Rio Tinto, Winning strike JV deal for Guinea project
FILE PHOTO: The Rio Tinto logo is displayed on a visitor's helmet at a borates mine in Boron, California, U.S., November 15, 2019. REUTERS/Patrick T. Fallon
SYDNEY : Rio Tinto said on Thursday that its Guinea subsidiary Simfer has formed a joint venture with the government and the Chinese-backed consortium Winning Consortium Simandou (WCS) to co-develop the Simandou iron ore mine project.
The joint venture incorporation, called La Compagnie du TransGuinéen (The TransGuinean Company), will be central for the co-development of the rail and the port components of the Simandou iron ore development project, Rio said in a statement.
The miner said the parties would will now work on a "shareholding agreement, finalising cost estimates and funding, and securing all necessary approvals and other permits and agreements required to progress the co-development of infrastructures."
The announcements comes after the Guinea government ordered a halt to work at the project earlier this month, after Simfer and WCS missed an extended deadline to agree on a joint venture.
Rio Tinto has held rights to Simandou since 1997. Through Rio Tinto Simfer, it owns a 45.05 per cent stake in the southern half, Blocks 3 and 4, of the deposit, with Aluminium Corp of China (Chinalco) holding 39.95 per cent and Guinea's government the remaining 15 per cent.
WCS holds Blocks 1 and 2 of Simandou.
