Rio Tinto increases its investments to iron ore mining project in Guinea
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Australian mining giant Rio Tinto has stated that it will accelerate the development of the Simandou iron ore project in Guinea with the approval of a further US$211 million for continued studies and US$1.117 billion of funding for commitments for early works and procurement of long-lead items. This funding will allow the project to move forward towards first shipment of ore by mid-2015.
Work is progressing on obtaining the required regulatory approvals with project partner Chalco, which, once granted, will acquire a 47 percent interest in the new joint venture by providing US$1.35 billion on an ongoing earn-in basis. Finalisation of the infrastructure investment framework is scheduled in early 2012.
Rio Tinto chief executive Iron Ore and Australia Sam Walsh said "Simandou is the best known undeveloped iron ore resource and one of the great greenfield mining projects worldwide. Development of this outstanding resource will create a major new iron ore producing province, on a par with the historic development of the Pilbara iron ore region in Australia."