Chinalco-Rio Tinto deal gets approval from U.S. regulator

Chinalco-Rio Tinto deal gets approval from U.S. regulator

BEIJING, May 16 -- A U.S. regulator granted clearance to Rio Tinto regarding the proposed issue of convertible bonds to Aluminum Corp. of China (Chinalco) and the indirect minority investment in Kennecott Utah Copper Corp., Chinalco said Friday.

The approval was given by the Committee of Foreign Investment in the United States (CFIUS), said Chinalco, China's largest aluminium producer.

In February, Chinalco signed to invest 19.5 billion U.S. dollars in the iron ore giant Rio Tinto of Australia, the world's third-largest mining company, to secure resource supplies for China and help cut Rio's heavy debt.

Under terms of the planned deal, Chinalco will invest 7.2 billion U.S. dollars in convertible bonds and 12.3 billion U.S. dollars in Rio Tinto iron ore, copper and aluminum stakes.

This follows receipt of approvals from the Australian Competition and Consumer Commission on March 25 and the German Federal Cartel Office on March 31.