Top China ADR Portal

China ADR stock research

Rio Tinto, Chinalco Reach Iron Ore Accord

E-mail Print PDF

truck1 July 29, 2010 (Chinavestor) Rio Tinto (NYSE:RTP), one of the three largest iron ore miners in the world, reached a major iron ore accord with Chinese rival Chinalco, parent of Aluminum Corp. of China (NYSE:ACH) known as Chalco, establishing a joint venture to manage an iron project in Guinea in West Africa.

Under the terms of the agreement, Rio Tinto (NYSE:RTP) will sell a 47% interest in the project to Chinalco's Chalco operation. Aluminum Corp. of China (NYSE:ACH) will provide $1.35 billion to fund development work in the Simandou project over the next two to three years, according to the New York Times.

Rio Tinto (NYSE:RTP) will own 50.35% of the project and Chinalco will own 44.65% with the World Bank owning the remaining 5%. Rio Tinto (NYSE:RTP) has had a touchy relationship with China over the years. The company scuttled a $19.5 billion investment in China last year after the government there arrested four Rio Tinto (NYSE:RTP) staffers and charged them with bribery.

Rio Tinto (NYSE:RTP) employs 1,100 workers in Guinea and has spent $650 million to develop the mine Aluminum Corp. of China (NYSE:ACH)  will hold an interest in.



If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
Reddit! Del.icio.us! Mixx! Free and Open Source Software News Google! Live! Facebook! StumbleUpon! TwitThis Joomla Free PHP
 

Online Courses

We train investors and traders, help professionals be more effective in their work. See available courses.

advance_10
Register

Free weekly newsletter

Get hot China stock news every Monday