Rio wants more mining partnerships with China firms

By Alan Wheatley, China Economics Editor

BEIJING, March 22 (Reuters) - Rio Tinto, fighting a takeover bid by rival Anglo-Australian miner BHP Billiton, would like to work with Chinese state firms to develop mining projects around the world, Chief Executive Tom Albanese said on Saturday.

The partnership offer could draw some of the sting from acrimonious iron ore contract talks pitting Rio (RIO.L: Quote, Profile, Research) (RIO.AX: Quote, Profile, Research) and BHP (BLT.L: Quote, Profile, Research) (BHP.AX: Quote, Profile, Research) against Chinese steel mills led by Baosteel.

Speaking to reporters in Beijing, Albanese said he had no plans on this trip to meet executives from Baosteel Group, parent of Baoshan Iron and Steel Co Ltd (600019.SS: Quote, Profile, Research), or from the China Iron and Steel Association.

Albanese said Rio Tinto, the world's second-biggest mining company, was without peer in discovering world-class mineral deposits, but these were expensive to exploit and required significant infrastructure investment.

"There are opportunities for cooperation on a joint venture basis, or something equivalent to that, and I think that Chinese SOEs could be very much part of that picture," he said.

Chinese state-owned enterprises (SOEs) could be useful in providing capital, engineering and technology for projects in Asia, Africa and South America, Albanese said, noting that Rio was already a partner with Chinese companies on a number of developments.

"I wouldn't say that we have any active engagement under way in that area. But this is something I have a personal interest in pursuing," he said.

Albanese, speaking on the sidelines of the China Development Forum, an annual conference organised by the government, said he was philosophical about the harsh words directed at Rio this week by senior figures in the Chinese steel industry.