A parliamentary motion proposed by the Australian Greens in objection to CHALCO's (Aluminium Corp. of China) plan to inject capital into Australian mining giant Rio Tinto, and thereby claim up to an 18 percent stake in the miner, has been vetoed by the majority of deputies of the country's Conservative and Labor Parties, with only five Greens Party representatives voting for the motion.
Meanwhile, Rio Tinto CEO Tom Albanese has said that the scheduled transaction between Rio Tinto and CHALCO has been receiving more positive feedback from the market during the past three weeks. Previously, Rio Tinto shareholders of Rio Tinto had not been so positive regarding the plan.
Mr. Albanese stated that Rio Tinto could raise $10 billion if it chooses to allot company shares to solve its current debt problem; however, this way the company's share price would shrink 70 percent on the Australian Securities Exchange, or 60 percent on the London Stock Exchange. Thus, Albanese argued, the solution of a capital injection by CHALCO would be in the best interests of the shareholders of Rio Tinto.