The Simandou South project, which is worth an estimated
The Investment Framework provides the legal foundation for the project to move forward, said Rio Tinto, and comprises a set of documents that define the financial and commercial relations between the project's partners.
The IF builds on the 2002 Convention de Base, between
The signing of the framework marks a significant milestone in the project's development and provides the legal and commercial foundation for the project, said Rio Tinto, and allows the project to move towards realising the opportunities it presents for
The project partners include Rio Tinto (46.57%), the
The project comprises three principal components said Rio Tinto; a high-grade iron ore mine (at blocks three and four of Simandou) of 100 million tons per year at full production; a new 650 kilometre trans-Guinean multi-user railway to transport iron ore to the Guinean coast; a new deep-water multi-user port in the ForÉcariah prefecture.
The infrastructure and mining project will cost an estimated
The project is also set to bring economical benefits to
The parties, under the leadership of Rio Tinto, are also working together to assemble a consortium of investors who will finance, build and own the multi-user 650 kilometre railway and deep-water port infrastructure within the agreed timeframe and along procedures laid down by the Bankable Feasibility Study and involving all parties, said the firm.
"The signing of the IF is testimony to the commitment of all the partners to progress the Project and is the culmination of years of collaborative and tremendous work. We will now concentrate on progressing the plans for the development of the mine and pulling together the consortium of investors who will finance and develop the infrastructure," said
Shares in Rio Tinto were trading 0.58% lower at
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