A report by China’s State Council clearing the Australian government and Australian miner Rio Tinto (RIO.ASX, RIO.LSE, RTP.NYSE) of blame for the failure of Aluminum Corporation of China’s (Chinalco, 601600.SH) failed bid for a US$19.5 billion tie-up last June was welcomed by Australian authorities, Reuters reported. According to a report in Australian newspaper The Age, the State Council blamed economic forces and a public relations campaign lobbying against the deal by Rio competitor BHP Billiton (BHP.ASX, BLT.LSE, BHP.NYSE) for the failure of the deal. Following the failure of the Chinalco bid, Rio went on to contract with BHP Billiton on an iron ore joint venture. The Beijing subsequently had four Rio negotiators arrested on allegations of spying and bribery. The Australian government said the report should help heal Sino-Australian relations.
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