Rio Tinto and the Simfer joint venture(JV) signed agreements with the government of Guinea and Winning Consortium Simandou (WCS) on the trans-Guinean infrastructure for the world-class Simandou iron ore project.
Rio Tinto owns a 53% share in Simfer Jersey, which in turn holds an 85% stake in the Simfer JV.
The co-development convention with the government of Guinea and associated agreements revising Simfer and WCS's mine conventions allow the co-development of almost 600 kilometres of multi-use rail and port facilities to export iron ore from the Simandou mining concessions in the southeast.
Simfer, which is developing blocks 3 and 4 of the Simandou project, and WCS, which is developing blocks 1 and 2, will share infrastructural capacity and costs equally.
Previous term sheet agreements with WCS may allow China Baowu Steel Group to collaborate in the WCS scope for blocks 1 and 2 of the Simandou mining concession and the infrastructure joint venture.
Guinea will have to ratify the co-development convention and also approve the project's final feasibility study, among other prerequisites.
Rio said partners will continue negotiations to finalise investment and shareholders' agreements that underlie co-development.
Rio Tinto Guinea executive committee lead and copper chief executive Bold Baatar said its Pilbara and Iron Ore Company of Canada products will be enhanced by Simandou, the world's largest undeveloped supply of high-grade, low-impurity iron ore.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
