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Rio Tinto Settled $700 Million Dispute

2011/4/27 9:03:00 21

Signing the mining agreement with Simon iron mine with Guinea

After a series of setbacks,

Rio Tinto

The iron ore project in Guinea finally turned from "yellow light" to "green light".

Yesterday, according to media reports, Rio Tinto recently reached an agreement with the government of Guinea to resolve all disputes between the 3 and 4 iron ore projects in the Simandou area.

It is alleged that Rio will pay $700 million to the government of Guinea for this project.

"The reconciliation.

Agreement

It ensured that Rio Tinto's mining rights in the West manduan area paved the way for an investment of $10 billion in the region.

In a public statement, Rio is expected to produce iron ore by 2015.

In fact, Rio Tinto won the right to exploit the project in 2003.

Rio Tinto released the 2008 exploration results that attracted Outsiders: the Simandou area's iron ore reserves are 22.5 billion tons, the total resources of the project can reach as high as 50 million tons, and the grade of iron ore also reaches 66%.

But in 2008, Rio Tinto's development rights in blocks 1 and 2 of the West Mandu iron mine were forced back by the Guinea government and subsequently recovered by BSG, an Israeli Diamond trader, Beny Steinmetz.

In August 2010, Guinea mining minister Mahmoud Thiam disclosed to the outside world the contradiction between the Guinea government and Rio Tinto, and warned that "if Rio Tinto further claims to have mine No. 1 and No. 2, it will face the danger of losing its existing shares".

According to the latest agreement signed by Rio Tinto and the government of Guinea, Rio Tinto has said that it will pay $700 million to the Guinea government to get two areas of mining rights, and will make up to 35% of the iron ore project in the West Mandu.

stock right

Gradually pferred to the Guinea government to promote the development of this iron ore project as soon as possible.

It is noteworthy that Chinalco took part in the project of the West Mandu iron mine, and the participation mode was a joint venture with Rio Tinto.

"The joint venture set up by the two sides will hold 95% stake in Rio Tinto's West Mandu project."

The statement said that Chinalco will invest a total of $1 billion 350 million in the next 2 to 3 years to the joint venture company for the capital expenditure of the project, and ultimately get a 47% stake in the joint venture.

In addition, Rio Tinto predicts that the capacity of the West Mandu iron ore region is expected to reach 70 million tons / year, and will give priority to the supply of the Chinese market.