A memorandum of understanding has been signed between Rio Tinto and Chinalco to form a joint venture that will develop and operate the Simandou iron ore project in Guinea. The proposed joint venture company will develop and operate rail and port infrastructure and the Simandou mine. Chinalco will acquire a 47% interest in the joint venture by providing USD 1.35 billion to Rio Tinto. Rio Tinto’s Simfer subsidiary will continue to manage the development of the Simandou project after the agreement is signed. The project will also require significant additional development expenditure before it becomes fully operational.
