RIO Tinto, fighting a takeover bid by rival Anglo-Australian miner BHP Billiton, would like to work with Chinese State firms to develop mining projects around the world, chief executive Tom Albanese said Saturday.

Speaking to reporters in Beijing, Albanese said he had no plans on this trip to meet executives from Baosteel Group, parent of Baoshan Iron and Steel Co. Ltd., or from the China Iron and Steel Association.

Albanese said Rio Tinto, the world’s second-biggest mining company, was without peer in discovering world-class mineral deposits, but these were expensive to exploit and required significant infrastructure investment.

“There are opportunities for cooperation on a joint venture basis, or something equivalent to that, and I think that Chinese State-owned enterprises (SOEs) could be very much part of that picture,” he said.

Chinese State-owned enterprises could be useful in providing capital, engineering and technology for projects in Asia, Africa and South America, Albanese said, noting that Rio was already a partner with Chinese companies on a number of developments.

“I wouldn’t say that we have any active engagement under way in that area. But this is something I have a personal interest in pursuing,” he said.

Sam Walsh, chief executive of Rio Tinto’s iron ore business, said he hoped to sell up to 15 million tons of iron ore to China on the spot market in 2008, up from 4-5 million tons in 2007.

With demand so strong, Rio was willing to be patient in the contract talks, he said.

(SD-Agencies)