Rio Tinto bosses have been forced to defend the company’s proposed US$19.5 billion investment deal with Chinalco when they yesterday fronted as many 300 shareholders at an annual meeting in London.
Many of the shareholders expressed concerns over the deal, fearing too much control will fall into the hands of the State-owned Chinese company.
Rio chief executive Tom Albanese told shareholders that the deal would help build relationships with other Chinese institutions and open the door to future exploration.
Both Albanese and outgoing Rio chairman Paul Skinner said that the cash injection the deal would provide was necessary to help the miner reduce its US$38.7 billion of debt.
Similar concerns are likely to be raised at the Australian annual meeting to be held in Sydney next week.