Chalco president: We won't raise Rio Tinto stake

Aluminum Corp of China (Chalco) does not intend to add to its stake in Australian mining group Rio Tinto, Xiao Yaqing, president of the Chinese company, said on Monday. Speaking in Australia where he was on a visit to allay concerns about a state-owned Chinese entity buying into Rio Tinto, Xiao even suggested that Chalco might sell out for a profit, the Wall Street Journal reported. The purchase of 12% of Rio Tinto’s London-listed shares by Chalco and US aluminum producer Alcoa for US$14.1 billion – a 21% premium – is widely seen as a means of blocking BHP Billiton’s proposed US$119 billion takeover of Rio Tinto. Xiao insisted that the timing of the move was a "coincidence." The UK Takeover Panel has given BHP until February 6 to make a formal offer or walk away for six months. With Rio Tinto insisting that the current bid is too low, BHP was said to be weighing its options as to what to do next.