Beijing - The Aluminium Corporation of China Ltd (Chinalco) said Tuesday it has not yet decided on a bail-out for highly indebted Australian-British miner Rio Tinto.

State-owned Chinalco has been considering raising its stake in Rio Tinto, the Shanghai Daily newspaper wrote.

A Chinalco spokesman in Beijing confirmed that talks were held and said the firm has been considering raising its stake. "There would be many options and nothing has been decided," he said.

Other media quoted Chinalco deputy head Lu Youqing as saying that negotiations were only at their beginning.

According to unconfirmed reports, Rio Tinto could get more support from Chinalco than originally expected, with China planning to infuse 20 billion dollars into the mining company, raising its share to between 15 and 20 per cent, The Australian and the Australian Financial Review reported.

Over the weekend, media reports talked about a 15-billion-dollar investment, Rio Tinto confirmed the talks, saying they involved Chinalco acquiring minority stakes in several ventures.

Rio Tinto wants to reduce its 39-billion-dollar debt burden, and is believed to be pushing for an agreement before February 12, the date for the company to release its annual results.

The world's third-largest mining company was hit by falling demand from the global financial crisis, suffering increasing debt problems and announcing a cut of 14,000 jobs in December.

If no agreement is reached with Chinalco, Rio Tinto could plan a capital increase. The miner aims to reduce its debt by 10 billion dollars over the next year with a rigid austerity plan and by shedding some of its holdings.

Experts believe Chinalco has chosen good timing to increase its share in the Rio Tinto, but the deal has to be approved by the Beijing government, which may be hesitant after a series of only moderately successful investments abroad.

The losses incurred by Chinalco's 9-per-cent share of Rio Tinto to date may weigh against further investment. (dpa)