Rio Tinto wins in Guinea

SYDNEY – World number two iron miner Rio Tinto Ltd./Plc. said yesterday it had been granted a concession by the government of Guinea to develop a new mine.

Rio Tinto, which already mines iron ore in Australia and Canada, had been exploring for new deposits in the Simandou region of the West African country under licences granted in 1997, spending more than US$30 million so far, the company said. It is now working on a preliminary economic study for the Pic de Fon deposit within the Simandou concession, Rio said, with an investment decision expected by mid-2008.The company also said it was negotiating a possible sale of five per cent of the project to the International Finance Corp., which is part of the World Bank.Also, Guinea’s government holds a right to acquire a 20 per cent stake on commercial terms if the project proceeds.The world’s biggest iron ore miners, including Rio, are locked in protracted talks with Chinese steelmakers over prices for the fiscal year started April 1.-Nampa-ReutersIt is now working on a preliminary economic study for the Pic de Fon deposit within the Simandou concession, Rio said, with an investment decision expected by mid-2008.The company also said it was negotiating a possible sale of five per cent of the project to the International Finance Corp., which is part of the World Bank.Also, Guinea’s government holds a right to acquire a 20 per cent stake on commercial terms if the project proceeds.The world’s biggest iron ore miners, including Rio, are locked in protracted talks with Chinese steelmakers over prices for the fiscal year started April 1.-Nampa-Reuters