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Friday, March 19, 2010

Chinalco: Inked Deal With Rio Tinto On Guinea Iron Ore

By Chuin-Wei Yap and Yue Li

Dow Jones Newswires

BEIJING -(Dow Jones)- Aluminum Corp. of China (ACH) said Friday it has signed a non-binding agreement with Anglo-Australian miner Rio Tinto Ltd. (RTP) to develop the Simandou iron ore mine in Guinea.

The Chinese metals giant, known as Chinalco, will hold 47% of the joint venture to develop the mine, while Rio Tinto will hold 53%, it said in a statement.

Together, the venture will hold 95% of the mine, with International Finance Corp. holding the balance.

Chinalco and Rio Tinto will each send three representatives to the board of directors of the joint venture, Chinalco said.

Rio Tinto will be in charge of the venture's operations, the statement said. Chinalco will participate in the management of the venture, it said.

The expected output of the Simandou mine is no less than 70 million metric tons a year, it said. The two sides will set up a joint sales company to deliver the iron ore to the Chinese market.

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