It is reported that Rio Tinto is keen to use its growing relationship with shareholder Chinalco to pursue JVs around the world and even increase its presence in China.

Mr Paul Skinner chairman of Rio said that Chinalco had not yet spelled out its long term plan for its holding. He added that "We are in the foothills of our relationship with Chinalco, but we expect the relationship to build and for there to be opportunities for co operation."

Mr Skinner said that Rio's relationship with Chinalco could put it in a better position to lead the western exploration effort in China if the government decided to encourage foreign companies to do so. He added that "It should be a win win situation, but it could take time. In the mining business we have to be patient."

Mr Tom Albanese CEO of Rio said that another area where the nascent relationship with Chinalco could benefit Rio was in better access to China's mineral deposits, which have great potential but have been under explored. He added that "There is potential for world class resources in China. I have had this conversation with the Chinese government. We would like to explore more, but we would need more security of tenure first."

Mr Wayne Swan Australia's Federal Treasurer said last week that he would permit Chinalco to buy up to 14.99% of Rio's London listed shares. This would equate to an 11% stake in its combined Australian and London listed stock. Meanwhile, Chinalco said that it is pleased that it now has the flexibility to increase its stake, should it choose to do so.

Only 0.5% of Rio's exploration budget is deployed in China at present, in part because of uncertainty as to whether the company would be allowed to retain control of any significant discoveries or whether the assets would be transferred to China's state owned mining companies.