Australian mining giant Rio Tinto has announced that its subsidiary Simfer has received a letter from the Guinean Minister for Mines confirming the extension of its existing exploration tenure over its world-class Simandou iron ore project in Guinea,West Africa, for three months from February 24, 2011.
This would allow the ministry to examine an application for a replacement mining concession that Simfer lodged, Rio Tinto said.
"This enables the government of Guinea and Rio Tinto to continue the positive discussions under way between them, aimed at resolving all outstanding matters regarding the Simandou project," Rio Tinto said in its statement.
As SteelOrbis previously reported, Rio Tinto and Chinese resources giant Chinalco's subsidiary Chalco last year formed a joint venture covering the development and operation of the Simandou iron ore project. At that time, Rio Tinto said it had already spent more than $650 million on the project.
Rio Tinto's existing exploration tenure at Simandou project covers blocks 3 and 4, but it has been in dispute with Guinea over blocks 1 and 2, which the government gave to BSG Resources, which then sold the blocks to Brazilian mining giant Vale.