Australian
mining giant
Rio Tinto has announced that together with Chalco, a subsidiary of
China's largest metal producer Aluminum Corp. of
China (
Chinalco), it has completed the formation of the joint venture to develop and operate the Simandou
iron ore project in
Guinea.
After receiving all the necessary Chinese regulatory approvals, a consortium led by Chalco has made a payment of US$1.35 billion, according to the agreement reached with
Rio Tinto in March 2010.
Rio Tinto and the Chalco consortium now hold 53 percent and 47 percent interests in the JV respectively, corresponding to 50.35 percent and 44.65 percent stakes in the Simandou project. The remaining five percent is held by the International Finance Corporation, part of the World Bank.
According to
Rio Tinto's statement, the government of
Guinea retains its options for participation in the project and is expected to take up its first share in the near future.