The Australian treasurer, Wayne Swan, has approved the proposal by Aluminium Corporation of China Limited (Chinalco) to acquire a stake of up to 14.99 percent in Rio Tinto Ltd, representing a stake of about 11 percent in Australian mining company Rio Tinto Group.
The approval in question has two conditions: first, Chinalco is required not to raise its shareholding in Rio Tinto without fresh approval from the Australian government; second, Chinalco is not allowed to seek to appoint a new director to Rio Tinto Ltd as long as it holds a shareholding of below 15 percent.
This approval granted by the Australian treasurer may constitute an additional obstacle in the way of BHP Billiton's proposal to take over Rio Tinto.