Chinese mining company Chinalco earlier this year knocked back an invitation to become a formation partner in the Pilbara iron ore joint venture between Rio Tinto and BHP Billiton, The Australian has reported on its website.
Without citing sources, The Australian said Chinalco was offered a shareholding of up to 5% in the joint venture, which would have required an investment of at least US$5.8 billion based on the valuations of the 5 June deal.
Chinalco is said to have turned down the offer because the restructuring of the deal meant it would not then be offered seats on Rio’s board.
Under the terms of the original $19.5 billion investment deal, Chinalco would have owned a 15% stake in Rio Tinto Australia and had the right to appoint two non-executive directors.
According to the web site, neither Rio nor BHP has ruled out again attempting engagement with Chinalco on joining their still-formulating joint venture.