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CHINALCO's interest in resources acquisitions and Anglo American's early moves into China back up the speculation that the two companies could engage in some form of partnership. Chinalco is the Chinese state-owned resources group tipped as a potential suitor to rescue Anglo American from the unwelcome advances of Xstrata, or as a co-investor in Anglo's MMX Minas- Rio iron-ore project in Brazil. Chinalco and Anglo American have declined to comment on the speculation that, after Anglo's board rejected Xstrata's all-share merger proposal last month, Anglo has been seeking a white knight in either Chinalco or Brazilian iron-ore giant Vale. Vale, though, has said publicly that it is not seeking acquisitions at present.

Xstrata plc ("Xstrata") notes the announcement made by Anglo American plc ("Anglo American") today. Xstrata confirms that it recently sent a written proposal to the Board of Anglo American seeking their consideration of a merger of equals of the two companies.

In the light of the review the Board of Anglo American has unanimously concluded that the proposed combination with Xstrata would not be in the interest of Anglo American shareholders.

"Anglo American has hired Andy Shaw"

"The move to acquire the assets would deal a blow to Anglo, which has invested $2.8bn in an expansion of the Los Bronces mine. The expansion, which will more than double output at the mine to about 490,000 tonnes per year, is due to start production in the last quarter of this year."

Global mining major Anglo American Plc today said it is keen on roping in local players to forge joint ventures in India's mining sector, where the UK-based firm intends to be a long-term player.

Anglo American announces a significant and high quality new copper prospect at Los Sulfatos in Chile, near its existing Los Bronces copper operation, with an Inferred Resource of 1.2 billion tonnes.