Sydney - Anglo-Australian mining firm Rio Tinto Ltd said Wednesday it had received approval from a German regulator to sell iron ore and aluminium assets to the Aluminum Corp of China (Chinalco) for 19.5 billion US dollars to shore up its balance sheet.

Chinalco, which already owns 9 per cent of Rio Tinto, would see a doubling of its stake in dual-listed Rio if shareholders, governments and regulators approve the deal.

The German Federal Cartel Office is one of five national regulators that need to approve the cash deal proposed by London-based Rio.

Chinalco would pay 12.3 billion dollars for Rio assets and provide 7.2 billion dollars for a convertible bond.

The deal still needs the approval of the Australian government, which has the power to block foreign investments it considers not in the national interest.

Last year, the government said it was particularly concerned about sovereign-fund investment vehicles purchasing slices of the resources industry.

Rio Tinto, the world's third-biggest mining company, is strapped for cash after borrowing 38 billion dollars to buy aluminium rival Alcan two years ago. (dpa)