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Clifford Chance advises Chinalco on exploration joint venture with Rio Tinto

31 May 2011

Clifford Chance advises Chinalco on exploration joint venture with Rio Tinto

Beijing/London:   Leading international law firm Clifford Chance has advised Aluminum Corporation of China (Chinalco) on a joint venture (JV) agreement with the Rio Tinto Group for mineral exploration in China.

Chinalco will hold a 51 per cent interest in the JV, with Rio Tinto holding the remaining 49 per cent.

This is the third deal on which the Clifford Chance team has advised Chinalco.  In 2008, the firm advised on Chinalco's acquisition of around 12 per cent shareholding in Rio Tinto plc through subsidiary Shining Prospect Pte Ltd, and in 2009 we advised on the proposed US$19.5 billion strategic partnership with Rio Tinto – which, if it had proceeded, would have been the largest outbound investment undertaken by a Chinese company.

"We are delighted to work again with Chinalco on this latest strategic project," said London corporate partner Kathy Honeywood, who led the London team advising Chinalco on all three projects. "This marks the next step in the development of the relationship between these two global companies and we are very privileged to have been involved from the outset."

"This deal confirms the continued interest in resources and commodities worldwide, a trend we expect to continue, with more joint ventures and strategic arrangements of this type emerging, as outright acquisition targets become more difficult to secure in a crowded marketplace," said Kathy.

"We greatly value the relationship that we have developed with Chinalco," said Tim Wang, who led the Beijing team on all three deals. "As a firm we can offer over 25 years' experience in, and understanding of, doing business in China as well a truly global network of expertise in resources and mining, a combination that was invaluable on this deal."

The Clifford Chance team was led in London by corporate partner Kathy Honeywood supported by senior associate Ashvin Seetulsingh, and in Beijing by partner Tim Wang, senior associate Jin Hao and associate He Shanshan.