On December 2, Anglo-Australian mining giant Rio Tinto and its largest shareholder Chinese metal producing giant Aluminum Corp. of China (Chinalco) signed a non-binding memorandum of understanding to establish an exploration joint venture (JV) to develop coking coal and copper deposits in China.
The JV, which is expected to come into operation in the first half of next year, initially intends to focus on three to five large area exploration projects, with the potential for additional regions to be added at a later date.
State-owned Chinalco will hold a 51 percent interest in the JV and Rio Tinto will hold a 49 percent interest.
Rio Tinto chief executive Tom Albanese said, "This exploration JV is the latest chapter in the rich history of partnerships between Rio Tinto and China. The combination of skills provided by Rio Tinto and Chinalco offers great potential to unlock value for mutual benefit."
Rio Tinto will appoint the chief executive of the exploration JV, with the chairman of the five-member board nominated by Chinalco.