Chinalco may take up Rio Tinto rights

SYDNEY (Reuters) - China's state-owned Chinalco is widely expected to take up its full entitlement to new shares in global miner Rio Tinto's (RIO.AX) (RIO.L) $15.2 billion rights issue, the Financial Times newspaper reported on Tuesday.

There has been uncertainty over Chinalco's intentions after indebted Rio ditched a deal with the Chinese group for a $19.5 billion capital injection in favour of the rights issue and an iron ore joint venture with BHP Billiton (BHP.AX) (BLT.L).

By taking up its rights, Chinalco would be able to maintain its overall stake in Rio at about 9 percent.

A Chinalco spokesman in Sydney declined to comment.

A spokesman for Rio Tinto could not be immediately reached for comment.

(Reporting by James Thornhill and Denny Thomas, editing by Mark Bendeich)