SYDNEY, July 28 (Reuters) – Rio Tinto RIO.LRIO.AX mentioned on Thursday that its Guinea subsidiary Simfer has shaped a three way partnership with the federal government and the Chinese-backed consortium Winning Consortium Simandou (WCS) to co-develop the Simandou iron ore mine project.
The three way partnership incorporation, referred to as La Compagnie du TransGuinéen (The TransGuinean Company), shall be central for the co-development of the rail and the port elements of the Simandou iron ore growth project, Rio mentioned in a press release.
The miner mentioned the events would will now work on a “shareholding agreement, finalising cost estimates and funding, and securing all necessary approvals and other permits and agreements required to progress the co-development of infrastructures.”
The bulletins comes after the Guinea authorities ordered a halt to work on the project earlier this month, after Simfer and WCS missed an prolonged deadline to agree on a three way partnership.
Rio Tinto has held rights to Simandou since 1997. Through Rio Tinto Simfer, it owns a forty five.05% stake within the southern half, Blocks 3 and 4, of the deposit, with Aluminium Corp of China (Chinalco) holding 39.95% and Guinea’s authorities the remaining 15%.
WCS holds Blocks 1 and a couple of of Simandou.
(Reporting by Praveen Menon; Editing by Sam Holmes)
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