Alcoa says it will join with Aluminum Corp. to buy 12% of Rio Tinto

Alcoa Inc. said Friday it is joining with Aluminum Corp. of China to buy 12 per cent of London-listed Rio Tinto PLC (LSE;RIO.L) shares.

Alcoa released a statement saying it will contribute $1.2 billion US to the total investment.

The company praised Rio Tinto's portfolio of assets and says the company is "well positioned to prosper in the current mining cycle."

Alcoa described the partnership with Aluminum Corp. of China, the country's biggest aluminum producer, as one that would 'allow us to mutually benefit from developments in the sector.'

Last year, Rio Tinto acquired Montreal-based Alcan for $38.1 billion.

The British mining giant outbid Alcoa in the Alcan purchase.