Rio Tinto and Chinalco's listed subsidiary, Chalco, have completed the formation of their joint venture (JV) to develop and operate the Simandou iron ore project in Guinea, following the completion of all Chinese regulatory approvals.
As a result, a consortium led by Chalco has made an earn-in payment of US$1.35 billion, in line with an agreement reached with Rio Tinto in March 2010.
Rio Tinto and the Chalco consortium now hold a 53 per cent and 47 per cent interest respectively in the JV which translates into a 50.35 per cent and 44.65 per cent interest in the Simandou project.
The remaining five per cent is held by the International Finance Corporation, part of the World Bank. The Government of Guinea retains its options for participation in the project and is expected to take up its first share in the near future.
At 8:30am: (LON:RIO) Rio Tinto share price was +27.5p at 3442.5p
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