Joint venture finally goes ahead for Rio and Chinalco

San Diego News Site.Net
Thursday 29th July, 2010

The giant Anglo-Australian miner, Rio Tinto, has agreed to a joint venture with Chinese firm, Chinalco.

The formerly tense relationship between China's state-owned Chinalco and Rio has been set aside so an iron ore project can go ahead in Guinea, West Africa.

In the deal, a Chinalco subsidiary will acquire 47 percent of Rio's Simandou project by providing $1.35 billion in development money.

Company officials have said that after a period of bedding in, the two entities will run the mine to produce more than 70 million tons of high-grade iron ore annually, to mainly satisfy Chinese commodity demands.

The relationship between Rio Tinto and China became strained last year when Rio upset a planned $19.5 billion investment at the height of the financial crisis.

Rio Tinto's executive in charge of iron ore negotiations, Australian citizen Stern Hu, was then jailed in China after being convicted of corruption.

Email this story to a friend

Have your say on this story

Top Stories

Preference for geometric pattern could predict if a child is autistic or not
A preference for geometric patterns early in life could be a signature behavior in infants who are at-risk for autism, according to researchers at the University of California, San Diego School of Medicine. [read story]
Australian prime minister chosen at last
The Australian government has been returned after help form two Independent members, Tony Windsor and Rob Oakeshott. [read story]
New Obama jobs plan involves multiple infrastructure projects
US president Barack Obama has announced his government will spend billions of dollars to build huge infrastructure projects in the country, to create jobs and boost confidence in the American economy. [read story]
Terminal patients fed magic mushrooms
Dying patients in the US have been benefitting from dosages of a drug found in psychedelic magic mushrooms. [read story]
1000 people shifted out of harm’s way in Colorado fire
A wind-driven Colorado wildfire has spread across the rugged Colorado foothills, causing the evacuation of 1,000 people while destroying many homes. [read story]