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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
BC
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
