Australian mining giant Rio Tinto announced on July 2 that it has advanced to the next stage of developing its world-class Simandou iron ore project in Guinea, approving US$170 million of further funding for work on the 95 million mt capacity project and for rail and port infrastructure.
According to a Rio Tinto statement, the $170 million investment, which comes on top of the US$650 million already spent on exploration, community development and evaluation studies, will take effect immediately, optimizing the design of the mine, mine infrastructure, rail system and port facilities, as well as enabling further work on drilling operations.
Rio Tinto also said that it will opt for an export route to the Guinean coast, as offered by Guinea's prime minister, rather than choosing an export route through neighboring Liberia.
Announcing the decision, Rio Tinto chief executive iron ore Sam Walsh said, "Simandou will be the largest integrated iron ore mine and infrastructure project ever developed in Africa. Rio Tinto's experience and expertise developing large-scale iron ore projects will enable us to bring this complex project on stream."
As SteelOrbis previously reported, Rio Tinto and Chinese resources giant Chinalco's subsidiary Chalco on July 29 signed a binding agreement to establish a joint venture covering the development and operation of the Simandou iron ore project in Guinea.
The binding agreement followed the signing of a memorandum of understanding between Rio Tinto and Chalco's parent Chinalco announced on March 19, 2010. The agreement covers all aspects of how the JV and project itself will operate and be governed, including planning, construction and management of the mine and associated rail and port infrastructure.