Roadblocks for Rio Tinto

The high-stakes deal between struggling Anglo-Australian mining giant Rio Tinto and China's state-owned Chinalco looks set to go down to the wire, with the Australian government set to say yea or nay sometime within the next two weeks. Rio Tinto lined up the deal with Chinalco back in February, looking for a way to pay down half of its A$38 billion in debt as debt markets remained frozen and commodity prices collapsed. Under the terms agreed, Chinalco would take minority stakes in some Rio mining assets as well as buying convertible notes that could double its equity stake to 18 percent.

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