Some of our asset sales were successful, some offers were such low-ball propositions that they didn't make sense," Skinner said at the company's annual meeting in Sydney.
"Chinalco offers a comprehensive financial solution, and it offered asset prices that were secured at the top level at bottom market conditions."

Rio Tinto has been struggling with the debt burden it took on to fund its US$38.1 billion purchase of Alcan in 2007, with falling commodity prices crimping cashflow and planned asset sales stalling.

With US$8.9 billion due in October this year and a further US$10 billion due in October 2010, the miner is banking on its planned US$19.5 billion deal with Chinalco to ease its debt burden.

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