Chinalco to own 12% of Grasberg

Chinese state-owned aluminium group Aluminium Corporation of China (Chinalco) will indirectly control 12 percent of stake of Grasberg giant copper and gold mine in Papua province following agreement to invest US$19.5 billion in Anglo-Australian mining giant Rio Tinto.

Rio Tinto said on Thursday that the company currently holds 40 percent interest in Grasberg mine and Chinalco will share 30 percent of Rio Tinto?s interest.

Rio Tinto said some $400 million of the fund received would be used to develop Grasberg, which is operated by US mining giant Freeport-McMoRan Copper& Gold Co.

However, the transaction is still subject to the approval of Rio Tinto shareholders and governments, as well as the relevant regulators.(alex)