MineWatch.org

Only a year ago, the affairs of Rio Tinto's new Chief Executive, Tom Albanese, wore a hopeful aspect. The young American businessman had masterminded a $38 billion acquisition of Canadian aluminium maker Alcan. Since metal prices were through theroof and continuing on their upward swing, Albanese felt himself secure.

Oh what a difference a year makes.

With the metal market tanking the once promising acquisition has become a millstone around the neck of Rio Tinto's CEO and his critics have taken up a hue and cry against him - some even calling for his ouster. Reuter's reports,

Albanese, once confident enough to spurn an all-share bid worth almost $200 billion from bigger rival BHP Billiton, is now entering into what some shareholders and politicians regard as a kind of Faustian deal with China.

In agreeing a $19.5 billion cash injection from state-owned Chinalco, Rio is taking Beijing's money -- reportedly much more than it could otherwise expect in a depressed market -- in return for giving China a seat at the mining industry's top table.

"They think they can sell less than a controlling interest in their assets and still control them. They think they will still rule the roost and have money in the tin but that seems crazy," Warren Staude, investor adviser with Taurus Funds Management.

The good times started to sour for Albanese last November when BHP pulled its offer amid tumbling commodity prices, looming world recession and the daunting prospect of having to refinance Rio's debts. Rio's shares immediately fell by more than a third.

The future of Albanese as Rio Tinto's CEO is murky at best, but we'll continue watching this story and updating you as events unfold.