PERTH (miningweekly.com) – Diversified miner Rio Tinto on Monday reported that the 2016 non-binding heads of agreement with Chinalco over the sale of its interest in the Simandou iron-ore project, in Guinea, had lapsed.
Under the initial agreement, Rio would have received between $1.1-bilion and $1.3-billion for its 45.05% stake in the project, based on the timing of the project’s development.
Chinalco currently has a 39.95% interest in Simandou with the government of Guinea holding the remaining 15% interest.
Rio said on Monday that the two companies would continue to work with the government of Guinea to explore other options to realise value from the Simandou deposit.
Rio in March this year updated the mineral resource estimate at Simandou, which now stood at 2.75-billion tonnes.