Rio to sell Simandou stake to Chinalco
JOHANNESBURG (miningweekly.com) – Diversified major Rio Tinto has signed a nonbinding agreement to sell its stake in the massive Simandou iron-ore project, in Guinea, to Chinese company Chinalco.
Under the terms of the deal, Rio Tinto will receive payment of $1.1-billion to $1.3-billion, based on the timing of the development of the project, which has an ore reserve of over two-billion tonnes and a mine life in excess of 40 years.
Development of the $20-billion Simandou project, which includes a 650 km railway and a deepwater port, was shelved by Rio in July, owing to the global iron-ore oversupply and challenges in securing financing for the project.
The International Finance Corporation, earlier this month, also announced that it would sell its 4.6% stake in the project.
The mine not only has the potential to double the size of the West African country’s economy, but could possibly make Guinea one of the world’s top iron-ore exporters.
Both rail and port would be available for use by third parties, on prescribed terms.
The proposed openpit mine has an expected capacity of 100-million metric tonnes of iron-ore a year.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation