Rio Says Committed to Chinalco Deal After Report It May Change

Rio Tinto Group, the third-largest mining company, said it remains committed to a proposed $19.5 billion investment deal with Aluminum Corp. of China after a newspaper reported the company may alter the plans.

¡°We remain committed to the Chinalco deal as the best way forward,¡± Nick Cobban, Rio spokesman in London, said by phone today. The company has agreed to sell $7.2 billion of convertible bonds and stakes in projects worth $12.3 billion to Chinalco, as the state-owned company is known.

Rio is talking to investors about replacing a $7.2 billion sale of convertible bonds with a capital raising underwritten by Aluminum Corp. of China, The Australian reported on its Web site today. Rio also told Chinalco that changes must be made, the newspaper said, without saying where it got the information.

Rio¡¯s Chairman Jan du Plessis met shareholders in the U.K. last week as the company sought to convince investors that the Chinalco accord signed in February was the best way to slash its $38.9 billion of debt.

Cobban declined to comment on details of talks between du Plessis and investors. ¡°The chairman was in listening mode,¡± he said. Liz Morley, a spokeswoman in London for Chinalco, didn¡¯t immediately return calls to her office or mobile phones.

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