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Chinalco says bull view on metals spurred Rio stake

Fri Feb 1, 2008 9:24pm IST
 
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LONDON, Feb 1 (Reuters) - A bullish view of the metals cycle was a driving factor behind Aluminum Corp of China's (Chinalco) move to team up with U.S. Alcoa (AA.N: Quote, Profile, Research) to buy a stake in mining group Rio Tinto (RIO.L: Quote, Profile, Research), the head of Chinalco said on Friday.

"We made this investment primarily because of... our strong belief in the sustained strength of the commodity cycle," Chinalco President Xiao Yaqing told a news conference in London.

"We have a very bullish view on the long-term prospects of the global mining sector," he added.

(Reporting by Eric Onstad; editing by Michael Roddy)

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