Rio stung with $625m costs for rights issue

<div>MINING giant Rio Tinto now faces $625m (&pound;382m) in costs over its $15.2bn rights issue, which came after its bid to raise money from Chinese state-owned mining group Chinalco collapsed.<br />&nbsp;</div>
<div>Investment banking giants including &nbsp;Morgan Stanley will walk away from the deal $430m better off, after Rio already had to pay a $195m break fee to Chinalco.&nbsp;<br />&nbsp;</div>
<div>And it is now thought a further $800m of costs are owed to investment banks, relating to work done on the Chinalco deal.&nbsp;<br />&nbsp;</div>
<div>The costs, which could add up to $1.42bn, represent a signficant percentage of the $18bn debt Rio is trying to pay off.&nbsp;<br />&nbsp;</div>
<div>The firm launches the fully underwritten 12-for-40 rights issue today.</div>