Friday, February 13, 2009

China's metals move a bright spot for sector -- theglobeandmail

Chinalco investing nearly $20-billion in Rio Tinto; deal suggests Canadian resources sector could climb out of doldrums sooner

ANDY HOFFMAN

February 13, 2009

MINING REPORTER

China's blockbuster deal to invest $19.5-billion (U.S.) in Rio Tinto Group bodes well for Canada's resource-driven economy as it shows the world's largest commodities consumer is betting on a faster-than-expected recovery in metals demand.

State-controlled China Aluminum Corp. (Chinalco) is buying $7.2-billion worth of convertible bonds and will pay $12.3-billion for stakes in eight of Rio Tinto's mines that produce a range of metals including iron ore, copper and aluminum.

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