Rio Tinto inks infrastructure deal for Simandou iron ore project (updated)

China Hongqiao

11/08/2023 07:57

(Adds detail on agreement throughout, background in paragraph
4)
       Aug 11 (Reuters) - Rio Tinto  RIO.L   RIO.AX , on
Friday, concluded key agreements with the government of Guinea
and Winning Consortium Simandou (WCS) on the trans-Guinean
infrastructure for the Simandou, one of the world's largest
deposits of iron ore.
    The miner said Simfer -- a joint venture between Rio Tinto,
Chalco Iron Ore Holdings and the government of Guinea -- will
share infrastructure capacity and associated costs with WCS.
    The WCS comprises of Winning International Group and Weiqiao
Aluminium -- part of the China Hongqiao Group  1378.HK  -- which
have a 49.99% stake each, as well as United Mining Suppliers.
    Rio said the co-development of Simandou is subject to a
number of conditions, including Guinea approving the final
feasibility study.
    The project has been haggled over for years, with
exploitation delayed by legal wrangling and the difficulty and
cost of building infrastructure.
    "Negotiations continue between the partners to finalise the
investment agreements and related shareholders' agreements which
underpin the co-development," Rio said.

 (Reporting by Yadarisa Shabong in Bengaluru; Editing by Savio
D'Souza)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))