London, England — 26 April 2012 – Diversified mining giant Rio Tinto and Beijing-based 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,
Chinalco “’ the Aluminum Corporation of China “’ is an investment management and holding company authorised by the state. It is the world’s second largest alumina producer and third largest primary aluminum producer. With Chinalco being the holding company, subsidiary Chalco (Aluminum Corporation of China Limited) is listed on the New York, Hong Kong and Shanghai stock exchanges.
A statement issued here by Rio Tinto reveals that, following the completion of all Chinese regulatory approvals, 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% and 47% interest respectively in the JV which translates into a 50.35% and 44.65% 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.
Source: Rio Tinto. For more information, click here.