It is reported that Aluminum Corp of China has got Australian approval to raise to 11% its stake in Rio Tinto Group. This enables Chinalco to hold as much as 14.99% of Rio's London shares, equivalent to 11% percent of the mining company's combined Australian and London equities.

Mr Wayne Swan, Federal Treasurer of Australia said that “I have decided to raise no objections under Australia's foreign investment policy.”

Mr Swan said that “While Australia welcomes foreign investment in our economy, we will carefully examine national interest issues where these arise in relation to foreign sovereign ownership.

Mr Swan added that Chinalco will have to reapply to increase its stake beyond the level approved today and has agreed not to seek representation on Rio's board. He said Chinalco had already promised to meet these conditions by vowing not to raise its stake above 14.99% without receiving fresh government approval

Chinalco, in partnership with Alcoa Inc, bought a 9% stake in Rio in February and said in March it may seek to increase that holding. The bid by China's biggest aluminum producer may make it more difficult for BHPB to succeed in its all stock takeover offer for Rio.