The Australian Financial Review is reporting that Rio Tinto
(ASX:RIO) is in talks with Chinalco over the possibility of a deal to merge bauxite operations at Aurukun with Rio's adjacent Weipa project.
Yesterday, RIO said its plans to develop the site remained on track, despite media reports that the project might be under threat from a number of factors such as rising costs, market oversupply, and the proposed resource super profits tax.
The Review reports that the Bligh Government is trying to put the pressure Chinalco, Rio’s largest shareholder, to process ore from the Aurukun deposit if it wants to go ahead with leasing the site.
Chinalco subsidiary Chalco has three weeks until the deadline for submitting its feasibility study on the site.
The Queensland government hasn’t ruled out amending the deadline for the submission.
Rio Tinto posted a $5.4 billion net profit in the year to December 30 2009, an increase on the year before.
