A US regulator granted clearance to Rio Tinto regarding the proposed issue of convertible bonds to Aluminum Corp. of China (Chinalco) and the indirect minority investment in Kennecott Utah Copper Corp., Chinalco said on Friday.

The approval was given by the Committee of Foreign Investment in the United States (CFIUS), said Chinalco, China's largest aluminium producer.

In February, Chinalco signed to invest US$19.5 billion in the iron ore giant Rio Tinto of Australia, the world's third-largest mining company, to secure resource supplies for China and help cut Rio's heavy debt.

Under terms of the planned deal, Chinalco will invest US$7.2 billion in convertible bonds and US$12.3 billion in Rio Tinto iron ore, copper and aluminum stakes.

This follows receipt of approvals from the Australian Competition and Consumer Commission on March 25 and the German Federal Cartel Office on March 31.

(Xinhua News Agency May 17, 2009)