The $20bn question currently circulating in the mining industry is how willing is Rio Tinto to change or drop its proposed fundraising deal with Chinalco? And if it does make changes, how receptive would Chinalco be to them?
As the Anglo-Australian miner and the Chinese metals group endure a third month of trying to seal their geopolitically sensitive proposal – in which Chinalco will make a $19.5bn capital investment in Rio – it appears that no one has an answer to these questions.
The uncertainty is summed up in Rio's divided investors, many of whom are prepared to vote “no” on the proposal because they believe the cash-for-mines-and-shares deal tramples on their rights as shareholders.