Beijing is turning to one of the world’s biggest mining companies to improve the performance of its key companies within its vast state-owned enterprise sector.
China’s State-owned Assets Supervision and Administration Commission (SASAC) has just signed a deal with Anglo-Australian mining giant Rio Tinto for the provision of leadership and management training to the chiefs of the countries 100-over central state owned enterprises.
Under the memorandum of understanding Rio will provide China’s SOE sector with “capacity building in a broad range of areas including stakeholder engagement, license to operate, environmental and economic assessments and community engagement.”
“SASAC encourages the central SOE’s to cooperate with the world’s leading mining company, Rio Tinto,” said SASAC chairman Xiao Yaqing.
“From along-term point of view this training programme will be beneficial to deepening the mutual understanding between Rio Tinto and the central SOEs to explore long-term win-win strategic cooperative opportunities.”
The mining giant expects to obtain improved access to high-level contacts in China in exchange for sharing its leadership nous.
CEO Jean-Sebastien Jacques said in a statement that the cooperative plan would improve Rio Tinto’s standing amongst China’s economic elites.
“Our joint executive training initiative with SASAC is another way of delivering our commitment to developing long-term relationships with Chinese partners,” said Jacques.
Rio has already established relationships with some of China’s key central SOE’s, including resources giant China Minmetals, with whom it’s just entered a new exploration agreement.