BEIJING (Commodity Online): It seems the rivalry between Rio Tinto and Beijing is over. Last year when China detained Rio’s executives for graft, the world was agog with rumours that  Rio will end all deals with China.

However, in 2010 things seem to have improved with Rio Tinto and Chinalco set to join hands to develop mines in Guinea.

The duo has also resurrected plans jointly to develop a rich iron ore deposit in Guinea in the first of several moves aimed at repairing the Anglo-Australian miner’s strained relationship with Beijing.

Both parties are in late-stage talks to develop Simandou, one of the world’s highest-quality undeveloped iron ore concessions.

Chinese steelmakers became Rio’s most important customers by far last year. But the miner’s relations with China froze from last June when it spurned a $19.5bn capital injection from Chinalco, a state-owned aluminium producer that remains Rio’s largest shareholder.

The deal would have restored Rio’s balance sheet in return for Chinalco taking board seats and stakes in top-tier Australian assets. Instead, Rio dropped the deal and launched a $15.2bn rights issue and a joint venture with BHP Billiton.

The joint development of Simandou was a feature of a broader strategic partnership that would have accompanied the original Rio-Chinalco deal.

Australia’s relations with Beijing were further damaged in July when Stern Hu, Rio’s executive iron ore salesman in China, and three associates were detained. The four executives were recently formally indicted on charges of taking bribes and their case will now proceed to trial.

Chinese companies including Shenhua have been jockeying to take concessions in Mongolia, an emerging mining province whose valuable coal and copper deposits are located in the southern Gobi desert near the Chinese border.

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