Rio coal deal cements ties with China

Rio Tinto has tightened ties with China after selling its Australian coal assets to State-backed Yankuang Group for $2.69 billion.

Industry insiders stressed that last week's announcement goes beyond this deal, and illustrates the relationship between one of the leading multinational mining groups and the world's second biggest economy.

"Instead of a simple deal between two companies in the coal sector, it shows Rio Tinto is hoping to expand its Chinese iron ore market," said Mi Pengqi, an analyst at JLC Network Technology Co Ltd, a commodity information provider based in Beijing.