rio tinto might sell uranium stock to chinalco

Rio Tinto fell 41p to £31.16 after reports that the Chinese may take sanctions against the company and BHP Billiton, down 32p at £14.85, following their proposed iron ore joint venture announced in the wake of the collapse of Chinalco's proposed $19.5bn investment in Rio. But analysts suggested the annoyance in China may not preclude further deals with Rio. John Meyer at Fairfax said:

"Chinalco appears to remain open to potential joint venture partnerships with Rio Tinto despite disappointment over the collapse of their proposed deal. It has been suggested that Rio Tinto might sell stock in its uranium business to Chinalco as a way of saving face while raising further cash for Rio Tinto.

"Investors in Kalahari Minerals are keen to see a bid for Kalahari Minerals and Extract [where Rio already owns stakes] whereby Rio Tinto might consolidate its land holding around the Rossing uranium mine for onward sale to Chinalco."

http://www.guardian.co.uk:80/business/marketforceslive/2009/jun/12/1

Regards

Steve