Rio Tinto’s
RIO,
single biggest investment over the next few years is likely to be a huge African iron ore project that could reshape global supplies of the steelmaking ingredient.
The world’s second-largest miner by market value said Wednesday it expects to contribute roughly $6.2 billion to the initial development of the Simandou mine, including port and rail infrastructure needed to export the ore.
The iron ore buried in Guinea’s Simandou mountains is among the world’s largest untapped deposits of the commodity. Its riches have been coveted by miners and investors in a market that has long been dominated by exports from Australia and Brazil.
Rio Tinto has the rights to develop the southern half of the deposit in partnership with the Guinean government and a Chinese consortium led by Aluminium Corp. of China. The Winning Consortium Simandou, which includes Singapore-based Winning International Group and China Hongqiao Group, has rights to develop the northern half, also in partnership with the government.
The capital estimates by Rio Tinto on Wednesday are “another step to unlock this world-class…
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