Forbidden City

Rio and Chinalco – not all is lost

  • Published 11 Jun 2009

Michael Komesaroff, principal of Urandaline Investments, a consultancy specialising on China's capital intensive industries, assesses the damage from the collapse of Chinalco's intended part acquisition of Rio Tinto.

Mining giant Rio Tinto's commercial contortions have confounded analysts and exasperated Chinalco, its former 'strategic alliance' partner. The company's decision to dump Chinalco four months after the Chinese state-owned enterprise threw it a lifeline will leave a bitter taste in Chinese mouths, especially as Rio's new darling is its arch rival BHP, a company whose takeover intentions struck fear through China's resource importing industries, but were arrogantly rebuffed by Rio management.

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