China's Need For Raw Materials Rears Its Head Again (ACH, RTP)

In a move to increase the supply for China's ever growing insatiable need for raw materials, Chinese aluminum maker Chinalco ACH has entered into a joint venture with Australian miner Rio Tinto RTP to operate an iron ore project in Guinea, in West Africa writes the AP. Terms of the agreement are that Chinalco will provide $1.3 billion to help fund the mine's operations over the next few years. The mine should operational in 5 years both companies said. This marks the continuing strength of the relationship between Rio Tinto and China, even after 4 Rio employees were arrested for bribery charges and Rio Tinto spurned China by walking away from a $19.5 billion investment and instead went with a rights issue and a joint venture with BHP Billiton BHP for its iron ore operations. "Developing our relationship and business links with China is a key priority for Rio Tinto," Rio Tinto Chairman Jan du Plessis said in a statement issued after the signing ceremony.