Bloomberg reported that Aluminum Corp of China, which jointly bought a 9% stake in Rio Tinto Group with Alcoa Inc, is in talks with its partner to consider raising their holdings.

Mr Xiao Yaqing chairman of Aluminum Corp at a conference in Shanghai told reporters that “We are in talks with Alcoa on that issue. If the price is attractive enough, we may raise the stake.”

Mr Yaqing said that this will not be our last acquisition overseas. He said that “We are targeting more acquisitions, particularly good mining assets in the international market.”

Rio's stock is 19% below the 6,000 pence (USD 120) a share price paid by Aluminum Corp of China and Alcoa when they bought their stake. Mr Peter Rudd an analyst at Carroll, Pike & Piercy Pty said that “They are certainly going to have to be listened to now. Buying more Rio averages down the price they paid for the initial stake.''

However, a stake increase may make it more difficult for BHP Billiton Ltd to succeed in its USD 133 billion takeover offer for Rio.