Diversified mining group Rio Tinto has received regulatory approvals for the development and operation of the Simandou iron ore project in Guinea.
Following approval in China, Rio has completed the formation of a joint venture with Aluminum Corporation of China Ltd (Chalco), a listed subsidiary of Aluminum Corporation of China (Chinalco).
Subsequently, a consortium led by Chalco has now made an earn-in payment of $1.35bn.
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Rio holds a 53% in the joint venture, while a 47% interest is held by the Chalco consortium, which translates to 50.35% and 44.65% interests, respectively, with the remaining 5% being held by the International Finacnia Corporation (part of the World Bank).
"The Government of Guinea retains its options for participation in the project and is expected to take up its first share in the near future," Rio said.
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