Rio Tinto has signed a joint venture agreement with Chilean firm CODELCO for copper exploration in Chile.
The state-owned firm CODELCO is the world's largest copper-producing company, with recorded copper reserves sustaining 200 years of production.
"This landmark agreement combines the strengths of two highly experienced copper producers," chief executive of Copper, Rio Tinto, Bret Clayton said.
"Together we hope to unlock value from a highly prospective copper belt in the biggest copper producing country in the world," he added.
The property to be explored is the Exploradora prospect in northern Chile. Rio Tinto has the option to earn a 55% interest in the prospect through an exploration investment of US$20 million, with the potential to increase ownership to 60%.
Rio Tinto has been exploring in Chile since 1989 and has several copper exploration properties under title which are scheduled for drill-testing in 2008.
Its rival BHP Billiton, which has launched takeover bids recently for all the shares in RIO, is also present in Chile, operating the Escondida mine in northern Chile through a stake of about 55% in the Compañía Minera Escondida.
Shares in RIO rose $8.92 to $117.30.
