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Glencore denies Simandou rumours

30th June 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Diversified miner Glencore on Monday denied a media report that it had expressed an interest to the Guinea government in developing the Simandou North iron-ore project.

The Australian reported on Monday that the company had sent a team of representatives to meet with senior government officials.

“This is not the case,” company spokesperson Charles Watenphul told Mining Weekly Online.

The Guinean government was expected to start a process of selecting a developer for the concession of the northern deposit, which has been the subject of a significant row.

In May this year, mining giant Rio Tinto launched legal action against Brazilian iron-ore giant Vale, Israeli businessman Beny Steinmetz and his company BSG Resources, claiming that the three had conspired to relieve Rio of the northern half of the Simandou mining concession.

Rio claimed that following discussions regarding a possible purchase of some of the Simandou assets, Vale used proprietary information disclosed in the discussions to gain control of the asset by colluding with Steinmetz and the BSG group.

The Guinean government subsequently revoked the mining licence for the northern deposit of the Simandou project.

Guinea would start a new auction process for the northern concession, and would allow Vale to enter the bidding process.

Meanwhile, Rio has continued with the development of the $20-billion Simandou south project, which was expected to produce around 100-million tonnes a year of iron-ore.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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