Chinalco claims how to deal with Rio Tinto shares will be subject to the circumstances, do not rule out mergers and acquisitions

Xiao Yaqing, general manager of Chinalco's parent company, Aluminum Corporation of China, stated that Chinalco’s shareholding in Rio Tinto is a commercial consideration. How to deal with the relevant shares will be determined depending on the situation. There is no further negotiation with Rio Tinto or BHP Billiton. Meanwhile, he We will continue to seek out overseas M&A opportunities.

"If the price rises very high, we can also sell Rio's stock. We will not be static." Xiao Yaqing pointed out in an interview with China's financial magazine that the group will hold shares in Rio (RIO.AX: Quote) in the future. The choice will be determined by the market and will continue to change as the situation changes.

Chinalco Corporation announced earlier that it has joined hands with Alcoa to share a 12% stake in Rio Tinto, the global mining giant, for US$14 billion. It is the largest overseas direct investment by Chinese companies to date. Transaction and BHP Billiton’s share swap plan, acquisition power Extension's plan to bring variables.

For the next step, Xiao Yaqing said that the company has not yet discussed with BHP Billiton or Rio Tinto. However, anyone who wants to buy Rio Tinto needs shareholder approval or negotiating with shareholders. Chinalco and Alcoa are the single largest Shareholders have a lot to say. Any decision must be made on the premise of safeguarding the interests of Chinalco and Alcoa.

He also emphasized that Chinalco will continue to seek overseas M&A opportunities. "Rio is our first time participating in the world's top corporate mergers and acquisitions, but it is not the last time."

For the recent iron ore price increase, Xiao Yaqing said that iron ore prices have risen sharply. In the long run, it is not necessarily a good thing for iron ore suppliers. The higher the iron ore price goes, the more people develop it. In fact, the development of potential resources will increase. The price should also be sustainable, and some rationality will benefit everyone."

Chinalco closed 0.94% higher at HK$15.08 per share on Friday, and the stock has risen more than 27% in the past month.