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Aluminium producers Chinalco and Alcoa have purchased 12 per cent of mining giant Rio Tinto through Singapore-based entity Shining Prospect.

Shares of Aluminium Corp of China, a subsidiary of Chinalco, climbed more than 15 per cent on word of the purchase and ended the day six per cent ahead of the rest of the Hong Kong aluminium market.

US firm Alcoa has committed $1.2 billion (£0.6 billion) to the deal according to a statement.

"Our acquisition of a significant strategic stake in Rio Tinto today reflects our confidence in the long term prospects for the rapidly evolving global mining sector," said Beijing-based Chinalco president Xiao Yaqing.

"We have confidence in the fundamental value of the Rio Tinto Group and the management's strong ability to realise that value for shareholders."

Chinalco has a market capitalisation of more than $50 billion (£25 billion), employs 221,000 people and expects 2007 profits to reach nearly $3 billion (£1.5 billion).

Alcoa is the world's leading producer and manager of aluminium, serving aerospace, automotive, packaging, construction and industrial markets, as well as offering design and engineering capabilities.

It employs 107,000 people and has a market value of $27 billion (£13.5 billion) on the New York stock exchange.

Commenting on the purchase, Alcoa chief executive and chairman Alain Belda said: "We have long believed that Rio Tinto has a world-class portfolio of assets and is very well positioned to prosper in the current mining cycle."

"This investment, made in partnership with Chinalco, allows us to mutually benefit from developments in the sector," he said.

Rio Tinto says the move confirms that offers from BHP Billiton undervalue the company, having previously rejected a bid last November.

The takeover target's share price has soared 13.05 per cent to 5,603p in morning trading on the FTSE 100.