Reuters: Two Expansion Or Cancellation Of $116 Billion Joint Venture Plan

Early in the morning of October 6th, Beijing time.

Rio Tinto (RIO), the mining giant, is preparing to cancel plans to form a joint venture of $116 billion worth of iron ore in Australia with BHP Billiton (BHP), according to the Sydney Morning Herald, quoted by people familiar with the matter.

The newspaper said in the article that Rio Tinto's board of directors is preparing to pass its decision on BHP Billiton. "The main reason for Rio Tinto's abandoning the plan is probably due to the improvement of its financial position and pressure from shareholders, and the conclusion that they have concluded will be more beneficial to BHP."

Rio Tinto and BHP Billiton, which had previously said they would continue to support the joint venture program, declined to comment on the report today.

The newspaper said Rio Tinto chairman Du Lishi (Jan Du Plessis) told the company director on Monday that he did not think BHP would oppose Rio's decision to end the deal.

Rio Tinto shares rose 2.7% in London's stock market today to 3796 pence, and BHP Billiton shares rose 2.5% to 2076.5 pence per share.

In addition, the UK FTNMX1770 mining share index hit a new high following the rise in metal prices.

Rio and BHP Billiton are the second and third iron ore suppliers in the world respectively.

The two sides planned to merge mines, railways and ports in the remote Pilbara region of Western Australia, which is expected to save at least $10 billion in cost.

However, the deal was opposed by steelmakers in Europe and Asia, which had not yet been approved by regulators.

Some shareholders of Rio Tinto complain that, as part of the paction, it is necessary and necessary for Rio to pay Rio Tinto's $5 billion 800 million capital to Rio Tinto.

Charles Connor, an analyst at Evolution Securites in London, said that Rio Tinto will announce plans to expand its annual output of 50% to 330 million tonnes a year in the next few months, according to Charles Kernot.