Chinese steel company
Baosteel Group and
China Railway Construction Corporation (CRCC) are to participate in the
Guinea-based Simandou
iron ore project of Aluminum Corporation of
China Limited (Chalco), as announced by Chalco spokesman Yuan Li.
In July 2010, Chalco and Australian miner Rio Tinto signed an agreement to develop the Simandou
iron ore project, holding 44.65 percent and 50.35 percent of shares respectively. The remaining five percent of shares are owned by International Finance Corporation (IFC), a branch of the World Bank. The project is scheduled to be put into production within five years, reaching an annual production capacity of 70 million mt of
iron ore.
Baosteel and CRCC will mainly carry out port and railway infrastructure work within the scope of the project. The shareholding of Chalco in the project will not be diluted.