ACH - Rio Tinto China-backed group strike JV deal for huge Guinea mining project

Rio Tinto ( NYSE: RIO ) said Thursday that its Guinea subsidiary has formed an infrastructure joint venture with the government and the Chinese-backed Winning Consortium Simandou to co-develop the Simandou iron ore mine project , paving the way for work to resume on the world's largest undeveloped iron ore project.

The JV includes construction of a 600-km railway and port to export ore from the project, but the firms said they are still working out final details on cost estimates and funding.

Rio's ( RIO ) Simfer subsidiary and WCS each will hold 42.5% of the new company, and the government will own a 15% free carried stake in the JV.

Rio Tinto ( RIO ) has held rights to Simandou since 1997, owning a 45.05% stake in the southern half, Blocks 3 and 4, of the deposit, with Aluminum Corp. of China ( ACH ) holding 39.95% and Guinea's government the remaining 15%; Winning Consortium won the rights to Blocks 1 and 2 in 2019.

The news comes after the Guinea government ordered a halt to work at the project earlier this month, after Rio and WCS missed an extended deadline to agree on a joint venture .

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