Rio Tinto to discuss Simandou with new Guinea government

Monday, 29 December 2008 10:21:47 (GMT+2)

The world's second largest miner, Rio Tinto is struggling to save the northern part of the Simandou iron ore project in Guinea, as the license granted to its lesser known rival, BSG Resources. Rio Tinto has appealed the new military leadership of Guinea to discuss the US$ six billion iron ore mine project's status and to allow it to go ahead.

The military junta canceled all mining agreements in the West African nation on December 27, following the death of President Lasana Conte this month, while Rio Tinto reopened its office, in Conakry, the capital of Guinea, for the Simandou project, which the miner has invested US$450 million to date in developing a long-term iron ore mine at Simandou in Guinea's south.

The project, in which the World Bank has a five percent stake, is in the final feasibility stages.

Rio Tinto has been looking for iron ore at Simandou in Guinea for more than a decade, and earlier this year was promoting its work there as one of its best growth prospects.

 previous article  /  next article