Fed: Rio "very confident" gov't will approve deal.

AAP General News (Australia)
02-13-2009
Fed: Rio "very confident" gov't will approve deal.

Mining giant Rio Tinto's very confident it will win federal government backing for
a 30 billion (AU) dollar deal with major shareholder Chinalco.

Under the deal .. Rio will sell stakes in key Australian iron ore and aluminium operations
and issue convertible bonds to the state-backed Chinese company to help pay-down 58 billion
(AU) dollars in debt incurred through buying aluminium producer Alcan Inc in 2007.

It will be China's biggest investment in Australia so far .. requiring approval of
the Foreign Investment Review Board and the government.

Rio's managing director strategy .. DOUG RITCHIE .. has told ABC Radio Chinalco would
be taking a minority stake in most of the assets .. and would not gain management control.

AAP RTV rl/af

KEYWORD: RIO TINTO (CANBERRA)

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