It is reported that China's state-owned aluminum giant Chinalco is considering changes to its planned $19.5 billion deal with Australian miner Rio Tinto but insists on boosting its equity stake in the miner from the existing 9.3 percent to 18 percent.
"Certainly there have already been changes in the market and according to these changes we and Rio Tinto are together looking into the present situation," Chinalco president Xiong Weiping told media.
Declining to detail how the deal might be changed, Mr. Xiong denied that Chinalco would agree to limit its equity stake in Rio Tinto to 15 percent instead of 18 percent as originally agreed.
Meanwhile, Rio Tinto Iron Ore chief Sam Walsh has told reporters in Canberra that the situation was evolving, adding that Rio Tinto would decide its next move after meeting shareholders.
"We have certainly seen economic conditions improve since the deal was announced in February but importantly for us we need to take into account in our deliberations what our shareholders see as the key issues," Mr. Walsh stated.
On February 12, Rio Tinto announced its agreement with Chinalco, targeting to pay off half of its $38 billion debt.
Rio Tinto shareholders have criticized the proposal, saying Chinalco is being favored over other investors, while Australian politicians are worried that the deal will give China influence over the pricing of a strategic commodity, namely, iron ore.
On the other hand, speaking at a conference in Canberra, Chinese ambassador Junsai Zhang has said that Australians need not worry about Chinalco's bid for a greater share of Rio Tinto.
"The deal is a "win-win" situation and it will help develop and promote the relationship between the two countries," Mr. Zhang added.
Mr. Zhang reassured his listeners that China was not trying to control Australia's energy and minerals sector through the deal with state-owned Chinalco.
Mr. Zhang said, "Chinalco might be state-owned but it isn't state-run and its primary aim, like most commercial enterprises, is making money."