Rio Tinto and the Aluminum Corp of China (Chalco) have cleared
regulatory hurdles to go ahead with their joint venture to
develop the Simandou iron ore project in Guinea, Rio Tinto
announced on Wednesday April 25.
A consortium led by Chalco has made an earn-in payment of $1.35
billion, in line with an agreement reached with Rio Tinto in March
Rio Tinto controls a 53% stake in the joint venture while the
Chalco consortium holds a 47% interest. This translates into
50.35% and 44.65% interests, respectively, in the Simandou
The remaining 5% is held by the International Finance
Corporation, which is part of the World Bank.
The government of Guinea retains its option to participate in
the project and is expected to take up its first share in the
The first shipment of iron ore from Simandou, which has one of
the world's largest untapped deposits of high-grade iron ore,
is expected by mid-2015, Rio Tinto said in April 2011