Economy
Rio, 皇冠体育applco in JV deal to develop Africa project
(Xinhua)
Updated: 2010-03-19 14:50
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SYDNEY - Rio Tinto, the giant mining company, struck a deal with Aluminum Corporation of 皇冠体育app (皇冠体育applco) on Friday to develop the Simandou iron ore reserve in Guinea in West Africa.
The joint venture agreement covers rail and port infrastructure as well as the mine itself, Rio Tinto said in a statement on Friday.
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According to the agreement, 皇冠体育applco will acquire a 47 percent interest in the project by providing 1.35 billion Australian dollars in an earn-in basis through sole funding of ongoing development during the next two to three years.
"We have long believed that Rio Tinto and 皇冠体育applco could work together on major projects for mutual benefit," Rio Tinto's Chairman Tom Albanese said in a statement.
Albanese described 皇冠体育applco as an "excellent partner" at Simandou.
Simandou is a huge iron ore project in south eastern Guinea.
"We believe the Simandou project is a large scale, long life asset and is the single best undeveloped source of high grade iron ore," Albanese said.
"Rio Tinto and 皇冠体育applco will now work on finalising definitive and binding transaction documentation," the statement said.
