Aluminum Corporation of China (Chinalco), the world's second largest producer of alumina, says it is willing to further discuss cooperation over bauxite and alumina production with global miner Rio Tinto.
The move indicates an easing of tensions between the two companies.
"Chinalco is still willing to explore the possibility of cooperation with Rio Tinto," said Zhao Zhengang, director of Chinalco's Overseas Exploration Department, in response to comments by Rio Tinto's chief financial officer Guy Elliott.
Elliott said the miner is at the very early stages of talks with Chinalco over a possible bauxite and alumina deal, the Australian Financial Review reported Monday.
Rio's relations with Chinalco reached an impasse in June after it abandoned Chinalco's $19.5 billion capital injection deal that was announced on Feb 12.
Cooperation in bauxite and alumina production was also part of the framework in the previous strategic partnership announced on Feb 12.
"Cooperation was suspended because Rio scrapped the contract, but if there is future cooperation with Rio, the deal will not be set along the same terms as in February. Further cooperation will be based on mutual business demands," Zhao said.
Lu Yongqing, Chinalco's vice-president and spokesman, also said the company had indicated its willingness to talk but declined to further comment, Dow Jones reported.
Rio's Elliott said the talks have only just started and have a long way to go before agreement is reached.
Zhao said he was not willing to comment on Elliott's statement, but said the possible cooperation was in line with Chinalco's president Xiong Weiping's earlier speech regarding Rio.
Xiong said the company was still willing to raise the possibility of further cooperation with Rio Tinto on July 23 when he attended a Sino-Australian investment forum.
